What’s the difference between sales and marketing? If you’re not sure, then chances are, you might not be making as much revenue as you could.
People use the term “marketing and sales” because they don’t know the difference between the two and lump them together. So let me define it once and for all.
Marketing is anything you do to attract and keep a customer. Sales is what you do to convert a lead, a customer, into sales or money. They are two very distinct functions of a business.
You’re In The Marketing Business
Peter Drucker, known as the “Father of Modern Management” said it best, “The purpose of a business is to create a customer.” Therefore, the two most important functions of a business are innovation and marketing. They are what produce results, everything else is cost.
The way most entrepreneurs operate is they are what I call the doers of the business. They are doing the work, they are providing the service, they are making the product, and whatever time and energy is left is put into marketing. That is the wrong thinking.If you want to grow your company, you need to shift your identity. You need to change from the doer of the company to the marketer. If you’re in the coaching business, then you are the marketer of the coaching business. Click To Tweet
You’re in the business of marketing your consulting service, your video filming business or your new product. Whatever it is, you are in the business of marketing.
Shifting Your Focus and Identity
Your focus is always on the acquisition, the retention, and the maximization of the value of a customer. That is your role.
When I ask entrepreneurs about their marketing budget, they give me a number between 1 to 10 percent. Or they might say something even worse.
They might tell me they rely on referrals. But what they really mean is they hope to get referrals. When I hear that, I know they’re not that serious about growing the company.
Marketing should be your business. Unless you have a predictable and consistent way of acquiring a customer, you don’t have a business, you have a hobby. You’re not a serious entrepreneur.
Make that shift, knowing that if you want to grow your company, create wealth, or build your business, you absolutely need to know that you are in the business of marketing.