We’ve been receiving lots of questions about marketing and sales and which one is more important.
So in today’s video we are looking at..
- The relationship between marketing and sales
- Why marketing and sales are both important
- What it means to have a low or high conversion rate
- The impact of your marketing strategies
We are talking about the four quadrants on the marketing and sales matrix and you will be able to find out where your business is currently at and what you need to work on to grow your business.
Feel free to leave a comment below, we love hearing from our viewers. You can also send your questions in to [email protected] and we’ll look after you.
Franziska: Hi and welcome to this video tip. What I wanted to talk about today, quickly, is the relationship between sales and marketing and I hope you like my little drawing here. The reason why I’m going to talk about this is because lately, a lot of people have been asking us a little bit about what exactly is the difference between marketing and sales and it also made me think about the relationship between those two because I do believe that if your marketing is amazing and if you have great marketing systems in place, sales will become easier. But I just want to illustrate quickly what this means and what the relationship between sales and marketing is. Now, marketing are all the activities that bring the clients to your door. So, marketing means everything you do, that’s everything, that brings prospects to and clients to your door and sales is everything you do to get them across the line, so that’s your conversion.
So let’s look a little bit at how these two work together and how you can change things so that you have more leads and more conversions. So, the leads are your prospects. So let’s start over here. You can see, this is the marketing axis and this is the sales axis. So, over here, we have 0 sales and here we have 10, which is great, that’s the top. And marketing, same here, we have 0 marketing, marketing is really bad, the systems are bad. And up here we have really good marketing systems.
So, in this quadrant here, what we have is because you can see the marketing, it’s not very good so the marketing systems don’t really work in this business. So they don’t have… They have a small number of leads. They don’t have a lot of leads or prospects coming through the door. But what’s interesting is you can see is the sales are really high. So over here, the sales are high. So, they only have a small number of leads but the conversion rate on those leads is really high. So they convert a lot of people. Now, we see a lot of local businesses, a lot of established businesses that have been established for a while or that are local and well known in the community and popular because they focus on great customer service. They often stand or sit in this quadrant. Now, also why a business would be in here is because even though they have a small number of leads only. They have a really good match with their customer. So, whoever they attract is interested in their product or services, so which, you know, makes sense because it just means that they are doing the right sort of marketing. They don’t do a lot of marketing because they don’t have a lot of leads but whatever they do, they attract the right type of client.
Now, over here, that’s where you don’t want to be at all. In here you have, you can see, a really small number of conversion. So, the conversion is really bad because the sales are not working. Their conversion rate is bad and also marketing. Marketing is not really working; they don’t have proper marketing systems in place, they have a small number of prospects and the prospects that do come into the door, through the door, they don’t convert. So they probably attract the wrong people or they have not a very good high quality product or service or the customer service doesn’t work. So, in here, you don’t want to be… You don’t have a lot of prospects and your conversion doesn’t really work either.
Now let’s move up here. Up here you’ve got, you can see on the sales, you have a low conversion rate. The customers that come in again, they don’t really convert. But if what you do have is great marketing systems in place. So you can see the marketing is up here at the 10, that means that they have a lot of prospects coming to the business but the conversion does not work. So lots of people coming to the business but not a lot are buying. Now, again, similar reasons down here why people are not buying, probably because their marketing is targeting the wrong people, so they have a wrong positioning in the market and also the message that they put out there doesn’t really match with the market; so they do attract people but they don’t buy. That could be one reason. Another reason could again be that their stuff is not appealing, so the product or service is not appealing to people so that’s why they don’t buy. Or they have bad customer service and people just go away and buy somewhere else because there is someone around the corner that has a similar product or service that they can buy that are nice. That’s really important but that’s all other topic.
Now, best place to be is over here. And over here you have, you can see you’ve got great marketing systems in place, so lots of leads, and also you have a high conversion. So lots of people come to the business and you also convert a lot of those people that come to your business. So, you obviously drive a lot of money through your business. And that’s where you want to be. Now, honestly because you can see these ones here are not the best, well this one is definitely not the best place to be at all, you don’t want to be here, but all of them, it does not matter where you are and your business. May be have a little think about your own business. Where do you think you are on this model and then you know, it’s not a problem if you are down here, well there’s a little bit of problem down here, but it’s not that bad because you can always move to here. So, just maybe have a little sit down with yourself and your business and look at where do you think you are in this scheme, in this model, and look at how you could move up to here because if you do have a lot of leads but a small conversion, there is something wrong in your process to sell or you are attracting the wrong people. So just analyze your own business and then hopefully you fix and you realize where you need to fix your systems, your marketing and sales systems. And over the course of the next month, we will look at a lot more lead generation strategies, marketing strategies and systems that you can use. And probably also with a some sales ideas and sales conversations that you can have. So don’t worry, wherever you are, you will be fine hopefully unless you have a product or a service that really nobody wants to buy but if you do have a product or a service that people want to buy, you will be fine.
Alright, thanks for listening. That’s it. Bye.
Franziska: If you like this video, please share it on your social media networks. You can share it on Facebook, on Twitter, on Google Plus. You can even like the video below. And also, please leave us a comment below just so you help us spread the love. And share it with your friends and family. Thank you so much.
Christo: Yes, and if you would like more marketing tips and tricks for small business, go to BasicBananas.com and leave your name and e-mail address and we will definitely send you some cool stuff.