Marketing, Sales and Public Relations - Simply Put!

Introduction

In the Marstan Guide "Introduction to Business Management", we said that Marketing, Sales and Public Relations are three “companions” which are fundamental to the survival, development and success of an organisation.

There is widespread misunderstanding about what is meant by these three activities and how they fit together. Many people group them together under the heading of “Marketing” or “Business Development”. It is, however, important to understand that they are three separate functions which have a very different purpose. When integrated, they have a powerful impact on the ability to generate and maintain new business.

What is Marketing?

The Chartered Institute of Marketing defines it as:

“The management process responsible for identifying, anticipating and satisfying customer requirements profitably”

This is a subtle and complex definition, but is easy to understand when its components are examined.

• The first part refers to identifying a customer’s requirements. There is often a considerable difference between the goods or services which a new business decides to provide and the needs of potential customers. It is better to identify the customer’s needs and create the goods or service which satisfy that need. For example, a few years ago companies may have identified the fact that there was a need for better ways of recycling domestic waste. The next logical step would be to find how the local authorities were collecting this waste and come to the conclusion that there was a need for households to sort the waste into several types before collection. Such an analysis would reveal that there was a need for a variety of bags and containers to facilitate the separation and storage of waste before collection.
• Businesses that would succeed in this field would have identified that waste often has to be left by the boundary of a property so that it can be collected easily. As a result, they would have anticipated that it would be more useful if the container had wheels.
• Finally, none of this would be of any value unless the need could be satisfied at a price which was affordable to the customer and profitable to the supplier.

In summary, the main purpose of marketing is:

To ensure that the customer’s needs are properly identified, produce the right product to satisfy those needs and to do so at the right price.

This means that there is a need for effective market research.

Are there any further functions of marketing?

Yes. The purpose of marketing is to “pave the way” for a sales proposal. Customers gain confidence when they have heard of the company and then hear good things about their goods or services. Every time they receive a positive message, it makes it more likely that they will do business with the company.

There are, therefore, a number of media which may be considered to fulfil this requirement, such as:

1. General advertising.
2. The production of a website.
3. Marketing events (such as seminars or exhibitions).
4. The production of promotional literature such as brochures.

Each of these serve to bring the company to the potential customer’s attention and give an impression; hopefully that the company has presence, provides a good service and is “here to stay”.

What is meant by Sales?

After the marketing process has identified the customer’s needs and the goods or services to satisfy that need, the sales process is the means by which an organisation makes a specific proposal about the goods or services that the customer needs and the price.

This can be in a number of different forms:

1. An oral statement
2. A letter
3. A formal quotation
4. A detailed response to a tender enquiry

The way in which the sales process can be managed depends on the scale and complexity of the business. It can range from an owner/manager providing all sales documentation to a substantial sales division in major companies.

The important thing to remember about the sales process is that it involves the point in the process where an enquiry moves from the general to the specific. It is also the point where contractual commitments are made.

What is meant by Public Relations (PR)?

Public Relations is the process by which an organisation maintains goodwill and mutual understanding between itself and the outside world.

The purpose of PR is to continue to inform the marketing process by ensuring that there is a planned and sustained effort to communicate with the outside world.

It also makes a contribution to the sales process by ensuring that potential customers have a positive opinion of the company before they receive a sales proposal.

Finally, good PR makes a positive contribution to the working relationship between the organisation and its customers.

There are a number of PR activities which can make up the “mix” of PR services:

1. Press releases

If a company has a story to tell, then they should present it to the Press, who are always looking for good copy.

2. Public events

There is always benefit for an organisation in being seen to be part of a community. There is no better way of doing this than being present at public events.

3. Media interviews

Customers need to have confidence that Suppliers have a good reputation in their field. There is no better way of demonstrating this than being asked to give a professional opinion on a pertinent matter in a magazine.

4. Opinion articles

Rather than wait to be interviewed, a professional opinion in a magazine, website or blog can be a powerful way of demonstrating the quality of your professional expertise.

5. Sponsorship

Companies who involve themselves in appropriate community activities are more likely to receive reciprocal benefit in the form of new orders. Sponsoring local clubs etc. can be a good way of doing this.

6. Charitable donations

Straightforward charitable donations are a perfect way of demonstrating the values and quality of the company.

7. TV or Radio appearance

Radio or (more importantly) television has a disproportionate impact on the perception of viewers; for good or bad!

How do all three functions work together?

Marketing is the vital “front end” activity. It ensures that the needs of the customer are properly researched and everything is done to prepare the customer to receive a sales proposal.

Sales is the next stage, where the company needs to move from generalities to the specifics.

Finally, PR is an “umbrella” activity, ensuring that the contact between the company and the public is expressed as positively as possible.