TERMINOLOGY

Presentation By:Ravi M. Kulkarni

2BV14MBA30

Marketing and sales are  both  aimed  at increasing  revenue.  They  are  so  closely intertwined that people often don’t realize the difference  between  the  two.  Indeed,  in  small organizations,  the  same  people  typically perform  both  sales  and  marketing  tasks. Nevertheless, marketing is different from sales and  as  the  organization  grows,  the  roles  and responsibilities become more specialized.

CONTRAST

Marketing Broader range of activities to sell product/service,

client relationship etc.; determine future needs and has a strategy in place to meet those needs for the long term relationship

Salesmakes customer demand match the products the

company currently offers.

Marketing Overall picture to promote, distribute, price

products/services; fulfill customer's wants and needs through products and/or services the company can offer.

Salesfulfill sales volume objectives

Marketing Analysis of market, distribution channels,

competitive products and services; Pricing strategies; Sales tracking and market share analysis; Budget.

SalesUsually one to one

Marketing Market research; Advertising; Sales; Public

relations; Customer service and satisfaction .Sales Once a product has been created for a customer

need, persuade the customer to purchase the product to fulfill her needs.

MarketingPullSalesPush

Marketing Marketing shows how to reach to the Customers

and build long lasting relationship.SalesSelling is the ultimate result of marketing.

Marketing Marketing targets the construction of a brand

identity so that it becomes easily associated with need fulfillment.

SalesSales is the strategy of meeting needs in an

opportunistic, individual method, driven by human interaction. There's no premise of brand identity, longevity or continuity. It's simply the ability to meet a need at the right time.

Sales vs Marketing Activities

The typical goal of marketing is to generate interest in the product and create leads or prospects. Marketing activities include:

• consumer research to identify the needs of the customers• product development –  designing  innovative  products  to  meet  existing  or  latent 

needs• advertising the products to raise awareness and build the brand.• pricing products and services to maximize long-term revenue.

         On the other hand, sales activities are focused on converting prospects to actual paying customers. Sales involves directly interacting with the prospects to persuade them to purchase the product.

      Marketing thus tends to focus on the general population (or, in any case, a large set of people) whereas sales tends to focus on individuals or a small group of prospects.

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What is supply chain management ?

• First one is that practically every product that reaches an end user represents  a cumulative effort of multiple organizations. These organizations refers collectively as a supply chain.

• The second idea is that while supply chain have existed for a long time , most organizations have only paid attention to what was happening within their “four walls ”. Very few organizations realized about delivering goods to final consumer .

• SCM is the active management supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

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Meaning:  Supply chain:      Network of organizations and business process for procuring 

materials, transforming raw materials into the finished products and distributing the finished products to the customers.

Supply chain management :   Integration of suppliers , distributors and customer logistics into one cohesive process.

   Supply chain management process: information system that automate the flow information between a firm and its suppliers in order to optimize the planning , sourcing , manufacturing and delivering of products and services.

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SCM objectives:     SCM outcomes:

What?Establish policies , objectives and  operating footprints.

How much?Deploy resources to match supply  with demand .When ? Where?Schedule , monitor , control  and adjust production.

Do:Build and transport.

Objectives.Supply policies(service levels).

Network design.

Demand forecastProduction ,procurement &logistic plan

Inventory target.

Work center schedulingOrder/inventory tracking

Order cycleMaterial movement.

Strategic

Tactical

Operational

Execution

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Business value goals:Rapid demand fulfillment.

Collaborative supply chain planning and 

execution.

Customer value goals:Give customer what they want , when and 

how they want it , at low cost.

Enterprise coordination of 

manufacturing and business process.

Effective distribution system

Responsiveness and accountability to 

customers.

Objectives of SCM

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            upstream

downstream 

             fig: an example of supply chain.

supplier

supplier

supplier

supplier

supplier

supplier

manufacturer distributer retailer customer

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Each interface in the supply chain represents:Movement of goods

Information flowTransfer of title

Purchase and sale

Strategic SCM consists of developing smarter ways to:Choose Buy from and Sell to your business partners

Raw material

Component 

Manufacturer 

Retailer 

Consumer