Consider a company where marketing and sales are two different departments. Their customers are other businesses. Using both the buying center and buying process, describe what the marketing department actually does. What do salespeople actually do?

 

Answer:

Difference between marketing and sales department of an organisation

Definition - Marketing is systematic planning and control of business-related activities that aim at bringing buyers and sellers together. On the other hand, a sale is an exchange of goods/commodities/services between buyers and sellers.

Approach - The marketing department revolves around the sale of goods/services, client relationships, and more. Whereas, the role of the salesperson is to make sure that the customer demands are being matched by the company.

Process - The process involved in the marketing of a company involves an analysis of the market, distribution channel of the product, competitive products, pricing strategy, budget strategy and more. The process involved in sales is usually one on one interaction.

Priority - The ultimate priority of the marketing department is to build a long-lasting relationship with the customers, whereas the ultimate priority of the sales department is to sell the product of the company.

Buying centre of a business

A company where customers are other businesses, there isn't a single person involved in the buying process. Various people play different roles and functions in the purchasing decisions. A business buying center includes various participants such as:

i. Initiator - Initiators are the people who begin their role by defining the needs of the customers. Initiators are also called 'Champions'.

ii. Decision-makers - These are the people who make the ultimate decisions for the organization.

iii. Gatekeepers - Gatekeepers are responsible for the flow of information in the organization. They control and access the individuals.

iv. Budget owner - Budget owners are the people who pay a budget for a purchase.

v. Users- These are the people who ultimately use the product/service.

Buying Process of a Business

The business buying decision comprises 5 distinct stages. Every stage requires a different decision-maker. These stages are:

Awareness and Recognition - This stage identifies a need for the purchase. It includes replacement of existing items, replenishing stocks, and buying a new product available in the market.

Specification and Research - Under this stage, a detailed specification that sets out quantities, performance, and technical requirements is prepared. This stage is supported by the sales and the buying teams of the company.

Request for proposal - When the buying team is through with identifying potential suppliers, it requires a detailed proposal from the supplier of the company. A request for a proposal outlines a requirement and helps in inviting potential suppliers.

Evaluation of Proposals - The buying team under this process evaluates the proposals made by the supplier in the previous stage against the price, performance, and value for money. This stage also involves the assessment of the supplier on factors like financial stability, corporate reputation and more.

Order and Review Process - This is a stage of negotiation, discounting, and financial arrangements along with confirming delivery dates and handling contractual matters.

Overall, marketing and sales are two different departments where different functions are performed but an organization often faces a situation where the roles of both the departments are intertwined. Every organization consists of different buying centers and buying processes. A company must ensure that each element of the buying center is taken into account.