Marketing Myths:

MYTH: Sales and Marketing are the same.

FACT: Sales and Marketing are two distinct but interdependent branches of the same discipline, properly called Marketing. Marketing-- and its elements of promotion, distribution, pricing and product design--determines target customers given a company's products and objectives, assuring strategic balance between product value and customer needs. Sales--part of the promotion and distribution elements of marketing--communicates the value message directly to the customer. Sales educates the customer, answers key questions, and builds long-term relationships. Marketing without effective salesmanship squanders opportunity. Salesmanship without effective marketing creates frustration, unnecessary expense and wasted time.

MYTH: Price determines customer purchasing habits.

FACT: A strong brand reputation and perceptions of long-term value can determine purchasing habits much more strongly than price. Companies with strong brands and reputations typically command product prices of 25 to 100% more than generic equivalents. This is called "brand equity."

MYTH: The customer is always right.

FACT: The customer is often confused about his or her needs and desires, or misreports them. For example, television viewers consistently report that they desire more educational content even though this programming category is one of the least watched and survives mainly through non-commercial channels.

MYTH: A larger sales force means more sales.

FACT: Without proper organization according to the realities of size of sale, sale frequency, customer characteristics, and geography, a larger sales force can reduce profitability by costing more dollars to the company than the incremental amount of sales created by additional staff.

MYTH: If the existing product line produces a profit, the line must be sufficient to meet the company's goals.

FACT: Even if the product line shows profitability, one or more products may be causing costly service problems or generating unnecessary costs.


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