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Explanation of the Relationship between Business, Marketing and Sales - Strategies to Succeed in Marketing. Also refer to product, service, advertising, customer, prepare, convince, Ron Kurtus, School for Champions. Copyright © Restrictions
Relationship between Business, Marketing and Sales
by Ron Kurtus (22 March 2009)
Business is the activity of obtaining and selling products or services on a continuing basis. Marketing is a subset of business and consists of the process of reaching potential customers and preparing them for the sales process. Sales is the interaction with the customer to convince him or her to buy and then exchanging the goods for money. These three processes are interrelated.
Questions you may have include:
- What is business?
- How is marketing related to business?
- How is sales related to marketing?
This lesson will answer those questions. There is a mini-quiz near the end of the lesson.
Business
A company, organization or even an individual who is in business, obtains products or services to sell to customers. Products can either be manufactured by the business or purchased from another company. Services can be provided by the business personnel or contracted out.
The objective of the company is to make a profit from the sales its products or services. Two major activities in a business are marketing and sales.
Marketing
Marketing is a subset of business. It consists of determining the need for a product or service for a particular set of potential customers and then setting a competitive price for the items. Then marketing tries to reach prospects to make them aware of what the business has available. This can be done through paid advertising or other promotional methods. Finally, marketing provides a location for the sale to take place.
Sales
Sales is often considered a subset of marketing. It is the process of meeting the prospect, qualifying for needs, demonstrating the product or service, and convincing to make a purchase. In some cases, the price is negotiated to complete the sale.
Finally, an exchange is made, completing the business process.
Summary
The processes of business, marketing and sales are interrelated. Business is the activity of obtaining and selling goods on a continuing basis. Marketing is a subset of business and consists of the process of reaching potential customers and preparing them for the sales process. Sales is convincing the the customer to to buy and then exchanging the goods for money.
See side menu for list of other Marketing topics
Know your business
Resources
The following are some resources on this topic.
Websites
Books
The Portable MBA in Marketing by Charles D. Schewe and Alexander Hiam - Covers most of marketing topics taught in MBA programs
Mini-quiz to check your understanding
If you got all three correct, you are on your way to becoming a Champion in Marketing. If you had problems, you had better look over the material again.
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Relationship between Business, Marketing and Sales