Microfinance Focus, Jerome Peloquin : What is the difference between sales and marketing?   If you are in sales, can you be a marketing rep?  Well, not to be too equivocal: yes and no.   A definition of Marketing:  It is the management and administration of the four “P’s” (Price, Place, Product, & Promotion).  Marketing provides the answers to these four questions:  (1) How much do we sell it for? (2) Where and to whom do we sell it?  (3) What is it that we sell? and, (4) How do we get people to know about it?
 
In a misplaced effort to raise the perception of marketing as a higher function, management (and many business school professors) has often confused the two.  Marketing is a support function, whereas Sales has “line” responsibilities.  Sales is responsible for the top line on the balance sheet—Revenue.
 
Sales is different from marketing.  It is informed by Marketing.  It applies the output of Marketing.   But, it is NOT Marketing.  The function of the Sales department is to generate revenue, not create awareness.  If your principal job involves selling loans to borrowers, then you are a financial services sales rep.  If you sell loans, take applications, disburse funds and manage the repayment of these loans, you may also be a loan officer, but you are definitely a salesman.
 
Microfinance Institutions (MFI’s) have a need to constantly increase the size of their loan portfolios.  This results in larger loan and larger borrower populations with increasing portfolios.  How can this be done at a reasonable cost and while maintaining control over both Marketing and Sales?  First, establish a Marketing department and a Sales Department, and do not confuse the two.  Let Marketing develop financial products, position the sales people, design the promotional campaigns, and create the sales literature.  Separate Finance from Marketing—you need different people in each.  Marketing personnel can use the financial expertise of your finance department, but you need Marketing experts to create products, not financial experts.
 
Now, what does this have to do with technology?  Remember, technology is one of many tools you may apply to do your job.  There are sales tools and marketing tools, and they are not the same.  Sales tools are pro-active, and mostly used to organize, present, manage and control the sale to the customer.  Marketing tools are analytical, organizational, communicational, and presentational.
 
By the way, do not try to make your sales people into loan officers, either!  Give them a set of criteria, and let the Branch manager make critical decisions.  These people are your sales force.  Don’t try to make them do too many jobs.  Use technology, like MIFOS and customer relationship management (CRM) tools like SugarCRM, to support their performance and simplify the record keeping process.  Use technology to keep down headcount and empower the existing staff.  Remember, above all else, do not confuse Sales and Marketing.  And remember, I’m watching.