The Difference between Sales, Marketing & Revenue
We are often asked what is the difference between a revenue & distribution expert, a salesperson and an expert in the area of marketing? Does my business really need three experts in their respective fields – will one not suffice?
To use the analogy of an airplane – the pilot flies the plane; the engineer ensures it stays in the sky and the flight steward is responsible for looking after the passengers throughout the flight.
In the accommodation industry, whilst they work closely together and will often complement each other, the roles of revenue and distribution management, sales and marketing entail quite different, and unique, skill sets and experience – some skills are transferable across industries, whilst others are specific to the accommodation sector.
Marketing
Marketers define who your audience is - what drives their decision-making process; the messaging required to attract and continually engage with them. They will create and build your brand - using marketing channels including your website, social media and eDM’s – to raise awareness and allow you to immediately connect with potential travellers; gain valuable insights into your clients whilst growing your brand and your business.
A marketer works in averages using data and digital insights, whilst inspiring with imagery and storytelling. They are ensuring your Product is being Promoted in the right Place and that the right People are seeing your experience repeatedly – often referred to as the ‘four P’s’ of marketing.
Sales
Building upon the foundations established by the execution of the marketing plan, the sales team begins the conversation – establishing one-on-one relationships with individuals that will, ultimately convert to sales and revenue growth for your business.
They will also identify new business opportunities, source new sales leads and undertake ongoing account management of existing clients that is critical to the sustained success and growth of your business.
Revenue
Revenue management is where it all comes together – ensuring your product is priced and distributed in the Right place at the Right time for the Right customer using the Right sales channel at the Right time to achieve maximum profit - the ‘Five R’s’ of revenue management.
Revenue professionals deal in specifics. They analyse data to predict demand – using their industry knowledge to predict movements in the market - removing the need for guesswork. The look at the pace of your bookings; what is happening in the macro and micro economic climate; analysing customer trends; what sales channels are producing and where potential change is happening – using all of these insights to determine where your rates need to be positioned.