A View From the C-Suite Marketing vs. Sales: Understanding the Difference By David Lykken
OCTOBER 2010
NORTH CAROLINA MORTGAGE PROFESSIONAL MAGAZINE
NationalMortgageProfessional.com
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If you walked up to most anyone in our ing efforts are only costing you money industry or any industry for that matter and not making you money, you are and asked them, “What is the differ- not alone. By in large, the mortgage ence between ‘sales’ and ‘marketing?’” industry is not known for its marketing you would be surprised at how many prowess. To many in the mortgage different answers you would receive. industry, marketing is a mystery. But in For many, the words “sales” and “mar- reality, the subject of marketing comes keting” are mistakenly to all of us naturally and used interchangeably. at a young age. Think These terms are not interback to our single days changeable, and it is when that “special someimportant that we estabone” caught our attenlish a solid definition for tion. One way or another these two words and have we found a way to “mara thorough understandket” ourselves to those ing as to their differences. that caught our atten“Sales” is an act or tion. Clearly, some excel effort of persuading or at marketing more than influencing someone to others, which is why I enter into a relationship hope to make a differ“Those who want to with you and/or your ence with this article. company for the purpose Bigger companies achieve extraordiof exchanging (transacthave a chief marketing nary success have to ing) something of value officer (CMO) occupying take ownership and for products and services personal accountabil- the “C-Suite” along with being offered by you all the other C-Level ity for their own and/or your company. At executives (see last marketing.” its core, selling or sales is month’s article for an transactional in nature. explanation of the “C“Marketing” on the other hand, is Suite” and C-Level executives). But, your effort to communicate informa- the vast majority of companies in our tion about yourself, your company industry don’t, and it is painfully and/or your products and services to obvious. That is why I advise you to those with whom you would like to have the attitude that you are pertransact business. At its core, market- sonally responsible for your own ing is all about communicating a mes- marketing. Even if your company has sage. a marketing department with a good While sales and marketing are marketing strategy, you should never uniquely different, they share one rely on anyone else’s marketing common goal and objective … and efforts to achieve your goals and that is to make money! If your market- objectives. If you do, you are putting
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your fate in the hands of another and that compromises your potential for success. Those who want to achieve extraordinary success have to take ownership and personal accountability for their own marketing. I was recently talking to a very successful originator and asked him, “What has been the key to his success?” And I should point out that he worked for a company that had an excellent marketing plan. His answer was refreshing and highlighted what I am talking about. He said, “While I am grateful for all that my company does in the area of marketing to generate leads for me, I have learned that if I am be successful at all times and in all market conditions, I cannot fall prey to becoming dependent upon someone else’s efforts to do something as important as marketing.” He went on to say, “All it takes is one cut in the market budget and I could be in trouble. I believe it is my responsibility to do all that I can in conjunction with what my company does to market myself, my company and our products and services.” Obviously the best of all scenarios is if your company has an effective marketing plan. Whether you work for a Wells Fargo, Bank of America or a oneperson shop, to be successful, you must have your own marketing plan/strategy and you must work the plan consistently. The best part is that a good marketing plan doesn’t have to cost a fortune and you don’t have to be a creative genius. The key is developing a marketing strategy that fits your business plan. It will serve as a solid foundation for your target market. You can develop a strong marketing plan by taking the following steps:
1. Determine that you are your primary product I would suggest that when it comes to the mortgage business, you are your primary product that needs to be marketed. The color of money is the same at any mortgage company. The 30-year fixed-rate mortgage loan is the same across the industry, but who is offering that 30-year fixedrate loan product varies by the same number as those offering the product. People make the difference in this industry. It is truly a relationship-driven business. So, you would do well to identify what makes you unique. The greatest differentiator is you! Identify those strengths that are unique to you and publish them loud and clear.
2. Determine your target market You might think that everyone and anyone might be potential prospect. That approach lacks focus and will eventually fail. Once you determine who you are, I would suggest you identify with whom you enjoy working with. By doing so, you are well on your way to identifying your target market upon which you would do well to focus all of your efforts. When I was a loan officer 30-plus years ago, I chose the purchase market. It became my target market, and I did very well at it. What amazes me today is the number of loan originators that don’t like or respect Realtors, yet they have chosen to focus all their efforts on the purchase market. Folks, if you do not enjoy working with Realtors, you should forget focusing on the purchase market. You’d do better to consider a consumer-direct marketing strategy. There is another old saying that goes something like this, “Find a career doing something you love to do and you’ll never work a day in your life.”
3. Your competition There are two primary ways to view your competition. They are either “friend” or “foe.” One perspective is by nature negative and usually based on insecurity. The other is positive and based upon a confidence/secure outlook. There is nothing better than a healthy relationship between two competitors to make each other stronger which will, in turn, typically help them to do a better job serving their common markets. We have several clients that are competitors in the same community where one company referred us to the other … again, one of their competitors. I have respect for these types of companies and individuals. I have come to recognize a common denominator amongst the most successful companies and individuals … they commonly have good relations with their toughest competitors. Given the fact that we have so many external threats aimed at our industry, doesn’t it make sense to get to know and collaborate with others in our industry and within our own markets? If you haven’t already, get to know your competition. It will be good for both of you.
4. Identifying your niche As I mentioned above, my target market for years was the purchase market. But within that market, I developed a real niche with the first-time homebuyer market. A number of my competitors, most of whom were friends, focused their efforts on the refinance market. When rates dropped, they