Who’s really in the driving seat?

9th January 2025 |   Dr Colin MacKenzie and Dr Alexander C Bauer

Ever since the term “marketing” was coined there’s been a debate over whether it should take precedence over sales

The longstanding debate over whether sales or marketing should be more central to a business strategy is crucial for understanding how businesses can grow and thrive.

Each function plays a distinct role in generating revenue and building long-term relationships with customers, but the question remains: which one should take precedence? This article compares the Mackenzie-Bauer Framework of Sales Leadership with Kotler’s Expanded Marketing Process to explore this issue in depth and determine which approach provides the most value. Both models offer valuable perspectives, and by analysing them side by side, we can better understand their respective strengths and limitations.

Introducing the Mackenzie-Bauer Framework of Sales Leadership

Figure 1 below illustrates the framework of a sales-focused business. This differs from the traditional sales funnel: whilst the marketing department still helps with the generation of business, it is controlled by the department that must bring in the income, the sales department.

The Mackenzie-Bauer Sales Leadership Framework reflects the point that the antecedent of any effective sales strategy is sales leadership. For clarity, a sales leader is someone who leads a business or organisation and puts the customer/client foremost. They focus on providing everyone with the tools, motivation and development structure required to be a world-class organisation.

Crevens et al (2012) defines sales leadership as “extending beyond traditional management by requiring leaders to apply strategic insights to align sales operations with broader business goals”. However, we consider that business survival depends on sales and the above definition does not focus on ethical selling or the need for sales to achieve other business goals. We therefore define sale leadership as “the process of leading an organisation that puts ethical selling at its core, ensuring all aspects of the company are aligned with the sales mission”.

This conceptual framework has been designed to allow for bespoke adaptation, thereby showing a route for businesses or organisations to create their own unique selling proposition (USP).

Sales are seen as the lifeblood of an organisation, and marketing is relegated to a supporting role.

Where does marketing fit in?

The thrust of this argument is that sales may be the end of the “sales funnel”, but the sales strategy should be formulated first and should be the most important part of any business plan. Once the sales strategy is in place, then the marketing priorities should be the servant of the sales department and be constantly shifting to underpin all sales activities.

A business plan that shows a direct link to the overarching sales strategy is more constructive than a marketing plan that shows no connection to sales. Each department needs to work together for maximum effectiveness (Hult, et al, 2017).

It is often said that awareness is important; it is – however, awareness without sales is just that. There are many brands that we all know no longer exist; they did not suffer from lack of awareness but a lack of sales. Sales failure can be attributed to lack of agility, broken trust, products and a focus that does not position the sales connection to the customer as paramount (Friend et al, 2014).

Juxtaposing the Mackenzie-Bauer Framework of Sales Leadership with Kotler’s Expanded Marketing Process

To illustrate the difference between the Mackenzie-Bauer framework and traditional thinking we have chosen to compare it to a process by Kotler et al (2019).

The Mackenzie-Bauer Framework of Sales Leadership represents a sales-first approach in which sales leadership drives all business functions. Sales are seen as the lifeblood of an organisation, and marketing is relegated to a supporting role.

In contrast, Kotler’s Expanded Marketing Model (developed by Philip Kotler, often dubbed the father of modern marketing theory) is a comprehensive framework that positions marketing as the central function, guiding the organization’s efforts to understand and meet customer needs while ultimately generating sales as an outcome of marketing efforts.

Kotler’s Expanded Marketing Model

Kotler’s marketing model (Kotler et al, 2019) includes five distinct steps:

1. Understanding the marketplace and customer needs. This step focuses on market research, identifying customer segments, and understanding their needs and behaviours.
2. Designing a customer-driven marketing strategy. This involves selecting target markets and creating value propositions to meet the specific needs of those segments.
3. Constructing an integrated marketing programme. The 4Ps of marketing (Product, Price, Place, Promotion) form the backbone of this step, ensuring the marketing mix is optimized to deliver value.
4. Building profitable customer relationships. Through effective customer relationship management (CRM) and engagement strategies, businesses foster loyalty and repeat business.
5. Capturing value to create profits and customer equity. The end goal of the marketing process is to generate profits by building long-term customer relationships that create sustainable value for the company.

In Kotler’s model, sales are an outcome of these marketing efforts rather than the starting point. Sales come into play after marketing has paved the way by understanding the customer, designing appropriate strategies, and building relationships (Kotler & Armstrong, 2018).

The Mackenzie-Bauer Framework of Sales Leadership

In the Mackenzie-Bauer Framework, sales leadership is at the forefront of the entire business strategy. The model argues that sales strategy should guide all aspects of the business, from production and customer service to internal management and marketing (Figure 1). This framework places marketing as a sub-department of the sales department, focusing on supporting sales efforts through targeted lead generation and pipeline creation.

Key features of this way of thinking include:

• Sales leadership. Sales leaders are responsible for providing direction, motivation and resources to the entire organisation.
• Sales strategy. Sales goals and strategies are the central focus of the business, with marketing and production supporting these efforts.
• Sales-driven management. All departments are aligned with the goal of supporting sales, and the entire business value chain revolves around driving revenue through effective sales practices.

While the Mackenzie-Bauer Framework emphasises direct revenue generation, Kotler’s marketing model advocates a broader customer-centric approach, suggesting that businesses should focus first on understanding the customer, which then enables sales success.

Research had shown that effective key account management can increase both profits and revenues by up to 15%.

Comparing the two approaches

1. Role of sales versus marketing

In the Mackenzie-Bauer Framework, sales leadership drives business success. This reflects a philosophy whereby sales strategies not only generate immediate revenue but also shape the overall business structure and value chain. Marketing plays a secondary role, serving as a tool to generate leads and support the sales process.

By contrast, in Kotler’s Expanded Marketing Model marketing is the central function that leads the way in understanding customer needs and designing strategies that satisfy those needs. Sales are seen as part of the final stages of the process, not as the primary driver (Kotler & Keller, 2019).

2. Customer Interaction and feedback

The Mackenzie-Bauer Framework emphasises the importance of direct customer interaction through sales teams and all customer contact points. Sales professionals have real-time conversations with customers, allowing them to gather immediate feedback and tailor solutions accordingly. This direct link between sales and the customer provides agility and responsiveness that marketing teams may not always achieve.

In contrast, Kotler’s model advocates for a more data-driven approach, using market research and analytics to understand customer behaviour on a larger scale. This approach enables businesses to design broad-reaching strategies that can scale across multiple customer segments (Kotler et al, 2019). While marketing may not offer the same level of immediacy, it provides a more structured understanding of long-term customer trends.

3. Flexibility and adaptability

The Mackenzie-Bauer Framework promotes flexibility and adaptability, as sales teams can adjust their strategies based on direct customer feedback and changing market conditions. By putting sales leadership at the heart of the business, companies can pivot quickly to capitalise on new opportunities.

On the other hand, Kotler’s marketing model emphasises strategic planning and long-term relationship building. While this can sometimes result in slower response times to immediate market changes, it creates a strong foundation for sustained growth by prioritising customer satisfaction and loyalty over quick wins (Kotler & Armstrong, 2018).

4. Revenue generation

A key strength of the Mackenzie-Bauer Framework is its focus on direct revenue generation and on instigating a sales mind-set culture. Sales teams are responsible for closing deals and driving income, which makes this approach highly effective in industries where fast results and high sales volumes are necessary (Zoltners et al, 2009). Marketing, in this methodology, serves as a tactical function to assist in lead generation but is not the primary driver of revenue. Referrals for future sales are not the exclusive purview of the sales department but by every customer contact point. The culture extends to inter-departmental connections, where each stage in the value chain treats internal teams as they would customers to keep happy. “Internal customer relationship works best when the organization has an internal structure based on business processes as opposed to functional departments.” (Eloka, 2022).

In Kotler’s model, revenue generation is the result of a carefully constructed marketing plan that builds customer value over time. By focusing on customer needs and delivering tailored solutions, businesses can build long-term customer relationships that lead to repeat sales and customer loyalty (Kotler & Keller, 2019).

Shortcomings and benefits of each approach

The Mackenzie-Bauer Framework has the advantage of being sales-driven and agile, allowing companies to respond quickly to market demands and capitalise on opportunities. However, it risks neglecting the broader benefits of brand building and customer relationship management, which are essential for long-term success (Blythe & Megicks, 2010). A framework offers flexibility in thinking and can be adjusted within each department; however, the focus is customer service, trust building (Mackenzie, 2021) and sustainable sales (Mackenzie, 2023).

The success of sales leadership is reliant on the ability of the sales leader and leadership team (Craven, 2012). It depends on achieving a balance between driving sales and sales ethics, so leadership attributes need to include a clear focus on ethical sales (Ahli., et al 2024). Leader-follower relationships in smaller or newly formed companies should be closer and it may be that this approach is easier to install in small-to-medium companies or start-ups. This framework supports the concept of distributed leadership (Spillane, 2006), which can build a collective and aligned vision with the active and effective involvement of employees (Canterino et al, 2020) and allow greater potential for organisational change and development (Stoll and Seashore Louis, 2007).

In contrast, Kotler’s model emphasises promotion and long-term customer satisfaction and loyalty, which can lead to sustainable revenue over time (Kotler et al, 2019). However, it may lack the immediacy, tactical or nuanced responsiveness needed in highly competitive or fast-moving markets.

The Mackenzie-Bauer Framework is not a replacement for preferred effective leadership behaviours but is designed to act as a critical guide to thinking in terms of organisational set-up or reimagining. For this framework to succeed, the CEO and all the leaders within management need to align with the sales vision and approach, with tough ethical standards imposed and monitored to ensure that employees are empowered to support the sales focus – but not at the expense of reputation.

Conclusion

Once the sales strategy is in place, then the marketing priorities should be the servant of the sales department and be constantly shifting to underpin all sales activities. It follows that the marketing section in business plans should be replaced by a strategic sales plan inclusive of a supporting marketing plan. A business plan that shows a direct link to the overarching sales strategy is more constructive than a marketing plan that shows no direct link to sales.

Both approaches offer valuable insights, but neither is universally superior. The Mackenzie-Bauer Framework highlights the importance of sales leadership, direct revenue and lead generation, making it potentially highly effective in industries where quick results are essential or for entrepreneur start-ups where it can be integrated into the culture by a team of enthusiastic founders. However, the Kotler Expanded Marketing Model provides a more comprehensive framework for understanding and engaging with customers, ensuring that businesses build long-term relationships that drive sustainable growth.

Ultimately, the most effective business strategy may lie in integrating both approaches, ensuring that sales and marketing work together to achieve both immediate results and long-term success. Integrating Kotler’s model can support building trust, and sales but there needs to be a very clear connection between marketing and resulting sales.

Sales leadership is not aimed to focus on a transactional experience; it’s about creating customer value and a memorable buying experience.