By Marcy Selva, Simpactful Senior Partner

The Consumer-Packaged Goods (CPG) industry has always been dynamic, but in recent years, the lines between Marketing and Sales roles have blurred more than ever. With an evolving retail landscape, the demand for more integrated, data-driven strategies is pushing companies to rethink the traditional silos of sales and marketing. As someone with over 30 years of experience in Sales within the CPG industry, I have witnessed firsthand how merging these functions can create a more holistic approach to meeting Retailer needs and driving category growth. However, this convergence comes with its own set of opportunities and challenges that must be carefully navigated to achieve optimal results.

The Benefits of Merging Marketing and Sales Roles

  1. Better Understanding of Retailer Needs: Marketing and Sales teams often work from different perspectives. Marketing traditionally focuses on long-term brand equity and consumer engagement, while Sales tend to zero in on short-term revenue generation. By blending these roles, teams can develop more effective Demand Creation strategies and plans that are informed by a cohesive understanding of the Retailer’s needs. Sales insights about what is working on the ground can inform marketing strategies that align with real-time Retailer demands. For example, if a Sales team observes a spike in demand for sustainable products in specific regions, Marketing can pivot brand messaging and campaigns to support those needs, tailoring promotions or product positioning to resonate better with both retailers and consumers.
  2. Integrated Data for Strategic Decision-Making: The wealth of data now available through digital platforms, social media, and in-store analytics is enormous. Merging sales and marketing allows teams to harness this data more effectively. Granular Retail point-of-sale data can inform targeted campaigns that align with consumer behavior patterns while the mining of ratings and reviews with sales trends can inform Revenue Growth Management portfolio priorities and sales strategies that inform products emphasis during retail negotiations.
  3. Fostering Category Growth: Retailers are looking for partners that can deliver solutions to help grow entire categories, not just push products. When Marketing and Sales resources are crossed trained or work hand in hand, they can offer insights beyond their own brand portfolio to provide Retailers with Category management strategies that boost the overall performance of the aisle. For instance, a beverage company could use consumer insights on the growing trend of health and wellness to help a Retailer reframe their beverage aisle, introducing better-for-you options that attract health-conscious consumers. By playing the role of a Category Advisor, rather than just a supplier, companies can strengthen their relationships with Retailers and drive mutual growth.
  4. Improved Agility and Speed-to-Market: The ability to respond quickly to market shifts is crucial in the fast-paced CPG environment. When Marketing and Sales are aligned, the company is better equipped to make swift adjustments. For instance, during the COVID-19 pandemic, companies that had tight integration between Sales and Marketing were able to quickly pivot to meet the surge in demand for certain categories like cleaning products or home cooking supplies. This flexibility allowed for faster execution of promotions, adjustments in pricing, realignment of stock and quality input to demand forecasts based on real-time sales data.

Potential Watchouts

  1. Role Confusion and Dilution of Expertise: While the merging of commercial roles can create synergy, there is also a risk of role confusion. Salespeople may feel they are being pulled into areas where they lack expertise, such as digital marketing or content creation, while marketers might struggle with the direct revenue-focused aspects of the Sales function. Without intentional role clarity, cross-training and capability development, this can lead to inefficiencies and frustration.
  2. Short-Term Focus at the Expense of Long-Term Brand Building: Another potential pitfall is the difference in how success is measured. Sales teams often operate with KPIs focused on short-term mindset, driven by quotas and immediate revenue targets. Merging the roles can lead to an overemphasis on short-term tactics, like aggressive discounting, which may undermine long-term branding metrics like Awareness, Equity, Loyalty or Penetration. Shared goals that both Sales and Marketing can rally behind, such as category growth or market share expansion can not only ensure the functions are working towards the same end result, but can also better align brands to Retailer needs.

How to Leverage the Blurring of Roles for Maximum Impact

  • Develop Cross-Functional Teams or Focus on Intentional Cross-Training: Creating blended Marketing and Sales teams or fostering cross-training through rotational programs can be powerful ways to leverage the strengths of both disciplines. Both models can help support specific retailer strategies or product development and launches, and ensure that all angles – consumer insights, retail needs, and promotional tactics – are considered holistically. This approach works particularly well in large CPG organizations where teams might otherwise be siloed. For example, a snack company launching a new line of plant-based snacks could bring together Salespeople with deep Retailer relationships and Marketers with insights into health-conscious consumers, allowing them to create a unified go-to-market strategy.
  • Invest in Joint Technology Platforms: Technology plays a crucial role in facilitating the collaboration between Sales and Marketing. Investing in joint platforms where both teams can access real-time data, track campaign performance and analyze shopper and Retailer feedback helps in aligning efforts. These platforms ensure that everyone has visibility into key metrics and progress, reducing the chances of miscommunication or missed opportunities.
  • Create Unified KPIs and Incentives: To fully unlock the potential of blending Sales and Marketing, it is important to create unified KPIs and incentives that encourage both teams to work towards common goals. This can include shared bonuses for hitting category growth targets or team-based incentives for successful product launches. When both teams have skin in the game, they are more likely to collaborate and share insights, benefiting the entire organization.

Where It Works: Real-World Examples

  • A Leading Global CPG Company Applies a “Store Back” Approach: This strategy prioritizes understanding critical Retailer needs first and then Sales & Marketing resources work together to develop commercial strategies that drive both brand growth and retailer success. By collaborating closely with Retailers, their customer teams can co-create promotional strategies and category management plans that benefit both parties.
  • Another Global CPG Company Uses “Agile” Teams: This company has been a pioneer in forming agile cross-functional teams that blend Marketing, Sales, and even Product Development in a commercial unit. These teams are tasked with rapid innovation and go-to-market strategies that respond quickly to Consumer and Retailer feedback. This approach was instrumental during the launch of their sustainable products, where real-time adjustments were made to product placements and promotional strategies based on both Retailer needs and Consumer demand.

Conclusion

The blurring of Marketing and Sales roles in the CPG industry reflects the evolving demands and opportunities in today’s retail landscape. When done right, this integration can unlock new opportunities for category growth, deeper Retailer relationships, and faster speed-to-market. However, companies must navigate the potential pitfalls by maintaining clear role definitions, aligning KPIs, and fostering a culture of collaboration. With the right approach, the fusion of these functions can be a powerful engine for success in today’s competitive marketplace.

Simpactful can help! Simpactful has helped numerous Consumer Product Companies (both large and small) rethink their organizational, decision-making, culture and collaboration approaches to better meet the needs of the channel. Our CPG practitioners have the required experience to help you create commercial powerhouses to win in today’s competitive environment. Contact the Simpactful team today at contact@simpactful.com or 925-234-6394. Visit www.simpactful.com.