What is the difference between marketing, advertising, and sales?
And why they are separate functions even though the end goal is the same
At a podcast recording earlier this year, the interviewer had asked me this question: How would you differentiate between these three functions - marketing, advertising, and sales?
As I answered, I realised how good a question it was. The difference between these three functions is not entirely clear all the time, and more so in startups.
Why, though? Because they are all seen as part of the GTM puzzle. But it’s not that straightforward.
However, there is a way the distinction can be easily understood. Like with most things, as a story.
The marketing insight
Earlier this quarter, my boss had asked me to compile the marketing strategy we had formulated into a narrative document that could be shared with everyone in the company.
The first sentences I wrote in it were these:
Marketing is always based on a key insight. The key insight could be about the product, domain, the customers, or the distribution channel. And the key insight determines the strategy and tactics we will use to get to the goal.
And here starts my answer.
Marketing, advertising, and sales
Consider Fogg, the body spray brand.
Launched in 2011, the brand’s key marketing insight, uncovered by careful consumer research, was that value-conscious Indian consumers were frustrated by deodorants losing their effectiveness quickly. The perception was that these sprays were just full of gas, not actual perfume.
Building on that insight, Fogg launched with a clear differentiation: More perfume, less gas. The product was designed on that premise. The price point was also accessible, more value for consumers looking for a good deal.
This is marketing.
With this differentiation clear, Fogg launched great advertising campaigns, like the "Kya chal raha hai? Fogg chal raha hai" spots, followed by the “Bina gas waala spray”, and so on. These were easily some of the most recognisable ad campaigns of the last decade, and helped Fogg build amazing recall.
To conceptualise, create, and air these ads, there is immense creativity and media strategy involved. Fogg’s team had to come up with the ideas, shoot the ads, then decide where to spend the ad budgets, which channels and audiences to target, which sports programming to buy, and so on.
This is advertising.
When both of these are done, people have to find the product and buy it. Fogg’s team had to build extensive distribution networks and make sure the product was available wherever and whenever people want to buy it. The innovation here was to take the product to kirana and grocery stores, instead of placing it only in premium shopping spaces, where traditionally the category was bought from.
Because of the success of the ad campaigns, consumers wanted the product, and wherever they looked for it, Fogg was available.
This is not as easy as it sounds. Building sales networks, transportation and distribution chains, incentivising shops and shopkeepers to stock and push the product, all of this is a lot of work, and Fogg had to do it well, with a long term vision and a short term plan.
This is sales.
When all these functions work together, as they did for Fogg, a great business can be very quickly built.
Earlier in the decade, Axe owned almost 13% of this category in India. By the end of it, Fogg was ahead of everyone, owning 21% of the category, and speeding ahead with every year.
Differentiation and positioning
Go back to what I wrote in the beginning: Marketing is always based on a key insight. And differentiation follows from there. That’s the starting point.
This is also something we have discussed in this newsletter multiple times, that you have to start with the positioning. And the positioning has to come from research, or from innovation.
With Fogg, it was both. And they backed it up with great advertising and incredible distribution.
That’s the lesson here. You may now know the difference between the three GTM functions, but to make them all work together is still a lot of well, work.
If you are new here, you can subscribe below to join 4000+ founders and operators for new essays on startup marketing every Monday evening.
Would love to see you around!
PS - We are looking for a marketing intern and a Webflow developer for my team at Atomicwork. Please apply, and if you know someone who’d be a good fit, send these to them!