Understanding Your Marketing Department: How to Connect Your Products to Customer Groups
Your Marketing department is how your products and services find the right people. Without it, even great offerings stay invisible. With it working properly, you can grow your business every year and make it self-sustaining.
What This Post Will Do for You
This post will show you how three marketing functions—Targeting, Advertising, and Sales—work together to help customer groups find your products and services. You'll learn how decisions you make about which customer groups to serve affect what you build, how you advertise it, and how your sales team operates each day.
Most importantly, you'll understand what you need to build as a founder to create a profit-making marketing department. Not everything at once, but in the right order.
Why Marketing Matters for Your Products and Services
As a founder, you need to figure out which customer groups to pursue and how to solve their problems better than anyone else. You're not just looking for individual customers—you're looking for groups of customers with the same aspirations and goals who need tools to fulfill and achieve those.
Your customers are out there pursuing happiness. They're trying to solve problems, achieve goals, and make their lives better. Your job is to find the groups with needs your products and services can meet, then show up where they're looking and help them see that what you offer is what they need.
Your Marketing department does three things for your products and services:
First, it figures out which customer groups to pursue and how your offerings should stand out from competitors. Second, it builds systems that consistently bring those customer groups to your door. Third, it turns interested people into paying customers through daily sales activities.
When these three functions work together, you get predictable growth. When they work separately, you waste money and time. You advertise to the wrong people. Your sales team struggles. Your products sit unsold.
The good news? When you understand how these pieces fit together, you think and act differently. You make better decisions about what to build, who to serve, and how to grow.
The Three Marketing Functions
Your Marketing department has three main functions. Each one works on a different time scale. Each one needs different skills. And each one depends on the others to work.
Targeting: Which Customer Groups You Serve and How Your Offerings Stand Out (Years to Quarters)
What this function does for your products and services:
Targeting decides which customer groups your products and services are built for and why they should pick you instead of competitors. This is the foundation that determines everything else—what you build, how you price it, where you sell it.
You're not trying to serve everyone. You're trying to find the specific groups whose problems your products and services solve best. These groups share similar aspirations and goals. They need similar tools to achieve what they want. Your offerings either fit their needs perfectly or they don't.
Targeting answers three questions:
- Which customer groups are our products and services built to serve?
- What makes our offerings different from competitors?
- What specific value do our products and services promise to deliver?
What you need to build:
As a founder, you need to pick your customer group and stick with that choice long enough to know if it works. You need to test whether your products and services actually solve their problems. You need to write down your value promise so everyone on your team says the same thing.
This doesn't require fancy tools. It requires conversations with potential customers, research into their needs, and clear documentation of what you discover. The cost is mostly your time and focus.
How it leads your other departments:
Your Targeting choices determine what products and services you build. This is why we say Market-Product-Profit in that order. If you target the wrong customer groups, nobody will buy your products. Or even worse, only a few will buy your products but not enough to turn a profit, much less a sustainable profit.
Target enterprise customer groups and you need to build robust, scalable products with professional support. Target consumer groups and you need simple, intuitive products that work immediately. Get this wrong and you waste months or years building products nobody wants or can't afford.
Your Targeting also determines your profit model. Different customer groups have different budgets, different buying processes, and different profit margins. Some groups can afford premium pricing. Others need low-cost solutions. Your targeting choice determines whether your business model can work.
Advertising: Consistent Systems That Fill Your Pipeline (Quarters to Months)
What this function does for your products and services:
Advertising builds the systems that bring a steady stream of potential customers to your products and services. This is how you scale beyond what you can personally reach through your network.
Good advertising systems mean you don't have to manually hunt for every customer. Instead, you set up channels, funnels, and campaigns that work systematically. People learn about your products, understand what they offer, and decide they want to buy—often before they ever talk to a salesperson.
Advertising creates three things:
- Awareness that your products and services exist
- Education about what problems they solve and how
- Interest that turns into sales conversations
What you need to build:
As a founder, you need to choose 1-2 channels where your target customer groups actually spend time. You need to create content that shows how your products and services solve their problems. You need to build funnels that move people from "never heard of you" to "ready to buy."
This requires consistent effort and some budget. You might need content creation tools, email systems, and advertising spend. The exact costs depend on your channels, but expect to invest both time and money.
How it leads your other departments:
Your Advertising reveals whether your products and services actually match what customer groups need. If advertising brings lots of interest but few sales, your products might not deliver what you're promising. If advertising brings no interest at all, you might be targeting the wrong groups or positioning your offerings incorrectly.
This feedback should flow directly to your Product department. If potential customers keep asking for features you don't have, that tells you what to build next. If they don't understand your current offerings, that tells you to simplify or communicate better.
Your Advertising also determines your profit margins. Different channels cost different amounts to acquire customers. Some customer groups are expensive to reach through advertising. If your customer acquisition costs are too high, you can't make a profit no matter how good your products are.
Sales: Daily Activities That Convert Interest Into Revenue (Weeks to Days)
What this function does for your products and services:
Sales is where all your work either pays off or falls apart. This is the daily work of talking to prospects, answering questions about your products and services, handling objections, and closing deals. Without good sales execution, all your targeting and advertising just creates awareness that never becomes revenue.
Sales is your reality check on whether your products and services actually work for your target customer groups. If salespeople struggle to close, something is wrong. Maybe you're targeting the wrong groups. Maybe your products don't solve the problems you think they do. Maybe your pricing doesn't match what people will pay. Sales shows you the truth.
Sales does three things:
- Converts interested prospects into customers who buy your products and services
- Provides feedback on what's working and what's not
- Delivers the experience that determines if customers stay or leave
What you need to build:
As a founder, you need a clear sales process that anyone can follow. You need to track what messages about your products and services work and what objections come up. You need systems to follow up with prospects who aren't ready yet.
Early on, you're probably the salesperson. That's good—you need to learn what works when selling your products and services. But you also need to document your process so you can eventually hire salespeople who can do what you do.
How it leads your other departments:
Your Sales results tell you whether your products and services are right for your target customer groups. Every objection reveals something important. "Too expensive" means your pricing doesn't match perceived value. "Too complicated" means your products need simplification. "Doesn't solve my problem" means you're targeting the wrong groups or building the wrong things.
This feedback must flow to your Product department. Sales should tell you exactly what customers need that your products don't provide. What features matter most. What friction points cause people to walk away. Your Product department should build what Sales learns customers actually want to buy.
Sales also determines whether you can turn a profit. If it takes too long to close deals, you burn through capital before generating revenue. If your sales process requires expensive resources, it eats into margins. Your sales approach must generate profit, not just revenue.
How These Functions Work Together
The real power comes when these three functions work as one system, not three separate activities.
They Nest Inside Each Other
Think of these functions like nesting dolls. Each one fits inside the next.
Targeting constrains everything: Your customer group and positioning choices determine what products you build, what advertising is possible, and what sales approaches work. You can't pick the right channels or create the right campaigns until you know who you're serving and what they need.
Advertising enables sales: Your advertising systems determine what sales can accomplish. Advertising that brings 10 good leads per month needs different sales capacity than advertising that brings 1,000 leads per month. The quality of leads also matters—well-educated prospects close faster than cold ones.
Sales informs targeting: Your sales results tell you if your targeting works and if your products fit your target groups. If sales consistently closes deals and customers stay happy, your market strategy is sound. If sales struggles despite effort, you're probably targeting the wrong groups or building the wrong products.
They Operate on Different Timeframes
These three functions don't move at the same speed. Understanding this helps you make better decisions about your products and services.
Targeting moves slowly (years): Your core decisions about which customer groups to serve should stay stable for years. Changing too often means you never build market recognition or learn deeply what those groups need. But you do need to monitor—customer needs shift and what worked before may not work now.
Advertising adapts regularly (quarters): Your advertising systems should evolve every few months based on results. New channels emerge. Old channels decline. Message testing reveals better ways to describe your products and services. But these changes should serve your stable targeting strategy, not replace it.
Sales executes daily (days/weeks): Your sales operations should improve continuously through daily execution. Every conversation teaches you something about how customers see your products and services. Every closed deal or lost opportunity reveals information. But daily sales tactics shouldn't drive strategic changes about what you build or who you serve.
These Departments Lead Your Other Departments
Marketing doesn't just "fit with" your other departments. Marketing leads them. This is why we say Market-Product-Profit in that order.
Marketing → Product:
Your Targeting decisions determine what products and services you should build. If you target small businesses with tight budgets, you need affordable, simple products. If you target enterprises with complex problems, you need robust, customizable solutions.
Your Advertising reveals what messages resonate and what problems matter most to your target groups. This should directly inform what features your Product department prioritizes.
Your Sales conversations expose exactly what customers need and will pay for. Every objection, every feature request, every reason someone says yes or no should flow to your Product department.
Get your Marketing wrong and your Product department builds things nobody wants. Or they build great things for the wrong people. Or they build the right things but price them wrong. Marketing must lead Product, not the other way around.
Marketing → Profit:
Your Targeting decisions determine your profit potential. Different customer groups have different willingness to pay, different lifetime values, and different costs to serve. Target the wrong groups and you can't make a profit no matter how efficiently you operate.
Your Advertising determines your customer acquisition costs. Some channels are expensive. Some customer groups are expensive to reach. If it costs $5,000 to acquire a customer who generates $3,000 in lifetime value, you can't build a sustainable business.
Your Sales approach affects cash flow and margins. Long sales cycles mean you need more working capital. Discounting to close deals erodes margins. Sales commissions reduce profit per customer.
If you target the wrong customer groups, only a few will buy your products—not enough to turn a profit, much less a sustainable profit. Marketing must lead your profit model by choosing customer groups and building systems that make the math work.
What This Means for You as a Founder
When you understand how these pieces fit together, you think and act differently. You make better decisions about what to build and who to serve.
Start With Targeting
You can't build the right products and services until you know which customer groups you're serving. Start with conversations. Learn what problems they have and what tools they need to achieve their goals. Test whether your offerings actually solve those problems better than competitors.
What it costs: Mostly your time for customer research and strategic thinking. Maybe a few thousand dollars for market research or consulting if you need help.
What it enables: Clear direction for what products and services to build. A foundation that prevents you from wasting months building the wrong things.
Build Advertising Systems Next
Once you know which customer groups you serve and what they need, build systems to reach them consistently. Sign up for media channels where they spend time. Connect your funnel and analytics so you know what's working. Set up what you need to advertise on a regular basis.
Pick one or two channels and master them before adding more. Create content that shows how your products and services solve real problems. Set up funnels that move people toward purchase.
What it costs: Depends on your channels. Content creation might be your time or hired help ($2K-10K/month). Paid advertising could be $500-5000/month starting out. Tools and systems might be $200-500/month.
What it enables: Predictable flow of potential customers who understand your products and services. Data about what messages work and what customer groups respond.
Execute Sales Daily
Even with good advertising, someone has to close deals and learn from every conversation. Document your sales process as you learn it. Track what objections come up about your products and services. Build systems to follow up consistently.
What it costs: Your time initially, then salesperson compensation (often base + commission). CRM tools ($50-200/month). Training and ongoing coaching.
What it enables: Conversion of advertising investment into actual revenue. Critical feedback about whether your products and services match what customer groups actually need.
The Criteria for a Profit-Making Marketing Department
As a founder, you need to know what "good enough" looks like. Here's what a profit-making Marketing department must have:
For Targeting:
- Clear definition of which customer groups your products and services are built for
- Positioning that differentiates your offerings from competitors in ways those groups care about
- Value proposition that prospects understand and believe
- Validation that these customer groups exist, have the problems you solve, and will pay
For Advertising:
- 1-2 channels where your target customer groups consistently pay attention
- Content that shows how your products and services solve their specific problems
- Funnels that move people from awareness to purchase readiness
- Metrics showing customer acquisition cost is lower than lifetime value
For Sales:
- Documented process that converts qualified leads consistently
- Tracking system that captures what's working and what objections your products and services face
- Follow-up systems so no opportunities fall through cracks
- Close rates that prove your targeting is right and your products match customer needs
For Integration:
- Advertising generates leads interested in your specific products and services
- Sales closes deals that your Product department can deliver profitably
- Customer acquisition costs fit within profit margins
- Feedback flows from Sales to Product to improve what you build and how you position it
For Profitability:
- Customer lifetime value exceeds customer acquisition cost by at least 3x
- Sales cycle length allows positive cash flow
- Product delivery costs allow healthy margins
- Target customer groups are large enough to support growth goals
Making This Practical
You don't build all this at once. You build it in stages as your business grows.
Stage 1: Founder-led (Year 1) You do everything. You figure out which customer groups to serve through conversations. You learn what they need and whether your products and services solve those problems. You create content and run basic advertising. You close every sale and learn from every conversation. This is exhausting but necessary—you're learning what works.
Stage 2: Early systems (Year 2-3) You start documenting processes and hiring help. You sign up for media channels, connect your funnel and analytics, and set up what you need to advertise on a regular basis. Maybe you hire a part-time person for content creation. Maybe your first salesperson. Your targeting is clear enough to guide others. Your advertising is systematic enough to be repeatable.
Stage 3: Scaling (Year 3+) You have a small marketing team. Targeting is stable and proven—you know which customer groups to serve and what products and services they need. Advertising runs systematically with clear metrics. Sales has its own team following documented processes. You oversee strategy but don't execute everything.
The timeline varies by business, but the sequence doesn't. You need targeting before you know what to build. You need advertising before sales can scale. You need all three working together before your business becomes self-sustaining.
Conclusion
Your Marketing department is how your products and services find the right customer groups. It has three functions that must work together: Targeting decides which groups to serve and how your offerings should stand out. Advertising builds systems that consistently show your products and services to those groups. Sales converts interested people into paying customers.
As a founder, your job is to build these three functions in the right order. Start with clear targeting—figure out which customer groups to pursue and how to solve their problems better than anyone else. Build advertising systems that reach those groups consistently. Execute sales that converts interest into revenue and provides feedback on whether your products and services match what people actually need.
Marketing must lead your other departments. If you target the wrong customer groups, nobody will buy your products. Or even worse, only a few will buy—not enough to turn a profit, much less a sustainable profit.
When you understand how these pieces fit together, you think and act differently. You build the right products for the right groups at the right prices. That's how you create a profit-making marketing department and a sustainable business.
Your Marketing department is just one part of running a complete business. To understand how it leads your Product and Finance departments to create a profitable, sustainable company, explore the complete Business Cortex Framework.