MARKETING AND THE ORGANISATION
1. Marketing and the organisation: The design of the organisation needs
to give effect to the chosen orientation of the company. If the marketing
concept has been accepted, it must be applied through every level of the
organisation.
1.1 Relative importance of marketing in the organisation: The
marketing concept stresses the importance of the customer to the
organisation. The essence of marketing is to co-ordinate and co-operate
with other departments within the organisation.
The marketing concept stresses the importance of the customer as the
foundation of the business. If products and services are not designed and
marketed to meet the customer's requirements, the business will
eventually fail. Because of this emphasis on the customer, and because
the marketing function is most closely concerned with identifying,
anticipating and serving customer requirements, some would argue that
marketing is a more important function than others. It is not a question
of dictating policy or operations, although in some radical approaches to
marketing this has been done. The essence of marketing is coordinating
and co-operating with the other departments that exist only because
there is a market for the products or services of the company.
1.2 Relationship between marketing and other functional areas: In
most companies the relationship between marketing and other
functional areas is one of intra-company co-ordination of functions.
Many companies have separate marketing, distribution and
manufacturing divisions. In such cases the marketing division assesses
the market, performs all the selling functions and buys in supplies from
its product divisions. The relationship is similar to that of a wholesaler
,buying from a supplier, except that in the latter case the wholesaler will
have freedom to choose his sources among competing suppliers.
However, for most companies the relationship between marketing and
other functional areas is one of intra-company co-ordination of functions
such as personnel, purchasing, production, finance, research and
development, as well as reconciling conflicting interests within the
marketing function itself. For example, the marketing function will often
want as much product variety as possible to meet differing customer
requirements, whereas the production function may seek to standardise
products in order to achieve smooth and efficient production planning
and control. The accounts department will seek to reduce the amount of
credit offered to customers, whereas marketing may stress the
importance of extending credit terms as powerful customer incentive.
1.3 Achieving marketing orientation – the role of marketing: The
marketing concept often requires a change of structure of an
organisation.
The function of marketing is to represent the customer's viewpoint to
the rest of the company, based on rigorous appraisal of market facts and
sound argument.
Implementing the marketing concept often requires a number of
changes in the formal structure of an organisation. It takes more than
new job titles, or changes in authority and control. Frequently, such
changes lead only to resentment and antagonism. The function of the
marketing department is to represent the customer's viewpoint to the
rest of the company, based on a rigorous appraisal of marketing facts
and sound argument.
It is not the function of marketing to dictate the overall objectives and
policies of the company; that is the responsibility of top management.
, Senior management has to establish the basic organisation and prescribe
the means of co-ordination. All the business functions, in particular
senior management, must recognize the marketing concept as a guiding
philosophy of the business.
1.4 Importance of good liaison: Liaison between the various
departments of the organisation is essential. Front-line staff need the full
co-operation of the other departments, and marketing should keep
other departments fully informed at the varying stages of ordering,
contracts and payment of goods.
Any problem experienced at any stage of a transaction should be brought
to marketing's attention immediately.
2. Strategic implications of marketing orientation
2.1 External changes: A company's change to a marketing orientation
will be evident to people outside of the company. It is not much use if
attitudes change inside the company but there is little change to the
external activities.
The change from a selling orientation to a marketing orientation as
follows:
Selling is concerned with the needs of the seller, whereas marketing is
concerned with the needs of the buyer. Selling is concerned with the
seller's need to convert his product into cash; marketing is concerned
with satisfying the customer's needs through the product and everything
associated with creating, delivering, and consuming it.
As the company changes from sales orientation to marketing orientation,
changes in its strategy will be evident to people outside the company in
various ways. Let us look at some of the more significant strategic
changes.
