Marketing Management

MARKETING INTERFACE WITH OTHER FUNCTIONAL AREAS : 

MARKETING INTERFACE WITH OTHER FUNCTIONAL AREAS

Core Functional Areas : 

Core Functional Areas

Research and Development : 

Research and Development Research and Development: focus to challenge technical problems without concerning payoffs / supervision / accountability R & D towards Marketing People: - Marketers are more interested in sales than product’s technical features Marketing Management: focus with business-oriented people pride themselves on sales promotion and feel about pay Marketers towards R & D: - R & D people only consider maximising technical qualities rather than designing for customer requirements.

Research and Development : 

Research and Development Marketers Vs. Research & Development: Company’s drive for success balanced company requires, R & D and marketing share responsibility for successful market oriented innovation R & D take responsibility - not only for innovation - but for successful product launch. Marketers must take responsibility - not only for new sales features - but for identifying customer needs and preferences

Purchasing : 

Purchasing Purchasing Management refers to “the process of efficient, effective and economical purchasing of materials to be utilized by the organization in relation to its manufacturing activities” Purchase Management: focus on obtaining materials and components in right quantities and qualities at cheap cost Purchasers towards Marketers: - marketers request purchasing small quantities of many items rather than large quantities of few items.

Purchasing : 

Purchasing Purchasing Vs. Marketers: for success Purchasing management handle all datas relating to contact with suppliers They required knowledge of supply chain, business and tax laws, invoice and inventory procedures and transportation and logistics issues.

Production/Manufacturing : 

Production/Manufacturing Manufacturing: Responsible for producing right products in right quantities at right time for right cost. Manufacturers towards Marketers: - little understanding of factory economics or politics. - see only problems of their customers Manufacturing Vs. Marketing Production planning influence the performance of production Marketing influenced by scheduling the production plan When plan and scheduling is problematic, production and marketing need to cooperate to resolve problems and need to adjust continually.

Operations : 

Operations Operations: used for creating and providing services. Example: In a hotel, Operation Department: includes front-desk people, doormen, waiters and waitress. Marketers promise the customers about service levels Operation staffs focus - their convenience - give ordinary service, whereas marketers want to focus on customer convenience and provide extraordinary services. Operations Vs. Marketers Operations concern with production of goods and services with little resource and effective meeting of customer requirements. I.e., managing the process of converting the input into output

Finance : 

Finance Finance Executives: focuses on evaluating profit on different business actions Finance executives towards marketers: Marketing people do not spend time relating expenditures to results They are not able to prove how much revenue these expenditures will produce They are too quick to sales prices to win orders instead price to make profit They “ know they value of everything and the cost of nothing” Marketing Executives: Focus on asking budgets for advertising, sales promotions and sales force Marketers towards Financial Executives: - controlling the purse strings tightly and refusing to invest in long term market development - They “know the cost of everything and the value of nothing”

Finance : 

Finance Finance Vs. marketing – Company’s success The financial management should avoid the mistake of looking marketing expenses only from the point of view of cost control. Working capital management should be taken into consideration not only by the financial managers but also by the marketing executives. Example: Samsung, a global electronics firm headquartered in Korea, improved its brand value and has recently emerged as one of the top 100 global brands because of the “combination of philosophical and methodological foundations that provides the theoretical framework and created an value of integrated marketing-finance interface which is significant to a firm”

Accounting : 

Accounting Accounting: Prepare the sales report and gives effective marketing information system Accountants towards Marketers: Lack in providing sales reports on time They enter into the special deals of sales with customers and require special accounting procedures Marketers: Requires to prepare special reports on sales and profitability by segments, important customers, individual products, channels, territories, order size etc . Marketers towards Accountants: - They allocate fixed-cost burdens to different product in the line

Human Resource Management : 

Human Resource Management HR management An integrative general management that involves identifying organization's demands for human resources with particular skills and abilities HR towards Marketers Once new product/services introduced marketing has responsibility to inform HR dept. punctually and sufficiently Marketers: The characteristics of Human resources (skill, quality, moral, commitment, attitude etc) could contribute the strength and weakness of a marketing organization.

Human Resource Management : 

Human Resource Management HR Management Vs. Marketing Management The involvement, initiative etc., of people at different levels may vary from organization to organization, and it is essentially required to manage personnel issues by the Human Resource Management in order to meet and exceed the marketing objectives.

Information System : 

Information System Information system focus on exploring the interface between management, information science and computer science Traditional hierarcy: If a customer wants to buy a particular product,, Marketing dept. - first his order arrives here Finance dept. - credit needs to be approved Production dept. - check whether the product is in warehouse Operation dept. - needs to pack the product and forward it to shipping for delivery Accounts dept. - prepare bill for customer Finance dept. - arrange for shipping insurance The flow of work and information between the different departments may not work well, creating delays or poor customer service

Information System : 

Information System provides input to marketing decisions including product improvements, price and packaging changes, copywriting, media buying, distribution etc. It is a part of an ongoing data gathering process involving initial data collection as well as routine and systematic data collection procedures.