Marketing and the Organisation

Integrated MarketingProblem: Not all organisations employees are trained or motivated to work for the customer and the marketing department does not have the support of other departments or senior management and therefore do not have the authority to make decisions that are beneficial to the customer. A successful integrated marketing mix system is based on two levels:Level 1- the various marketing functions must work together (salesforce, advertising, customer service, product management) co-ordinated from the customers viewpointLevel 2- Marketing must embrace the other departments to also "think about the customer"

ExamplesXerox putting an explanation into every job description about how that job effects the customer. 

Internal Marketing The task of hiring, training and motivating able employees who want to serve customers well.2 methods designed to help minimize internal conflict and allow marketing and other departments to work together:1. Organisational DesignInverting the traditional organisational chart so that customers are at the top and senior management at the bottom. Pfeffer- "Organisational design is the process of grouping activities, roles or positions in the organisation to co-ordinate effectively the interdependancies that exist... the implicit goal being to achieve a more rationalized and co-ordinated system of activity"In order to have a successful organisation design the organisation needs to have a structure in place to implement the following:Allocating tasks and responsibilities to individualsDesignating formal relationships leading to hierarchical levels and spans of controlGrouping individuals into departments, departments into divisionsDelegating authority and evaluationProviding systems for appraisal and reward2. Planning orientationBenefitsEffective communication- from all departmentsMotivates- clearly shows what is required of each member of the organisationShould lead to better decision making- involves looking at all factors of the organisationEncourages a favourable attitude towards change- better prepared to reactEnables standards of performance- all departments can be tracked to ensure they are working towards the objectivesFactors that effect planning orientationTop management is not committed to planningThe process has been too limited to consider all the essential elements of the organisationSmall scale operations that cannot support the planning functionsToo little focus on uniqueness or adaptabilityUsing the wrong measures for successPlanning becomes a mindless ritual rather than an opportunity for forward thinkingSenior staff battle with lower level staff for strategic inputDepartments essential for strategy withhold informationResults of the strategy are altered in order to justify a particular positionThe marketing department are not included in the planning processHughes: "Many marketing plans fail because the planner did not consider the fact that the organisation was not capable of implementing the plan. Short range plans will require adaptation to the existing organisation, whereas long range plans may require redesigning the organisation"

1996 Marketing Forum survey revealed 78% of their organisations were "fairly" or "very seriously" committed to internal marketing.

Lync

Lynch found that the better performing companies exhibited the following organisational characteristics: More likely to have a marketing department More likely to have marketing represented at board level More likely to adopt a market-based organisational structure The marketing department working more closely with other functional areas

The Setting and Achievement of Common and Realistic GoalsSenior management will set the overall objectives which is then passed down to departmental managers who then establish their own goals based on the overall objectives. They would then present back to senior management who would approve the goals for the year. It is now being argued that organisations should allow departmental managers to to work together to set overall objectives. Information for goal setting can be collected using SWOT and PESTLE By preparing statements of mission, goals and policy directors establish frameworks within which the divisions of business units prepare their plans. All company directors will undertake four planning activities: 1. Defining the corporate missionWhat is our business? Who is the customer? What is the value to the customer? What will our business be? What should our business be? 2. Establishing Strategic Business Units Most companies operate several businesses, but all should be viewed as customer satisfying entities 3. Assigning Resource to each SBU Develop separate strategies and assign appropriate funding using business portfolio analysis including BCG Model and General Electric Model4. Planning new business and downsizing older businessIf there is a strategic planning gap between future desired sales and projected sales, senior management will have to develop or acquire new business to fill it

4 Planning Activities:1. Defining the corporate mission2. Establishing SBU's3. Assigning Resources to each SBU4. Planning new business and downsizing old business

It is prevalent that an organisation has some sort of information and control system:Weekly or monthly newsletters to ensure goals are on track and objectives are being metElectronically allowing managers to track goals and objectivesIt would highlight any areas that are flaggingManagers should have access to all other departments trackingMarketing should provide a full breakdown of consumers behaviour and the success of campaigns and activities undertaken by the marketing department

Branding: Needs to be controlled and consistentThe creation of branding is often done by the marketing department with approval from senior managementBranding guidelines are established to all staff and external suppliersTesco and Virgin are good examples of clear brand policyProducts:A clear policy needs to be established for manufacturing as well as development and communicationIf left on its own it becomes open to misinterpretation and chaosIt is essential for marketing to be involved in all stages of the product process by providing clear feedback on what consumers want and not what the product designers think they want. Marketing can also provide information on competitors products to help differentiate and gain a competitive advantage.Customer CommunicationsFrequencyWhich department owns the customer data and is responsible for all communicationsSave communication and marketing costsDo less brand damage- look at the example of the bank on page 116The role of marketing as an internal service providerConsidering internal staff as customers to be sold toInforming employees of important elements in the marketing strategy so they'll work together as a team to implement themMarketing managers have two responsibilities:1. They must participate in in formulating strategies and policies designed to help the organisation win through total quality excellence2. They must deliver quality across all marketing activitiesMarketers play several roles in helping the organisation define and deliver high quality goods and services to target customers:They bear the major responsibility to identifying correctly customers needs and wantsThey must communicate customers expectations properlyThey must make sure customers orders are fulfilled correctly and on timeThey must check customers have received proper training and instructionsThey must stay in touch with the customer after purchase They must capture ideas from customers for service improvementsContributions of marketing to the development of business strategyNo other department will be able to provide the essential information on customers required to set meaningful objectives The marketing manager has leadership roles to:Analyse the market and competitive environmentDevelop objectives, goals and strategiesDefine product marketing and distribution plans 

Integrated Marketing

Internal Marketing Programme

The Setting and Achievement of Common and Realistic Goals

Establishing Common Information and Control Systems

Clear Company Policy and internal service provider