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Session 10: Reading 13. Marketing and Operations Coordination - Coggle…
Session 10: Reading 13. Marketing and Operations Coordination
The importance of strategic coordination
common for companies to exhibit "functional dominance" - one business function has more influence over strategic decisions
Many organisations are marketing led - allowing for operations just to flow
Piercy (2010 quote) pg 117
States importance of not sacrificing operations for cost
Shapiro (1977) examples of conflicts
evaluation differences profits vs cost
Reliant on different data "soft/hard" "qualitative/quantitive" used for different purposes
org cultural differences task orientations/social concers
Complicating factors
interface with each other AND other functions/departments
speed of growth - rapid requires more cooperation
Tech changes adds pressure on product demand and processes
Difficulty of changing increasingly automated operations
greater visability of poor performacnce from capital costs and constraints
Table 1: Page 118 - conflict between marketing and operations
Strategies diverge during product life cycles
nature of competition changes
where customers needs adapt
operations requirements change
marketing strategies enter new markets with differnt performance ojectives
where subtle changes to marketing positioning require op to adapt its strategy
Where competitors may force change on both marketing and operations
changing long running operations can be slow/difficult to change - new marketing strategy targeting new country may mean a new and unskilled supply chain
Improving coordination
Generally coordination is getting better including some places developing a marketing operations manager - facilitate strategy development and implementation
Traditional management of marketing channels is also beginning to be replaced by holistic approaches (Winterberry Group, 2012) which prioritises:
Speed - to increase responsiveness and reduce cost of the life cycle times
Insight - to improve understanding of customers, target segments and use the best mix of media to reach them
Access- to provide dynamic capability through continuous input facility (including data, creative assets and business decisions)
Flexibility - to adapt to changing needs, priorities, preferences and demand
Christopher and Ryals (2014) propose new discipline of demand chain (figure 1 ) page 120
coordination between marketing and operations functions, long and short term
At fullest extend developing marketing and operations plans could be fully integrated
In other sectors there is further recognition that extended supply chains need better coordination of marketing and supply. The activities of demand creation and demand fulfilment should be brought closer together