Reading 13: Marketing and Operations Coordination
THE IMPORTANCE OF STRATEGIC COORDINATION
functional dominance
companies driven by marketing planning could allow operations strategy to drift through lack of attention
where one business function has more influence over strategic decisions than others
conflicts can arise between marketing and operations managers
difference in evaluation and reward - profit orientation or cost orientation
relying on qualitative or quantitative data
cultural differences
complicating factors include...
the need to interface with each other and other functions
the need for cooperation being greater for companies undergoing rapid growth
technological change putting greater strain on product demand or processes
the difficulty of changing increasingly automated operations
the greater visibility of poor performance from capital costs and constraints
situations where marketing and operations strategies inadvertently diverge during product life cycles include...
where customers' needs adapt
where the operations requirements change
where the nature of competition changes
where marketing strategies enter new markets with different performance objectives
where subtle changes to market positioning require operations to adapt its strategy
where competitors may force change on both marketing and operations
new technology has further complicated the relationship between marketing and operations
operations strategies have often been embedded in the organisation for many years, so change can be difficult, costly and time-consuming
IMPROVING COORDINATION
there are signs that coordination between marketing and operations is improving, driven partly by the increasingly digital marketplace
holistic approaches prioritise...
insight
access
speed
flexibility
to increase responsiveness and reduce the cost of life cycle times
to improve understanding of customers, target segments and use the best mix of media to reach them
to provide dynamic capability through continuous input facility
to adapt to changing needs, priorities, preferences and demand