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BXY207 Reading 13: Marketing and operations coordination - Coggle Diagram
BXY207 Reading 13: Marketing and operations coordination
Definitions
Siloed Working - A lack of communication between management functions, leading to potentially poor decision-making and intergration.
Functional Dominance - Where one business function has more influence over strategic decisions than other
The importance of Strategic coordination
A distant relationship between marketing and operations could lead marketing to the creation of unrealistic expectations to attract sales (Piercy, 2010)
According to (Shapiro, 1977) conflicts can arise due to:
A difference in the way marketing/operations managers with marketing being profit-oriented and operations being cost-oriented
Complexity in matching up qualitative marketing data with quantitative manufacturing/operations data
Cultural differences, with marketing and operations having different task focuses and social concerns
Other complicating factors:
Need to interface with other functions (research, development, engineering)
Cooperation required during rapid growth
Technological change straining processes and demand
Changing increasingly automated operations
Greater visibility of poor performance from capital costs and constraints
Situations where marketing/operations diverge during the product lifecycle:
Nature of competition changes
Customer's needs change
Operations requirements change
New markets with different performance objectives
Marketing positioning changes
COmpetitors force change in both areas
Improving Coordination
Coordination between marketing and operations is
improving, driven partly by the increasingly digital marketplace.
Traditional management of marketing channels is also
beginning to be replaced by holistic approaches (Winterberry Group, 2012) that prioritise:
Speed - Increasing responsiveness
Insight - Improving customer/target market understanding and adapting media mix
Access - Providing more dynamic capability through data, creative assets etc
Flexibility - Adapting to changing needs, priorities, preferences and demands
Operations strategies have often been embedded in the organisation for
many years, so change can be difficult, costly and time-consuming.