Marketing Management, Millenium Edition - epiheirimatikotita.gr

690part fiveManaging andDelivering MarketingProgramscharacterized by deep rivalries and distrust. Some interdepartmental conflict stemsfrom differences of opinion as to what is in the company’s best interests, some fromreal trade-offs between departmental well-being and company well-being, and somefrom unfortunate stereotypes and prejudices.In the typical organization, each business function has a potential impact on customersatisfaction. Under the marketing concept, all departments need to “think customer”and work together to satisfy customer needs and expectations. The marketingdepartment must drive this point home. The marketing vice president has two tasks:(1) to coordinate the company’s internal marketing activities and (2) to coordinatemarketing with finance, operations, and other company functions to serve thecustomer.Yet there is little agreement on how much influence and authority marketingshould have over other departments. Typically, the marketing vice president mustwork through persuasion rather than authority. Other departments often resist bendingtheir efforts to meet the customers’ interests. Inevitably, departments define companyproblems and goals from their viewpoint. As a result, conflicts of interest areunavoidable. We will briefly examine the typical concerns of each department.R&DThe company’s drive for successful new products is often thwarted by weak workingrelations between R&D and marketing. In many ways, these groups have different cultures.13 R&D is staffed with scientists and technicians who pride themselves on scientificcuriosity and detachment, like to work on challenging technical problemswithout much concern for immediate sales payoffs, and prefer to work without muchsupervision or accountability. The marketing–sales department is staffed with business-orientedpeople who pride themselves on a practical understanding of the marketplace,like to see many new products with promotable sales features, and feelcompelled to pay attention to product cost. Marketers see the R&D people as maximizingtechnical qualities rather than designing for customer requirements. R&D peoplesee marketers as gimmick-oriented hucksters who are more interested in sales thanin the product’s technical features.A balanced company is one in which R&D and marketing share responsibility forsuccessful market-oriented innovation. The R&D staff must take responsibility notonly for innovation but also for a successful product launch. The marketing staff musttake responsibility not only for new sales features but also for correctly identifyingcustomer needs and preferences.Gupta, Raj, and Wilemon concluded that a balanced R&D–marketing coordinationis strongly correlated with innovation success. 14 R&D–marketing cooperation canbe facilitated in several ways: 15■■■■Sponsor joint seminars to build understanding and respect for each other’s goals,working styles, and problems.Assign each new project to functional teams including an R&D person and amarketing person, who work together through the project’s life. R&D and marketingjointly establish the development goals and marketing plan.Encourage R&D participation into the selling period, including involvement inpreparing technical manuals, participating in trade shows, carrying out postintroductionmarketing research with customers, and even doing some selling.Work out conflicts by going to higher management, following a clear procedure.In one company, R&D and marketing both report to the same vice president.Merck is a company that recognizes the strong connection between marketing andR&D:■ Merck The description on its Web site reveals the close relationship ofMerck’s departments: “Merck is a worldwide research-intensive company thatdiscovers and develops, manufactures and markets human and animal healthproducts and services.” The research focus at Merck is on the developmentof prescription drugs—Merck is the world’s largest seller of these products—