Marketing Management, Millenium Edition - epiheirimatikotita.gr

and much of its marketing effort involves dissemination of medical and pharmaceuticalinformation. Publications include The Merck Index, a single-volumetechnical encyclopedia; The Merck Manual, said to be the world’s mostwidely used medical text; The Merck Manual of Medical Information—Home Edition,a plain-English version of The Merck Manual; and The Merck VeterinaryManual. In addition, articles placed in professional journals provide publicityabout Merck’s research activities. Like its competitors, Merck provides advertisingbrochures and videotapes to doctors and other health professionals,informing them about the benefits of its drugs. Merck advertises selectivelyto consumers, because they do not ordinarily choose their prescription drugs.Maxalt, a treatment for migraine headaches, is not marketed directly to consumers.However, men who seek a treatment for baldness are encouraged, infrequent TV commercials, to ask their doctors about Propecia. 16EngineeringEngineering is responsible for finding practical ways to design new products and newproduction processes. Engineers are interested in achieving technical quality, costeconomy, and manufacturing simplicity. They come into conflict with marketing executiveswhen the latter want several models produced, often with product featuresrequiring custom rather than standard components. Engineers see marketers as wanting“bells and whistles” on the products rather than intrinsic quality. They often thinkof marketing people as inept technically, as continually changing priorities, and asnot fully credible or trustworthy. These problems are less pronounced in companieswhere marketing executives have engineering backgrounds and can communicate effectivelywith engineers. 17PurchasingPurchasing executives are responsible for obtaining materials and components in theright quantities and quality at the lowest possible cost. They see marketing executivespushing for several models in a product line, which requires purchasing small quantitiesof many items rather than large quantities of a few items. They think that marketinginsists on too high a quality of ordered materials and components. They alsodislike marketing’s forecasting inaccuracy, which causes them to place rush orders atunfavorable prices or to carry excessive inventories.ManufacturingManufacturing people are responsible for the smooth running of the factory to producethe right products in the right quantities at the right time for the right cost.They have spent their lives in the factory, with its attendant problems of machinebreakdowns, inventory stockouts, and labor disputes. They see marketers as havinglittle understanding of factory economics or politics. Marketers complain about insufficientcapacity, delays in production, poor quality control, and poor customer service.Yet marketers often turn in inaccurate sales forecasts, recommend features thatare difficult to manufacture, and promise more factory service than is reasonable.Marketers do not see the factory’s problems, but rather the problems of their customers,who need the goods quickly, who receive defective merchandise, and whocannot get factory service. The problem is not only poor communication but an actualconflict of interest.Companies settle these conflicts in different ways. In manufacturing-driven companies,everything is done to ensure smooth production and low costs. The companyprefers simple products, narrow product lines, and high-volume production. Sales campaignscalling for a hasty production buildup are kept to a minimum. Customers onback order have to wait.In marketing-driven companies, the company goes out of its way to satisfy customers.In one large toiletries company, marketing personnel call the shots and manufacturingpeople have to fall in line, regardless of overtime costs or short runs. Theresult is high and fluctuating manufacturing costs, as well as variable product quality.Companies need to develop a balanced orientation in which manufacturing andmarketing jointly determine what is in the company’s best interests. Solutions includechapter 22Managing theTotal MarketingEffort 691