Пойгина Л.Б., Туринова Л.А. - English for Masters. Management Part 1 (1175658), страница 18
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They often think of marketingpeople as inept technically, as continually changing priorities, and as not fully credible ortrustworthy. These problems are less pronounced in companies where marketing executiveshave engineering backgrounds and can communicate effectively with engineers.PURCHASING. Purchasing executives are responsible for obtaining materials andcomponents in the right quantities and quality at the lowest possible cost. They see marketingexecutives pushing for several models in a product line, which requires purchasing smallquantities of many items rather than large quantities of a few items. They think thatmarketing insists 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 and to carry excessive inventories.MANUFACTURING. Manufacturing people are responsible for the smooth runningof the factory to produce the right products in the right quantities at the time for the right cost.They have spent their lives in the factory, with its at problems of machine breakdowns,inventory stockouts and labor disputes.
They see marketers as having little understanding offactor economics or Politics. Marketers will complain about insufficient plant capacity,delays in production, poor quality control, and poor customer service. Yet marketers oftenturn in inaccurate sales forecasts, recommend product features that are difficult tomanufacture, and promise more factory service than is reasonable.Marketers do not see the factory's problems, but rather the problems of theircustomers, who need the goods quickly, who receive defective merchandise, and who cannotget factory service. Marketers often don't show enough concern for the extra factory costsinvolved in helping a customer.
The problem is not only poor communication but an actualconflict of interest.Companies settle these conflicts in different ways. In manufacturing-drivencompanies everything is done to ensure smooth production and tow costs. The companyprefers simple products, narrow product lines, and high-volume production.. Salescampaigns calling for a hasty production buildup are kept to minimum. Customers on backorder have to wait.Other companies are marketing driven, in that the company goes out of this way tosatisfy customers.
In one large toiletries company, the marketing personnel call the shots, andthe manufacturing people have to fall in line, regardless of overtime costs, short runs, and soon. The result 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 include jointseminars to understand each other's viewpoint, joint committees and liaison personnel,personnel exchange programs, and analytical methods to determine the most profitable courseof action.Company profitability is greatly dependent on achieving effective manufacturingmarketing working relations.
Marketers need to understand the marketing potentials of newmanufacturing strategies — the flexible factory, automation and robotization, just-in-timeproduction, total quality management, and so on. Manufacturing strategy depends uponwhether the company wants to win through low cost, high quality, high variety, or fastservice.
Manufacturing is also a marketing tool insofar as buyers often want to visit thefactory to assess how well it is managed.58 OPERATIONS. The term "manufacturing" is used for industries making physicalproducts. The term "operations" is used for industries that create and provide services. In thecase of a hotel, for example, the operations department includes front desk people, doormen,waiters and waitresses, and so on. Because marketing makes promises about the company'sservice levels, it is extremely important that marketing and operations work well together. Ifoperations personnel lack a customer orientation and motivation, negative word-of-mouth willeventually destroy the business.
The operations staff member may be inclined to focus on hisor her own convenience, exhibit a normal attitude and give ordinary service, while marketerswant the staff to focus on customer convenience, show a positive and friendly disposition, andprovide extraordinary service. Marketing people must fully understand the capabilities andmind-set of those delivering the service and continuously try to improve their attitudes andcapabilities.FINANCE. Financial executives pride themselves on being able to evaluate theprofit implications of different business actions. When it comes to marketing expenditures,they frustrated.
Marketing executives ask for substantial budgets for advertising, salespromotions, and sales force, without being able to prove how much sales revenue theseexpenditures will produce. Financial executives suspect that the marketers' forecasts areself-serving. They think that marketing people do not spend enough time relating marketingexpenditures to results. They think that marketers are too quick to slash prices to win orders,instead of pricing to make a profit.On the other side of the coin, marketing executives often see financial people ascontrolling the purse strings too tightly and refusing to invest funds in long-term marketdevelopment.
They think that Financial people see all marketing expenditures as expensesrather than investments and are overly conservative and risk averse, causing manyopportunities to be lost. The solution lies in giving marketing people more Financial trainingand giving financial people more marketing training. Financial executives need to adapt theirfinancial tools and theories to support strategic marketing.ACCOUNTING.
Accountants see marketing people, as lax in providing their salesreports on time. They dislike the special deals that salespeople make with customers becausethese require special accounting procedures. Marketers dislike the way accountants allocatefixed-cost burdens to different products in the line. Brand managers may feel that their brandis more profitable than it looks, the problem being that it was assigned too high an overheadburden. They would also like accounting to prepare special reports on sales and profitabilityby channels, territories, order sizes, and so on.CREDIT. Credit officers evaluate potential customers credit standing and deny orlimit credit to the more doubtful ones.
They think that marketers will sell to anyone, includingthose from whom payment is doubtful. Marketers, in contrast, often feel that credit standardsare too high. They think that "zero bad debts" really means that the company lost a lot of salesand profits. They feel they work too hard to find customers to hear that they are not goodenough to sell to.59 Table 1:Organizational Conflicts between Marketing and Other DepartmentsDEPARTMENTDEPARTMENT EMPHASIS MARKETING'S EMPHASISR&DBasic researchIntrinsic qualityFunctional featuresApplied researchPerceived qualitySales featuresEngineeringLong design lead timeFew modelsStandard componentsShort design lead timeMany modelsCustom componentsPurchasingNarrow product lineStandard partsPrice of materialEconomical lot sizesPurchasing at infrequent intervalsBroad product lineNonstandard partsQuality of materialsLarge lot sizes to avoid stockoutsImmediate purchasing at infrequent intervalsManufacturingLong production lead timeLong runs with few modelsNo model changesStandard ordersEase of fabricationAverage quality controlShort production lead timeShort runs with few modelsFrequent model changesCustom ordersAesthetic appearanceTight quality controlOperationsStaff convenienceNormal dispositionOrdinary serviceCustomer conveniencePleasant dispositionExtraordinary serviceFinanceStrict rationales for spendingPricing to cover costsHard and fast budgetsIntuitive arguments for spendingPricing to further market developmentFlexible budgets to meet changingneedsAccountingStandards transactionFew reportsSpecial terms and discountsMany reportsCreditFull financial disclosures bycustomersNo credit riskTough credit termsTough collection proceduresMinimum credit examination ofcustomerSome credit riskEasy credit termsEasy collection procedures2.
Scanning exerciseScan the text to find information on three aspects:a) two tasks of marketing vice-president;b) the marketing department relation with Finance Department;60 c) the problems and conflicts with manufacturing Department.3. Vocabulary StudyGlossaryinterdepartmental relationsto have a potential impact on customersto interact harmoniouslyto pursue the firms overall objectivesthe main differences in orientation between marketing and other departmentsbasic researchfunctional featurescustom componentsaverage quality controlstaff conveniencestrict rationales for spendingtough credit termsstandard transactionfull financial disclosures by customersto develop a balanced orientationa) find in the text English equivalents for the following:быть согласованным для поиска общих целей компании; конкуренция и недоверие;расхождение во взглядах относительно интересов компании; устоявшиеся стереотипыи предубеждения, существующие в отделах компании; согласно маркетинговойконкуренции; думать о клиенте и координировать работу в целях удовлетворения егопотребностей и ожиданий; степень властных полномочий отдела маркетинга покоординации согласованной работы всех служб компании; конфликты интересовнеизбежны.b) find the following English word-combinations in the text and think of correspondingRussianequivalents:under the marketing concept; little agreement; no authority over the functions that affectcustomer satisfaction; to resist bending the efforts to meet the customer's interests; to workon challenging technical problems without much concern for immediate sales payoffs; toprefer lo work without much supervision; an actual conflict of interest; manufacturing-drivencompanies; to be dependent on achieving effective manufacturing-marketing workingrelations; being able to evaluate the profit implications of different business actions; to see allmarketing expenditures as expenses rather than investment.4.
Discussing exerciseDiscuss the marketing department's relation and problems to each of the company's otherdepartments.What step can a company take to build a stronger company wide market focused orientation?Discuss the main problems and conflicts a company can face.61 5. Writing exercisea) Write a precis of Text 9.b) Write an abstract of Text 9.Text 101. Pre-reading exercise.Skim through the text and identify how many logical parts are in it and enumerate them.Define the aspects under discussion in each logical part of the text.STRATEGIC PLANNING IN GLOBAL MARKETSIn international markets, however, strategic marketing plans aren't easy to formulateand implement, for reasons pertaining to environmental differences among nations and thefrequent paucity of information about these differences.
Entering a foreign market oftenmeans dealing with volatile currencies, learning a new language and laws, facing political andlegal differences and harassments, and totally redesigning products to meet discrete customerneeds.Because of environmental differences, when strategic plans evolve to enter or grow inforeign markets, special emphasis is placed on the "environmental analysis" component toaddress a question like this.• Should we enter this market? Do the potential rewards of entering a foreign marketjustify the costs and risks involved?Although there are many approaches for entry and growth in risky internationalmarkets, most firms generally follow a cautious, staged approach designed to minimize riskand cost while maintaining control and flexibility. Suchan approach typically encompassesthe following stages:Initially, the firm achieves international status by entering one or two host-country(foreign) markets that best match characteristics of home-country (domestic) markets.
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