Production and marketing functions - Assignment Example

Lecturer: Introduction Production is a significant function in an organization as it is through it that inputs are converted in to finished products through a sequence of procedures. It requires efficiency in planning to ensure that inputs are available and converted in to finished products successfully. Production managers need to ensure a smooth flow in the work processes as well as enhance innovation and creativity among the employees. The marketing function on the other hand is significant in ensuring that an organization meets the needs of consumers. It involves investigating market needs, establishing suitable packaging strategy and ensuring that the products are made available to consumers where needed. Good marketing strategies increase the overall organizational productivity and competitiveness. Some of the conflicts between the marketing and production functions of an organization could be explained by the GAP analysis proposed by Slack (Slack et al. 2006). This paper critiques the role of each function and the conflicts that could arise between these two functions. It explains the importance of collaboration and coordination between the two functions focusing on perceived quality, actual quality, customers’ expectation, and customer satisfaction or dissatisfaction. Role of Production Function Production function involves setting standards and objectives with regards to what is to be produced and the production process. Quality and quantity of output is closely observed to ensure that organizational targets are met. Lean manufacturing is an innovative strategy of the production function whereby wastage is minimized while maintaining quality in all the stages of the production process. Slack et al. (2006) pointed out several objectives of the production function from which an organization can prioritize on the few that are likely to help it accomplish a competitive advantage. One of the objectives is to minimize production costs while maximizing output, which is important in the pricing strategy whereby an organization can easily accomplish price leadership in the market. Quality is also an important objective as it determines the satisfactoriness of the products to the consumer and hence affects its competitiveness. Promptness is an objective that focuses on maintaining leadership in terms of product delivery. Customer satisfaction is multifaceted and not only depends on product quality but also the lead time of order placement and delivery. Production also needs to be reliable with regards to customer desires. An organization needs to maintain customers by ensuring that specifications are achieved in product development. Maintenance of flexibility in production is an objective that allows innovativeness. It also allows variations in time taken for production and the volume produced depending on market demand, which helps to avoid wastage associated with overproduction. It also allows production of different varieties to suit market demand (Lester & Tice, 2012). Role of Marketing Function Marketing function provides a link between production function and consumers. It involves undertaking research on the target customers to determine consumer behaviour and present needs. Market research also provides information on competitors and their strategies of competing with the organization. Product packaging is also a role of marketing, which is accomplished through consumer research to identify consumer preferences. Packaging is focused on motivating consumers to purchase a product. Appealing packaging materials and information portrayed on them reflects customer desires (Lester & Tice, 2012). Market segmentation is an important aspect of marketing that allows an organization to serve the unique needs of consumer groups, leading to aspects such as high end and low end product pricing strategy as well as packaging in different quantities depending on the quantities purchased by different consumer groups. Marketing generates place utility through transportation of products to enhance accessibility by consumers. The efficiency of product delivery has a significant impact on an organization’s marketing promotions. Marketing also involves constant evaluation of risk to ensure that all aspects that may influence marketing of the product are kept in perspective. Quality control in marketing ensures that the product meets the market standards for the organization to maintain competitiveness (Johnson et al. 2007). Conflicts between Production and Marketing Functions and Importance of Collaboration The fundamental conflicts between production and marketing functions are that production on one hand is focused on accomplishing effective production runs generally considered to be long runs, condensed and relatively simple production models and rational quality control. In contrast, marketing favours shorter production runs comprising various models regardless of the ease or difficulty of production. Marketing requires strict and high quality standards meant to alleviate the likelihood of product failure. Solving the conflicts between production and marketing have important consequences on the cost and hence it is imperative to consider cost benefit analysis of the solutions involved. It is necessary that both production and marketing functions reflect on the value of investing in a particular strategy such as an extremely high quality control system. It might be worth investing in a different activity if the return on investment for the quality system is lower than its cost (Mieghem, 2008). Some of the conflicts can be solved through GAP analysis, which helps an organization to accomplish economies of scale. The analysis as put forward by Slack focuses on ensuring an organization’s resources are effectively utilised. It helps in the identification of the stages in which full resource utilization is not being accomplished. Organizations can apply GAP analysis to ensure that the production and marketing functions cooperate to accomplish a common goal (Slack et al. 2006). It is significant in the identification of conflicts between the two functions so that a solution can be established to prevent a negative impact. Mercedes Benz luxury car manufacturer is an example of an organization affected by a conflict between marketing and quality control in production. Whereas the marketing function had successful and strict quality control measures in place, customer satisfaction was on a downward trend as production quality control failed. The company had to recall over one million vehicles for various failed parts such as batteries and breaking systems to be rectified. The quality issues stem from the merger between Daimler-Benz and Chrysler in a bid for market expansion that disregarded the production function of the original company, Daimler-Benz (Dee et al. 2009). The interplay between production and marketing functions is a significant determinant of an organization’s competitiveness. Production capacity controls the quantity and nature of products to be marketed while on the other hand, the success of marketing and precise sales forecast for a particular product is important for effective production. Market demand influences production by presenting difficulties associated with uncertainties. The production function must change in accordance with what the marketing function dictates in terms of competition, decreased sales or changes in demand. Such changes include reducing the production volumes, reducing the number of workers in production as well as increasing efficiency in the handling of inventory among other measures. The marketing function generates perceived quality and is applied to influence demand to match an organizations production strategy such as through advertising and promotions. The actual quality is created by production function and needs to be aligned to the perceived quality to meet customer expectations. Quality control standards need to begin within the production process and also be reflected in marketing to ensure customer satisfaction (Jacobs et al. 2011). Marketing function offers essential advice regarding the products that will satisfy customers. Dissatisfaction of customers has a negative impact on the entire organizational operations. Marketing also helps in the accomplishment of lean production by informing production function regarding the quantity demanded. Market research influences the production capacity of new products through demand approximations and the probable period and space distribution. On the other hand, new product development may negatively affect the demand for existing products and hence there is need to understand through accurate market research the extent to which demand for existing products will diminish, hence production can be adjusted accordingly (Lester & Tice, 2012). Coca-Cola Company has been successful in maintaining a strategic relationship between production and marketing functions. Production and new product development is based on the needs identified through market research. Quality control is maintained in production as well as in marketing to meet customer expectations. The bottling subsidiaries of the company maintain similar quality standards in production and marketing. The company has accomplished global competitiveness with a variety of product lines under the Coke brand (Vrontis & Sharp, 2003). Conclusion Production and marketing functions are significant in the overall competitiveness of an organization. The marketing function emphasizes on quality control while production is mainly aimed at minimizing costs and maximizing output. Expensive quality control measures may therefore not be opportune in production. However, both functions are inter-dependent and need to be harmonised to promote customer satisfaction and also to accomplish organizational goals as in the case of Coca-Cola Company. Conflict between production and marketing may result in unwarranted failure to accomplish organizational objectives such as in the case of Mercedes Benz manufacturer. References Dee, J., Bergland, S. & Cox, J. 2009. Velocity: Combining Lean, Six Sigma and the Theory of Constraints to Achieve Breakthrough Performance - A Business Novel, Free Press, New York. Jacobs, F.R., Berry, W. Whybark, C. & Vollmann, T. 2011. Manufacturing Planning and Control for Supply Chain Management, McGraw-Hill Professional, New York. Johnson, G., Scholes, K. & Whittington, R. 2007. Exploring Corporate Strategy: Text and Cases, Prentice Hall, New Jersey. Lester, D. & Tice, C., 2012. How they Started: How 25 Good Ideas Became Great Companies, Crimson Publishing, London. Mieghem, V. A. 2008. Operations Strategy: Principles and Practice, Dynamic Ideas, Chicago. Available from: . [26 March 2014]. Slack, N., Chambers, S. & Johnston, R. 2006. Operations Management, Prentice Hall, New Jersey. Available from: [26 March 2014]. Vrontis, D. & Sharp, I. 2003. “The Strategic Positioning of Coca-Cola in their Global Marketing Operation”, The Marketing Review, 3, pp. 289-309. Available from: . [26 March 2014]. Read More