BARRIERS TO ADOPTION OF THE MARKETING CONCEPT & THE PROCESS OF MARKETING PLANNING
It is somewhat surprising, given the substantial benefits generally accepted, that formal and systematic marketing planning processes are still not as widely adopted in the business arena as they should be. The evidence cited in the following passages is both anecdotal (based on our own experiences in the consulting industry) and empirical, drawing on a few recent studies that have examined these issues in a broader context.
The Barriers
Fundamental lack of understanding of marketing ¡V despite the huge amount that has been written about marketing and taught in business school, it is astounding how poorly this word is still understood. From euphemisms such as selling or advertising
being used, or just downright confounding sentences such as recently heard; ¡¥we don't have time for marketing until our sales improve', it continues to amaze how little progress has been made in some circles.
Consideration as a function only ¡V there are still many who see marketing as a function in isolation rather than as a mind set and organizational culture. This narrow perception undermines the truly strategic role that marketing plays in delivering customer satisfaction and value and bringing an organization's corporate and business strategy to life. This view is not only myopic but dangerous.
Lack of top management support ¡V for marketing to be truly lived and breathed in the organization, it is the responsibility of senior management to set an example and demonstrate that marketing is an important process that is crucial for business performance. The recent initiatives of Stan Shih at Acer are a good example of what must be done.
Other departments role in marketing planning and implementation ¡V aside from designated marketers in the organization, too few people seem to be aware of their role and their criticality in the marketing planning process. Some of this can be put down to politicking, yet much really comes from a lack of cross functional co-operation and communication. Again, top management must take the lead here.
Confusion between marketing tactics and strategy (McDonald, 1990) ¡V most managers prefer to sell what they find easiest to those customers who offer the least line of resistance. Developing short term tactical plans and extrapolating them merely leads to extrapolation of an organization's short comings. Tactics should be a means of implementing strategy.
Organizational barriers - functional departmentalization, excessive centralization and often conflicting goals subsumed by an
oppressive organizational culture do nothing to facilitate effective planning. Planning in these types of organization tends to be rigid and budget oriented that reflects little of the marketing concept.
Lack of knowledge and skills (McDonald, 1990) ¡V even among practitioners, the author cites evidence that is disturbing to say the least. Basic terminology and skills are poorly understood if at all, and hence the use of concepts such as benefit segmentation are unlikely to be used appropriately.
Lack of information about market place (Simkin, 2002) ¡V inadequate information generation darkens the waters of marketing planning when those in the organization are uncertain about the validity and rigor of information utilized in plans.
Complexity of environment ¡V incredibly, environmental uncertainty has been cited as a reason for poor marketing efforts. This suggests that reactive rather than proactive management is the way to go. This is even more surprising as increasing knowledge of the market and use of this information is a proven process in overcoming the problems associated with complex and dynamic operating environments.
Failure to prioritize and marketing myopia ¡V marketing is often put on the back burner as organizations seem more concerned with short term results and budgeting. This is important for sure, particularly for SME's as survival is often a battle, but this myopic view often restricts long term development as blinkered firms miss the boat in terms of market changes and innovation.
THE END GAME
No doubt many of these ten barriers will be familiar to some and perhaps perplexing to a few. To overcome these problems, organizations need to re-conceptualize their view of marketing and the planning process. Realizing that marketing is a state of mind would go a long way to initiating the process.
|