Essay on Effects of Coordination Between Marketing and Operations Management

Published: 2021-08-15 20:09:26
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There is three basic function in any organization irrespective of the role, financial position, and size. These functions are operations, marketing and finance functions. Profits and non-profits making organizations, manufacturing or retails stores must consist have these functions as there are crucial. The role of operation functions is the production of goods or services manufactured by the company. On the other hand, marketing ensures that there is a market for products made or there create a market for the goods produced. The two functions are responsible for determining market demands and establish the means to meet those expectations. There must be communication between the marketing and operation management functions for a firm to know the quantity of the products demanded by the consumers. It enables the marketing department to understand the capacity of products that the operations can manufacture at a particular period. These functions have to ensure they exist a general equilibrium between the supply of raw materials and the demand of good by the customers. Equilibrium ensures there is no excess supply to avoid wastage or low supply to prevent cases of customers dissatisfaction. On the other hand, marketing ensures product awareness in new and existing markets, ensures that there is a market for the goods or the services being produced by the company through adverts or promotions. It is through marketing that an organization determines and evaluates if the products meet the consumer's demands as well as new adjustments to meet the consumer needs. The marketing department has to come up with new techniques to improve customers awareness and inform them of any changes in the product branding.

Competition in the recent global business environment is becoming a major issues are there numerous substitutes being introduced into the current markets. Thus it is the role of the marketing department to ensure the organization's products remains relevant by reaching out to its customers and the potential ones creating a positive image for the firm. Marketing is responsible for managing the brand image and defining it. Letting the customers know who you are, your beliefs, and the organization's actions. This elaborates the kind of relationship that will be maintained between the firm and the customers. Organizing promotional forums and other market promotion activities, they have to design materials which can be given to customers to help them have a clear understanding of the product. Establishing the target markets by conducting research in the markets. Selecting an external firm which assists them in the marketing and branding of their promotional materials. Thus marketing contributes to the success of any business as it establishes a good relationship between the firm and the customers and it is one of the functions which cannot be ignored.

Operational management ensures the availability of products for the customers. Its functions are in the processing/ manufacturing and development of a product, transport, and on the delivery to the market ( Fortlewis, 2015). Operational Coordination of people or teamwork determines the success of any organization. It is in this function where employees grievances can be expressed, rewards and recognition given which helps to improve the firm's overall performance. There various activities associated with management which include, training of staffs, culture, and leadership. The department has the role of planning on the utilization of the resources available for a certain period. This enables the firm to deal with new emerging issues from the external environment such as fluctuations in demand for the firm's products. Operation management ensures coordination of the among the various duties given to each staff in the entire operations team.

However, in any organization, there are differences between the marketing and operations functions. This most arises during the evaluation process as marketing will get reward due to increase in sales while operation depends on the reduction of operational cost. Despite the differences, marketing and operational functions are interrelated and crucial for any organization to record an increase in its performance. Lack of coordination between these two functions causes a disequilibrium in demand and supply and customers dissatisfaction as well as over or underproductions. Conflicts arise in situations where marketers which prefer to have a variety of products for the customers where else the production team prefers to give a product with high-quality standards. Since marketers do not want to have cases of stock outs among their dealers to avoid substitution with other products, they overestimate on the demands while operations will avoid the excess production to minimize the production cost. To maximize the performance of an organization this two departments must have maximum coordination. The supply of products must match the customer's satisfaction as well the demands in the markets and can only be achieved if there is coordination. The information gathered by the marketing team on the customer's feedback of the product has to be given to the operations so that they can improve during the manufacturing and processing process. This helps to ensure there can keep up with other competing brands and the products remain relevant in the said markets. The operations teams can only get the consumers feedback through the marketing departments as they are the ones in the field, listens to their feedbacks and complaints on satisfaction or dissatisfaction thus they can make improvements on the product. This information is then used to improve on the productions to meet expectations of the consumers. However, lack of feedback between these two departments leads to low-quality goods thus customers may opt to go for other substitutes in the marking making the product to lose its market share.

Marketing department acts as the intermediary between the customers and the organization. It helps the company determine the products which are most demanded or least demanded and the reason why. It is through proper coordination that the operation department can estimate its level of production, the products which needs to be improved and the one which they need to lower the quantity of output. In case of slow movement of a product, the operations information the marketing teams so that they can come up with new techniques of pushing the product such as discounts, price reductions, free giveaway among other promotional techniques. Through the creation of new markets, the operations team is informed of the new demand. Thus they can purchase extra raw materials and improve the firm's production materials.

In conclusion, all organization must ensure coordination of all the business functions is maintained at all times, thus a higher performance of the organization in the market. It also contributes to higher profit margins it will be easy to estimate the demands and supply in the market as well as recognize an emerging trend in the market.

 

Reference

Fortlewis. (2015).Introduction to Operations Management. [Online]. Available from:http://faculty.fortlewis.edu/huggins_e/stevenson11_sample_ch01.pdf [Accessed: 6 February 2015].

https://lincolnmartin.com/blogs/operations-vs-marketing/

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