Marketing strategy must reflect a coordinated effort of product performance and two-way communication. Within the communication process must be integration of marketing efforts and messages. Further, what is communicated about the product must be accurate, or the position won’t be supported. How can a company make certain that such integration occurs?
Several factors can encourage the appropriate level of integration within the marketing program. Clear strategic decisions, personnel stability, compensation systems that support the marketing strategy, and formal communication and organizational structures that encourage cross-functional interaction are among the more important.
Clear Strategic Decisions
In one study that examined mismatches between marketing and sales strategies, an issue that surfaced was a lack of decisiveness on the part of senior marketing executives. For example, two sales managers said that, although formal strategy indicated that a product would be on the market for the next few years, informal signals from marketing management indicated that the product might be withdrawn. As a result, the sales force was not putting any effort into those products. Sales and marketing strategies are neither immediate nor irreversible; if management waffles on strategic decisions, then marketing and sales investments could be wasted and relationships (both internal and external) damaged.
Personnel Stability
Relationships take time to build. As mentioned earlier, internal relationships go through the same stages as external relationships. Moving people rapidly through the organization can mean that relationships between areas of the marketing department are never built. One manager in one study reported three marketing executives in five years; one salesperson told us he had three different sales managers in one year! While each successive manager had to try to quickly build rapport with each subordinate and superior, the whole sales team suffered because new relationships had to be built between each new manager and all of the other functional areas. When rapid personnel turnover occurs, the relationship cannot get past the exploration stage.
Compensation
A key issue that creates ill will is the fact that different groups within marketing compete for the same budget. Fights over budgets can create bad feelings and damage relationships. Budgets, though, are not the only “money” issue that can damage or enhance relationships. Many companies are evaluating and testing compensation plans that encourage teamwork. For example, marketing managers may find that their pay contains incentives based on sales or contribution margins. When that is the case, they are incented to work more closely with the sales force. Morehead Supply is one company that pays quarterly bonuses to all marketing personnel if sales targets are achieved. Unlike profit sharing plans that the company also uses, these bonuses are specifically designed to encourage teamwork within the marketing–sales interface. Compensation can also help turn budgeting into teamwork. By using a joint compensation system, all of those competing for budget end up being paid based on the same performance. As a result, they are more determined than ever to see that the budget results in effective marketing. The issue, though, also affects how areas such as manufacturing, engineering, and other functional area bonuses are paid. When those areas are also compensated for customer satisfaction and teamwork, then those outcomes are more likely.
Organizational Structure
Compensation plans, though, should be supported by the appropriate organizational structure. The structure of the organization can enhance or inhibit the ability to create internal partnerships. In the next section, we discuss different types of organizational structures, as well as the different groups within marketing between whom partnerships are created.