One observes that the role of marketing in modern organization is that of integrating the needs and wants of the customers to the other organizational functions like production, R&D, finance, personnel, etc. One look at the companies today would be sufficient to conclude that neither marketing nor any other function alone holds the key to success. All functions are equally important. However it is marketing, which performs the role of integration.
Integrative Function of Marketing
An interesting feature of successful companies is the integration of objectives of all corporate functions in a way that synergy is obtained. This is crucial in today’s competitive environment because the responsibility to market the product and also to expand/maintain the market share is on the shoulders of every individual of the organization. Let’s take examples of companies where such integration does not or does exist. A well-known large-sized public limited company, producing and marketing agricultural inputs like urea, recently found itself in the midst of stiff competition from other local and foreign brands. The company had been operating in a sheltered market and hence no one bothered about packaging, quality, price, etc. Now, in a changed situation, all these were as critical as selling skills and other marketing strategies and tactics. But, marketing and other departments continued to work at cross-purposes, leading to further deterioration in the company’s performance.
Another company, manufacturer of consumer durables, had an excellent integration between all its functions. The R&D department ,while working on a new model of cooking range, worked in coordination with production, finance and marketing .The result—an excellent cooking range, just the kind required by Indian middle class consumers at an affordable price.
The above examples illustrate that the problems are not department specific, pertaining solely to the marketing or the production departments. Rather, each is a total business problem requiring an integrative solution. Marketing forms the lead and core of any business set up for profits. All other functions including Production, Purchase or Administration must be complimentary to Marketing.