Marketing Strategy vs Manufacturing Strategy - Case Study Example

Logistics Case Study on Marketing Strategy and Manufacturing Strategy A manufacturing strategy refers to the proficiency that an organization develops around its functions of operations. In page 2 of John Miltenburg’s book, a manufacturing strategy refers to that pattern that is underlying the chain of decisions made in a long time by a manufacturing firm. Therefore, a manufacturing strategy exists to formulate the firm’s decisions making technique with the aim of achieving a long-term advantage over the competitors (Miltenburg, 2005). Contrary to how a manufacturing strategy works, a marketing strategy is there to assist companies to identify the ways in which they can increase sales and communicate with many customers. Without a marketing strategy, an organizations effort to attract and retain customers becomes inefficient. However, with a marketing strategy, other strategies in the firm also become operational. According to Paul Fifield (2012) is an organization’s central concept or its produce by which the approach it chooses to take to has an impact on the market. The correlation that exists between the marketing strategy and manufacturing strategy in an organization has direct relations with its success and competitive capabilities. In chapter 5 of Bowersox, Closs, Cooper and Bowersox’s article, page 107, the authors evidently indicate that the existing marketing practices serve as a foundation for the manufacturing strategy in relation to client acceptability. The relationship between the two is crucial to an organization’s competitive position. When such a relationship does not exist, the manufacturing strategy is not used as a formidable weapon of competition since it is does not form the correct alignment with the marketing strategies (Bowersox, Closs, Cooper & Bowersox, 2011). An excellent example comes from Bowersox, Closs, Cooper and Bowersox’s article where they indicate that the marketing department may only care about the features and aesthetics of a product or service, whereas the manufacturing department concentrates on the firm’s conformity. The key aim of a manufacturing strategy in an organization is to ensure that it has a competitive advantage over its competitors using the available manufacturing capabilities or assets. However, it is fundamental to note that the competitive advantage is only defined from a firm’s standpoint on marketing. Given that there are often many conflicts that exist between the two, the strategies are always divergent. Hence, for this reason, a firm’s marketing strategy has to have a positive impact on decisions made on effective marketing strategies. How the Marketing Strategy makes the Impact For most businesses coordinating the marketing activities is one of the ways to avoid operating under losses. According to (Bowersox, Closs, Cooper & Bowersox, 2011), in page 11, without the marketing concept in the business world, the aim of satisfying customers would not be taken into serious consideration. However, when a business starts experiencing more problems, this is the best time to start thinking of a marketing strategy. Problems such as declining sales, issues arising from expanding in new markets and losing loyal customers to competitors are a warning sign that a marketing strategy is not making the intended impact. For a firm’s marketing strategy to make an impact, it has to be based on an objective understanding of the situation in the firm as illustrated in the next three paragraphs. One, it is important to identify the scope of business. For example, establishing the scope of business is done by knowing the customer group served by the organization, technology used and benefits accruing to customers. Evaluating the market potential is also possible when the scope of business is visible. An excellent example of this is that evaluating a market potential allows an organization to make a comparative market assessment to determine whether some investors may continue investing. It is only by getting such details that a firm is in a better position to know where it is going or its vision. Secondly, a marketing strategy cannot become successful without product positioning or making target segments. A manufacturing strategy is successful when the marketing strategy is functional. Therefore, an organization’s marketing department has to identify specific client segments and how the business becomes positioned in these particular segments. Within a company’s marketing strategy, positioning takes place as an activity that enables the brand to occupy the niche in customers (Fifield, 2012). Hence, through positioning, there is an understanding of the marketing needs and the manufacturing strategy based on the marketing requirements. Marketing objectives of the organization are also vital when making an entry in a market, increasing awareness and sales. A company’s marketing mix is also necessary. It involves identifying the products, promotion used when marketing the products, place or location of distribution and the price set. With the help of a marketing mix it becomes easier to beat competition and deliver quality and timely services to customers. Lastly, implementing the marketing strategy also makes it easier to implement the manufacturing strategy. Implementing marketing strategy involves making an establishment of timescales, resources and budget. For example, without a budget, resources or a timescale, it would not be easy to know the amount of products that need to go through the manufacturing process or the resources that make the manufacturing strategy operable. The Appropriate Manufacturing Strategy The manufacturing process is exceptional in nature because it limits the organization’s realistic range of unconventional manufacturing strategies. It is also fundamental to note that a manufacturing strategic range can only become constrained by the technological forces and those that are in the market. The widespread marketing practices are the key foundation to a manufacturing strategy in relation to customer acceptability (Fifield, 2012). Modern-day technology drives the strategy in most companies to a manufacturing model that is not only functional and applicable, but competitive. An excellent illustration of this would be best shown in a situation where a manufacture whose business is under the domination of the economies of scale and wishes to improve the flexibility process. In such a scenario, for the manufacturer to increase the company’s frequency and repetition he needs to make an investment. Over the last few years, the changing aspect of the market and increasing need for new advanced technology now serves as a ways of altering a business’s strategic posture (Miltenburg, 2005). For example, in the steel industry is today dominated by processes which are highly dependent on economy of scale. As a result there is a market acceptance of new steel-based materials which have also been combined with the value-added services. As a way of increasing customer accommodation, the steel industry introduced the shaping and cutting postponement in its products. The production of basic steel has also had drastic changes made to it since there are new methods in place to reduce a prolonged dependence on high-scale manufacturing processes. As a result, there is a shift in the strategic position of the steel producers and changes in the market. In an organization, the manufacturing strategy focuses on more details regarding the manufacturing network on a worldwide level (Bowersox, Closs, Cooper & Bowersox, 2011). Suppliers, customers or any other group involved with the organization are in a better position to network, communicate and form better collaboration efforts when embarking on a manufacturing strategy. To get to an excellent operational level within the manufacturing operations, organizations have to make Conclusion The marketing strategic posture of a business in relation to its flexibility and agility has a direct correlation with a manufacturer’s capabilities (Miltenburg, 2005). In a certain degree, an organization’s capability during manufacturing promotes a feasible choice of an effective marketing strategy. A firm’s manufacturing strategy is only competitive when it integrates a manufacturing capability into one which has a meaningful marketing value proposition. In chapter 3 of Bowersox, Closs, Cooper and Bowersox’s article, the marketing strategy is not only a simple concept, but one which divided as either a traditional-based strategy, or the relationship marketing which is focused on long-term relations with suppliers and other customers. Most firms usually miscalculate their capacity to manufacture due to their projections in growth and demand. For example, the marketing department in a firm may generally become optimistic in its outlook, leading to a manufacturing capacity that is likely to become underutilized. Lastly, it is evident that with a manufacturing capacity which is underutilization, an organization’s profitability is likely to get affected negatively. References Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2011). Chapter 3: Customer relationship management. In D. Bowersox (Ed.), Supply Chain Logistics Management New York: McGraw-Hill. Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2011). Chapter 4: Procurement. In D. Bowersox (Ed.), Supply Chain Logistics Management New York: McGraw-Hill. Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2011). Chapter 5: Manufacturing. In D. Bowersox (Ed.), Supply Chain Logistics Management New York: McGraw-Hill. Fifield, P. (2012). Marketing strategy. London: Routledge. Miltenburg, J. (2005). Manufacturing strategy: How to formulate and implement a winning plan. New York: Productivity Press. Read More