In many organizations marketing does not have a place of imp

In many organizations, marketing does not have a place of importance in the organizational hierarchy. Why do you think this happens?

What are the consequences for a firm that gives little importance to marketing relative to other business functions?

Solution

Answer 1:

The company is basically driven by sales force. The marketing department is created in the initial stage of development to facilitate sales. Over the time, when sales pick up and the product of the company is stable in the market, marketing department lose focus and become increasingly irrevalent in generating funds.

The company management focuses only on the department that generate funds and bring profits. Whereas, marketing brings in lot of expenditure. The marketing department gets neglected in the long-run. They are not compensated properly which further deters their determination and focus towards the goal.

The old businesses, small scale businesses and traditional businesses do not appreciate marketing into their organisation. These business find marketing as expensive and unnecessary.

Answer 2:

As management expert Peter Drucker has rightly said, marketing and innovation are only two departments in the company that generate revenue. Rest all generate expenses. The in-experienced companies fail to understand this. They get so carried away running current business, they neglect the competition out to grab them. In order to face the competition, the companies need strong marketing and innovation strategies into their company.

Consequences of little impotance to marketing:

1. Reputation rot:

Marketing prevents reputation rot. As company grows, the mangement tend to neglect people perspective about the company and its products. Over the time, not attending to consumer demand can lead to reputation rot. Marketing helps in preventing reputation rot.

2. Competition:

The comapnies who do not adopt marketing gets severe blow of competition. A business can never say \"just enough\", It has to progress continuously to combat competition and survive in the market. Marketing helps in combating competition through image building of the company.

3. Insufficient market knowledge:

Having a marketing department helps the company to understand product requirements from different markets. The companies that do not have marketing department operate in a single market. They cannot expand the market base without marketing.