Marketing and selling in tough economic conditions -Article 16

Management controversy

Series by : Prasanna Perera Marketing and Management Consultant, Chartered Marketeer, CIM U.K.

There are many conflicts and serious disagreements between professional marketeers and Top Management (Board of Directors) in many organizations in Sri Lanka. Why is this the case? What needs to be done to minimise conflict and promote collaboration between Top Management and professional marketeers? Let me figure out a way.

Top management is pre-occupied with the bottom line, whilst professional marketers are concerned about sales revenues, market share and to some extent profitability. This is a primary cause of conflict i.e. not achieving a common goal / focus.

Financial specialists are left-brain oriented. They value order, reliability, evaluation. Marketing specialists on the other hand, are right-brain oriented and therefore adventurous, creative and innovative.

Another reason for the conflict is the orientation towards the market. Top Management may be of the view that the entire market can be served by a single brand.

On the other hand, marketeers may not subscribe to this view and prefer to develop multi-brands to cater to the different segments of the market. Multi branding increases costs at the initial stage, but can deliver outstanding bottom-line results in the long term, if managed effectively.

Top management in most instances expects short term results. Marketeers on the other hand see their strategies as delivering results in the longer term. This is a major cause of disagreements, specially in difficult economic times. Top management would do well to acknowledge that the majority of marketing strategies does not deliver results in the short term.

For example, a mass media advertising campaign will certainly not increase sales in the short term. A branding exercise too will not deliver profits in the short term. Even a one-off consumer promotion will not deliver increased sales, unless it offers a real value-addition to the customer.

Unfortunately, everyone tries to practice Marketing in most organizations. The result is confusion, misunderstanding, lack of executional purpose and finally competitors gaining market share. Marketing is a specialised function and must be respected. For example, if Marketeers attempt to carry out other functions, the results would be disastrous.

Hence, top management needs to recognize that Marketing should be left to the specialists to execute! Top management approves marketing budgets, but does not approve the expenditure when it is required to be spent.

This is a major source of conflict between marketeers and Top management in organizations. Once a marketing budget is justified and approved, it must be spent accordingly. If not, how can the desired results be achieved?

What needs to be done to minimise conflict between top management and marketeers?

1. Top management needs to acknowledge the importance of Marketing not only by words, but also by deeds.

2. Marketeers need to empathize with Top Management, by ensuring that prudent strategies are effectively implemented and the results measured. This is very important.

3. Top management should ensure that the Marketing budgets are not only allocated but spent as required. Otherwise, results will definitely suffer.

4. Marketeers should be within the Top Management, in order to represent the voice of the consumer and the market, at the highest levels.

A study of corporates in Sri Lanka will reveal that marketing representation at the top is limited but growing. (Which is a good sign for the future).

5. Top management and Marketeers should both focus on enhancing shareholder value. (This should be the common goal).

6. Top Management needs to acknowledge that unless marketing strategies are effectively implemented, the results would be less than spectacular.