1. ST MICHAEL OLORUNMEBUN/CC1595778/MP/LESSON 2
Role of Marketing & Marketing function in FMN:
Evaluating the internal marketing function and how it can be improved
By;
St Michael olorunmebun
A briefing paper
April, 2015
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TABLES OF CONTENT
1. Introduction -------------------------------------------------------------------------------------------------------- 1
2. Defining marketing ---------------------------------------------------------------------------------------------- 1
2.1 The role of marketing function in Flour mills of Nigeria (FMN) plc --------------------------- 2
2.2 Concept of benefit ------------------------------------------------------------------------------------------ 2
2.3 Concept of exchange ------------------------------------------------------------------------------------- 2
2.4 Concept of satisfaction and delight ------------------------------------------------------------------ 2
2.5 Key characteristics of marketing ----------------------------------------------------------------------- 3
3. What other department need and want frommarketing function & its importance --- 3
3.1. Marketing function model ------------------------------------------------------------------------------ 3
4. Evaluating internal services provided by marketing function in FMN -------------------------3
4.1. How to improve internal servicesprovided by marketing ----------------------------------- 4
5. Summary -------------------------------------------------------------------------------------------------------------5
6. Recommendation ----------------------------------------------------------------------------------------------- 5
Bibliography ------------------------------------------------------------------------------------------------------------ 6
References -------------------------------------------------------------------------------------------------------------- 7
Appendices
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1. Introduction
“It is impossible to overstate the importance
of marketing & sales activities in business
growth”-Michael martin (2005). This paper
focusesonthe importanceof marketing role
& the need to encourage marketing’s cross-
functional interaction with other
department in an organisation.
Recommendations are proposed on how to
improve marketing cross functional role in
Flour mills of Nigeria plc (FMN). For more
information on organisational summary see
appendix 1.
Marketing role is expected to
createpre,during &post purchase
value for customers
2. Defining marketing
Marketing can be defined as an exchange
process; “marketing is the management
process of identifying, anticipating, &
satisfying customer’s requirement
profitably”. (CIM, UK).This definition describe
the role of marketing in an organisation.
2.1 The role of marketing in an
organisation
“All areas of the business are required to
support value creation but only marketing &
operations directly add value”. (Drucker,
1954, Porter, 1985). Marketing role is
expected to create pre, during & post
purchase value for customers. In practice
the role of marketing in an organisation are
as follows;
Identify customer
Anticipate customer needs
Satisfy customer needs
Create customer delight
Profitably
FMN operates in a competitive fast moving
consumer goodsmarket& must interpretthe
role of marketing in the context of the
concepts of benefit & mutual exchange,
customer satisfaction & delight.
2.2 Concept of Benefit
According to Blythe (2012) “A product is a
bundle of benefit”. The concept of mutual
benefit explains that; “A customer get
something they want (the product) and the
benefit to organisation is profit (sales &
revenue)”. Example in the table in appendix
2
2.3 Concept of exchange
An exchange process is a means by which
there is offering of money for the acquisition
of goods or services. The exchange is driven
by need e g. A flour dealer will pay for FMN
goldenpenny prime flour (a more expensive
brand) instead of Dangote flour (a cheaper
brand). “For an exchange to happen the
benefit of a product must outweigh the
sacrifice of a customer”. The role of
marketing is to create appropriate need.
See appendix 3 for an illustration.
2.4 Customer satisfaction and delight
“The challenge of an organisation is to find
out customer’s expectation & how to meet
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them. This will lead to an enjoyable
experience” – Baines et al (2011).
Customer’s satisfaction is when an
exchange meets the needs & expectation
of the buyer. Customer delight is when the
exchange exceeds the customer’s
expectation.
The role of marketing in an organisation is to
act as a champion of their
customer’s requirement & find
a way to meet it profitably.
2.5 Key characteristics of
marketing
Marketing is a philosophy-
about the way to build a
business.
Marketing is an integrated process-
coordination of several inter-related
activities set to achieve a specific
objective.
Marketing is customer oriented- to
identify, satisfy & maintain present &
potential customers.
Marketing is a part of total environment-
keeps on adjusting to the changing
environment.
Marketing is creative- Creates time,
place & possession utilities. .
Marketing is goal -oriented- Seeks to
achieve benefits, for both buyer & seller.
The traditionalmarketingconcepthas lost its
value and the Characteristics of Marketing
revolves around the modern approach to
marketing.
3. What other department need and want
from marketing department
Marketing department within any
organization should not exist in isolation.
Let’s explain the needs & wants of other
departments from marketing department.
Research and
development
Needs;
- Sufficient
development &
testing time prior
to product launch
- A special market research department
for R&D role
Wants;
- Early notice of new product
development
request
- To identify & agree on specification &
parameters for new product
development.
Human Resources
Needs;
- Advance notice of marketing plan, staff
requirement & clarification of role
requirement
- Details of marketing objectives, needed
resources.
Wants; - Good internal communication
“Traditional marketing
concept has lost its value
and theCharacteristicsof
Marketing revolves
around the modern
approach to marketing”.
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Production/operation/logistics
Needs; - to know the forecast for volume &
materials in order to negotiate
advantageously
Wants; - to have a clear & final specification
prior to mass production
- A clear forecast of likely demand leveland
trends
Information technology
Needs; - Early notice & time to effect
marketing requests
Wants; - Guidance on how customers’
needs have changed & how to focus on
enhancing the service experience.
Finance/account/purchasing
Needs; - Marketing’s proposed budget &
expenses presented in excel spreadsheets
meeting internal reporting requirements
- Regular updates of marketing spending,
campaign & results
Wants; - To manage cash flow, cost &
spending control within the marketing
department
- Marketing to document & show good
buying practice for outsourced contracts
Sales
Needs; - insight on how to focus on the right
target
- Detailed customer insight & up-to-date
information on product & services
- Access to in-depth information about key
account
Wants; - Assistance in the sales proper
- Quick response to requests & demands
- Regular meeting to harmonize ideas
3.1 Marketing function model
Marketing function can be categorized into
internal service & external service provision.
The model in appendix 4 describes the 5
core marketing functions in an organisation
which includes:
Corporate Marketing
Strategic Marketing
Product Management
Field Marketing
This report focuses on marketing function as
an internal service provision.
4. Evaluating internal services provided by
marketing Department in FMN
Internal service provision is a logical
description of marketing function & how it is
shared with other departments in an
organisation. It assist to find out information,
co-ordinate tasks between departments &
ensure delivery to the correct standard.
Marketing provides an internal service role
like an agency or consultant, acting flexibly
to provide tailored services to other
consultation with management. Appendix 5
illustrates such internal services
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“Causes of theunderlying conflicts;
Conflicting rewarding systems,
different background &
philosophies, functional
separations, politics & resource
allocation, management failure
and academic failure “
Marketing and finance, accounts and
purchasing
Marketing prepare & communicate
planned spending, results and activities in
advance.
Research and development
“Innovative products and services usually
result from a conscious and purposeful
search for innovation opportunities which
are found only within a few situations”- Peter
Drucker (1999). The recent modification of
packaging of golden penny semovita to a
water proof bag reflects such internal
service provision of R&D innovation &
marketing’s research to meet customer
needs.
Production/operations/logistics
Detailed explain of the implications of
working on projects with other departments
or outsourced supplier is provided by
marketing function. This will ensure that an
attempt toincreasesalesof a productis met
by available of product.
Human resources
Marketing and HR also liaise over internal
marketing, to foster the right organizational
culture which will support the corporate
goals and customer needs.
IT (websites, intranets and extranets)
Marketing and IT will often need to work
together todeliver information&knowledge
about customers & how systems can be
improved when building the company’s
management information system.
Marketing and sales
Such internal services provided by
marketing includes proposal of marketing
plan & objectives, proposed marketing
promotion, marketing researches etc.
Use of common language for
communication will build good
relationships between functions.
4.1 How to improve internal services
provided by marketing
“In practice there is often conflict between
the groups”. (Crittenden 1992, Nie and
Young 1997).Without shared, common
experiences or an understanding of the role
of those in other functions, cross-functional
working is unlikely. (Lancaster 1995, Berry et
al 1995). Causes of the underlying conflicts
between the marketing & other
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departments are: conflicting rewarding
systems, different background &
philosophies, functional separations, politics,
resource allocation, management failure &
academic failure. Suggested ways of
improving internal service provision in FMN
includes;
Good inter-personal relationships,
aligned reward systems & use of
common language for communication
will build good relationships between
functions. (Swamidass et al 2001,
Crittenden 1992, Ellinger 2000)
Organizing workshops, group sessions or
developing formal procedures &
approaches to improve
Communications. (Crittenden et al
1993).
Involving marketing & other functions in
strategy setting to avoiding potential
mismatches in this area. (Liam and Reid
1992, Walters 1999, Ellinger et la 2000).
Rewarding cross-functional working,
could be useful for improving marketing
operation relationships. (Shapiro 1977,
Souder & Chakrobarti 1978, Crittenden
et al 1993).
5. Summary
A clear understanding of the importance of
marketing roles in an organization, & cross
functional relationship will improve
communication & collaboration among
various function working together to
achieve the organizations marketing
objective of customer satisfaction and
profitability
6. Recommendation
Improving marketing - operations
relationshipsisdifficultbut it is not impossible.
The managers must have a clear
understanding of marketing role and
functions to design a solid strategy that will
drive the business forward. This strategy
formulation must involve all the areas of the
business and must be communicate to all
levels of the organisation. Improving the
staff understanding of their roles will provide
a unifying focus that would sit above the
individual functional goals.
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Bibliography
Christine Moorman & Rowland T. Rust (special issue 1999). Role of marketing. Journal of marketing
Vol.63
Home learning college (2015) www.campus.homelearningcollege.com/
Home learning college (2015) Marketing principles – Discovering marketing
www.homelearningcollege.com
Google (April, 2015) Five core marketing functions a business organization blueprint
http://steinvox.com/blog/
Angelo Reyes MARKMA (Sep 13, 2012) Customer Value, Satisfaction and Loyalty
Steve Siembieda (August, 2009) Importance of marketing in product development
Robert H. Smith school of business (2008) the role of marketing. www.rhsmith.umd.edu
John Burnett (2008) Core Concepts of Marketing. The Global Text Project is funded by the Jacobs
Foundation, Zurich, Switzerland.
Google search (April, 2015). The Importance Of Cross functional Relationships to Firms.
www.ukessays.com
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References
Michael martin (2005). “It is impossible to overstate the importance of marketing & sales activities in
business growth”-
CIM (2015) “marketing is the management process of identifying, anticipating, & satisfying customer’s
requirement profitably”
Baines et al (2011) “The challenge of an organisation is to find out customer’s expectation & how to
meet them. This will lead to an enjoyable experience”
Peter Drucker (1999) “Innovativeproducts and services usually result froma conscious and purposeful
search for innovation opportunities which are found only within a few situations”
Drucker, (1954), Porter, (1985) “All areas of the business are required to support value creationbut only
marketing & operations directly add value”
Swamidass et al (2001), Crittenden 1992, Ellinger (2000) “Good inter-personal relationships, aligned
reward systems & use of common language for communication will build good relationships between
functions”
Crittenden et al (1993) “Organizing workshops, group sessions or developing formal procedures &
approaches to improve Communications”.
Liam and Reid (1992), Walters (1999), Ellinger et la (2000) “Involving marketing & other functions in
strategy setting to avoiding potential mismatches in this area”.
Shapiro (1977), Souder & Chakrobarti (1978), Crittenden et al (1993) “Rewarding cross-functional
working, could be useful for improving marketing operation relationships”.
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Organisation Name Flour mills of Nigeria plc. FMN plc- aka Golden penny foods.
Organisation type This is a Public Limited company
How long has the
organisation been
established?
The company was incorporatedinSeptember 1960.For the past 54 year she has
remained a leader of wheat milling in Nigeria.The Company’s flagship brand, Golden
Penny, remains one of the best known and the preferredbrands amongst bakers,
confectioneries andconsumers in Nigeria.
Turnover Annual turnover for 2013- 2014 financial year is 3 billionNaira
Number of employees Number of employees in the group is 4946
Number of employees in the company 1677
Customer types Flour mill has a large range of customers ranging from
Business to consumer (B2C), Business to Business (B2B), Modern trade, Distributors,
Wholesalers,and Retailers.
Products / Services provided Golden penny prime flour, Golden penny ball foods (semovita,Goldenvita),Golden
penny pasta & Noodles, Impulse snack range, Golden penny sugar, Golden fertilizer,
Apapa bulk terminus,Agro allied,Packaging solution,feedmills,and Golden
transportation.
Website sophistication and
use of e-comms / digital
tools
http://www.fmnplc.com/
AXAPTA management informationsystem
Competitors Major competitioninNigeria includes;
Dangote group of company
Honeywell flour molls
Indomie noodles company
Royal Noodles company
Important Stakeholders BOARD OF DIRECTORS
Directors:Chairman: George S. Coumantaros (U.S. Citizen)
Vice Chairman: John G. Coumantaros (U.S. Citizen)
Dr. (Chief) Emmanuel A. Ukpabi (KJW)
Group Managing Director:Paul Miyonmide Gbededo
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Appendix 1: Organizational summary of Flour mills of Nigeria Plc. FMN
Appendix
2: An example
to describe
concept of benefit
as a role of
marketing
Other relevant information
(optional)
The company is a leader of wheat milling in Nigeria.FMN’s interest inbecoming the
nation’s dominant food business company is furtheredby entities operating in
agriculture,livestock feedand pasta manufacturing. As such, the collective clout of
Flour Mills of Nigeria stands poisedto help achieve the company’s objectives whilst
simultaneouslyimproving the lives of untoldnumbers of Nigerians,employees and
consumers alike.
Category of customers Customer’s benefits from
buying FMN noodles
FMN’s Benefits from the
customer selling noodles
Restaurants - Variedflavor & sizes
- Tasty, non- sticky,non- soggy
noodles
- Easy to cook
- increase market share
- Reorder and repeat
purchase
Market presence
- Sales and profit
- Market leader brand.
-Available ineveryhome.
- Shelve space.
Parents - Contain rich& essential
nutrient
- Healthy food for the family
Children - Delicious noodles
- Attractive packaging
Working class - Fast food
- Value for money
Dealers,wholesalers,
Retailers
- Profit
- Ease of access
- Relevance
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Appendix 3: An example to describe the concept of exchange as a role of marketing
Category of customer Customer needs f0r an
exchange to happen…
FMN gains for an
exchange…….
Bakers - Quality
- Quantity
- Sales and profit
- Re-order and re-purchase
- Market presence
- Market share
- household brand
- Market leader brand
Dealers,wholesalers,
Retailers
- Return on investment
- Rebates
- Efficient logistic & haulage
service
- Sole distributorship benefits
- Free branding of
warehouses
- Redistributionservices
Household users - Quality
- Ease of access