question archive All business marketing decisions - product, price, promotion, and distribution - are affected, directly or indirectly, by other functional areas

All business marketing decisions - product, price, promotion, and distribution - are affected, directly or indirectly, by other functional areas

Subject:BusinessPrice:2.84 Bought6

All business marketing decisions - product, price, promotion, and distribution - are affected, directly or indirectly, by other functional areas. In turn, marketing considerations influence business decisions in R&D and in manufacturing and procurement, as well as adjustments in the overall corporate strategy."

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The business marketing decisions are affected by the other functional areas in the following ways:

1. The decision of product is dependent on the research and design department of the organisation who designs the product and forwards these designs to the production department.

2. Place of providing the product to the customers is dependent on the location of the organisation and its capability to establish its distribution center in various parts of the domestic market and that in the international market. This decision is also dependent on the ability of the organisation to enter the target market.

3. Promotional strategy of the company is solely dependent on its capacity and its focused target market. It may be possible that the organisation may want to promote its product to more numbers of markets, but its financial capacity is not strong enough for a stronger promotion to the varied markets. Now, it's the responsibility of the financial department that how economically and effectively it can manage its funds so as to promote its product to as much number of markets as that could be possible.

4. Price of the product is dependent on the inventory management and production management department. Inventory management department should plan inventory in such a way that the inventory cost should not be reflected over the product and it should not lead to the increase in its price. Furthermore, procurement department should not source the product from the costly supplier; rather it should find the appropriate supplier that would provide high quality of material at lower possible costs. Similarly, production department should focus on eliminating the waste from the production so as to control the cost of the product

Step-by-step explanation

The activities of marketing department also affect the other business decisions of various departments. Market research that is focused on determining the demand of the customers and their taste and preferences changes the design and the goals of research and design department. It manipulates them to focus over the demand of the customer; specifications of which are provided by the marketing department and to design the product accordingly. It also entails production department to apply the suitable strategy. if the product being demanded is customised in an particular pattern, then production team would apply the strategy of mass customisation. If the demand is for a particular type of product, then production department would apply the strategy of mass production of that particular type of product. If the demands of the product are differentiated, then production department would employ batch manufacturing strategy. Demand determination also affects the inventory department in that the team of the department needs to place the sufficient orders to the vendors so as to fulfil the demand of the customers. Taste and preference of the customers determines the quality of raw material that is required to be sourced. Marketing team affects the management of the organisation in a way that it is responsible to execute on the mission and vision statement of the company. Ultimate aim of management is to make revenues and this is possible when the sufficient numbers of products are sold in the market which is a task of the sales team who functions under the marketing department of the company,