PLACE OF THE MARKETING FUNCTION AND ITS...

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International Journal of Management (IJM)

Volume 7, Issue 4, May–June 2016, pp.61–75, Article ID: IJM_07_04_005

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PLACE OF THE MARKETING FUNCTION

AND ITS INTERACTIONS WITH THE

FUNCTIONS OF COMMUNICATION AND

INFORMATION SYSTEM: EMPIRICAL

STUDY ON THE CASE OF

ORGANIZATIONS IN MOROCCO

Hamid NAHLA

Professor at ENSEM – Hassan II University – Casablanca, Morocco

Systems Architecture Team, Laboratory of Informatics, System and Renewable

Energy

ABSTRACT

The Marketing is a high value-added function for any organization. It

needs to be clearly situated in the structure of organization to play completely

its role. According to the Level of development of the organization, the

company or the country, its place and its attributions are often badly defined.

Its interactions also. We believe that numerous factors macro as those of the

external environment and the micro as those of the business sector of the

organization, its size, its structure have a determining role. To validate our

hypotheses, we realized an empirical study on a sample of 262 Moroccan

organizations, between companies and organizations other than companies.

Ce travail pourrait server aussi bien aux professionnels, aux chercheurs

qu’aux managers.

This work could server as well to the researchers, to the professionals, as

to the managers.

Key words: Management, Marketing, Organizations, Interactions, Models,

Morocco.

Cite this Article: Hamid NAHLA, Place of the Marketing Function and Its

Interactions with The Functions of Communication and Information System:

Empirical Study on The Case of Organizations In Morocco. International

Journal of Management, 7(4), 2016, pp.61–75.

http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=7&IType=4

Hamid NAHLA


1. INTRODUCTION

Marketing is perhaps the most important activity in a business because it has a direct

effect on profitability and sales. Larger businesses will dedicate specific staff and

departments for the purpose of marketing.

The marketing function which is situated between the functional functions (on the

strategic plan) and operational (on the practical plan) was not enough developed in the

structures of organizations of the emerging countries. This work will try to fill this

gap.

This article focuses on the marketing function in organizations. It shows that its

existence depends on macro and micro factors:

But we found nothing as works dedicated to the impact of factors micro on the

existence of a marketing function. We consider that the size of the company, the

nature of sound or its product(s), the role of its image to communicate on these

products, the internal information system are so many factors which decide on the

creation or not on the marketing structure.

Let us note of passage that fact to have no marketing structure does not mean the

absence of a marketing practice of a way informal, it is the essence of any commercial

organization on a market.

We found nothing as work on the impact of micro factors on the existence of a

marketing function. We believe that the size of the business, the nature of his or her

product (s), the role of his image to communicate about these products, the internal

information system ... are all factors that decide the creation or not a marketing

structure.

At first it is going to need to define the marketing function with its attributions, its

formalized place whatever is its title (Direction, Department, Division, Service, etc.)

and its place in the structure with the hierarchical links of connections and

interactions.

Then, identify, then analyze factors determining the existence of the marketing

function. There are factors macro such as the existence of a market on which the

organization has to act (marketing) in relation with the structure of the market (level

of competition), the culture of the consumerism (Behavior of the consumer and the

sensibility to the communication and to the marketing [1]. The nature and the

structure of the sector in which the organization operates (activity, macro environment

and micro) are also important.

The focus will be more on this aspect, because we believe that the macro is rather

generic and valid everywhere and anywhere, while the micro supposes the existence

of a real organizational structure effective with the human, financial and logistical

means. It comes true through the size of the organization, the existence of the other

support functions as Production, Human Resources Management, the Directorate of

Information System (SI), Communication (Com), ... etc., especially as its interactions

with other strategic functions is more than obvious.

To validate our hypotheses of departure, we proceeded by eliminating little or no

significant variables as to the existence or not of the marketing function, retaining

only those who seem to us solid, namely: the sector of activity (and thus its market-

target), the size of the company and the existence of both support functions of the

marketing that are: the Com and SI.

Place of The Marketing Function and Its Interactions with The Functions of Communication

and Information System: Empirical Study on The Case of Organizations In Morocco


At first, we shall recall, in the literature review, the evolution of the marketing

function in organizations. In a second part, we shall present the results of an empirical

study on the marketing function in the Moroccan organizations.

2. LITERATURE REVIEW

The marketing is a relatively recent discipline. But it knew of enormous evolution

since the beginning of the 20th century. Here are some marks of the research in the

marketing theory [1] [2]:

1900s: discovery of basic concepts and their exploration

1910s: conceptualisation, classification and definition of terms

1920s: integration on the basis of principles

1930s: development of specialisation and variation in theory

1940s: reappraisal in the light of new demands and a more scientific approach

1950s: reconceptualisation in the light of managerialism, social development and

quantitative approaches

1960s: differentiation on bases such as managerialism, holism, environmentalism,

systems, and internationalism

1970s: socialisation; the adaptation of marketing to social change

With the growth in importance of marketing departments and their

associated marketing managers, the field has become ripe for the propagation of

management fads which do not always lend themselves to periodization.

Marketing management is the organizational discipline which focuses on the

practical application of marketing orientation, techniques and methods inside

enterprises and organizations and on the management of a firm's marketing resources

and activities. Globalization has led some firms to market beyond the borders of their

home countries, making international marketing a part of those firms' marketing

strategy [4]. Marketing managers are often responsible for influencing the level,

timing, and composition of customer demand. In part, this is because the role of a

marketing manager can vary significantly based on a business's size, corporate

culture, and industry context. For example, in a large consumer products company,

the marketing manager may act as the overall general manager of his or her assigned

product [5]. To create an effective, cost-efficient marketing management strategy,

firms must possess a detailed, objective understanding of their own business and the

market in which they operate [6]. In analyzing these issues, the discipline of

marketing management often overlaps with the related discipline of strategic planning

[7].

The good marketing is in connection with the other functions. The interaction of

marketing with other business functional units has been receiving increasing attention

of the discipline. Some studies were completely dedicated on this matter, as those of

Joseph L. Orsini [8]. His works study examines the impact of the quality movement,

services expansion, and the evolution of marketing on the relationships between

marketing, production, and human resources management, concluding that increasing

interaction is taking place.

Marketing orientation is a business model that focuses on delivering products

designed according to customer desires, needs, and requirements, in addition to

product functionality and production efficiency (i.e., production orientation). As

stated by Bernard J. Jaworski and Ajay K. Kohli [9], marketing orientation is the,

https://en.wikipedia.org/wiki/Managerialism

https://en.wikipedia.org/wiki/Holism

https://en.wikipedia.org/wiki/Environmentalism

https://en.wikipedia.org/wiki/Systems_theory

https://en.wikipedia.org/wiki/Internationalism_(politics)

Hamid NAHLA


"The organization-wide generation of market intelligence pertaining to current and

future customer needs, dissemination of the intelligence across departments and

organization wide responsiveness to it."

The marketing function evolved. It knew the following stages [10]:

Figure 1. Simple Sales Department Figure 2. Sales Department with

Ancillary Marketing Functions

Figure 3. Separate Marketing

Department

Figure 4. Modern/Effective Marketing

Company

Figure 5. Process and Outcome- Based Company

Source: Delımä, J. Evolution of Marketing Department




But Marketing Managers are different to a marketing manager 10 years ago.

While having an overarching capability to ensure that the team delivers the marketing

plan as it was meant to be delivered, it is also equally as imperative to be kept up to

date with the latest in marketing techniques, changes in economic and political

environments and an ability to work closely in partnership with sales professionals.

Today, components which define a marketing orientated organization include:

Customer orientation

Competition orientation

Interfunctional coordination

As stated, the most important focus in a market-orientated business is the

customer. Similar to a production-oriented company, one of the primary goals of

marketing-oriented or customer-oriented businesses is long-term profitability.

Nevertheless, organizations that follow a marketing orientation model realize that

delivering superior customer value through product innovation, as well as products

and services tailored to customer needs, directly correlates with generating revenue

[11].

3. EMPIRICAL STUDY

3.1. Objectivities

The objective of this paper is twofold: examine the Marketing function in Moroccan

organizations. This study focused on the place and interactions of this function.

3.2. Research hypotheses

The marketing function which is situated between the functional functions (on the

strategic plan) and operational (on the practical plan) [12] was not enough developed

in the structures of organizations of the emerging countries. This work will try to fill

this gap.

3.3. Research methodology

We have already realized in the month of Mars 2016, the first empirical study on

Communication in Organizations in Morocco. This was possible thanks to our

engineering students at ENSEM who administer questionnaires of 45 questions with

300 organizations. We validated initially 212 questionnaires, the other had no official

stamp or signature of the organization contacted.

The perusal of questionnaires and the treatment of the data were realized with the

Software Sphinx and Excel.

For companies and about this article concerning the marketing function, we added

50 other questionnaires to obtain finally 262 organizations. The sample was

constructed using the quota method. Were taken into account 3 criteria: Size [less than

100 employees, 100 at 500, 500-1000, over 1000], Type of organization [Enterprise,

Administration,..] and Activity [Activities represented in the official High

Commission for Plan in Morocco] [13].

Hamid NAHLA


Table 1 Sector of activity of the company Legend Freq. Increasing

cumulative Financial activities and of insurance FII 14% 14%

Information and communication COM 12% 26%

Education (primary, secondary, upper, public, private) EDU 9% 35%

Transport and storing TRS 7% 42%

Arts, show and creative activities (Music, cinema…) ART 8% 50%

Manufacturing industry MAI 6% 56%

Construction (Building, public works) BTP 5% 61%

Trade, repair of automobile and motor bicycles CAR 6% 67%

Public administration (Prefecture, municipality, district…) ADM 5% 72%

Human health and social action (Hospitals, private hospitals) HUM 5% 77%

Agriculture, forestry and fishing AFF 4% 81%

Mining industries MII 4% 85%

Production and supply of electricity, gas, vapor and air-conditioning PEG 4% 89%

Specialized, scientific and technical activities SST 4% 93%

Activities of administrative services and support AAS 4% 97%

Real estate activities (Sale, rent) REA 2% 98%

Production and water distribution, purification, waste management PWD 1% 99%

Hosting and restoration HOT 1% 100%

TOTAL the OB. 100%

Source: Extra from « Nomenclature of HCP »

First 5 sectors on 18 (Table 1), (28%) occupy half of our sample (50% exactly).

For organizations other than companies, we selected fields of activity strongly

influencing the economic, social, cultural and political life of the country (Table 2).

71% of the part of the sample reserved for organizations consists of Professionals,

Associations and municipalities (Table 2).

Table 2 business sectors of the organization Legend Freq. Increasing

cumulative Professional Chamber (Commerce-Industrie-Services-Agriculture) Pc 18% 18%

Labor unions (UMT-CDT-UNTM-UGTM) Lu 14% 32%

Grouping of professionals (Announcers (GAM) - employers

(CGEM) Importers and Exporters Gr 14% 46%

Associations (Cultural, social, artistic, scientific...) As 14% 61%

Municipalities (rural urban-common Municipalities) Mu 11% 71%

Councils of the State (Rights of the Man-fight, the resident

Moroccans at foreigner, the economic and social council, Council

Aniti corruption...) ;

Cs 11% 82%

International organization Io 9% 91%

Organs of regulation and control (ANRT, HACA, OJD,

Mediametrie...) Rc 5% 96%

Parliament (The chamber of the representatives and the Chamber

of Councillors) Pi 4% 100%

TOTAL the OB 100%

3.4. Variables to study

To validate our hypotheses of departure, we proceeded by eliminating little or no

significant as to the existence or not of the marketing function, to retain only those

who seem to us solid, namely: the sector of activity (and therefore its market-target),

the size of the company and the existence of both support functions of the marketing

that are: the Communication and Information systems.




3.5. Analysis

To analyze the place of the marketing function in the Moroccan companies, the

possible interactions with the other functions, and the determining factors, we chose

significant variables and built some map of factorial analysis by correspondence.

The Marketing Manager is, in an organization, the member of the Management

being at the head of the marketing department. Il He is in charge of the application of

the marketing strategy in the company and the supply of the necessary information to

make it. This information is quantitative or qualitative. They come from internal

sources (Accounting, statistics of sales, purchases, stocks, production, human

resources, logistic means...) and external sources (quantitative and qualitative Needs

for the market, the capacity of the competitors, the business, technological, strategic

intelligence). Where from the necessity of being in touch with all these parts.

We retained here two functions: upstream, the Function of Information Systems

and downstream the Direction of Communication … The existence of these three

departments denotes of a structure mature as we shall show it farther. On whom

depends the Marketing director?

Figure 6 Map of variables "Size of the company", "Size of the Department of Marketing" and

"hierarchical Dependence"

In theory, the marketing is always a matter of the strategic sphere of the

management. According to the results of our study, in 58% of the cases, he depends

on a manager furthermore haunt Level (Table 3). To throw a new product, to set him a

price, to choose its market position and its communication policy are so many big

decisions which are actually a matter of the Marketing strategic, but which concern

and affect all the senior officials of the organization.

Hamid NAHLA


Table 3 Liaison hiérarchique directe en fonction de la taille de l’organisation

By taking into account variables "Size of the company", "Size of the Department

of Marketing" and "hierarchical Dependence", we note what follows:. In the small

structures (Dial B), it is the President who oversees the marketing policy. The small

size does not favor the investment in an expensive and so strategic post for the

organization. In large companies (Dial D), the marketing structure depends on a

Marketing director or on the Deputy Chief Executive Officer. But, it is necessary to

refine the analysis by separating organization between “companies” and

“organizations other than companies”.

3.5.1. Analysis of companies

In this first map, we note two vertical rectangles:

A first orange (left), is represented by two dials A and C. These are the sectors whose

companies mainly have a marketing function;

A second blue rectangle (right), is composed of two dials B and D. These are the

areas where we do not find any marketing structure.

A and C: Companies with Marketing function

This rectangle A-C can be analyzed in two stages:

Dial A: represents the sectors which have a Marketing structure and which are BTP,

CAR, AFF, MII and REA. They weigh for 21% of our sample (Table 1) and marked

by large-sized companies (More than 1000 employees). It is true that a company is

market-oriented, according to the technical definition, if it has mastered the art of




listening to customers, understanding their needs, and developing products and

services that meet those needs. Believing that this process yields competitive

advantage, companies spend billions of dollars on focus groups, surveys, and social

media. The “voice of the customer” reigns supreme, driving decisions related to

products, prices, packaging, store placement, promotions, and positioning [14].

However, the size of the company also stays of a major importance for the blooming

of marketing policy.

Figure 7 Map of companies

Also it means that the marketing function exists in sectors with high value added,

in industry as building and civil engineering works, automobile, agriculture, foresty

and fishing, the very profitable activities in Morocco… The marketing is here a

support of preservation of profitability.

The dial C: conains 5 sectors: FII, TRS, AAS, PEG and PWD with a total part of

31% of sectors represented in this study. In the FII (14%), the sector of banks, finance

and insurance, marketing is, unsurprisingly, and just like all the countries, the driving

element in their strategies.

Hamid NAHLA


Table 4 Crossed board of variables Marketing Existence and Sector of activity

To verify better this relation of the Marketing With the financial activities and the

insurances, we recut the variable "Existence of the marketing function" and that of the

"Sector of activity". It appears that this activity is widely first with 10 companies on

12 (83%) having a marketing function.

Shaken by the crisis, the regulations, the technological metamorphoses, the sector

of the bank and the insurance must evolve and cope with the rise of a certain defiance.

Building on the new behavior motivations of purchase of the customer [15] [16], he

proposes methods and tools to improve the performance of all the elements of the

marketing mix with the aim of:

Better integrate the multi-channel buying purchase of the customer;

Better know the customer, develop the interactive communication [17] and make

prefer the values of the brand [18];

Create an offer bringing some value for the customer as for the staff in contact;

Reconcile the paradox of the expert and comparator customer with the skills rise of

people in relationship.

Other sectors, in particular the transport (7%), Production, and supply of

electricity, gas, vapor and air-conditioning (4%) and Activities of administrative

services and support have a marketing structure because of the necessity to adapt

themselves to market with the increased competition [19].

A and C: Companies without Marketing function

The dial B includes essentially three sectors: MAI, the manufacturing industry with

6% of all the sectors; ADM, the Public administration (Prefecture, municipality,




district) with 5% and SST, companies with activity scientific or technical (4%). These

sectors so occupy 15% of our sample.

Set apart the ADM which has an activity particular citizen with a plethoric

workforce, two other sectors use little or nothing the marketing function if we refer to

the criterion of existence or not an appropriate structure. This segment MAI-SSI is

fundamentally represented by small and/or medium-sized enterprises medium-sized

enterprises (SMES).

These sectors do not market consumer products answering the conventional

marketing standards of a product with packaging put on sale in an intensive circuit or

a big point of sale with a mediatization of mass.

It is enough for it to resort to rudimentary means of direct communication by

telephone or by physical contact to present its product, negotiate and sell possibly …

The dial D: they are the small companies of less than 100 employees (34% of our

sample). They consist of small structures certainly, but very directed to activities with

strong human connotation and especially with big effects of training. They concern:

Information and communication (COM, 12%) ;

Education (primary, secondary, upper, public, private) (EDU, 9%);

Arts, show and creative activities (Music, cinema…) (ART, 8%);

Human health and social action (Hospitals, private hospitals) (HUM, 5%).

These sectors are marked by their small staff and their low capitalization. Can we

deduce that a marketing function develops in large capitalistic structures for their own

development?

In view of the results of our study, the figure 7 supplies us an answer is in the

affirmative.

3.5.2. Analysis of organizations excepting companies

Except companies in the industrial and commercial sense of the term, we notice that

the organizations which have a Marketing structure are Labor unions (Lu), the

international organizations (Io) and Professional Chambers of Commerce, Industry

and Services. These three entities represent 41% of organizational entities in our

sample. They are often well enough enriched in staff, or at least, they represent

thousands, even millions of people. The Marketing is an asset to touch their targets...

As regards the big causes, and not the purely commercial products, the Marketing

favors here its techniques of social communication. it is obviously inspired by classic

strategies of the trade marketing "to sell" a social, labor-union, corporatist or

humanitarian cause.

We note a correlation almost completed between the lowest organizations in staff

and the non-existence of a marketing structure. In spite of their strong symbolism, the

Parliament, (Pl), the Councils of State (Cs) and the Organs of regulation (Rc) which

represent 20% of our sample of Organizations, do not have Marketing structure. Set

apart the Parliament, their first vocation is to serve the public interest without too

much mediatization, nevertheless, the Communication remains for some, their first

vocation.

Hamid NAHLA


Figure 8 Map of Organizations excepting companies

3.5.3. Analysis of the companies and organizations simultaneously

The map which includes all the organizations (Fig. 9) confirms the analysis of both

separate organizations.

Figure 9 Map of all Companies and Organizations simultaneously




3.5.4. Analysis of Marketing, Communication and Information system functions, in

all the organizations by sector and staff

This factorial analysis of the multiple correspondences takes into account variables:

business sector, Authority and Organization, Staff, Existence of the marketing

function (Mkg), Existence of the function Communication (Com) and Existence of the

"Information system" function (SI). The map shows the positions of 33 modalities. 5,

1% of the variance is explained by two represented axes. The non-answers were

ignored. 6 modalities were taken into account no (worthless staff).

Figure 10 Map All Functions and all Sector of activities and size of all organizations

According to this map, it confirms our hypotheses of departure: not only the

Marketing function, but so these three support managerial functions exist when the

organization (public or private) is large-sized, in sectors characterized by products

(Goods or services) intended for the general public (Rectangle A-C). The opposite (B-

D) is also true!

4. PROPOSAL SIMPLIFIED ORGANIZATIONAL MODELS 3M

In the light of our documentary study, and in view of the results and of the analysis of

our empirical study, we can succeed towards a model simplified by the existence of

the marketing function in interaction with the size of the company and by the sector of

activity in particular.

Hamid NAHLA


Figure 11 Model of the

existence of the marketing

function

Marketing structure

Not Formalized Formalized

Size of

organization

Small to

medium

Little existing or downright non-existent, the marketing

function promotion is often confused with the function

selling or advertising … Everything remains to be done!

Large

organization

The company often

detains a monopolistic

position … The priority is

given to the commercial

logistics of sale, storage

or / and delivery.

Overseen by the highest level

of the management it

occupies a strategic

dimension on key sector on

markets often very expanding

general publics or at least

"milk cows"

This model could be enriched by other variables inputs and outputs.

5. CONCLUSION

This article raised a subject little approached by the managerial literature, worth

namely the existence of a marketing structure in organizations. To approach it, we

asked ourselves questions on the factors which determine its existence or not. There is

so much. But we limited ourselves to some: the size of the company, the sector of

activity and the existence of support functions of marketing function …

According to the results of our empirical study realized in 262 Moroccan

organizations of various sizes and all the business sectors, we deducted that there is

strong correlations between the existence of the marketing function, the size and the

interactions with the managerial functions supports.

As an example, in certain cases, we noticed that sectors strongly marked by their

small staff, generally small and medium-sized enterprises do not arrange a marketing

function in a formalized way. Does marketing bloom only in big capital-intensive

structures to make them finally spread?!

We proposed finally a model simplified of the existence of the marketing function

(Figure) 11) for deepening. Besides, the weakness of our research consists of the

limitation in two support functions (Com and SI). Other interactions should be

analyzed. We think of factors of inputs such as the skills, the research and

development or the lean management [20], among others; and factors of outputs such

as the size of the market, the strategic segmentation by sectors, by products, by

geographical zone etc.

It could be the object of other research. However, this work could server as well to

the researchers, to the professionals, as to the managers.

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http://hbr.org/product/tilt-shifting-your-strategy-from-products-to-customers/an/11165E-KND-ENG

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