The relation between Marketing & Supply Chain Management ( F )

Organization’s Marketing Structure

* Centralization vs. decentralization

One of The core activities for any Multinational firm lies on the organization’s marketing structure, which could be centralized or decentralized. As one of the main important functions of the firm’s marketing activities is the communication. The marketing department continuously tries to communicate the brand image, mission and objectives as well as the products & services of the organization. And how the communication approach might produce different marketing tones, which is affected by the firm’s structure and how the different departments are allocated. For example in centralized marketing approach there is only one marketing department which controls all the marketing activities from the headquarters at the home country that responsible for managing and conducting all the different marketing initiatives and unified the brand image and this approach applied when the Multinational firms conducting global standardized marketing strategy.

Decentralization basic view refers to that multiple business groups can make a decision. Some benefits from decentralization are adopting the products or approaches to the local culture insight, local competition, local language & laws, and increase the sales channels. And this point considered as one of the reasons, which increases the importance of integration between marketing, and supply chain management. 

Usually the decision of centralizing or decentralizing of the organization’s marketing activities comes by default, based on how the company is structured as well as the relation between marketing and supply chain management plus the capabilities of supply chain to meet the different customers demands in different markets which considered as one of the main Important factors which is essential in the organization’s decision of centralized or decentralized, and this factor considered as the nature of the product or services that offered.

The research are focusing on “FMCG “ fast moving consumer goods and this industry always depend on decentralized as well as adaptation approach in their marketing strategies and activities, also the research will examine the mix of both centralized / decentralized with its relation within supply chain management and the importance of integration between marketing and supply chain management on diverse perspectives 

The mistake often lies on lumping everything under marketing because it should be under the supply chain management with its relation with marketing. The level of benefit will depend on what part of the marketing function which we talk about as well as the level of scale benefits that could be achieved within the supply chain network.

The factors which affecting advertising have a critical interest. The market segmentation variables have a significant effect on the advertising process in different ways. The contextual variables including regulations and media availability, the costs of advertising plus the Numbers of competitors in the foreign market. Multinational firms should take in consideration the local advertising regulations which means some global ideas can violate the rules and regulation in one particular market, so the Multinational firms should realize the essence of globalization of advertising with considering the local responsiveness that’s means the adaptation should be conducted (think globally, act locally), when dealing with different cultures, the Multinational firms should realize how this different cultures decoding the advertising so the decentralized approach should take place on this area of working.