Total Integrated Marketing

Citation

Dupree, J.V. (2004), "Total Integrated Marketing", Journal of Consumer Marketing, Vol. 21 No. 1, pp. 70-72. https://doi.org/10.1108/07363760410514003

Why this book? Why this topic, marketing? Because, while firms struggle to be customer‐focused to more effectively compete in a crowded, dynamic marketplace, their efforts often fail since they approach the issue functionally rather than holistically. Total Integrated Marketing makes the case that first, companies need to think strategically and that second, marketing as the primary customer‐focused function should be used to integrate and develop close cooperative relationships among all business functions. The result is a company transformed into a market‐driven, customer‐focused, profit machine. Inculcating marketing throughout the firm and re‐organizing to manage “customer portfolios” provides firms with the mechanism for satisfying their two key stakeholders – customers and shareholders.

Often Total Integrated Marketing reads like an organizational change or total quality management textbook. This is a content‐dense text, but well worth the effort. A bit radical to some, the authors argue that marketing thinking should permeate every function within the firm. They even suggest that some business functions should be reorganized to report to a marketing executive. The authors develop their argument that marketing should become a central part of the organization’s culture, organizational chart, and each and every business function, by offering two distinct sets of content, an overview of strategic marketing principles, and then a function by function application of those principles.

The opening chapter lays out the entire work in overview. Then in the second chapter there is a competent review of challenges all firms face in today’s tough markets due to competitive pressures and knowledgeable customers. The reader might be tempted to skip these two introductory chapters and dive into the meat of the book. However, the time invested in these chapters will prepare you for the rest of the book.

Non‐marketing managers desiring a primer on the processes, premises, and assumptions of marketers will find the first part of the book (Chapters 3 through 5) a thorough review of marketing basics. Chapter 3, “The Strategic Marketing Process”, is worth the price of the book by itself. While using a fairly typical planning model, it is here where the authors’ depth and innovativeness comes through most clearly. The discussion of value and equity – firm, customer, product – in the fourth chapter, “Marketing Stewardship”, is an excellent reminder of the essential elements to profitability and dominant market share. Chapter 5, “Market Strategy”, provides a simple, clear review of the importance of marketing strategy.

The second half of the book (Chapters 6 through 11) provides marketing managers with a fine MBA course in finance, operations, sales, R&D, customer service, and human resource management through detailed functional discussions. Each chapter opens with a brief introduction as to what the authors will do in the chapter. The function’s role within the organization and its operating assumptions are explained. Then the problems created by the lack of integration with marketing and solutions specific to the business function are proffered. Integrating marketing into each function has two practical benefits. First, it will enhance the firm’s ability to meet its function‐specific goals while, second, improving the firm’s overall competitive stance in the marketplace by enhancing the customer‐relationship with this function.

The authors begin with finance/accounting in Chapter 6 due to both the centrality of finance to a firm’s success and the tendency for these two functions – finance and marketing – to inherently be at loggerheads. The strongest argument for this integration is that it will enable finance/accounting to meet its goal of increasing stakeholder value while helping the firm increase customer value. However, the integration process will require finance to significantly re‐think its assumptions about managing budgets and expenses, especially marketing expenses. Basic finance decisions – funding new products, credit policies with customers, and attributing costs within corporate budgets – must also be evaluated.

The difficulties between marketing and operations recounted in Chapter 7 revolve around issues of inventory management, forecasting, and customization for the individual customer. Operational issues around efficiency hinder the flexibility needed for responsiveness to high demand generated by effective marketing. The primary shift in thinking that is needed is in understanding that value is the desired outcome. The drive to be “lean and mean” must not reduce the flexibility needed to be sufficiently responsive to the customer, thereby creating desired value for the customer.

At first glance the discussion in Chapter 8 of the integration of marketing and sales may seem redundant. Are not sales and marketing, if not one and the same, at least very close kin? Here the issues are internal competition and misalignment of goals, resources, and the value created for the customer. While clearly reviewing the primary issues regarding the malfunctioning of sales and marketing – staffing, compensation, incompatible strategies – the suggested solutions are simple and somewhat underdeveloped. Essentially the key is thinking strategically and tying each decision, from type of sales force to customer relationship tactics into the sales and marketing strategy for the firm.

The discussion in Chapter 9 of the importance of R&D and its relationship to marketing is commendable and an example of the wide range of the text. While rife with examples of the centrality of R&D to a firm’s success and classic missteps by firms, this chapter is the least concrete and specific in addressing central issues. Recognizing that innovation is critical to product development and timeliness to market, the specific interface issues are left fairly general. The most important specific suggestion is for marketing to develop a relationship with the R&D people, which is not a bad idea.

The development of customer service strategies, Chapter 10, and its role in supporting marketing are well developed and thought through. The examples are priceless and almost unbelievable, but are central to making the authors’ point! You have to read, “Urban Myths About Customer Service Arrogance”, to believe it. Also, one of the authors’ own experiences with poor customer service – “You Shouldn’t Have Made Me Mad, People …” is an archetypical example of how marketing and customer service can work at cross purposes. The entire chapter can be summarized in this example as well as the lessons learned to fix it. Again, while the authors admirably make the case for integrating marketing and customer service and clearly demonstrate the negative impact customer service can have, their suggestion that firms make more use of technology is a bit simplistic. In fact, one could argue that technology is creating greater distance between the firm and the customer.

The last functional area addressed is human resources, Chapter 11. Many factors – from company growth, to restructuring and organizational change, to the need to create a humane work environment to aid retention of your most talented people – make this one of the most challenged and strained functions in any firm. The authors attack the problem from the perspective of competitive advantage and how human resources may inhibit or assist the other functional areas of a company in developing, enhancing, and maintaining the firm’s competitive advantage. As HR managers learn to focus on business processes by looking across functional lines, they add significant value. With marketing, they need to search for individuals with a marketing mindset and competencies in marketing, regardless of the specific function for which they are hired. Within the firm HR needs to carefully assess employees’ capabilities and optimize their careers by ensuring the best fit when promoted and transferred within the firm. In one sense, the integration of marketing and human resources comes when human resource professionals realize that everyone is a customer service representative, a marketing representative of the firm, regardless of their actual job description. Then a marketing culture is created and sustained, leading to increased shareholder and customer value.

In closing, Chapter 12 returns to the strategic message in the authors’ organization‐wide application of their argument. Whether it is the company’s mission, values, organizational chart, commitment to quality, etc. all goals, objectives, and decisions need to be strategic in nature.

Total Integrated Marketing is a very good strategic overview of the need for functional integration for the executive. It provides significant value to marketing professionals in increasing their understanding the necessity of relationships with their operational counterparts. Functional managers in all areas will benefit from the initial overview of the strategic marketing function and will pick up several ideas for improving cooperation and coordination from the various functional chapters.