INTER-FUNCTIONAL COORDINATION AND MARKETING EFFECTIVENESS OF MANUFACTURING ORGANIZATIONS IN PORT HARCOURT

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Abstract

This research work examines Inter-functional Coordination and Marketing Effectiveness of Manufacturing Organization in Port Harcourt. The survey design was adopted or employed. The population for the study was unknown. The judgmental sampling was adopted. The sample size was judgmental sample of 80 respondents. Both primary and secondary data were used for the study. The main instruments for the data collection was the questionnaire, which was distributed to both senior and junior staff of Beger paint limited, Emmpek Auto limited, and Hidoz Group limited all in Port Harcourt. The data collected were processed electronically using Statistical packages for social sciences (S.P.S.S version 22). The Pearson product moment correlation, coefficient was used to test the hypothesis. The study found a positive relationship between the dimension of inter-functional coordination and marketing effectiveness of manufacturing organizations in Port Harcourt. Based on the findings of this study it was recommended that for an organizational to improve performance it should remain committed to promoting customer responsive culture which will enhance free flow of information and to also ensure that all function are integrated in meeting the needs of their target markets. It was also recommended that the manufacturing firms should ensure that there is a clear and effective organizational structure to enhance smooth flow of operations, communication and sharing of information.

Table of Contents

Cover Page i

Declaration ii

Certification         iii

Dedication  iv

Acknowledgments         v

Abstract      vi

Table of Contents vi

List of Tables       ix

List of Figures      x

CHAPTER 1        1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of Problems      3

1.3 Purpose/Objective of the Study  4

1.4 Research Questions 5

1.5 Research Hypotheses        5

1.6 Significance of the Study   5

1.7 Scope of the Study  6

1.8 Limitation of the Study     7

1.9 Definition of Terms 7

CHAPTER 2        9

REVIEW OF RELATED LITERATURE   9

2.1 Conceptual Review  9

2.1.1 Inter-functional Coordination  9

2.1.2 Dimensions of Inter-functional Coordination       12

2.1.3 Marketing Effectiveness 16

2.1.4 Measures of Marketing Effectiveness          17

2.1.5 Inter-functional Coordination and Marketing Effectiveness     21

2.2 Theoretical Framework     23

2.3 Review of related Empirical Studies     24

2.4 Summary of Review of Related Literature     27

CHAPTER 3        28

RESEARCH METHODOLOGY      28

3.1 Research Design:     28

3.2 Population of the Study    28

3.3 Sampling Techniques Used         28

3.4 Sample Size    29

3.5 Sources of Data       29

3.5.1 Primary Source (s) of Data      29

3.5.2 Secondary Sources of Data      29

3.6 Research Instrument for Data Collection       29

3.7 Validity and Reliability of Instrument  30

3.8 Techniques for Data Analysis/Test of hypotheses   31

CHAPTER 4        32

DATA PRESENTATION AND ANALYSIS       32

4.1 Questionnaire Distribution and Retrieval       32

4.2 Data Analysis and Presentation  33

4.5 Discussion of Findings:     38

CHAPTER 5        40

SUMMARY, CONCLUSION AND RECOMMENDATIONS         40

5.1 Summary       40

5.2 Conclusion     40

5.3 Recommendations   41

References  43

Appendix I 48

Appendix II          49

List of Tables

Table 4.1: Questionnaire Administration and Retrieval 32

List of Figures

Fig2.1: A Conceptual framework showing the relationship between Inter-functional Coordination and Marketing Effectiveness.         9

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

To be effective in all actions, also in marketing activities, is one of the fundamental interests of every company. For business competitiveness and sustainability of its successful functioning market, it is important to have appropriate metrics for measuring effectiveness. Marketing effectiveness as a concept has been strong associated with many valuable organizational outcomes, which should be long-term growth, stable, enhanced customer satisfaction, a competitive advantage and a strong marketing orientation (Webster, 1995). Managers are under pressure; therefore, they put not only marketing investments under examination but also the company’s leadership style, company’s culture and organizational structure. The main results of the examination are reflected in financial expressions (e.g., profit, sales or turnover) as the effect of realized marketing activities (Gijsenberg, 2014; Lamberti & Noci, 2010). Effectiveness determines the policy objectives of the organization or the degree to which an organization realizes its own goals (Zheng, 2010). Marketing effectiveness depends on the corporate objectives. Measuring marketing performance is a business process that provides performance feedback on the results of marketing activities. The effectiveness of marketing activities should be defined as a return of funds invested in these activities. As for the evaluation, there are many various methods how to measure these activities (Farris, 2010).

According to Heilman and Philips (2011), effectiveness of firms helps to assess the progress towards mission fulfillment and goal achievement. To improve effectiveness, management should strive for better communication, adaptability and positive environment. Marketing effectiveness is the process of creating value, using organization’s resources for marketing activities and creation of competitive advantage (Žostautienė, and Vaičiulėnaitė, 2010).

It is necessary for management to be familiar with the fields, activities and processes which are related within a company and on the contrary, which fields, activities and processes are independent of each other. Simultaneously, managers must be aware of all the external factors which influence the company from the surrounding environment and all the subjects which are influenced by the company. This knowledge can help companies in creating strategies. These strategies must respond to all information derived from both the external and internal environments and promptly implement new changes into the decision process. One of the often-mentioned approaches is interfunctional coordination. Inter-functional coordination is of scientific interest in many fields, such as marketing, management, logistics, informatics or human resources and so forth: it is inspirational for businesspersons. Tay and Tay (2007) defined inter-functional coordination as the harmonization of all processes and functions within an organization. The main objective of inter-functional coordination is to encourage the coordination of all processes and activities in a company and allow the effective flow of information within and outside of the company.

According to Zhou, Brown, & Dev, (2009) inter-functional coordination, promotes the coordinated use of company resources and customer-related activities throughout the entire organization. The concept is therefore critical for responding to market intelligence effectively. Auh & Menguc (2005) defines Inter-functional coordination as the integration and collaboration of various functional areas within an organization as a way of enhancing communication and information to better meet the organization’s goal. This concept describes the ability of different functional areas to accommodate disparate views and work around conflicting perspectives and mental models by putting aside functional interests for the better of the organization as a whole (Zhou, Brown, & Dev, 2009).

Importance of inter functional coordination to firm performance is also emphasized by Alizadeh, Alipour, & Hasanzadeh, (2013) who refers to it as the willingness by members of different functional areas of an organization to communicate, think, and work together to achieve their objectives, effectiveness, competitive advantage, and performance. The concept comprises the organization-wide coordinated effort of a firm to create superior value for customers. Zhao & Cavusgil, (2006) also confirms that inter functional concept coordinates the utilization of an organization’s resources in creating superior value for target and potential customers. It therefore represents the integration of all functions in a firm to satisfy and serve customer needs, wants, and demand. Hence, this study intends to examine the interfunctional coordination and marketing effectiveness of manufacturing firms in Port Harcourt, Rivers State.

1.2 Statement of Problems

Marketing effectiveness of the manufacturing industries in terms of penetration profitability remains low (Aki, 2015). A firm that recognizes trends must develop unique strategies by taking advantages of the prevailing trends, capture, protects its market share, and carefully creates unique products for it to outperform her competitors. It is therefore a must for managers to recognize and anticipate for suitable ways to encounter these competitors as they play a key role in target markets’ success. Marketing managers need to be more flexible in their strategic planning and act more intelligently with their environment; this is because superior performance comes from not only having timely and needed information abolput changing markets but understanding the implications or actions that are necessary as a consequence of this knowledge. The  transformation  of  potential  customers  to  the  actual customer is  a  difficult  task  that  depends  upon  the  marketing  professional excellence  of the  marketing  personnel  in  convincing  the  customers  to  buy  the  product and services. Low market penetration of new products has been attributed to inefficient marketing by the firms. Given the complications in the markets, aggressive competition, globalization, varying customers’ needs and wants, organizations need a strong market orientation and modern marketing practices to stay competitive. Extant  literature  reveals  that  most  of  the  studies  on inter-functional  coordination have  been conducted  in  developed  countries  with  a  few  from  developing  countries.  The studies lack fundamental areas such as leadership style, company culture and organizational structure as sources of competitive advantage (Saeidi & Pahlevanlou, 2015). Udegbe and Udegbe  (2015)  in  a  previous  empirical  study  observed  that  managing  the effectiveness of inter-functional coordination measures have lacked precision and consistency. This  study, therefore, proposed  to  fill  this  gap  by  carrying  out  an  in-depth  study  on  how  each  of  the decomposed  inter-functional coordination  dimensions  of  leadership style, company culture and organizational structure influenced marketing effectiveness of manufacturing organizations in Port Harcourt.

1.3 Purpose/Objective of the Study

The purpose of the study was to examine the relationship between inter-functional coordination and marketing effectiveness of manufacturing organizations in Port Harcourt. The specific objectives are as follows;

1.       To examine the relationship between leadership style and marketing effectiveness of manufacturing organizations in Port Harcourt.

2.       To examine the relationship between company culture and marketing effectiveness of manufacturing organizations in Port Harcourt.

3.       To examine the relationship between organizational structure and marketing effectiveness of manufacturing organizations in Port Harcourt.

1.4 Research Questions

The following research questions shall guide the study.

1.       What is the relationship between leadership style and marketing effectiveness of manufacturing organizations in Port Harcourt?

2.       What is the relationship between company culture and marketing effectiveness of manufacturing organizations in Port Harcourt?

3.       What is the relationship between organizational structure and marketing effectiveness of manufacturing organizations in Port Harcourt?

1.5 Research Hypotheses

H01: There is no significant relationship between leadership style and marketing effectiveness of manufacturing organizations in Port Harcourt.

H02: There is no significant relationship between company culture and marketing effectiveness of manufacturing organizations in Port Harcourt.

H03: There is no significant relationship between organizational structure and marketing effectiveness of manufacturing organizations in Port Harcourt.

1.6 Significance of the Study

Interfunctional coordination is one of necessary principles of market orientation. Interfunctional coordination can be seen as the harmonization of all internal functions and processes in a company. It consists of two parts, namely corporate culture and information coordination. Interfunctional coordination refers to the degree of cooperation between the different functions/departments within the organization. The relevance of this study is as follows. Although a fair amount of literature has been written about interfunctional coordination and how organisations can become more marketing effective this study will try to contribute to interfunctional coordination literature. 

The outcome of this study will be significant to managers of other aspect in the functional organs of the organization as they will be favourable situated to grapple with rivalry, both within and outside their firm

This study will help management to know how to coordinate and utilize company resources and customer-related activities in the organization that can improve companies sales, profitability, market share and customer retention.

This study will make recommendations that will give organizations an insight into how they can overcome the internal challenges that are capable of affecting the company’s performance effectiveness.

1.7 Scope of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves an investigation to ascertain the relationship between inter-functional coordination and marketing effectiveness of manufacturing firms in Port Harcourt. The dependent variable is marketing effectiveness; measured by market share, customer retention and sales growth, while independent variable is inter-functional coordination measured by leadership style, company culture and organizational structure.

Geographical Scope: This study is delimited to Port Harcourt with reference to selected manufacturing organizations which includes Berger Paints, 70, Ordinance Road, Trans-Amadi Industrial Layout, Port Harcourt, Rivers State, Emmppek Autos Limited, 3 Harmony Close, Off Omachi, Rumuodomaya Port Harcourt, Rivers State Nigeria and Hidoz Group Limited, Plot 41A, Birabi Street, G.R.A, Phase 1, Port Harcourt, Rivers State Nigeria.

Unit of Analysis: The unit of analysis in this research involves both senior and Junior staff of the selected manufacturing firms at the time of the study.

1.8 Limitation of the Study

In course of carrying out this research, the researcher met with a lot of constraints. Among these constraints were: The time frame which this research was expected to be completed which was too short.

Secondly, the cost in carrying out this research work acted as a barrier and the researcher was not financially buoyant to cope with all the cost

Finally, assembling the relevant materials needed for this work was a problem. It was difficult due to the fact that some of the respondents were not willing to give us the required coorperation.

1.9 Definition of Terms

Company Culture: It is a set of shared values, goals, attitudes and practices that characterize an organization.

Customer Retention: It refers to the ability of a company or product to retain its customers over some specified period.

Inter-Functional Coordination: It is the harmonization of all processes and functions within an organization.

Leadership Style: It is the manner and approach of providing direction, implementing plans, and motivating people.

Market Share: It is the portion of a market controlled by a particular company or product.

Marketing Effectiveness: It is the measure of how effective a marketing plan is at optimizing spending to achieve positive short and long-term results.

Organizational Structure: It is a system that outlines how certain activities are directed in order to achieve the goals of an organization.

Sales Growth: It is the amount by which the average sales volume of a company’s products or services has grown, typically from year to year.

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