and much of its marketing effort involves dissemination of medical and phar-
maceutical information. Publications include The Merck Index, a single-vol-
ume technical encyclopedia; The Merck Manual, said to be the world’s most
widely used medical text; The Merck Manual of Medical Information—Home Edi-
tion, a plain-English version of The Merck Manual; and The Merck Veterinary
Manual.In addition, articles placed in professional journals provide public-
ity about Merck’s research activities. Like its competitors, Merck provides ad-
vertising brochures and videotapes to doctors and other health professionals,
informing them about the benefits of its drugs. Merck advertises selectively
to consumers, because they do not ordinarily choose their prescription drugs.
Maxalt, a treatment for migraine headaches, is not marketed directly to con-
sumers. However, men who seek a treatment for baldness are encouraged, in
frequent TV commercials, to ask their doctors about Propecia.^16Engineering
Engineering is responsible for finding practical ways to design new products and new
production processes. Engineers are interested in achieving technical quality, cost
economy, and manufacturing simplicity. They come into conflict with marketing ex-
ecutives when the latter want several models produced, often with product features
requiring custom rather than standard components. Engineers see marketers as want-
ing “bells and whistles” on the products rather than intrinsic quality. They often think
of marketing people as inept technically, as continually changing priorities, and as
not fully credible or trustworthy. These problems are less pronounced in companies
where marketing executives have engineering backgrounds and can communicate ef-
fectively with engineers.^17
Purchasing
Purchasing executives are responsible for obtaining materials and components in the
right quantities and quality at the lowest possible cost. They see marketing executives
pushing for several models in a product line, which requires purchasing small quan-
tities of many items rather than large quantities of a few items. They think that mar-
keting insists on too high a quality of ordered materials and components. They also
dislike marketing’s forecasting inaccuracy, which causes them to place rush orders at
unfavorable prices or to carry excessive inventories.
Manufacturing
Manufacturing people are responsible for the smooth running of the factory to pro-
duce the right products in the right quantities at the right time for the right cost.
They have spent their lives in the factory, with its attendant problems of machine
breakdowns, inventory stockouts, and labor disputes. They see marketers as having
little understanding of factory economics or politics. Marketers complain about in-
sufficient capacity, delays in production, poor quality control, and poor customer ser-
vice. Yet marketers often turn in inaccurate sales forecasts, recommend features that
are difficult to manufacture, and promise more factory service than is reasonable.
Marketers do not see the factory’s problems, but rather the problems of their cus-
tomers, who need the goods quickly, who receive defective merchandise, and who
cannot get factory service. The problem is not only poor communication but an ac-
tual conflict of interest.
Companies settle these conflicts in different ways. In manufacturing-driven compa-
nies, everything is done to ensure smooth production and low costs. The company
prefers simple products, narrow product lines, and high-volume production. Sales cam-
paigns calling for a hasty production buildup are kept to a minimum. Customers on
back order have to wait.
Inmarketing-drivencompanies, the company goes out of its way to satisfy cus-
tomers. In one large toiletries company, marketing personnel call the shots and man-
ufacturing people have to fall in line, regardless of overtime costs or short runs. The
result is high and fluctuating manufacturing costs, as well as variable product quality.
Companies need to develop a balanced orientation in which manufacturing and
marketing jointly determine what is in the company’s best interests. Solutions include
chapter 22
Managing the
Total Marketing
Effort^691