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Why integrating purchasing with marketing is both inevitable and beneficial
Authors:Jagdish N Sheth  Arun Sharma  Gopalkrishnan R Iyer
Institution:aEmory University, United States;bDepartment of Marketing at the University of Miami, United States;cCenter for Services Marketing and Management at Florida Atlantic University, United States
Abstract:The shift away from manufacturing in Western developed economies has resulted in economies in which service industries are dominant. Marketing itself has undergone a paradigmatic shift from a focus on the exchange of goods to the provision of capabilities. This paper examines the relationship between marketing and purchasing as a result of the shift from product- to capability-focused commerce. We suggest that the marketing and purchasing departments will become closer due to two major reasons. First, as marketers increasingly become solution-oriented rather than product-focused, they will need to source products and services from third-party vendors and will require deeper involvement of the purchasing department. Second, with the emergence of customer-centric marketing coupled with build-to-order manufacturing, marketing and purchasing will have to be better aligned to deliver solutions to customers. These new dimensions in the marketing–purchasing interaction will also lead to changes in the selection, training, and recruitment of marketers and purchasers as well as their roles in the supply chain. We elaborate on these changes likely to occur in business-to-business organizations and along with implications for managers.
Keywords:Purchasing  Marketing  Integration  Global trends  Customer centric marketing  Business markets
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