1. What is the critical issue? What can be done about it? 2. Can excellence in project management still be achieved and, if so, how? What steps would you recommend? 3. What obstacles exist in getting marketing and engineering to agree to a singular methodology for project management? 4. What might happen if benchmarking studies indicate that either marketing or engineering are at fault? 5. Should a singular methodology for project management have a process for the prioritization of projects or should some committee external to the methodology accomplish this?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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BACKGROUND
THE EXECUTIVE DECISION
Clark Faucet Company
By 1999, Clark Faucet Company had grown into the thire
largest supplier of faucets for both commercial and home
use. Competition was fierce. Consumers would evaluate
faucets on artistic design and quality. Each faucet had to
be avail- able in at least twenty-five different colors.
Commercial buyers seemed more in- terested in the cost
than the average consumer, who viewed the faucet as an
ob- ject of art, irrespective of price.
The executive council mandated that another attempt to
implement good project management practices must occur
quickly. Project management would be needed not only
for new product development but also for specialty
products and enhancements. The vice presidents for
marketing and engineering reluctantly agreed to try and
patch up their differences, but did not appear confident
that any changes would take place.
Clark Faucet Company did not spend a great deal of
money advertising on the radio or on television. Some
money was allocated for ads in professional jour- nals.
Most of Clark's advertising and marketing funds were
allocated to the two semiannual home and garden trade
shows and the annual builders trade show. One large
builder could purchase more than 5,000 components for
the furnishing of one newly constructed hotel or one
apartment complex. Missing an opportu- nity to display
the new products at these trade shows could easily result
in a six- to twelve-month window of lost revenue.
Strange as it may seem, nobody could identify the initial
cause of the conflicts or how the trouble actually began.
Senior management hired an external consultant to
identify the problems, provide recommendations and
alternatives, and act as a mediator. The consultant’s
process would have to begin with interviews.
ENGINEERING INTERVIEWS
The following comments were made during engineering
interviews:
* "We are loaded down with work. If marketing would
stay out of engineering, we could get our job done."
*“Marketing doesn't understand that there's more work
for us to do other than just new product development."
CULTURE
Clark Faucet had a noncooperative culture. Marketing an
engineering would never talk to one another. Engineering
wanted the freedom to design new products, whereas
marketing wanted final approval to make sure that what
was designed could be sold.
"Marketing personnel should spend their time at the
country club and in bar rooms. This will allow us in
engineering to finish our work uninterrupted!"
*“Marketing expects everyone in engineering to stop
what they are doing in order to put out marketing fires. I
believe that most of the time the problem is that
marketing doesn't know what they want up front. This
leads to change after change. Why can’t we get a good
definition at the beginning of each project?"
The conflict between marketing and engineering became
so fierce that early attempts to implement project
management failed. Nobody wanted to be the project
manager. Functional team members refused to attend teai
meetings and spent most of their time working on their
own “pet" projects rather than the re- quired work. Their
line managers also showed little interest in supporting
project management.
Project management became so disliked that the
procurement manager re- fused to assign any of his
employees to project teams. Instead, he mandated that all
project work come through him. He eventually built up a
large brick wall around his employees. He claimed that
this would protect them from the contin- uous conflicts
between engineering and marketing.
* "Our livelihood rests on income generated from trade
shows. Since new product development is four to six
months in duration, we have to beat up on engineering to
make sure that our marketing schedules are met. Why
can't engineering understand the importance of these
trade shows?"
* "Because of the time required to develop new products
[4 -6 months], we sometimes have to rush into projects
without having a good definition of what is required.
When a customer at a trade show gives us an idea for a
Imonins in duration, we nave to beat up on engineering to
make sure that our marketing schedules are met. Why
can't engineering understand the importance of these
trade shows?"
* "Because of the time required to develop new products
[4 –6 months], we sometimes have to rush into projects
without having a good definition of what is required.
When a customer at a trade show gives us an idea for a
new product, we rush to get the project underway for
introduction at the next trade show. We then go back to
the customer and ask for more clarification and/or
specifications. Sometimes we must work with the
customer for months to get the information we need. I
know that this is a problem for engineering, but it cannot
be helped."
*The consultant wrestled with the comments but was still
somewhat perplexed. “Why doesn’t engineering
understand marketing's problems?" pondered the
consultant. In a follow-up interview with an engineering
manager, the following comment was made:
"We are currently working on 375 different projects in
engineering, and that includes those which marketing
requested. Why can't marketing understand our
problems?"
QUESTIONS
1. What is the critical issue? What can be done about it?
2. Can excellence in project management still be
achieved and, if so, how? What steps would you
recommend?
3. What obstacles exist in getting marketing and
engineering to agree to a singular methodology for
project management?
4. What might happen if benchmarking studies indicate
that either marketing or engineering are at fault?
5. Should a singular methodology for project
management have a process for the prioritization of
projects or should some committee external to the
methodology accomplish this?
Transcribed Image Text:BACKGROUND THE EXECUTIVE DECISION Clark Faucet Company By 1999, Clark Faucet Company had grown into the thire largest supplier of faucets for both commercial and home use. Competition was fierce. Consumers would evaluate faucets on artistic design and quality. Each faucet had to be avail- able in at least twenty-five different colors. Commercial buyers seemed more in- terested in the cost than the average consumer, who viewed the faucet as an ob- ject of art, irrespective of price. The executive council mandated that another attempt to implement good project management practices must occur quickly. Project management would be needed not only for new product development but also for specialty products and enhancements. The vice presidents for marketing and engineering reluctantly agreed to try and patch up their differences, but did not appear confident that any changes would take place. Clark Faucet Company did not spend a great deal of money advertising on the radio or on television. Some money was allocated for ads in professional jour- nals. Most of Clark's advertising and marketing funds were allocated to the two semiannual home and garden trade shows and the annual builders trade show. One large builder could purchase more than 5,000 components for the furnishing of one newly constructed hotel or one apartment complex. Missing an opportu- nity to display the new products at these trade shows could easily result in a six- to twelve-month window of lost revenue. Strange as it may seem, nobody could identify the initial cause of the conflicts or how the trouble actually began. Senior management hired an external consultant to identify the problems, provide recommendations and alternatives, and act as a mediator. The consultant’s process would have to begin with interviews. ENGINEERING INTERVIEWS The following comments were made during engineering interviews: * "We are loaded down with work. If marketing would stay out of engineering, we could get our job done." *“Marketing doesn't understand that there's more work for us to do other than just new product development." CULTURE Clark Faucet had a noncooperative culture. Marketing an engineering would never talk to one another. Engineering wanted the freedom to design new products, whereas marketing wanted final approval to make sure that what was designed could be sold. "Marketing personnel should spend their time at the country club and in bar rooms. This will allow us in engineering to finish our work uninterrupted!" *“Marketing expects everyone in engineering to stop what they are doing in order to put out marketing fires. I believe that most of the time the problem is that marketing doesn't know what they want up front. This leads to change after change. Why can’t we get a good definition at the beginning of each project?" The conflict between marketing and engineering became so fierce that early attempts to implement project management failed. Nobody wanted to be the project manager. Functional team members refused to attend teai meetings and spent most of their time working on their own “pet" projects rather than the re- quired work. Their line managers also showed little interest in supporting project management. Project management became so disliked that the procurement manager re- fused to assign any of his employees to project teams. Instead, he mandated that all project work come through him. He eventually built up a large brick wall around his employees. He claimed that this would protect them from the contin- uous conflicts between engineering and marketing. * "Our livelihood rests on income generated from trade shows. Since new product development is four to six months in duration, we have to beat up on engineering to make sure that our marketing schedules are met. Why can't engineering understand the importance of these trade shows?" * "Because of the time required to develop new products [4 -6 months], we sometimes have to rush into projects without having a good definition of what is required. When a customer at a trade show gives us an idea for a Imonins in duration, we nave to beat up on engineering to make sure that our marketing schedules are met. Why can't engineering understand the importance of these trade shows?" * "Because of the time required to develop new products [4 –6 months], we sometimes have to rush into projects without having a good definition of what is required. When a customer at a trade show gives us an idea for a new product, we rush to get the project underway for introduction at the next trade show. We then go back to the customer and ask for more clarification and/or specifications. Sometimes we must work with the customer for months to get the information we need. I know that this is a problem for engineering, but it cannot be helped." *The consultant wrestled with the comments but was still somewhat perplexed. “Why doesn’t engineering understand marketing's problems?" pondered the consultant. In a follow-up interview with an engineering manager, the following comment was made: "We are currently working on 375 different projects in engineering, and that includes those which marketing requested. Why can't marketing understand our problems?" QUESTIONS 1. What is the critical issue? What can be done about it? 2. Can excellence in project management still be achieved and, if so, how? What steps would you recommend? 3. What obstacles exist in getting marketing and engineering to agree to a singular methodology for project management? 4. What might happen if benchmarking studies indicate that either marketing or engineering are at fault? 5. Should a singular methodology for project management have a process for the prioritization of projects or should some committee external to the methodology accomplish this?
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