Why integrating purchasing with marketing is both inevitable and beneficial

Jagdish N. Sheth, Arun Sharma, Gopalkrishnan R. Iyer

Research output: Contribution to journalArticle

57 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)865-871
Number of pages7
JournalIndustrial Marketing Management
Volume38
Issue number8
DOIs
StatePublished - Nov 1 2009

Fingerprint

Marketing
Purchasing
Marketers
Manufacturing
Commerce
Supply chain
Service industries
Business organization
Interaction
Build-to-order
Business to business
Vendors
Managers

Keywords

  • Business markets
  • Customer centric marketing
  • Global trends
  • Integration
  • Marketing
  • Purchasing

ASJC Scopus subject areas

  • Marketing

Cite this

Why integrating purchasing with marketing is both inevitable and beneficial. / Sheth, Jagdish N.; Sharma, Arun; Iyer, Gopalkrishnan R.

In: Industrial Marketing Management, Vol. 38, No. 8, 01.11.2009, p. 865-871.

Research output: Contribution to journalArticle

Sheth, Jagdish N. ; Sharma, Arun ; Iyer, Gopalkrishnan R. / Why integrating purchasing with marketing is both inevitable and beneficial. In: Industrial Marketing Management. 2009 ; Vol. 38, No. 8. pp. 865-871.
@article{6faab1b4abd44cafb88f499811b81889,
title = "Why integrating purchasing with marketing is both inevitable and beneficial",
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 = "Business markets, Customer centric marketing, Global trends, Integration, Marketing, Purchasing",
author = "Sheth, {Jagdish N.} and Arun Sharma and Iyer, {Gopalkrishnan R.}",
year = "2009",
month = "11",
day = "1",
doi = "10.1016/j.indmarman.2008.12.021",
language = "English (US)",
volume = "38",
pages = "865--871",
journal = "Industrial Marketing Management",
issn = "0019-8501",
publisher = "Elsevier Inc.",
number = "8",

}

TY - JOUR

T1 - Why integrating purchasing with marketing is both inevitable and beneficial

AU - Sheth, Jagdish N.

AU - Sharma, Arun

AU - Iyer, Gopalkrishnan R.

PY - 2009/11/1

Y1 - 2009/11/1

N2 - 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.

AB - 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.

KW - Business markets

KW - Customer centric marketing

KW - Global trends

KW - Integration

KW - Marketing

KW - Purchasing

UR - http://www.scopus.com/inward/record.url?scp=70449533672&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=70449533672&partnerID=8YFLogxK

U2 - 10.1016/j.indmarman.2008.12.021

DO - 10.1016/j.indmarman.2008.12.021

M3 - Article

AN - SCOPUS:70449533672

VL - 38

SP - 865

EP - 871

JO - Industrial Marketing Management

JF - Industrial Marketing Management

SN - 0019-8501

IS - 8

ER -