The form of marketing organisation: a study of New Zealand financial services organisations

Abstract

This thesis examines the form of marketing organisation in New Zealand Financial Services organisations. The New Zealand Financial Services Sector has undergone significant structural change throughout the 1990's. Theses changes have included a dramatic increase in competition, organisation initiatives to reduce costs, the need to identify and retain high value customers, and organisations broadening product portfolio's and entering new markets. As a result, the New Zealand Financial Services Sector presents a somewhat unique opportunity to study the role of the marketing function in organisations that are adjusting to business operation in a complex and competitive marketplace. Prior to 1980, the study of organisation in marketing concentrated upon its role in the implementation of the marketing paradigm (Pearson and Wilson, 1967; Ames, 1970). These studies took the position that the implementation of marketing was dependent upon managerial philosophy and organisational marketing culture rather than marketing structures. However, other authors have taken the view that the implementation of the marketing concept was concerned with the integration of marketing functions under the control of a chief marketing function (CME), and with the position of the CME within the organisation (Carson, 1968; Hayhurst and Wills, 1972; Piercy, 1986). The research reported here continues the focus on marketing structures by exploring the functions of the CME and status of the CME within the organisation. Although a small number of New Zealand studies have examined the responsibilities of the marketing department and the CME (Ashill, 1992; Taylor, 1992; Mueller-Heumann and Osborn, 1993), they have been general in nature. There is little published work on formal marketing organisation in specific industry sectors. The research (conducted, analysed and discussed in this report) follows the research approach adopted by three United Kingdom industry specific studies: manufacturing (Piercy, 1986); retailing (Piercy and Alexander, 1988); and financial services (Piercy and Morgan, 1989). This research was conducted by postal survey to CMEs of New Zealand Financial Services organisations with 50 plus employees. Due to the relatively small number of organisations in the New Zealand Financial Services Sector with 50 plus employees, this research must be viewed as being exploratory. The findings indicate that CME responsibilities can be categorised into five groups i.e., marketing services, product and pricing strategy, distribution/operations, branding and corporate strategy. Furthermore, the research also found four forms of marketing departmentation i.e., Integrated full-service marketing departments, Centralised services-oriented marketing departments, Centralised/strategy marketing departments and Limited staff-role marketing departments. The evolution of these forms of marketing departmentation over time supports the existence of a marketing department life-cycle. Implications of these findings for marketing practitioners and the teaching of marketing are discussed, and opportunities for future research work have been suggested.