Volume 6, Issue 11, November – 2021 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Lifting The Veil Of Dichotomy in Business

Functional Areas - A Review of Marketing
and Purchasing Practices in the Supply Chain
Management of Different Organizations In Nigeria
Madu, Augustine Chinwe, Ph. D
Department of Purchasing & Supply
School Of Business & Management Technology Federal Polytechnic
Nekede Owerri, Imo State, Nigeria

Abstract:- Industries and firms globally have started the voyage of discovering nature as it relates to man. This was
adoption of integrated strategic approach to purchasing and the beginning point of knowledge harvesting as thereafter
logistics management known as Supply Chain management. modern scholars furthered the search to consolidate on these
The advent of the 21st century organizational restructuring founding ideologies. They evolved other generation of
brought with it the supply chain management concept as an thoughts still in a bid to align with realities. For instance,
indispensable strategic tool for companies and organizations to Anthropology, Philosophy, Sociology, geology, Modern
more than ever embrace “value addition in quality, customer Science, theology, pathology etc were knowledge based
service delivery, products fit for purpose etc.”. This paper titled areas that has given birth to a lot more decomposition of
“Lifting the Veil of Dichotomy in Business Functional Areas –A knowledge fields as Business and Management sciences,
case of Marketing and Purchasing Practices in Supply Chain Humanities and Social sciences, Environmental sciences,
Management” was designed to examine and address areas Engineering Technology, Industrial and Applied sciences
of inter-functional dichotomies existent particularly in etc. Today, more fragments of knowledge based areas have
the discharge of roles, functions or duties by emerged with the following streams of study mainly from
professionals occupying the Marketing and Purchasing Business and Management confederacy and these include;
positions of various businesses and organizations at one Business Administration, Marketing, Public Administration,
time or the other and hitherto establish the gains tenable Purchasing and Supply, Accountancy, Finance, Cooperative
from maintaining a systematic and synergized work Economics, etc with all emanating from a common descent,
relationship. The methodologies adopted include the review of Business being ‘Business and Management Sciences.
related literatures, works and views of renowned authors in the
field of Marketing and Purchasing areas of Supply Chain From the foregoing, man as a psychogenic being has
Management and use of other secondary sources. The study continued to be proactively creative and is this same
shows that there still exists some element of reductionist inclination that drives his insatiate culture of transforming
traditional management as opposed to the modern system’s his known obscure ambience to more egalitarian and
approach and concludes that the thesis of this paper responsible one. Essentially therefore, since knowledge of a
remained to re-enact this seemingly abandoned team given set does not exist in isolation, the underlying principle
spirit to foster at different points of their work holds ware in the affirmation that all business related
relationships. The paper therefore called for a reshape courses including Marketing and Purchasing share a lot in
in academic research works in the area of SCM to align common especially in the area of idea interchangeability and
with the new normal. A major recommendation of the application. Given therefore the foregoing background, this
study was that Organizations should revisit their paper is an attempt to identify valuable points of interaction
operational policies with a view to removing all blocks of that should exist between Marketing and Purchasing as
pride and lackluster influences existent amongst belonging to the family of Supply Chain Management
functional units. This is to inject an air of competence (SCM) and to appreciate the values embedded therein which
through sharing from a common bank of ideas. beyond the immediate operational constituencies can offer
the entire organization economies of varying degrees.
Keywords:- Functional dichotomy, Marketing, Purchasing,
Supply Chain Management, Organization. II. PROBLEM STATEMENT

I. INTRODUCTION It is no longer news, the collapse of old and newly

established industries and companies all over the world.
Centuries past, a handful of Scholars paid dearly, Reasons for this abound and ranges from conducting
investing time and resources tracking and unearthing diverse improper feasibility survey, naïve managerial principles and
areas of knowledge ranging from History, Arts and Crafts, abilities, information asymmetry and reductionism approach
Religion, Culture and later of course Science amongst lots in management culminating to functional polarities as the
other opinionated areas. All these played out as mannequin case under review. These and more have remained core
benchmarks that hosted our early scholar’s curiosity in their areas of concern and in effect the reason very well

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Volume 6, Issue 11, November – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
subscribed companies fail to achieve targeted objectives. even spread your message to others. And no matter what the
This as we all know spell very serious doom to national and desired response is, marketing should always return it back
global industrialization for instances resulting to increased to your overall business objectives.
rates of unemployment, poverty thereby setting families
apart. Therefore, worried about this raging trend, the This definition explains marketing from the
researcher took a resolve to investigate the phenomenon perspective of communicating to the audience not the
from the perspective of prevailing dichotomies and non- physical product but information. The element of
synchronization of business operations particularly the ‘marketing’ in the information is the ‘invitation to treat’
Marketing and Purchasing \contributions with a view to snag being communicated. At this point we can appreciate
synthesize and harmonize their operational relationships. that although no physical product was shown but a whole lot
of products can be sold thereafter. No wonder the Igbo
adage that a “woman’s bright face is the best invitation to
III. STUDY OBJECTIVES ask her for a launch break”. Same goes for marketing
company services as in banking drive for customers. This
 Broad Objectives definition expresses the reason why scholars prefer to
separate ‘Marketing’ from ‘Sales’. The argument is clear if
To investigate the dichotomy in business functional areas of
we understand Marketing to end with information
marketing and purchasing practices in the supply chain communication while Sales ends with physical product
management of different organizations in Nigeria transfer in exchange of cash or agreed consideration, simply
 Specific Objectives therefore put that while Marketing is ‘Information’ driven,
 To identify areas between operations of various Sales is ‘Physical Product’ driven.
businesses
The responsibility to communicate information rests on
 To ascertain the gains tenable from maintaining a the shoulders of the marketing teams with predominant role
systematic and synergized work relationship between at the beginning of a potential sale. For example, a
the Marketing and Purchasing functions. marketing team may develop a new ‘shoe deal’ to create
awareness about its launch, the sales team takes over to
 Scope Of the Study
finalize the deal by communicating directly with leads
The study was scoped to review cognate areas of
(customers) who parts with the physical product.
interraction amongst Purchasing and Marketing
professionals in a production business setting. To this effect, From the above definitions of marketing, it is
it looked at the activities of professionals in the core imperative to say that the core objective of the marketing
Purchasing and Marketing management areas of a function is the adoption of systematic approach in its role to
production organization. Both functional areas share ensure that the organization’s product is properly packaged
interractions at one point or the other such as new product and brought to the knowledge of the public at the ‘right
design, product development, value analysis, materials time’ using the ‘right advertising strategy’ while sales takes
handling and despatch, product research, information over to sell at the right price and deliver to the ‘right buyer’
logistics, etc. The study therefore does not cover other and place using the ‘right transportation modes or
business areas of concern but scoped to closely look at the distribution channels. In view of the foregoing, those who
services and functions of these two on which bases are to carry out these tasks must be of proven professional
extrapolations can be made to apply in the rest production and academic background.
business functions.
Conversely; Purchasing according to Lyson (2006) is
IV. REVIEW OF RELATED LITERATURE defined as the act of buying materials of the right quality
and quantity from the right source at the right time and price
A. Conceptual Definition Of The Terms Marketing, and delivered to the right place for either of operational or
Purchasing And Supply Chain Management production purposes. This definition just as that of
Quite often, we hear people say that “marketing is a plan marketing suggests that purchasing is an arm of Supply
to achieve sales “. This definition as simple as it may sound Chain Management.
does not capture the properties as much as we envisage
under the prevailing context. The reason is simple hence On the phenomenon 'Supply Chain’ the Council of
“Marketing” as a total concept should be seen as a ‘process’ Supply Chain Management Professionals (2015) states that
meaning that the word ‘plan’ as given in the definition is “Supply chain management encompasses the planning and
just the first step in the array of processes that gives a management of all activities involved in sourcing and
throughput definition. procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and
According to Heidi Cohen’s 72 definition of marketing collaboration with channel partners, which can be suppliers,
compilation; Marketing is the ability to communicate a intermediaries, third party service providers, and customers.
message to your audience and soliciting a response from In essence, Supply Chain Management integrates supply and
them. This response can take the form of a positive demand management within and across companies. This
impression of your company brand, an urge to purchase an definition identifies the unique roles of Purchasing,
item, to reach out to your company for more information or Transportation, Stores, Inbound distribution, Production,

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Volume 6, Issue 11, November – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Warehousing, Packaging, Marketing, Sales, Outbound where the customer can buy them and take delivery. Any
distribution in a new or existing product development until glitch therefore making the product not being available at
the final consumer is satisfied. What this means is that the right time can result to loss of effective clients and other
Supply Chain Management is a compound concept for all attendant costs.
the above mentioned activities for the purpose of acquiring
the right raw material such that after the inter functional According to Jüttner, Christopher & Baker (2007).
activities of conversion, the desired finished products are Marketers need to strategize within the Supply Chain
made known and available to the public. Management (SCM) purview to improve their
organizational operational boundaries. Similarly, Flint
Again, as earlier stated, there is this strong synergistic (2004) posits that effective marketing strategy execution
bond in the two functions, no wonder in some institutions of needs Supply Chain Management since it embeds the
higher learning in the past, there was this belief that led to distribution and supply intelligence of a marketing strategy.
having them together as a Department however, realizing In this perspective, processes are regarded as a component
the increasing role and contribution of each in corporate of the organizational context that directly influences the
organizational development, it became so imperative to extent of customer value enhancement (Srivastava, Shervani
separate them to make room for advancement and & Fahey, 1999). In other words, any action of non-
specialization. Be this as it may, scholars in the field of compliance and or alliance to the integrated concept of SCM
Business Management still uphold the fact that the automatically jeopardizes every effort towards achieving
proximate goal of any objective is to achieve success. the corporate firm’s objective.

Alluding to this statement, Ford (2002) posits that the Mentzer, DeWitt,., Keebler, Min, Nix,.Smith, and
relationship between marketing and purchasing activities is Zacharia (2001) said that marketing perform significant
not just important in terms of synchronization of the roles in many of the core components of SCM and as such
operational activities – i.e. the implementation of the so- asserts the confederacy of Supply Chain Management as
called transfer ability, the capacity to transfer the product or encompassing those material related activities as purchasing,
service in the way that meet the objectives and constraints of stores, production, warehousing, transport and distribution,
the customers. The relationship between marketing and sales, etc According to Piercy (2002) a marketing strength
purchasing, in terms of communication processes, that is delinked to Supply Chain strength often results in a
information exchanges, interaction, is more and more high- cost base, incoherent and inefficient product delivery.
significant also in relation to the improvement of the These dilemmas can only be remedied only in extreme cases
company’s problem-solving ability, the capacity to fully by organizations that command high image profile else, the
satisfy customer’s needs, to solve users’ problems, to mere lack of supplies intelligence would result to loss of
improve their performances. credibility and consumerism.

As it were, purchasing might seem to enjoy a largesse C. The Role Of Marketing And Purchasing In New Product
of appearing at different points of a product life Development
development that does not in anyway negate what in this As integral parts of the Supply Chain philosophy,
study we, chose to tag the Marketing Intervention Function Marketing and Purchasing occupy very sensitive space in
(MIF) which sees Marketing actively engaged at the the process of developing a new product. Product
research and design stages of a product life cycle. comes in development is the beginning point of measuring
intermittently product development stage and takes up the organization’s successes and failures and therefore requires
tunnel end to handle, promote and despatching to final that the best input variables be accommodated to realize
consumer. profitable and sustainable product launch. It is therefore of
paramount importance that organizational leaders
This analogy critically explains the underlying thesis of understand contemporary marketing and purchasing crucial
this paper and as such, our focus remains to discuss the roles in the product development process.
interactive roles of Purchasing and Marketing as fragmented
concepts in the Supply gChain larger family it According to Darrin and Duber-Smith (2005)Modern
developments in Research and methods has replaced the
B. Relevance Of Marketing As A Component Of Total traditional definition of ‘Product Concept’ where Research
Supply Chain Strategy and development teams created products utilizing
Given the understanding from the foregoing discussion technology, intellectual property, and cost models without
about the position of Marketing as an integral part of the much analytical insight as to where these products might be
Supply Chain family, it is imperative to further underscore marketed and to whom, as well as which particular needs
its veritable relevance in the Supply Chain strategy which they might address. Today, the story is no longer the same
lately has been assumed a core pillar role to business hence, globalization coupled with market complexities and
successes. This is true as effective market coverage and intense competitive environment such practices remain
availability of products at locations that are key to outdated and so compel professionals to drive product
organizations revenue centre depends upon the effectiveness development and product life cycle functions within the
of the Supply Chain Strategy applied. For instance, when a organization. At least, basic marketing science teaches us
product is introduced in the market through adverts and that the root of any strategic plan lies in developing a
promotions, the global market need to have the product

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Volume 6, Issue 11, November – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
product that is “need-driven.” The basic tenet of the “market gained competitive advantage by differentiating not only
concept” is that market needs and opportunities are assessed customer-needs based products and services, but also the
first, and then products are developed to address and exploit underlying delivery processes. Also, Heikkilä, (2002)
them and not the other way round. maintained that the concept of demand chain management
emphasizes the synergies between marketing and purchasing
According to Burt and Joseph, Jr (1979) the role of and that such is exceedingly beneficial.
purchasing in the early stages of product development is
very central. When purchasing is not involved in the design Sheth, Sharma. & Iyer (2009) argued that Supply
process, companies usually face the danger of incurring high Chain Management in companies should be responsible for
unit cost of production which otherwise could have been all the processes directed to create and deliver value
obviated by applying the competitive or negotiated materials propositions to customers. According to Kumar, Sheer. &
acquisition techniques. Indeed, studies indicate that prices Kotler (2000) Supply Chain Management literature quite
tend to fall by 4% each time one additional qualified extensively emphasize the need for integration with
supplier submits a price. Thus an item costing #100 when marketing, even if the study of the specific modalities and
only one bid has been obtained will cost #90 if three bids are intra-organizational consequences of such integration are
available and this reduces company unit cost by #10 and neglected.
invariably increases profit margin correspondingly.
Wind (2005) argues that there is a need now to
Furthermore, Burt etal, maintained that the right increase cross-functional perspectives in management
purchase description can also have a great impact on product research and practice. He puts into light how “marketing, at
costs and availability. A San Diego manufacturer has long the interface between the organization and the environment,
used its own design specifications to buy components for can provide new opportunities for value creation and
which suitable commercial substitutes were available. Not growth. Marketing provides opportunities by identifying
only have the costs of such special items averaged 10% opportunities to serve unmet needs of current customers or
more than those of their commercial substitutes; new customers for the company’s current and new products
specification of unique items has also brought longer lead and services. A focus on growth requires an integrated
times, weaker market responsiveness, and a need for approach, cutting across the organizational functions and
maintaining larger inventories. Leenders and Fearon (1997) activities” (Wind, 2005). Moreover, he highlighted that there
in support to the above allusion, posit that the SCM often is is a continuing debate about whether the organization needs
used to refer to the purchasing department’s efforts to a marketing department, as a centre of expertise, or the work
develop better, more responsive suppliers. should be more thoroughly diffused, He however insists that
there is an urgent need to apply marketing insights more
Ford (2002) posits that the relationship between broadly.
marketing and purchasing activities transcends mere
synchronization of the operational activities which circles Some degree of attention has been paid in the last years
around the material to customer services concept but also to the organizational issues of the purchasing function. By
cuts across information exchanges and cross functional the late 90’s, greater number of scholars have asserted their
cooperation necessary to solving very crucial organizational views about Purchasing becoming increasingly strategic in
problems. Piercy & Sheth, (2009) investigated the company operations (Lamming, & Cox, 1995; Hardt
relationship between Marketing and Purchasing and noted Reinecke, Spiller, (2007). Pearson & Gritzmaker (1990)
that Marketing and Purchasing departments has to become Spekman, Kamauff .& Salmond (1994).
closer for two main reasons, first, that marketers become
more information oriented than product focused. Secondly, Cox & Hines (1997) opined that Purchasing as a
that there is need to reassess marketing and purchasing company’s function have emerged from its traditionally held
direct relationship within the organization. Piercy (2009) stance as clerical function to a strategic one and as such has
continuing said that the relationship between Marketing and been imbued with increasing important roles in
Purchasing should align to strategic customer relationship, organizational businesses
management and supplier and that this relationship be
considered necessary to connect customer needs to complex Purchasing department assumed more and more
technical solutions. Accordingly, they affirmed the need to strategic activities, increased critical capabilities of the
develop strategic internal relationships between the groups people involved in line with the high level procurement
responsible for managing customer relationships which officers as critical to organizational effectiveness. Trent &
include Marketing, Purchasing, Sales, Suppliers and. Monczka, (1994); Trent (1996) stated that suppliers are an
Accounts payee, etc. It is thus necessary an internal increasingly important resource for manufacturers and
partnering between the boundary-spanning functions that provide materials and services that constitute a majority of
have direct impact on the delivery of value to the customer. the cost of many new products; in addition, suppliers may
provide innovative products processes and technologies that
Jüttner, Christopher and Baker (2007) listed the can overturn a firm's fear to unimaginable fortune .
benefits of the integration between marketing and supply
chain management highlighting how the companies which D. Theoretical Framework
effectively link their customer and supply chain operations This study is underpinned to the theory of “Systems
Theory” hence continued industrial experience has thought

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Volume 6, Issue 11, November – 2021 International Journal of Innovative Science and Research Technology
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us to appreciate it as the best strategy for achieving expected categorize, investigate, interpret and identify the limitations
results. In other words, team work at its best results in a of physical sources, mostly common written documents
synergy that can be very productive. The Cambridge either for the private or public domain.
dictionary defined Synergy as “the combined power of a
group” which of course achieves better than applying a VI. DISCUSSION OF FINDINGS
singular or individual strength. According to Von
Bertalanffy (1968) the term ‘System"’ implies a set of This paper specifically discusses inter functional
elements standing in interactions. relationships between Marketing and purchasing in Supply
Chain Management. Supply chain management is a
One area of an organization that utilizes systems theory composite phenomenon that houses all materials related
extensively is during the introduction of a new product or functions of an Organization which includes Design
product development. Scholars in this specialization are Engineering (Product design and development), Purchasing,
interested in the interaction of people to see how they create Logistics (in and outbound transportation and distribution),
what we know as organizations (Bavelas & Segal; Katz & Stores, Production, Warehousing (Packaging, crating,
Kahn). For example, what makes Wal-mart different than boxing, branding & labeling, marking, etc) Marketing &
Target? It’s not simply their products or prices. Instead, Sales etc. Of course, Information Communication
these two mega-retail stores have a certain “personality” and Technology (ICT) has not only eased the flow of
way of functioning that is different from the other. Those information transmission but as well reduced by space and
who look at communication from a systems perspective dimension every act of global business. This innovation has
believe that it is the interaction of the participants that makes helped so tremendously in the advancement of the Supply
organizations what they are. Chain philosophy with all intents and purposes. Branding
and labeling
One characteristic of the Systems Theory Paradigm is
that systems are teleological (Infante, Rancer & Womack), Purchasing and Marketing by our reviews displayed
meaning that they seek to achieve a particular goal or such invaluable traits by distinctively playing very central
outcome. The goal of combining the expertise in a work roles in the realization of the Supply Chain family dreams.
station is sure to pay of than bringing the largest machines Marketing plays an increasingly important role in the
manned by reductionist and selfish operators without social process thus providing essential demand information within
values. The goal of a business is to produce products and the building blocks of supply chain operations. In a
profit. Communication researchers examine the interactions collaborative relationship, Purchasing, correspondingly
of those that make up systems to understand the systems’ contribute to a large extent in building up a high customer
goals, as well as how they attempt to achieve goals. service profile and as such positions the organizations
product as one among equals. They provide information on
Systems theory within our study's context serves to products availability, prices, order tracking, customer
bring the various complex business functions of an incentives, marketing campaigns and sales targets through
organization such as Purchasing, Marketing, Finance, their knowledge of marketing research
Design Engineering, logistics, Production, Ware housing,
Stores even Human Resource to freely interact in such a These and more help to increase understanding of
manner that eschews functional rivalries and egocentric market demand and marketing initiatives which in turn
tendencies. equips Purchasing on planning and budgeting for materials.
Marketing enables the supply chain to strengthen the
This theory matches our description as this is the key company's competitive position and support the successful
reason why several organizations today has failed in development of new products. Marketing provides an
achieving set objectives. These Organizations instead hold essential balance in supply chain management. It helps
so tenaciously to the old traditional approach of companies and their partners become more customer
‘Reductionism’ which asserts, that for better results to be focused than concentrate more on the production process.
achieved of a given phenomenon, functional parts should By improving communications, support and collaboration,
see themselves as distinct players. Miller and Rice, 1967) Marketing helps increase supply chain efficiency and create
likened this to seeing the human body no longer as a system a single extended enterprise with a strong competitive edge.
but consists of parts that are independent of each other.
VII. CRITIQUE OF THE REVIEWS
V. METHODOLOGY
From the reviews of the relevant literatures, the
This paper is opinion based with its design couched in following gaps were noted:
a “review” study structure. In other words, it adopted a
documentary research method typology to investigate and A. Near Synergy Syndrome
categorize business literary views and extracts from Majority of the reviewed works saw both functions as
secondary sources. Such reviewed materials include books, having made direct positive impacts however, going by the
journals and periodicals chosen to represent a fair view of systems theory prescriptions, such impacts could have been
renowned authors in the field of Marketing, Purchasing and more profound if the firms had adopted a systemic approach
Supply Chain Management. Payne & Payne (2004) where team leaders of of both functions meet from time to
described the documentary method as the techniques used to time to deliberate on greener strategies.

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Volume 6, Issue 11, November – 2021 International Journal of Innovative Science and Research Technology
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fast synchronization and operational alignments that are
B. Lack Of Collocation Principle standard to meet with every manner of business challenges.
In all the reviews, there was no mention of staff of these
functions, collocatiog for purposes of idea exchange at least IX. RECOMMENDATIONS
cost. Collocation has been described as a modern approach
that allows staff of different units share offices on regular  Organizations are enjoined to revisit their operational
basis for better idea sharing and knowledge exchanges policies with a view to removing all blocks of pride and
especially when facing a demanding and critical production lackluster influences existent amongst functional units.
task. Benefits of this practice abound as it is time and cost This is to inject an air of competence through sharing from
effective with a positive impact on organizational a common bank of ideas
productivity and profitability index.  Staff and actors in this new dispensation must come from a
standard level of backgrounds both in character and
Affirming these ccritque, Leenders and Fearon (1997) learning. There should be no room for indolence and
berates Supply Chain for it's philosophy to preclude miscreants else, the dreams might not be realized
Marketing collaborations and focuses majorly on purchasing  Constant interactions and cross sectional meetings,
department’s efforts to develop better and more responsive brainstorming sessions should be observed and most often
suppliers. workshops and seminars held to educated and update
Mentzer, DeWitt, Keebler, Min, Nix, Smith, & Zacharia, workers in business functional areas on current issues.
(2001) a Marketing scholar insists that Marketing perform  Marketing and Purchasing should build strong thrusts and
significant roles amongst other components of Supply Chain alliances with third parties (Suppliers). at the acquisition
Management such as purchasing, stores, production, front (Purchases for production purposes). This cannot
warehousing, transport and distribution, sales etc and so, happen where there are issues of discontentment rather
should not be relegated. under the shield of well streamlined SCM mechanism.
Equally, both should learn to integrate logistics plans to
Given the above and as evidenced by majority of the
meet with customer’s demand at all times.
reviewed interdisciplinary literary works, there is a growing
 Since the goal of any product related industry is to achieve
need and advocacy for organizations to depart from the
traditional “Reductionist” belief in business functional areas customer satisfaction on daily basis, all business functions
to a highly advocated “Systems Approach” which within the ambience of Supply Chain family should see
synergizes and integrates organizational functions with a each other as in relay race business that demands all
manner of lucid and astute devotion to make the envisaged
view to achieving set targets. This of course is in line with
mark.
international and global best practices and therefore justifies
the theoretical underpin of the study which according to Von REFERENCES
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