Ranking Barriers to Implementing Marketing Plans in the Food Industry

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1 Ranking Barriers to Implementing Marketing Plans in the Food Industry Shahram Gilaninia 1, Seyed Yahya Seyed Danesh 2, Mina Abroofarakh 3* 1 Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran, 2 Payam Noor University of Rasht Branch, Iran, 3* M.A. Student of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran Abstract The purpose of research is ranking barriers of Marketing Plan. This article is based on field research in companies operating in the food industry of Guilan To develop theoretical framework and research model is used the model proposed by Simkin (2002). In this research after studying library and performing exploratory interviews, set of as barriers to effective planning, plans and marketing strategies have proposed and influence in medium and large businesses, determine and through field research and tool of questionnaires were evaluated. Then by using a questionnaire is measured each component that in final model of the implementation barriers of marketing plans designed, Such as 1 - Conceptual, 2 - Operational Factors, 3 - Strategic Factors, 4 - Relationship Factors, 5 - Management Factors 6 - Human Resources Factors And 7 - Cultural Factors. Structural equation modeling and LISREL software is used to investigate the relationships between the components and finally verification of the components relationship in conceptual model is confirmed. Keywords: Marketing - Marketing Management - Planning Strategy 1. Introduction Enterprises and organizations (public and private) with each mission, goals and vision ultimately is operated in a national or international territory and required to respond to customers, clients and stakeholders for companies that their goal is profitability and customer satisfaction and organization that their goal is to implement complete and accurate of legal obligations and help to achieve the goals of country development and progress (Rahimnia, 2009). In an era of rapid change and growing enterprises to gain competitive advantage and to survive and cope with changing conditions of life and the environment use from modern management tools, techniques and principles of innovation (Atkinson,2006). On the other hand business managers are trying to improve the company's return on investment. This goal by establishing correspondence between resources and opportunities available is implemented. It depends on the process of strategic planning of marketing and implementation of a quality program. Until the 1970s, manager s participation in strategic planning marketing was limited. This situation changed in early 1980s and many companies have turned to strategic planning of marketing (Keegan, Warren, 2004). Recently, many books have been published that beyond the basic principle of "customer-oriented" strategic planning of marketing considered the success of many leading companies. What must be noted is that if marketing plans isn t properly implemented, in result best marketing program designed would fail. While the emphasis in this study that marketing planning is 33

2 crucial for many companies and institutions, but without effective implementation and control will not important (Greenley, 2002). 2. Theoretical Foundations of Research 2.1. Definitions of concepts Marketing Management: Philip Kotler, marketing management is the planning and implementation process of conceiving the idea, distributing goods and services to carry out transactions that lead to provide individual and organizational goals (Kazmi, 2008). American Marketing Association (AMA), marketing management is the process of planning and implementation of the plan, pricing, promotion and distribution of ideas, goods and services for the production of transactions with the aim of providing individual and organizational goals (Feurer et al, 1995). Marketing: it is trying to relationship between the value of the product (goods or services) and the customer. Sometimes marketing is also known the art of sales. But sales are considered one of the small marketing functions (Peng et al, 2001; Cravens, 2003). Successful marketing requires having suitable product at the right time and right place and ensure that the customer is aware the existence of product, so will lead to future orders (Dobni, 2009) Introduction of research basic model Since one of the main distinctions Simkin study compared to other studies is in the field of marketing plan barriers. Ie, Simkin emphasize that his studies done on companies that are formally involved in the adoption and implementation of the marketing plan. The model selected in this study is based on the model presented by Mr. Simkin (2002) and modeling studies Seyed Hashemi (2007) (Simkin), This method is composed the seven components of managerial barriers, human resource barriers, cultural barriers, conceptual barriers, structural barriers, strategic barriers, operational barriers. 34

3 Marketing Management Marketing planning Operational marketing planning Strategic marketing planning Approaches to marketing strategy formulation (4P, PLC, STP, Position) (4P, PLC, STP, Position) Marketing Strategies Marketing Plans Barriers to the implementation of the marketing plan: 1. managerial barriers 2. human resources barriers 3. Cultural barriers 4. Conceptual barriers 5. Structural barriers 6. strategic barriers Implementation of marketing plan Figure 1) research model 2.3. Dimensions and Components of Research For assessment and identification of barriers to implementation of marketing plans in the food industry, we are required to extract the components in each dimension. After exploratory studies and literature review of research the dimensions and components were extracted as follows: (Zack, 1999: ) Human Resources Factors Table 1) analytical Model of research (items of the questionnaire) H1 H2 H3 H4 H5 Indicators (operational definitions) The number of human resources for the effective implementation of marketing plans Decline human resources due to improper shift in the marketing department Knowledge and skills of employees in the marketing plan Experience of employees about the implementation of marketing plans Company employees awareness from the marketing plans 35

4 Cultural Conceptual Communication Strategic H6 C1 C2 C3 CP1 CP2 CP3 Motivation of employees to implement marketing plans Supporting the organizational culture from company marketing plans The participation of other departments of company (Finance - Production...) on the implementation of marketing plans Managers and company employees resistance against changes Managers understanding from marketing concepts Employees understanding from marketing concepts To identify Managers and employees towards customers CP4 Managers recognition from company marketing planning process and its results CP5 employee s recognition from company marketing planning process and its results CP6 Limiting marketing activities to advertising CM1 Organizational structure consistent with the company's marketing plans CM2 Coordination of different department of company about implementation of marketing strategies and plans together. CM3 Relationship of different level of management together in the company CM4 Vertical communication between managers and employees CM5 Relationship other units of the organization (financial - Production...) on the implementation of marketing plans S1 Marketing analysis to develop marketing plans for the company S2 Makers a comprehensive view of marketing plan towards the external environment S3 Marketing information system S4 S5 S6 S7 Possibility of access to adequate information about the plans and marketing strategies Coordination between marketing strategy and plan and macro strategies of company Internal events impact of company on marketing planning process Access to other parts of a company's obligation to the 36

5 Operational managerial O1 O2 O3 information provided by the marketing information system Forecasting activities and procedures required to operate marketing plans Integration of activities and procedures forecasted to operate marketing plan Time constraints in the implementation of company marketing strategies and plans O4 Sufficient incentive between functional units for implementing marketing plans O5 M1 M2 M3 M4 M5 M6 The executing sector participation in formulation of marketing strategy and plans Leadership in marketing department Support of senior management from the company marketing plan Management skills of senior managers in the marketing field Reject of other comments from managers due to the ambition Difference of opinion between managers Weakness of senior management insights 3.Research Methodology Present study in terms of purpose is "applied" and in term of method of data collection is "descriptive" and a kind of "correlation. According to the studies done about companies operating in the food industry in Guilan province, there are a total of 490 companies in this section. The sample size was estimated 215 by using Cochran formula. Sampling method was probability sampling (randomly). The tool of research is questionnaire. Reliability of questionnaire with Cronbach's alpha coefficient by using SPSS software was calculated 87/5. In This research for investigate validity was used "content validity" and "construct validity. In content validity of research questionnaire was used views of 15 experts (including a number of university professors and experts in the food industry). In construct validity (conceptual) to ensure construct validity was used factor analysis. Results are expressed that questionnaire, a total of 7 with total variance explained with higher than 70/97% has been able to measure the " barriers to implementing marketing plans in companies operating in the food industry of Guilan province ". This indicates good construct validity of questions. 37

6 Table2) Extraction Method: Principal Component Analysis Compon ents H Specia l value Initial Eigenvalues Percent age of varianc e Cumula tive varianc e Specia l value Extraction Sums of Squared Loadings Percent age of varianc e Cumula tive varianc e Rotation Sums of Squared Loadings Specia l value Percent age of varianc e Cumula tive varianc e M S CP CM O C According to table, the first factor "factor of human resources" is about 4.717%, the second factor, "managerial " about 4.57%, the third factor, "strategic " of 4.545%, the fourth factor, " conceptual " about % fifth factor, " communication " of 3.26%, the sixth factor, " operational factor" of 2.969%, and the seventh factor, "cultural " about 2.525% of the variance " barriers to implementing marketing plans in companies operating in the food industry of Guilan province "is explained. 4. Data analysis 4.1. Utility of model dimensions (mean test) Hypotheses tested are: 1. "Managerial Factors" have desirable level in companies operating in the food industry of Guilan 2. " Conceptual Factors" have acceptable level in companies operating in the food industry of Guilan 3. " Operational Factors" have acceptable level in companies operating in the food industry of Guilan 4. " Strategic Factors" have acceptable level in companies operating in the food industry of Guilan 5. " Communication Factors" have acceptable level in companies operating in the food industry of Guilan 6. " Human Resources Factors" have acceptable level in companies operating in the food industry of Guilan 7. " Cultural Factors" have acceptable level in companies operating in the food industry of Guilan 38

7 Since in questionnaire was used five-point Likert scale, the value of test 3 (average) is applied. H0: Dimensions are not in an acceptable level, μ 3 H1: Dimensions are in an acceptable level, μ < 3 Table 3 )Mean test for Factors Dimensio ns Managem ent Human Culture Conceptu al Factors Communi cation Factors Strategic Operation al Factors Mean Std. Deviatio n t Test Value = 3 degre e of freed om (df) Sig. (2- )tailed MP Mean Differ ence Confidence 95% Interval of the Difference Lower Upper Results for companies operating in food industry desirable desirable Average desirable desirable desirable Desirable desirable 4.2. Causal relationship between variables (Structural Equation Modeling (SEM)) By using structural equation modeling and Lisrel 8.53 software were investigated causal relationship between variables in the form of the research hypotheses. In this semantic network, each vector is representation of a causal relationship, so that the end of vector is "cause" and heads of vector is "effect". At the highest levels of the model are the main. The research model including the research hypotheses is shown in figure (5). 39

8 Managerial (M) Human Resources (H) Cultural (C) Conceptual (CP) Barriers to the implementati on of Communication (CM) Strategic (S) Operational (O) Figure 2 - Conceptual Model, Barriers to implementing Marketing pla Hypotheses of conceptual research Barriers to implementing marketing plans in companies operating in the food industry of Guilan province : H1: managerial have positive and significant effect on Barriers to implementing marketing plans in companies operating in the food industry of Guilan H2: Human Resources have positive and significant effect on Barriers to implementing marketing plans in companies operating in the food industry of Guilan H3: Cultural have positive and significant effect on Barriers to implementing marketing plans in companies operating in the food industry of Guilan H4: Conceptual have positive and significant effect on Barriers to implementing marketing plans in companies operating in the food industry of Guilan H5: Communication have positive and significant effect on Barriers to implementing marketing plans in companies operating in the food industry of Guilan H6: Strategic have positive and significant effect on Barriers to implementing marketing plans in companies operating in the food industry of Guilan H7: Operational have positive and significant effect on Barriers to implementing marketing plans in companies operating in the food industry of Guilan 40

9 Figure 3 - Model of significant numbers 41

10 Figure 4 - Model of estimating Standard According to Figure 4, the following results were obtained for each of the dimensions of the model: Model index indicated that the model in term of fit index is in good condition; because χ2/df is equal to 2891/2 that is less than 3 and RMSEA is equal to 0/072 that it is less than allowable amount 0.08, thus isn t require to reform. P-value is less than GFI and AGFI should be higher than 90% that GFI is obtained 0.95 and AGFI is obtained All of significant numbers related to main dimensions of the model are significant because significant number is higher than 1/96. As a result, all hypotheses are confirmed from 1 to 7. 42

11 4.3. Results of hypotheses by using statistical tests Research hypotheses and research questions are as follows that by using tests of mean and structural equation modeling were analyzed. Question (1): What are barriers to the effective implementation of marketing plans for companies operating in the food industry of Guilan province? (Part A of each subhypothesis) Question (2): How is condition of each factor on the effective implementation of marketing plans for companies operating in the food industry of Guilan province? (Part B sub hypothesis) Question (3): What is ranking of barriers to the effective implementation of marketing plan based on order of importance? Results of hypotheses (to respond to questions (1) and (2) Sub-hypothesis 1: managerial have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan A) Structural equation: result show that managerial have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan Thus sub-hypothesis 1 is confirmed. Therefore it can be stated that improving dimension of the management in desired society with the 95% confidence level is caused to resolve barriers to implementing marketing plans in companies operating in the food industry of Guilan B) Mean test: in mean test because significant level is lower than 5% for the management, H 0 hypothesis is rejected in 95% confidence level and condition of this factor in the company s operating is estimated desirable in the food industry of Guilan Sub-hypothesis 2: Human resources have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan a) Structural equation: result show that human resources have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan Thus Sub-hypothesis 2 is confirmed. Therefore it can be stated that improving dimension of human resources in desired society with the 95% confidence level is caused to resolve barriers to implementing marketing plans in companies operating in the food industry of Guilan b) Mean test: in mean test because significant level is lower than 5% for human resources, H 0 hypothesis is rejected in 95% confidence level and condition of this factor in the company s operating is estimated desirable in the food industry of Guilan Sub-hypothesis 3: Cultural have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan a) Structural equation: result show that cultural have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of 43

12 Guilan Thus Sub-hypothesis 3 is confirmed. Therefore it can be stated that improving dimension of cultural in desired society with the 95% confidence level is caused to resolve barriers to implementing marketing plans in companies operating in the food industry of Guilan b) Mean test: in mean test because significant level is higher than 5% for cultural, H 0 hypothesis isn t rejected in 95% confidence level and condition of this factor in the company s operating isn t estimated desirable in the food industry of Guilan Sub-hypothesis 4: Conceptual have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan a) Structural equation: result show that conceptual have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan Thus sub-hypothesis 4 is confirmed. Therefore it can be stated that improving dimension of conceptual in desired society with the 95% confidence level is caused to resolve barriers to implementing marketing plans in companies operating in the food industry of Guilan b) Mean test: in mean test because significant level is lower than 5% for cultural, H 0 hypothesis is rejected in 95% confidence level and condition of this factor in the company s operating is estimated desirable in the food industry of Guilan Sub-hypothesis 5: Communication have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan a) Structural equation: result show that communication have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan Thus sub-hypothesis 5 is confirmed. Therefore it can be stated that improving dimension of communication in desired society with the 95% confidence level is caused to resolve barriers to implementing marketing plans in companies operating in the food industry of Guilan b) Mean test: in mean test because significant level is lower than 5% for communication, H 0 hypothesis is rejected in 95% confidence level and condition of this factor in the company s operating is estimated desirable in the food industry of Guilan Sub-hypothesis 6: Strategic have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan a) Structural equation: result show that strategic have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan Thus sub-hypothesis 6 is confirmed. Therefore it can be stated that improving dimension of strategic in desired society with the 95% confidence level is caused to resolve barriers to implementing marketing plans in companies operating in the food industry of Guilan 44

13 b) Mean test: in mean test because significant level is lower than 5% for strategic, H 0 hypothesis is rejected in 95% confidence level and condition of this factor in the company s operating is estimated desirable in the food industry of Guilan Sub-hypothesis 7: Operational have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan a) Structural equation: result show that operational have positive and significant effect on barriers to implementing marketing plans in companies operating in the food industry of Guilan Thus Sub-hypothesis 7 is confirmed. Therefore it can be stated that improving dimension of operational in desired society with the 95% confidence level is caused to resolve barriers to implementing marketing plans in companies operating in the food industry of Guilan b) Mean test: in mean test because significant level is lower than 5% for operational, H 0 hypothesis is rejected in 95% confidence level and condition of this factor in the company s operating is estimated desirable in the food industry of Guilan Question (3): What is ranking of barriers to the effective implementation of marketing plan based on order of importance? Based on model of estimating standard in method of structural equation modeling, priority components of the model of "barriers to the effective implementation of marketing plans," respectively is "conceptual" (path coefficient 0.84), "operational" (path coefficient 0.81), "strategic" (path coefficient 0.77), 'communication' (path coefficient 0.75), "Managerial" (path coefficient 0.65), "human Resources" (path coefficient 0.56), and "culture" (path coefficient 0.50). According to results of seven sub-hypotheses is confirmed, thus main hypothesis is confirmed. 5. Practical Suggestions According to result obtained the following suggestions are offered: 1. To improve the management can be noted to support senior management from the marketing plan of the company and to enhance the management skills of senior managers in the marketing field. 2. To improve the human resource can be mentioned to improve knowledge and skills of employees in the company's marketing plan, to increase the number of human resources for the effective implementation of marketing plans, respectively. 3. To improve cultural can be mentioned organizational culture support from marketing plans of the company and to increase the participation of other departments (Finance - Production...) on the implementation of marketing plans, respectively. 4. To improve cultural can be mentioned to improve managers understanding from marketing planning process and its results, and increasing knowledge of managers and employees towards customers, respectively. 5. To improve communication can be mentioned to improve communication together appropriates level of management in the company and also more coordination of 45

14 various departments about the implementation of marketing strategies and plans together, respectively. 6. To improve communication can be mentioned access to adequate information about the plans and strategy of marketing, coordination between marketing strategy and plan and macro strategies of company and access other parts of the company's functional units to information from marketing information system, respectively. 6. To improve operational can be mentioned to anticipate activities and procedures required to operate the marketing plan and to increase motivation among functional units for implementing marketing plans, respectively. References Atkinson,Helen.(2006). Strategy implementation: a role for the balanced scorecard?.(management Decision).Vol.44.No.10,pp Cravens, David W & Nigel F. Piercy. (2003). Strategic Marketing. Irwin: McGraw-Hill Publishing. Dobni,Brooke.(2009). Behavioral approaches to marketing strategy implementation.( marketing intelligence & planning).pp Feurer, R.Chaharbaghi, K.Wargin, J (1995). Analysis of strategy formulation and implementation at Hewlett-Packard. ( Management Decision). Vol. 33, No. 10, pp Greenley, Gordon E.(2002). "An Understanding of Marketing Strategy", European Journal of Marketing, Vol. 23, No. 8, pp Haghighi Kafash,M.(2003). The relationship between environmental turbulence, strategic aspects and performance of the organization and providing an appropriate strategic models. PHD thesis, shahid Beheshti University. Kazmi,Azhar.(2008). A proposed framework for strategy implementation in the Indian context.(management Decision).Vol.46.No.10,pp Keegan, J. Warren. (2004). "Strategic Marketing planning a twenty first century perspective", International Marketing Review, Vol. 21, No. 1, pp Peng,W&Litteljohn,D.(2001). Organisational communication and strategy implementation a primary inquiry.(international journal of contemporary hospitality management).vol.13.no.7,pp Rahimnia,F.(2009). A conceptual framework of impeders to strategy implementation from an exploratory case study in an Iranian university. ( Contemporary Middle Eastern Issues).Vol. 2,No. 4, pp Seyed Hashemi,M.R.(2007). Identify and ranking of barriers to implementing marketing strategies in Iran Khodro, Master Thesis, Institute of Higher Education and Research Management and Planning, Department of Business Management. Simkin, L. (2002). Tackling implementation impediments to Marketing planning. (Marketing Intelligence & Planning).20/2.pp Simkin, Lyndon.( 2002). "Barriers Impeding Effective Implementation of Marketing Plans", Journal of Business & Industrial Marketing, Vol. 17, No. 1, Pp 8-24.Trim,P & 46

15 Lee,Y.(2006). The role of marketing intelligence officers in strategy formulation and implementation.(handbook of business strategy).pp

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