Marketing Strategies and Functional Unit Relations at Pizza Hut

This report provides a comprehensive analysis of Pizza Hut's marketing strategies, exploring various approaches such as functional and management approaches. It delves into the different marketing concepts employed by the company, including production, marketing, product, selling, and societal marketing concepts. The report examines the role of marketing within the wider organizational context, including project profitability analysis and procurement. It also outlines the responsibilities of the marketing manager, such as marketing research, product development, and promotion. Furthermore, the report highlights the importance of inter-departmental relations, specifically focusing on the coordination between marketing, HR, production, and finance departments. The report concludes with a critical evaluation of the inter-relation of different functional units, discussing their advantages and limitations, ultimately emphasizing the significant role marketing plays in organizational success by providing essential information regarding customer choices, market conditions, and competitor strategies.

Marketing Essentials

INTRODUCTION
 Marketing comprises all the activities which are associate with product
purchase and sales. Nowadays marketing include every small and big efforts made to
acquire and maintain the customer relation. This presentation will articulate different
marketing approaches uses by Pizza Hut. Also, it will render understanding of
relation between different business function units and their relation with marketing.
Lastly, significance and critical evaluation of this relation will be given to know the
importance of relation. Pizza Hut is leading pizza manufacturing firm with huge
global presence, which is result of its efficient marketing people.

1. Marketing Concept
Concept of marketing, are the philosophies uses by an
organisation in management function in order to achieve
organisation goal. Kind of concept of marketing:
 Production concept- Concept, assume that people will
buy an affordable and widely accessible product, so it
focuses on production efficiency, for cost effectiveness.
 Marketing concept- It put buyer at the centre of all
marketing function. As per the quoted concept, buyer
would buy the product which satisfying their need and
preference.

Cont.
 Product concept- This concept, keenly emphasise on product quality and utility. It is
made up on assumption that people will buy high quality product, even they can ignore
the price and availability.
 Selling concept- Concept work on the belief that, people would buy the product, which
aggressively promote by company.
 Societal marketing concept- It states, marketing practices should be consider
consumer as well as society welfare.

2. Marketing approaches in Pizza Hut
 Functional approaches: Pizza Hut uses functional approaches, in which marketing people
not only responsible for their conventional function, but also contribute in buying,
transportation, selling, pricing and standardising. Like Company uses different pricing
policy like penetration, bundle and premium pricing for different pizzas.
 Management Approach: Manager uses this approach to handle controlled and
uncontrolled business environment. In this, manager tries to different marketing strategy to
counter the uncertainties. For instance Pizza Hut, changes pricing decision to counter its
competitor, where technological changes are brought by marketing research.
Functional Approach
Management Approach

Role of marketing in wider organisation context
Marketing team, performs different activates outside the organisation, to insure
growth and sustainability of business.
 Project profitability analysis
Marketing team, evaluate the different alternatives present in front of them. For
instance pizza hut wants to expand its market in any country, then marketing people first
analyse the cost, profitability of idea.
 Procurement
Customer need identification is the function of marketing managers. They also
procure the materials which required to meet the customer satisfaction. Like Pizza Hut
marketing team, is responsible to find the best organic raw martial supplier, for healthy pizzas

5. Role of marketing manager
 Marketing research- Marketing manager responsible in gather the information about
customer preference and choice, trends, competitor strategy, market opportunities and
business environment. Pizza Hut uses online survey and question for it.
 Product development- Company makes required improvements and diversification in its
product on the basis of recommendation given by marketing manager. Like pizza hut now
render option to customer to make healthy pizza by themselves as, people now become so
health conscious.
 Product promotion- marketing manager chooses the promotion tools like direct
marketing, public relation, and advertisement via digital marketing, Influence Marketing,
discount and coupons. Pizza hut recently launch loyalty program “Close the loop”.

Objective of marketing and other function
Marketing department is responsible to increase awareness about product and service, increase
customer satisfaction, gain competitor advantage, enlarge the market share and make the brand image among
stakeholder. Other functional unit also has to coordinate their action to marketing department to achieve these
goals, like
 HR manager render optimum human capital to make marketing team. Also, HR design T&D to these people
on communication, interpersonal relation, the latest technology, So that they can remain fit in business
environment.
 Production manager makes change in production units to ensure the marketing promises can be deliver to
customer. Manufacturing department also change in production level to reach the sale, generate by
marketing team. Like pizza hut production unit makes more pizza when , marketing people try to increase
sale by offering discount and coupons.
 Finance manager allot the budget for various promotion efforts, make sale target for team, help in
performance valuation by variance analysis, budgetary control and other tools.

Importance of inter-relation between different departments.
 When production department make change in product as per the recommendation come
up by market research, it would lead to customer satisfaction as buyer avail the product
by their choice and requirement. Inter-relation also help in quality control and
performance management. Like, in case marketing department fails in increase the sale,
then finance department also face the lower cash in flow. In such case finance people
can tell to marketing team to take corrective action as soon as possible.
 HR manager enhance the competency, motivations and efficiency of human capital,
which eventually induces the employee participation. These affects the operation and
functional efficiency of business, which can lower the cost, wastage and accidents.

6. Critical evaluation of different functional units
Advantage of inter-relation
 Quality control – All the units are interdependent to each other for resources, so quality of product
and service can be monitor with value addition. Like lower sale is not always the failure of
production, sometime production people make mistake.
 Accountability- all the departments look upon the function of other, which help in clear
accountability.
 Operational efficiency- quality control and clear accountability help in operational efficiency by
deduct the inefficient function.
Limitation of inter-relation
 High inter- dependency- one unit is depended for further function. Like marketing team cannot raise
the sale, if production people are slow in production
 Chances of conflicts- higher dependency, lead to conflict.
 Domino effect of failure- if one unit fails in its work, its impact be seen on other's performance too

CONCLUSION
 From the above study it can be concluded that, marketing plays big role in
organisation success as it render all the essential information regarding
customer choice, market condition and competitor strategy. These information
increase the change of product and service's success. But, success rate is
depended on accuracy of information. Apart from it different functional units
should work with healthy competition and co-operative manner as they all
have one aim.

References
 Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management:
toward implementing an evolving marketing concept. Journal of the Academy of
Marketing Science. 45(3). pp.377-401.. Destination marketing: essentials. Routledge.
 Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an
introduction.
 Kenny, B. and Dyson, K., 2016. Marketing in small businesses. Routledge.