Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model Evidence from Bursa Malaysia Market

Size: px
Start display at page:

Download "Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model Evidence from Bursa Malaysia Market"

Transcription

1 Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model Evidence from Bursa Malaysia Market Suseela Devi Chandran Phd Candidate, Institute of Malaysia & International Studies, Universiti Kebangsaan Malaysia, Bangi, 43600, Malaysia Abstract In this paper, the marketing maturity model is used to evaluate the marketing processes in Iran Transfo Corp. In this regard, a five-level process maturity model has been applied. The study population includes managers and experts of sales and marketing in Iran Transfo Corp. Due to the small size of studied population and access to it, the entire population was sampled; in other words, the census method was used for sampling. In this research, eleven questionnaires were used to collect data and the validity of the questionnaire was confirmed by the validity of its content. Also, the reliability of the questionnaire was confirmed by the Cronbach alpha coefficient. The results showed that none of the studied marketing processes is in the fourth and fifth levels while eight of the eleven studied processes are in the third level and three of them are in the second level. Keywords: marketing, marketing capability maturity model, marketing processes Introduction Marketing managers need to apply comprehensive tools of pathology and fault finding to develop strategies and marketing programs in areas such as market segmentation, target market selection, market positioning, determination of marketing mix, and so forth. Each of the available tools has assessed the marketing process from a certain angle; for example, the assessment and analysis of products life can be used by marketing managers only to provide programs for products management, or portfolio patterns and models can be used only for developing programs to manage the company's products portfolio (Stanley et al., 2001). It has been always felt the absence of a comprehensive fault-finding tool to take into account all areas of the marketing process in development of strategies and marketing action plan. In this paper, a model which comprehensively considers all areas of the marketing process and the relation among them is used for pathology and fault- finding of the marketing process based on the marketing process maturity in Iran Transfo Corp. This model known as EFQM Excellence Model is originally owned by Philips company. EFQM stands for European Foundation for Quality Management. The model designed for helping organizations in their drive towards being more competitive and in fact it is introduced as a complementary tool to address the shortcomings of the European Business Excellence Model in the fault finding of processes (EFQM, 2010). Therefore, in the present research to study the pathology of marketing processes in Iran Transfo Corp., firstly the marketing capability maturity model is elaborated and then the methods are presented and finally after analyzing the data, the main findings along with the suggesstions for marketing researchers and managers of Iran Transfo Corp. are provided. Theoretical foundations of the research Process maturity model Today, the process maturity model has been accepted and widely used as a model to evaluate the business processes maturity. In mature organizations, the basic and 42

2 underlying concepts of maturity ensure the organized actions while in immature organizations the goals are achieved as a result of individuals heroic efforts in using the approaches which more or less are spontaneously created by the individuals themselves. Some references of process maturity model have applied the terms predictability, control, and effectiveness to explain the concept of maturity. Predictability is defined as using scheduled programs, criteria, and the achieved goals. Immature organizations mostly set up scheduled programs, but later lose the criteria and goals with a large difference. Mature organizations set up their scheduled programs and adjust them so that the programs are constantly realized. Control includes the mechanisms that organizations need to achieve their goals. In fact, mature organizations achieve their goals completely, consistently, and with a minimal deviation, but immature organization do not exactly know which goals will be achieved or what the probability of achieving the desired criteria in the specified and given time range is. Mature organizations achieve the precise goals that they had committed, but immature organizations often achieve some of their goals and some do not. In addition, in many cases, In addition, in many cases, the quality may not be good enough and costs exceed what the management wants to be; on the other hand, the mature organizations include systematic and organized processes as well as documented work practices. They collect past data to use them for predicting the results of similar efforts in the future (Harmon, 2004). However, the maturity models include principles which are presented in the following: 1- the characteristics of a process should be evaluated so that the process ability is specified to contribute to organizational goals; 2- efficient processes cannot be sustained unless the organization is mature enough to maintain them; 3- the improvement of a process is the best approach which can be used for staging the improvement of an organization to successfully achieve a more predictable modes of organizational capabilities; 4- each stage or maturity level provides a necessary basis on which the future improvement is ensured. Also, in the process maturity model, there are at least five challenges or levels, as a standard, for the success of an organization. The levels have been identified as follows: 1- management has quantitative standards to measure the maturity of business processes workflow and needs acceptable methods to identify the risks imposed by weaknesses of processes on organization development and achieving business goals. 2- Management has a few acceptable methods to accurately measure the extent of consistency between task performance and the description of processes workflow. In this model, it is attempted to coordinate the validity of requirements, system needs, the proper use of case studies, model-based descriptions, and effectiveness of practical applications with each other. 3- Management often does not know to what extent the acquisition or productive and dynamic growth (resulted from various methods of performing tasks) are similar. Developing standard and related processes simplify the requirements of organization functions and as a result, it reduces the complexity of organization systems. 4- There are a few acceptable methods for organizations to compare the capability of suppliers (to deliver assigned projects) and their services with the parameters claimed in proposed plan. In addition, the organizations need a reasonable basis to specify the contractual requirements for improving business processes of suppliers. 5- Management needs a guide to obtain necessary information regarding the establishment of business processes foundations so that the organizational agility is maintained and operational costs are reduced (Curtis and Alden, 2007) Five levels of process maturity model The level of maturity is a level showing the capabilities of an organization which is obtained from changes in one or more sectors of organizational processes. The maturity models describe the development of a nature over time; here, the nature is marketing. In general, the characteristics of maturity models are as follows: 1- the development of a single nature is described by a limited number of maturity levels that usually includes four to six levels. 2- Some special requirements form the properties of these levels that each nature should meet specific amounts of these requirements. 3- The levels are sorted respectively 42

3 Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model from the initial level to the final one and the desirable level of maturity is the final level. 4- During the development, the nature is developed from a level to another and no level is deleted or ignored (Weerdmeester et al., 2003; Klimko, 2001). According to the fact that maturity models gradually and consistently guide the organization towards the maturity through their stage and step by step structure, the process maturity model used in this paper is defined based on the maturity model including several stages or levels. Each process of the organization is in one of these levels due to the conditions (Weerdmeester et al., 2003; Curtis and Alden, 2007). The description of these levels is briefly presented in the following: - Level one: the initial level The organizations at this level are immature organizations. Their processes are emergency, temporary, and undefined and their activities are unpredictable. At this level, the processes are not organized and they are even disordered and chaotic. The success probably depends on individuals efforts and it is not repeatable, because the processes are not adequately defined and documented to be repeated. - Level two: the repeatable level The organizations at this level are the ones which have focused on processes and defined some of their main processes. They can repeat some processes with predictable results while the other processes are not yet well controlled. At the level of repeatability, the management techniques are formed and the success can be repeated, because the necessary processes are defined and documented. - Level three: the standard and defined level The organizations at this level are the ones which have defined their all main and fundamental processes (with a degree of control over them), focused on collecting data, and they use the criteria helping the management of processes. At this level, organizations develop their processes through focusing on documentation, standardization, and integration. - Level four: the level of quantitative and predictable management The organizations at this level highly emphasize the management of processes. They apply appropriate quantitative criteria for processes and constantly collect data. The managers emphasize on criteria and data while determining the objectives. Equally, there are hierarchical compatibility and alignment among the managers so that they contribute to successfully achieve the goals of higher technologies and research processes and consequently achieve the major objectives of organization. At the level of quantitative management, the processes are monitored and controlled through collecting and analyzing data. - Level five: the optimized level The organizations at this level have trained their employees regarding the processes and employed them for continued efforts to refine, improve, and enhance the processes. At the optimized level, the processes are constantly improved through monitoring the feedbacks obtained from ongoing processes; also, the innovative processes are introduced to meet the specific requirements of organization. Figure 1 shows the mentioned levels. 42

4 Figure 1: the process maturity levels (Weerdmeester et al., 2003; Curtis and Alden, 2007; Harmon, 2004) As previously mentioned, the maturity level of each organization is equal to the maturity level of the process which includes the lowest maturity. According to figure 2, if the maturity level of an organization is under level two, the organization can be strategically flexible; because the strategy can be implemented when the program and processes are documented. In other words, without documentation it is not possible to understand what is or is not implemented; hence, the implementation of strategies cannot be evaluated. Figure 2: the process maturity levels and the maturity level of strategic flexibility (Harmon, 2004) The marketing processes maturity model A problems of marketing managers in developing countries is to emulate the models for developing their marketing programs without considering the fact if the programs are consistent with the maturity level of their organization or not. For example, a company which does not respect the primary principles of pricing cannot apply the advanced tools of pricing or a company which does not know its distribution channels cannot provide the improvement program for integrating its distribution channels. The view of marketing maturity means to develop marketing programs based on the marketing position of an organization; in other words, to respect staging for developing improvement programs. Marketing processes include some sub-processes too. Each of these sub-processes may be at a different maturity level. As mentioned, there are five maturity levels and the last level belongs to world-class companies. Such companies have firstly performed fault finding process and specified the maturity position of each marketing field. Also, they balance all marketing sub-processes growth in developing marketing improvement programs. In fact, a company cannot act as a world-class company in the field of products advertisement, but as a new and inexperienced company in the field of sales. According to the view of maturity, the marketing processes include various maturity levels. In high levels of maturity, the process is carried out more perfectly while in the lower levels it is done more poorly (EFQM, 2010). Based on the described issues, the comprehensive marketing process includes eleven sub-processes that their maturity levels should be pathologically identified. The processes of marketing maturity model include the following sub-processes: Marketing 42

5 Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model strategy, research and marketing intelligence, marketing planning, marketing leadership, employees capabilities, pricing, brand positioning, sales and distribution channels, marketing communications, the management of customers and sales management. In the following, the maturity levels of some important sub-processes of marketing maturity model are described. Marketing strategy This sub-process defines and delivers the priorities and determines an integrated and consistent approach to all elements of marketing and sales (EFQM, 2010; Eng T. and Jones G., 2009). Table 1: the maturity levels of marketing strategy (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) There is a document as marketing strategy; 2) there is a person as the manager / the leader of marketing strategy 1) There is a marketing strategy focusing on primary customers; 2) there is to some extent the information of final customers; 3) there is a model for developing marketing strategy. 1) Sufficient information regarding the various groups of customers is gathered to develop marketing strategy; 2) there is a formal document for marketing strategy; 3) a process as a part of company s strategy has been defined to update marketing strategy; 4) in developing marketing strategy, the rivals functions have been evaluated and the company s reaction to their functions has been determined. 1) The SWOT analysis has been conducted regarding company and its rivals; 2) Documented information from the consumers perspective are obtained through marketing research (customers survey); 3) there is a formal process for revising the strategy; 4) in developing marketing strategy, the key customers are specifically paid attention. 1) A clear vision and mission is developed; 2) to achieve strategies and marketing objectives, operational programs are developed; 3) the managing director has agreed to marketing strategies; 4) the main program is identified align with marketing strategy to achieve its objectives. Marketing research This sub-process proposed as a reliable source of marketing strategy development enables organizations to estimate the market needs. Table 2 shows the maturity levels of this sub-process (EFQM, 2010; Eng T. and Jones G., 2009). Marketing planning This sub-process identifies the key tasks and responsibilities needed to create an effective marketing and sales program based on marketing strategies. In fact, the marketing planning sub-process institutionalizes the marketing strategy in the all elements of marketing and sales (EFQM, 2010; Eng T. and Jones G., 2009). 42

6 Table 2: the maturity levels of marketing research (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) The company s marketing unit includes the initial market information such as the market size and growth rate of products. 1) The company s marketing unit has a program for marketing research; 2) the marketing research program identifies the research needs; 3) the marketing research data are easily available according to the needs of individuals. 1) The company s marketing unit includes annual program of marketing based on needs; 2) in annual program of marketing research, activities, responsibilities and the budget for marketing research have been identified; 3) In the conducted research, the information about customers perceptions of the company s brand compared to competitors is collected. 1) Marketing research activities are planned and budgeted; 2) the marketing research focuses on key customers and competitors; 3) indices are collected regarding different aspects such as market share, market demand, weighted share, and so forth. 1) The marketing research activities are focused on final customers of the company; 2) in marketing research, different issues such as customers and people influencing bid and purchase of products are taken into account; 3) the issues such as customers perceptions of the company s brand, risks identification, and opportunities and threats are taken in to account. Table 3: the maturity levels of marketing planning (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) There is a document as marketing planning. 1) The company s marketing unit has a process for developing marketing annual programs; 2) this process is updated as a part of company s planning process; 3) this program describes activities needed for marketing strategy. 1) The marketing vision and the desirable position of company s brand are clearly perceived and applied as the basis of marketing planning; 2) marketing activities have been identified for realizing the marketing vision; 3) the company s life cycle is taken into account in marketing activities. 1) The company s marketing vision is in line with company s all major objectives; 2) in marketing planning, the annual objectives of sales are reviewed; 3) after evaluating the annual objectives of marketing, some corrective actions are taken. 1) The marketing planning process of the company is well defined based on the vision and clear objectives; 2) the marketing and sales activities are associated with the supply of company s products; 3) key indices and criteria are defined in the field of marketing and sales. Marketing leadership and employees capabilities This sub-process ensures the capabilities of employees working in marketing and sales sectors as well as provides the necessary functions for achieving the world-class level. The quality of marketing and sales process depends on the quality of company s users. Professional marketers and retailers with high motivation can create the leadership culture needed for achieving profitable growth. Table 4 describes the maturity levels related to this sub-process (EFQM, 2010; Eng T. and Jones G., 2009). 42

7 Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model Table 4: the maturity levels of marketing leadership and employees capabilities (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) There is a unit as marketing and sales in the company; 2) the experts familiar with modern technologies work in marketing and sales unit of company. 1) The marketing and sales activities of company consider the customers future needs and demands rather than the current needs or products. 1) It has been understood that focusing on customers and their needs depends on new skills, talents, roles, leadership, and structure in the field of company s marketing; 2) the initial skills of marketing and sales are constantly evaluated and improved; 3) the job description is developed for all positions in marketing and sales unit. 1) The capabilities of current human forces in marketing and sales unit has been evaluated; 2) the marketing focuses the current and future needs and demands of customers instead of sales and promotion of existing products; 3) the gap between the available and needed skills has been identified in marketing and sales unit; 4) appropriate decisions have been adopted regarding the employment of new staff and training the current ones in the marketing and sales unit; 5) there is the profile of competence for key staff of marketing and sales unit. 1) The marketing and sales team can develop a comprehensive marketing program; 2) the marketing and sales team contacting the customers can develop and approve their sales programs; 3) the company has hired professional individuals in marketing and sales unit so that the individuals can teach others too; 4) the necessary system for evaluating the performance of employees working in marketing and sales unit has been designed; 5) the system for evaluating the employees performance proposes the problems and finds the improvement approach; 6) in marketing and sales unit there are some factors (such as leadership power and education) involved in offering awards; 7) the managers and employees of marketing and sales unit collaborate well with each other; 8) marketing and sales managers can prove their prejudice and commitment to customers. Brand positioning This sub-process ensures the improvement of company s brand compared to competitors in the future. In other word, it defines the company image in people s minds. Table 5 shows the maturity levels related to this sub-process (EFQM, 2010; Eng T. and Jones G., 2009). 03

8 Table 5: the maturity levels of brand positioning (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) The employees of marketing and sales unit recognize the position which the company intends to create in customers minds. 1) The employees of marketing and sales unit are aware of the position which the company intends to create in customers minds and know its effects on their activities; 2) using marketing research, the marketing and sales unit is aware of the company s image in customers minds; 3) the marketing and sales unit is aware of their products attractiveness to customers; 4) training and briefing sessions are held to increase the marketing and sales employees perception regarding the desirable position of company s brand. 1) The company has identified and analyzed the advantages of its customers; 2) the company is aware of its brand position in each target market; 3) the company has clear and simple plan to implement the components of its brand. 1) The managers and staff have perceived the position which the company intends to create in customers minds; 2) the company has identified and prioritized the target markets based on their effects; 3) the company has assessed its performance in comparison to the rivals. 1) The company s products reflect the fact that the company has recognized the position which should be created in people s minds; 2) the position which the company intends to create in customers minds is different from the competitors and attractive to customers; 3) in order to make decision regarding the desirable position of each product, the company knows the needs which have not met in the market Products portfolio management This sub-process is used to convert the inputs into products and services needed for future as well as modify the current products portfolio based on the added value that the products make for the company s business. The results show that the companies with the most competitive portfolio can provide the final consumer s needs in the best way and this leads to better results in business. Table 6 shows the maturity levels related to products portfolio management (EFQM, 2010; Eng T. and Jones G., 2009) Marketing communications This sub-process enables the organization to transfer the actions and important messages to target customers and potential consumers. This is the first step in creating customer loyalty and achieving marketing goals. The communications strategy includes advertising and promotion which are strong tools for convincing buyers and encouraging others to buy the company s products. Table 7 shows the maturity levels related to marketing communications (EFQM, 2010; Eng T. and Jones G., 2009). 03

9 Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model 04 Table 6: the maturity levels of products portfolio management (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) Iran Transfo corporation manages its products portfolio based on its past experiences and the linear model. 1) The portfolio management versus the competitors portfolio can respond the customers needs and meet the technology requirements; 2) the products with low profit margins are identified and alternatives are presented; 3) the company applies the customers opinions in products portfolio management. 1) There are criteria for updating the products portfolio; 2) there is a strong system for receiving customers feedback regarding the products portfolio; 3) the company s policy is configured regarding the management of products portfolio; 3) there is a clear process for deleting old products and introducing new ones. 1) The policy of products portfolio management pays attention to customers needs and target markets; 2) the policy of products portfolio management considers profit margins, sales of current products or other financial criteria; 3) the policy of products portfolio management determines the shortages and additions of current portfolio; 4) the policy of products portfolio management takes into account the brand architecture. 1) The marketing research can be used as a basis to determining the shortages of products portfolio; 2) the information obtained from marketing research directly can be used to create a new business or manage the products portfolio. Table 7: the maturity levels of marketing communications (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) The company includes various tools for communications with beneficiaries (customers and shareholders); 2) the communication tools are created according to the company s regulations and policies. 1) The company has an annual plan regarding marketing communications (including goals, activities, scheduling, responsibilities, and so forth); 2) the plan is implemented according to the schedule (in the case of changing the competition conditions, it will be modified). 1) There position which the company intends to capture in the target market or create in customers minds is recognized and used as the basis of communications; 2) the company is aware of its customers communication tendency and designs its communication plan based on their needs; 3) in communication with customers, it is neede to consider the customers behavior and compare it with their behavior regarding competitors products. 1) The company has designed and evaluated the different methods of communicating with target customers; 2) assessing the message transferred to beneficiaries if it is perceptible, lasting, incentive, distinctive, and brand-related. 1) The company has created communications based on customers opinions; 2) the company has developed a balanced strategy for communications which is focused on short and long term activities and objectives; 3) these activities lead to development of clear budgeting policy for marketing communications; 4) the budgeting of marketing communications is flexible and provides any changes in costs, if needed. Pricing Pricing should be managed based on the field of competition to achieve sales and profitability. Table 8 shows the maturity levels of pricing sub-process (EFQM, 2010; Eng T. and Jones G., 2009).

10 Table 8: the maturity levels of pricing (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) The basic pricing levels have been defined and the minimum prices have been specified; 2) the prices of new products are determined based on the previous products. 1) Specific discounts are given to certain groups of customers; 2) the business is based on the sales volume / price; 3) pricing is based on bargaining. 1) The objectives of pricing (each group of products) as well as pricing policies of new products are identified; 2) pricing is based on customers classification; 3) the techniques of bargaining and negotiation are used to achieve mutual benefits; 4) the competitors pricing is observed and applied. 1) There is pricing strategy; 2) there is systematic observation for pricing and the feedbacks affect the pricing process; 3) cascade pricing model has been created; 4) the complementary activities are used to induce the price (as the proper price) to customers. 1) There is a clear list of prices; 2) whenever necessary, the cascade pricing policies are implemented and the deviations are identified; 3) the new products pricing is done based on real information; 4) the products delivery time is taken into account and affects the pricing. Distribution and sales channels This sub-process helps to effectively distribute and sell the products to final customers and beneficiaries in a chain of best selected markets (EFQM, 2010; Eng T. and Jones G., 2009). Sales management In order to achieve business goals, the sales sources can convert the marketing strategy into values for direct customers. The process of sales is determined through implementing marketing programs and based on company s brand and the elements which are important for target customers. Such a process leads to effective sales coordinated with the added value of products and services and can stabilize the company position in the market. Tables 9 and 10 show the maturity levels of distribution and sales channels and sales management, respectively (EFQM, 2010; Eng T. and Jones G., 2009). Table 9: the maturity levels of distribution and sales channels (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) The efforts and acts of sales unit are different in each channel (for each sales agent). 1) The size, importance, structure, and value of distribution channels are recognized; 2) the company is aware of the ways that the customers prefer to buy and the company has specified the channels accordingly; 3) adequate information regarding the environment has caused the company to design its distribution channels better. 1) The key customers of each distribution channel are selected and sales are managed based on the prediction their purchase; 2) marketing research has identified appropriate distribution channels for various customers or consumers; 3) the distribution channels and agents are advanced and it is easy to work with them; 4) in the case of conflict between distribution channels, there is a process or procedure for solving it. Table 10: the maturity levels of sales management (EFQM, 2010; Eng T. and Jones G., 2009) 00

11 Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model 02 Maturity level Items / description 1) The sales unit merely sells the products; 2) the reward of sales staff is mostly calculated based on the sales volume. 1) The initial sales processes and the key customers are identified; 2) the sales team is aware of technical information of products and applies advertising to promote sales; 3) the sales team describes the technical specifications and customers compare them with each other. 1) The sales unit listens to customers for better sales and perceive their needs; 2) understanding customers needs helps the sales staff and managers of customer relation analyze them; 3) the main processes of sales are evaluated, modified, and promoted; 4) the sales structure is regional and the sales manager of each region is identified; 5) there is key customers management in entire company; 6) the sales staff are aware of the desirable position of company s brand and consider it in their interactions with customers. 1) The sales staff perceive the company s marketing strategy and can accurately transfer it to customers; 2) the sales skills are determined and developed; 3) the sales staff perceive the customers needs so that they listen to them and speak with them face to face; 4) the sales staff discuss with customers to solve the problems; 5) in addition to listening to customers, the sales staff collect information regarding the customers through marketing research; 6) the sales staff perceive the company s value chain and thrust and traction mechanisms; 7) sales staff provide the web-based tools for customers. 1) The company knows how to effectively sell and use thrust and traction mechanisms; 2) there is an appropriate perception regarding the value which the product can create for customers; 3) sales staff apply marketing tools based on the perception they have obtain regarding customers and attempts to benefit them; 4) sales staff completely understand customers needs. This understanding is obtained through various tools such as survey, interview, questionnaire, web-based channels, and so forth. Key customers management Usually a major part of sales belongs to a small fraction of customers called key customers. Key customers include features such as high purchase volume, high profitability, and great loyalty to the organization. Therefore, any company should provide special programs for its key customers. Table 11 shows the maturity levels of key customers management (EFQM, 2010; Eng T. and Jones G., 2009). Table 11: the maturity levels of key customers management (EFQM, 2010; Eng T. and Jones G., 2009) Maturity level Items / description 1) The sales unit sells the products without considering the key customers; 2) the sales unit mostly sells products based on cost accounting and applied technologies; 3) the reward of sales staff is mostly calculated based on the sales volume. 1) The initial sales processes and the key and major customers are identified; 2) the sales team is aware of technical information of products and applies advertising to promote sales; 3) the sales team describes the technical specifications and customers compare them with each other. 1) The basic processes of sales are described and implemented; 2) the customers are analyzed and the key customers are recognized based on specific criteria; 3) For better management of sales and in line with company s strategies, customers are classified. 1) Although the sales responsibilities of each area are separated, key customers management is considered at whole levels of company; 2) the initial programs of key

12 customers management are designed based on the past performance; 3) there is a process for selecting customers and the process is implemented; 4) sales negotiations are conducted in regions; 5) there is a process to survey key customers satisfaction. 1) Understanding the key customers is so much that the company knows how to realize its strategic goals through key customers; 2) the approach of sales team is based on SWOT analysis; 3) it is agreed on long term goals of sales regarding each key customer; 4) the loyalty of each customer is measured and analyzed; 5) the programs of key customers management have good structure and are created based on mutual interaction with customers; 6) the process of key customers management includes a communicational program to strengthen the brand position; 7) sales staff annually review the business and marketing plan and discuss about it. The research methodology The present research as an applied-survey study assesses the marketing maturity in Iran Transfo Corporation and describes the research elements and variables in a specific framework. This cross-sectional research conducted in 2010; the questionnaires were designed based on Philips model and the validity of questionnaire was confirmed by the validity of its content and using the opinions of key experts and managers in Iran Transfo Corporation. Also, the reliability of the questionnaire was confirmed by the Cronbach alpha coefficient. The value of this coefficient was determined equal to 82% in whole questionnaires. The research findings After collecting data and processing them, they were analyzed using the techniques of descriptive statistics. Here, the descriptive analysis of research data is presented. The mean values obtained from dimensions of maturity model are compared using the descriptive statistics. According to the results of table 12 and figure 3, the highest (3.68) and lowest (2.39) values of marketing maturity dimensions are respectively related to pricing and products portfolio management. Table 12: the scores of maturity dimensions Maturity dimension Mean Percentage Rank Pricing % 1 Marketing strategy % 2 Marketing research % 3 Sales management % 4 Marketing staff s capabilities % 5 Key customers management % 6 Distribution channels % 7 Brand positioning % 8 Marketing communications % 9 Marketing planning % 10 Products portfolio management % 11 Marketing maturity % Figure 3: the scores of maturity dimensions 02

13 Applying Evaluate Marketing Processes Corporation Marketing Capability Maturity Model Table 13: the interpretation of marketing processes scores (Harmon, 2004) Score Maturity level Level zero 5 Table 14 shows the maturity levels of Iran Transfo Corporation. None of processes has obtained the scores of levels 4 or 5. The processes of pricing, marketing strategy, marketing research, sales management, marketing staff s capabilities, key customers management, distribution channels, and brand positioning are at level 3, but processes of marketing communications, marketing planning, and products portfolio management are located at level 2. Totally, the marketing processes maturity of Iran Transfo Corporation is located at level 3. Table 14: the scores and levels of maturity dimensions Maturity dimension Mean Maturity level Pricing Marketing strategy Marketing research Sales management Marketing staff s capabilities Key customers management Distribution channels Brand positioning Marketing communications Marketing planning Products portfolio management Marketing maturity Conclusions and recommendations This pathological study conducted to assess the marketing processes of Iran Transfo Corporation. Firstly, the process maturity model and marketing processes maturity model were described. The results related to marketing processes maturity of Iran Transfo Corporation showed that 8 processes are located at level 3 and 3 processes is at level 2. According to the concept of process maturity model and the research results, it is recommended that Iran Transfo Corporation firstly upgrades the processes of marketing communications, marketing planning, and products portfolio management to level 3 and at the same time tries to keep the other processes at their levels. When all processes are in level 3, the company can be strategically a flexible company in the field of marketing and implement marketing strategies. Then it is recommended to establish the features of level 4 in the company. One of the restrictions of this research was the adaptation of Philips marketing maturity model with Iran Transfo Corporation. Hence, the researchers attempted to adapt the model with the company dimensions. In this regard, the population of statistical sample invited to help researchers. Anyhow, due to the company s and Iran industry conditions, some features of Philips model could not adapt and they were deleted. It is recommended other researchers to apply this model as a fault-finding tool in other companies and industries. Also, it is recommended to use other maturity models to develop the mentioned model. This model can be used as a tool for developing operational 02

14 programs and improving the marketing field. In developing improvement programs, the equal growth of all marketing sub-processes should be taken in to account. Also, to achieve high maturity levels, it is needed to complete lower levels. Therefore, to convert into a world-class company, it is needed to fulfill constantly and gradually the maturity levels one after another. References 1. Curtis., B & Alden, J.,(2007) The Business Process Maturity Model,BPM & Organizational Maturity, Pages Eng T& Jones G (2009) An investigation of marketing capabilities and upgrading performance of manufacturers in mainland China and Hong Kong,Journal of World Business, 44(4), Pages Harmon. P (2004) Evaluating an Organization s Business Process Maturity, Business Process Trends,2 (3), Pages Klimko, G. (2001). Knowledge Management and Maturity Models: Building Common Understanding. Proceedings of the 2nd European Conference on Knowledge Management 5. Stanley F, Slater Eric & Olson M (2001) Marketing's Contribution to the Implementation of Business Strategy: An Empirical Analysis, Strategic Management Journal, 22(11). Pages Weerdmeester, R., Pocaterra, C. and Hefke, M. (2003) Knowledge management maturity model, KM World Proceedings, Santa Clara, Pages