MANAGING HYBRID MARKETING SYSTEMS

Rowland Moriarty and Ursula Moran
Harvard Business Review November-December 1990

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HBR Executive Summary

As competition increases and costs become critical, companies that once went to market only one way are adding new channels and using new methods-creating hybrid marketing systems. These hybrid marketing systems hold the promise of greater coverage and reduced costs. But they are also hard to manage; they inevitably raise questions of conflict and control: conflict because marketing units compete for customers; control because new indirect channels are less subject to management authority. Hard as they are to manage, however, hybrid marketing systems promise to become the dominant design, replacing the "purebred" channel strategy in all kinds of businesses.

The trick to managing the hybrid is to analyze tasks and channels within and across a marketing system. A map-the hybrid grid-can help managers make sense of their hybrid system.

What the chart reveals is that channels are not the basic building blocks of a marketing system; marketing tasks are. The hybrid grid forces managers to consider various combinations of channels and tasks that will optimize both cost and coverage.

Managing conflict is also an important element of a successful hybrid system. Managers should first acknowledge the inevitability of conflict. Then they should move to bound it by creating guidelines that spell out which customers to serve through which methods. Finally, a marketing and sales productivity (MSP) system, consisting of a central marketing database, can act as the central nervous system of a hybrid marketing system, helping managers create customized channels and service for specific customers segments.

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