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Presented by
Ajay Bansod
cONTENTS
Basic
Definition
Need for the organization
Factors affecting marketing
organization
Principles of marketing organization.
Marketing Organization Structure
Types of marketing organization
structures
Basic Definition
'Marketing is not about providing products
or services it is essentially about providing
changing benefits to the changing needs
and demands of the customer
Organization: a group of people who work
together
Marketing Organization provides a vehicle
for making decisions on products, marketing
channels, physical distributions, promotions
and prices.
Physical
Distribution
Mktg
Channels
Product
Making
Decisions
Promotion
Prices
NEED FOR THE
In the market
where consumer is the king
ORGANIZATION
we need to satisfy the consumer. So a good
marketing operation is required.
Marketing organization is the pillar for
success of any organizations and provides
a framework for the following:
o Divide and fix authority among the sub
ordinates
o To locate responsibility
o To establish sales routines
o To enforce proper supervision of sales force
o To avoid repetitive duties
o To enable the top executives to devote
more time for planning policy matters
Factors affecting marketing
organization
Marketing organization
It be categorized into
internal
external
factors and
factors
Internal factors
Following
are intangible factors
which affect the marketing
organization
Top
Management Philosophy
Product policy
People
Top Mgmt
Philosophy
Product
Policy
Internal
Factors
People
Top Management
Philosophy
Organizational
planning and its
working is greatly influenced by
philosophy which can be good or bad
Eg:
Centralization Vs
Decentralization
Product policy
The
width of product line of an org
determines its size as the product
offerings becomes increasingly
diverse.
Eg:
there could be a need to move
away from straight functional
approach to product group approach.
People
The size of the organization is not an
important factor in terms of number of people
but it is important with respect to human
values which are critical and correct decisions
regarding people cannot be made unless
taking into consideration
Number
Qualifications
Capabilities
Personality
Attitude
Fear
Suspicion
External Factors
Business
Environment
Markets
Consumer
requirements and
expectations
Channels
of distribution
Business
Environment
Chan
nel
Distributi
on
External
Factors
Customer
Requirements
Mark
ets
Business Environment
With regards to business environment three
points are important.
The
type of environment in which the firm is
operating in terms of operations and size.
The
nature of particular requirement for
success in a given business which again
determines the size.
The
rate of change in industries being
served which again decides on its size
and working.
Markets
This
is the factor which again affects
the marketing organization i.e. one
should note about its
Size
Scope
Nature
Location
Consumer requirements
and expectations
Consumers have their own set of
requirements and expectations from the
organization. The more varied and vivid
services they expect that the usual
requirements as a marketer we need to
increase the workload depending upon the
consumer requirements and expectations.
Channels of distribution
It is the type of channel of distribution
which a marketing firm selects based on
its size.
Eg: Incase the company opts for indirect
channel or channels it depends on outside
sales force and hence the organization
gets thinner. When the organization
selects direct channel its size is increased
as it has its own sales force.
Principles of organization
Objective: objective of business orgn, eg.
Of profit max. should be clearly define.
Specialization: the activities of the
member, employee, executive manager and
other individuals should be confined to a
single function.
Co-ordination: the work so assigned to an
individual or a group of individuals are
interrelated. One function cannot be
performed in isolation from other function.
Principles
(continued)
Authority: Depending upon the level at
which the person is working in the
hierarchy, the nature of authority delegation
would differ.
Responsibility: Authority and
responsibility are co-related.
Definition: to define means to bring to an
end or to decide, or to fix the bounds or
limits.
Principles
(continued)
Correspondence: the process of action
and reaction or the process of intercourse
between individuals.
Span of Control: span means total spread,
stretch, area of jurisdiction or compass of
control.
Balance: it cannot be sound in every part
unless the whole organization is directed to
the same end.
Principles
(continued)
Continuity: it suggests that the
organizational structure should be flexible
or elastic.
The organization builder cannot simply
build for today or tomorrow, he must build a
fabric which can stand through years.
Marketing organization
structure
The
good marketing organization is
one wherein the functions or
departments have been carefully
planned and coordinated towards
the fulfillment of marketing
objectives of business.
SAMPLE OF
MARKETING
ORGANISATION
Types of marketing
organization structures
The marketing organization of a business
can be structured on any of the following
basis:
Line and staff Organization
Functional Organization
Product oriented marketing organization
Customer oriented marketing organization
Geography oriented marketing organization
Matrix form/Combined base
Mktg
Org
Line and staff organization
In most business forms especially medium
size the marketing job is structured
around few line functions and few staff
functions i.e. Major staff functions is
organized into separate department and
the line function is responsible for sales
department. The required coordination
between the line and staff function is
managed by the executive at higher level.
Merits
Provides expert advice from
specialists.
Relives line executes of routine,
specialize functions
Enables young sales executive to
acquire expertise
Helps in achieving effective
coordination
Easy to operate
Less Expensive
Demerits
Produce
confusions arriving from
indeterminate authority relationships
Curbs
Too
the authority of experts
much is expected from executives
Decision
making is taken by top
management
Functional Organization
Under
the organization the
departments are created on the
basis of specified functions to be
performed
i.e. the activities related to
marketing, distribution etc.
Functional marketing
organization
Mktg
Advt.
MgrDept.
Merits
Division
of work base on specialization
Relieves
line executives of routine and
specialized functions
Promotes
application of expert
knowledge
Helps
to increase overall efficiency
Demerits
Leads
to complex relationships
Makes
coordination ineffective
Promotes
Lack
centralization
of proper coordination
Delay
in taking decisions
Product oriented marketing
organization
Organizations
that produce wide
variety of products often
organize marketing, trading and
promotion with respect to a
product.
Merits
The
salesmen can render better customer
service as they possess good knowledge of
product and may have close contacts with
customers.
It
makes individual departments
responsible for the promotion of specific
products.
It
facilitates effective coordination .
Demerits
It
increases the employment of a number
of managerial personal
Many
salesmen of same enterprise
attend same customer each
representing
a separate product which
creates confusion in the minds of the
customer.
There
may be duplication of activities.
Customer oriented
marketing organization
When
the departmentation of sales
organization is done on customer
basis it is called customer oriented
marketing organization.
Departmentation by customer may
be done in enterprise engaged in
providing specialized services to
different classes of customers.
Copy
& Mediaselection
Product
Range,Branding
Selection
Training
Mktg Director/ Executive
Merits
It
takes into account needs of
each class of customers.
It
provides specialization among
the enterprise staff
Demerits
It
makes coordination difficult
It
may lead to under utilization of
resources
There
These
in same department
may be duplication of activities
types of sales organizations are
not suitable for small enterprises.
Geography/ Territory
In a territory oriented marketing
organization, the responsibilities for
marketing of various products rests almost
entirely with lines executives. The territory
managers are given varying
nomenclatures like depot manager, district
manager, area manager, zonal manager,
divisional manager etc.
Merits
It
leads to economy in terms of
times and money
It
helps in taking knowledge of
local customers
It
helps in effective control
Demerits
It
requires employment of number of
managerial personnel.
It
dilutes control from head quarters.
Matrix
There
are some business firms that
incorporate in marketing
organization combining all the
above. Usually such firms are multi
Product, multi market firms. At the
head office level they have number
of staff departments to take care of
each specialized functions of
marketing.
Questions from previous
years paper
Q.1.
Describe various types of marketing
organizations in details and explain there
suitability. (May 10)
[Link]
are the types of marketing
organization? Write a note on
interdepartmental relation in modern
business organizations. ( Dec 08)
Q.3.
Short Note- 1)Matrix type of marketing
organization
(May 08).
2)
Types of marketing organization
(May 07)
Questions from previous
years paper
Q.4.
Define marketing organization. Explain the
different models and Hierarchy of a marketing
organization.(Oct 06)
Q.5.
Function approach to market (Oct 06)
Q.6.
Define marketing organization. How will you
design a marketing organization structure for a big
Indian company which intended to manufacture and
sells its bakery products on national level? Make
necessary assumptions and justify your answer. (May
06)
Q.7.
Explain the working of marketing organization.
Explain the Hierarchy and work flow in marketing
organization. ( Oct 5)
THANK
YOU