Ajay Bansod

Basic Definition Need for the organization Factors affecting marketing organization Principles of marketing organization. Marketing Organization Structure Types of marketing organization structures

'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 Mktg Distribution Channels

Product

Making Decisions

Promotion

Prices

o o o o o

In the market where consumer is the king 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: Divide and fix authority among the sub ordinates To locate responsibility To establish sales routines To enforce proper supervision of sales force To avoid repetitive duties To enable the top executives to devote more time for planning policy matters

It be categorized into
factors and
factors

internal
external

Following are intangible factors which affect the marketing organization

Top

Management Philosophy Product policy People

Product Policy

Top Mgmt Philosophy

Internal Factors

People

Organizational planning and its working is greatly influenced by philosophy which can be good or bad
Eg: Centralization Vs Decentralization

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.

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

Business Environment Markets Consumer requirements and expectations Channels of distribution

Business Environment C h a n n e l
D i s t r i b u t i o n

External Factors
Customer Requirements

M a r k e t s

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.

This is the factor which again affects the marketing organization i.e. one should note about its Size Scope Nature Location

Size

Location

Markets

Scope

Nature

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.

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.

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.

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.

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.

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.

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.

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

Line & Staff

Matrix Functional

Mktg Org
Geographic
Product Oriented

Customer oriented

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.

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

Produce confusions arriving from indeterminate authority relationships Curbs the authority of experts Too much is expected from executives Decision making is taken by top management

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.

Mktg Mgr

Advt. Dept.

Distribution Dept.

Mktg Research Dept.

Sales Promotion Dept.

Sales Planning Dept.

Division of work base on specialization Relieves line executives of routine and specialized functions Promotes application of expert knowledge Helps to increase overall efficiency

Leads to complex relationships Makes coordination ineffective

Promotes centralization
Lack of proper coordination Delay in taking decisions

 Organizations

that produce wide variety of products often organize marketing, trading and promotion with respect to a product.

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.

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.

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.

Mktg Director/ Executive

Marketing Planning
Mktg Plannig
Promotion Planning

Physical
Distribution

Selling
After Sales Service

Adv & Sales

Sales
People

Product Range,Branding

Copy & Mediaselection Service

Selection Training

 It

takes into account needs of each class of customers.

It

provides specialization among the enterprise staff

It makes coordination difficult It may lead to under utilization of

resources in same department

There may be duplication of activities These types of sales organizations are not suitable for small enterprises.

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.

 It

leads to economy in terms of times and money

It

helps in taking knowledge of local customers helps in effective control

It

It requires employment of number of managerial personnel. It dilutes control from head quarters.

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.

Q.1. Describe various types of marketing organizations in details and explain there suitability. (May 10) Q.2.What 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)

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)