Marketing organization

Marketing organization

• 1.
  Introduction • A groupof persons who are working together as a team towards certain common objectives. • A organization is the mechanism through which managerial philosophy is translated into action • Aim: – Securing maximum results from marketing personnel under executives. – Coordinating marketing activities with other departments.
• 2.
  Need for theorganization: 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 Need for the organization
• 3.
  Requirements. • Assurance of homogeneous activities. • Knowledge of responsibilities. • Knowledge of relationships with other groups. • Knowledge of authority.
• 4.
  Models • Functional Division:under this type of organization small plans are prepared for each function.(Small industries). Managing Director Finance Marketing M.R. H. R. Manager Manager Manager Manager Market Research Product Plans Manager Manager Sales Advertising Sales Promotion Manager Manager Manager
• 5.
  Functional Structure Advantages Disadvantages • Specialisation – each • Closed communication department focuses on could lead to lack its own work of focus • Departments can • Accountability – become resistant someone is responsible to change for the section • Coordination • Clarity – know your and may take too long others’ roles • Gap between top and bottom
• 6.
  Geographic/ 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 .
• 7.
  Sales Manager Geographic Division Northern Southern Western Eastern Area 1 Area 2 Area 1 Area 2 Area 1 Area 2 Area 1 Area 2 Sales SM SM SM SM SM SM SM man SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM SM
• 8.
  Organisation by Area Advantages Disadvantages • Serve local needs better • Conflict between local • Positive competition and central management • More effective • It is not suitable for small communication between organization. firm and local customers
• 9.
  Product Based Organization:In this case marketing planning is made for each product separately. medium size industries producing different products Marketing Manager Cosmetics Pharmaceuticals Chemicals Food Mkt
• 10.
  Organisation by Product Advantages Disadvantages • Clear focus on market • Duplication of functions segment helps meet (e.g. different sales customers’ needs force for each division) • Positive competition • Negative effects of between divisions competition • Better control as each division can act as • Lack of central control separate profit centre over each separate division
• 11.
  Customer Based Organization:Under this type of organization m.o.is centered round the characteristic of different types customer. Mkt Manager Distributor Manager Retailer manager Consumer Manager
• 12.
  CUSTOMER BASED MARKETINGORANIZATION Advantages : 1 Full attention can be paid to each class of customer &the problem can be well understood by the organization. 2 The organization comes in the contact with the customer regularly .It then becomes easier for the organization to estimate their demands &satisfy them. Disadvantages: Although customer satisfaction is the main aim of the structure ,it is only suitable for those organization to estimate where the nature of customer different.
• 13.
  Matrix organization In amatrix organization, two different structures overlap on the same hierarchical level, that is to say, a vertical structure is combined with a horizontal structure. With relation to Organizational Management, the points where the two structures intersect can represent the positions, which are responsible for carrying out the tasks in both the vertical and horizontal structures.
• 14.
  Matrix type Regions Manager Manager Manager Mngr Customers East West South North Market Manager Adults Market Manager Youngster Market Manager Children Market
• 15.
  Matrix Type Organization. Whenthe companies produces multiproduct or many types of products and carry large number of multi-market, they form a matrix types of organization
• 16.
  Matrix management Is atype of organizational management in which people with similar skills are pooled for work assignments. For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a different engineering manager or a project manager while working on that project. Therefore, each engineer may have to work under several managers to get their job done.
• 17.
  Culture of MarketingOrganization • High Value system. • The art of prioritization. • Emotional involvement. • Interdependence. • Leadership V/s Management. • Working with passion.
• 18.
  Successful Organization • Requiresmarketing people with N-ach. – They formulate concrete goals. – The goal stretches their ability to effort. – They select moderate risk goals. – They develop a strong internal commitment with the goal. – They like to take personal responsibility for the outcome. – They actively explore the environment to create opportunity.
• 19.
  • They oftenexperiment with novel activities in order to reach the goal. • They try to anticipate possibilities of succeeding.
• 20.
  Model Organization • Organizationwith achievement motivation. – An organization with high need of achievement is more self confident, enjoy taking carefully calculated risks, researches its environment actively and is very much interested in concrete measures of how well it is doing. » David C. McClelland.
• 21.
  Questions • State andexplain the different approaches to organizational restructuring. • Critically evaluate the statement “ Modern marketing organization must be professionally rigid.”