Marketing Organization 1.ppt

7/27/2019 Marketing Organization 1.ppt

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MarketingOrganization


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Definition of Marketing Organization:-According to Cundiff, Still and Govoni, The marketing organization

provides the vehicle for making decisions on products, marketing

channels, physical distribution, promotion and prices.

Need of marketing organization:-

Relationship between line and staff functions:While

structuring and developing a marketing organization, a proper

work relation has to be ensured.

Levels and span must be carefully planned:If there are too

many levels, the info flow gets delayed, resulting in ineffective

communication and poor control.

Effective coordination: It should also provide for effective

coordination among the various departments within marketing.

Other needs: To divide and fix authority, to locate

responsibility, to establish sales routines, to avoid repetitive

duties etc..


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Factors Influencing Size Of Marketing Organization:

1. Internal factors: These are as follows:

Top management philosophy:Organizational planning and itsworking is greatly influenced by the management philosophy

which may be good or bad, implict vs explict, management

attitudes etc..

Product philosophy: It is the width of product line of anorganization that determines its size.As the product offerings

become increasingly diverse, there is a tendency to move away

from a straight functional approach to a product group approach.

People: The size of the organization is not mere the number ofpeople in it. It is because, human values are critical and correct

decisions regarding people cannot be made unless one takes into

account their type, number, fear, attitude, etc..


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Factors Influencing Size Of Marketing Organization:

1.

External factors: These are as follows:

Business environment: With regard to business environment,3 points are worth considering; 1) type of environment 2)

the nature of environment and 3)the rate of change.

Markets: Talking of market as a factor, one should note

about its size, scope, nature and location. Channels of distribution: It is the type of channel of

distribution selected by the marketing firm that has its say

on size.

Consumer requirements and expectations: Consumers arehaving their own sets of requirements and expectations from

the organization.


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Types of marketing structures/organizations:1.

Line and staff organization:- It is a modification of lineorganization and more complex than line organization. Inthis organization specialized and supportive activities areattached to the line of command by appointing staffsupervisors and staff specialists who are attached to the lineof command.

The following are some advantages and disadvantages of line andstaff organization:-

ADVANTAGES DISADVANTAGES

1. It is planned specialisation. Conflict between line and staff.

2. Better unity of command. Ineffective staff.3. Sound and quick decisions. Lack of responsibility.

4. Scope for growth and Loss of judgment and

expansion. initiative.


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2)Functional organization: As organizations grow anddevelop a number of related products and markets, their

structures frequently change to reflect greater

specialization in functional business.

The advantages and disadvantages of functional organization

are:

ADVANTAGES DISADVANTAGES1. Scope for specialisation. Conflict in authority.

2. Increase in efficiency. Lack of coordination.

3. Relief to top executives. Difficulty in fixing duties.

4. Economy of operations. Poor discipline.

5. Better supervision. Expensive.

6. Democratic control. Group rivalries.

7. Flexibility. Centralization.


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3)Product based marketing organisation: Under thismethod for each product marketed by the organization, there is a

separate department to look after its promotion, sales, etc. Each

unit is relatively self contained in that it has the resources to

operate independently of other divisions.

The advantages and disadvantages of this organization are as

follows:


1. Better customer service. Requires large no of people.

2. It establishes specialization. Creates confusion in people.

3. Effective coordination. Control work difficult.4. Individual departments Duplication of activities.

responsible for the prom-

otion of specific products.


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4)Customer based marketing organization: In this form, the

organization is divided by marketing manager into several sales

executive groups so as to target particular customers. Each unit is

than contact with salesman of different areas to attract targetcustomers.

The following are the advantages and disadvantages of this

organization:

ADVANTAGES DISADVANTAGES1. It takes into account the It makes coordination

needs of each class of difficult.

customers.

1. It promotes specialisation. Under utilization of resources.

2. Benefit of knowledge Not suitable to small

by departments regarding the enterprises.

needs of each customers.


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5)Territory based marketing organization: Here theresponsibility for marketing the various products rests almost

entirely with the line executives. Each unit is relatively self

contained in that it has the resources to operate independently ofother divisions.


organization:


It leads to economy in terms Large amount of employment.

of time and money.

It facilitates effective span It dilutes control from the

of control. headquarters.

It enables the firm to gain It may lead to duplication of

intimate knowledge about activities.

customers in local markets.


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6)Complex/ Matrix form/ Combined base structure: Inthis type the arrangement is intended to combine project

management and functional departmentation so as to drive the

benefits of both.


organization:

ADVANTAGES DISADVANTAGES1. Dual benefit. Complex relationships.

2. Better planning and control. Power struggle.

3. Environmental adaptivity. Heterogeneity.

4. Better motivation. Flexible structure.

5. Development of personnel. Pooling expertise.

6. Utilization of personnel Excessive emphasis on

knowledge. conflict resolution.


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Marketing Organization 1.ppt