Marketing Organization

Presented by: Kauser Naz 2nd Sem, MBA H.M.S.I.T

Presenting to: Pasha Sir MBA Dept, H.M.S.I.T

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..

Factors Influencing Size Of Marketing Organization:

1.

Internal factors: These are as follows:

Top management philosophy: Organizational planning and its working 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 an organization 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 of people 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..

1.

Factors Influencing Size Of Marketing Organization: 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 are having their own sets of requirements and expectations from the organization.

Types of marketing structures/organizations:

Line and staff organization:- It is a modification of line organization and more complex than line organization. In this organization specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line of command. The following are some advantages and disadvantages of line and staff 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.
1.

2)Functional organization: As organizations grow and

develop 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:

1.

2.
3. 4.

5.
6. 7.

ADVANTAGES Scope for specialisation. Increase in efficiency. Relief to top executives. Economy of operations. Better supervision. Democratic control. Flexibility.

DISADVANTAGES Conflict in authority. Lack of coordination. Difficulty in fixing duties. Poor discipline. Expensive. Group rivalries. Centralization.

3)Product based marketing organisation: Under this

method 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: ADVANTAGES DISADVANTAGES 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 promotion of specific products.

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 target customers. The following are the advantages and disadvantages of this organization: ADVANTAGES DISADVANTAGES 1. 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.

5)Territory based marketing organization: Here the

responsibility 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 of other divisions. The following are the advantages and disadvantages of this organization: ADVANTAGES DISADVANTAGES 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.

6)Complex/ Matrix form/ Combined base structure: In

this type the arrangement is intended to combine project management and functional departmentation so as to drive the benefits of both. The following are the advantages and disadvantages of this organization: ADVANTAGES DISADVANTAGES 1. 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.

THANK YOU