MARKETING ORGANISATION

Evolution of the marketing department

STAGE I: Simple Sales Department

PRESIDENT

SALES VP

SALES FORCE OTHER MARKETING

FUNCITIONS
(HIRED FROM
OUTSIDE)
• Small companies typically appoint a sales vice
president, who manages sales force and also does
some selling.

• When the company needs marketing research or

advertising, the sales vice president hires help from
outside.
STAGE II: SALES DEPARTMENT WITH ANCILLIARY
MARKETING FUNCTIONS

President

Sales VP

Sales Force # Marketing Director

# Other Marketing
Functions
(Internal & External)
• As the company expands, it needs to add or enlarge
some functions:

• If a firm wants to expand its market, it needs to

conduct marketing research for knowing customer
needs and market potential.

• The sales vice president will hire a marketing

research manager and advertising manager to handle
these activities.

• He might hire a marketing director to manage these

and other marketing functions.
STAGE III: SEPARATE MARKETING DEPARTMENT

President

Sales VP Marketing VP

Sales Force Other Marketing

Functions
• The continued growth of the company will warrant
additional investment in marketing research, new-
product development, advertising and sales
promotion and customer service.

• Yet the sales vice president normally focuses time

and resources on the sales force.
• The CEO will see the advantage of establishing a
separate marketing department headed by a
marketing vice president, who reports along with the
sales VP to the president.
• At this stage sales and marketing department are
separate functions that are expected to work closely
together.
STAGE IV & V: MODERN/EFFECTIVE MARKETING
COMPANY

President

Executive VP of
Marketing and sales

Sales VP Marketing VP

Sales force Other Marketing

Functions
• The marketing manager task is to identify opportunities
and prepare marketing strategies and programs. Sales
people are responsible for implementing these programs.

• If there is too much friction between sales & marketing,

the company president might place marketing activities
back under the sales vice president, instruct the executive
vice president to handle the conflicts or place marketing
vice president in charge of everything including the sales
force
v) Effective marketing company:
• A company can have an excellent marketing
department and yet fail at marketing . Much depends
on how the other departments view customers.

• If they point the marketing department and say They

do the marketing the company has not implemented
the effective marketing.

• Only when all the employees realize that their jobs

are created by customers does the company become
an effective marketer.
STAGE VI: PROCESS AND OUTCOME-BASED
COMPANY

Cross Disciplinary team

With process leader

Marketing
Department

Marketing
Personnel
• Many companies are now refocusing their structure
on key processes rather than departments.

• In the interest of achieving customer-related process

outcomes companies are now appointing process
leaders who manage cross-disciplinary teams.