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Chapter
Fourteen
Designing
Market-Driven
Organizations
McGraw-Hill/Irwin
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Additional approaches to effective integration
relocation/design of facilities
Executives from marketing and sales meet frequently, collaborate on promotions, take training courses together, make sales calls together, share information freely
Customer visits often involve executives from sales, marketing, engineering and design working togther
Johnson’s teamwork philosophy extends to alliances and underpins its product development strategy
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“One clear message in our approach
is the value of the borderless culture
which breaks down the horizontal
barriers between functions and the
vertical barriers between organizational
encouraged to collaborate with others
and given considerable freedom to
turn their creativity into productivity.”
Source: Robert Nardelli, GE, 1993
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New managerial roles and practices are mandated by the Web
fast access to information from any location and remotely
accelerated trend towards flatter organizations
virtual team-working across geographical and organizational boundaries
new approaches to supplier relationship management (SRM) and customer relationship management (CRM)
managing and controlling outsourcing of more business processes and activities to specialist suppliers
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TRADITIONAL
DESIGNS
Functional
Matrix
Product-
Focused
Market-
Focused
Marketing Organization Based on a Combination of Functions and Products
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Vital role of data networks
Shared information and decision making
Source: George S. Day, “Aligning the Organization to the Market,” in Reflections on the Future of Marketing, Donald R. Lehmann and Katherine E. Jocz, eds. Cambridge, MA: Marketing Science Institute, 1997, 67-93.
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New marketing roles
Transforming vertical organizations through managing processes
New organizational forms
The Marketing Coalition Company
Source: Ravi S Achrol, “Evolution of the Marketing Organization: New Forms for Turbulent
Environments”, Journal of Marketing, October 1991, 88.
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Variations in business functions
Marketing Organization Plan Combining Product, Geographic, and Functional Features
Source: Philip B Cateora and John L Graham, International Marketing, 12th ed.
(Burr Ridge, IL: McGraw-Hill/Irwin, 2005), 336.
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GLOBAL
ORGANIZING
ISSUES
Standardized
Versus
Customized
Strategies
Alternative
Organization
Forms
Executive
Qualifications
Strategic
Alliances
Coordination
and
Communication