marketing department - class4

MARKETING Department

'Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer

Organization: a group of people who work together

Marketing Organization provides a vehicle for making decisions on products, marketing channels, physical distributions, promotions and prices.

Basic Definition

ProductMktg Channels

Physical Distribution

Promotion Prices

Making Decisions

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:oDivide and fix authority among the subordinatesoTo locate responsibilityoTo establish sales routinesoTo enforce proper supervision of sales forceoTo avoid repetitive dutiesoTo enable the top executives to devote more time for

planning policy matters

NEED FOR THE ORGANIZATION

It be categorized into

internal factors and

external factors

Factors affecting marketing organization

Marketing

organization

Internal factor

Following are internal factors which affect the marketing organization

Top Management PhilosophyProduct policyPeople

Internal factors

Top Mgmt Philosophy

Internal Factors

Product Policy

People

Organizational planning and its working is greatly influenced by philosophy which can be good or bad

Eg: Centralization Vs Decentralization

Top Management Philosophy

The width of product line of an organization determines its size as the product offerings becomes increasingly diverse.

Eg: there could be a need to move away from straight functional approach to product group approach.

Product policy

The nature of market organization can depend upon human resource with respect to

Number Qualifications Capabilities Personality Attitude Fear Suspicion

People

Business Environment

Markets

Consumer requirements and expectations

Channels of distribution

External Factors

External Factors

Business Environment

Markets

Customer Requirements

Channel

Distribution

With regards to business environment three points are important.

The type of environment in which the firm is operating in terms of operations and size.

The nature of particular requirement for success in a given business which again determines the size.

The rate of change in industries being served which again decides on its size and working.

Business Environment

This is the factor which again affects the marketing organization i.e. one should note about its

Size Scope Nature Location

Markets

Markets

Size

Scope

Nature

Location

Consumers have their own set of requirements and expectations from the organization. The more varied and vivid services they expect that the usual requirements as a marketer we need to increase the workload depending upon the consumer requirements and expectations.

Consumer requirements and expectations

It is the type of channel of distribution which a marketing firm selects based on its size.

Eg: Incase the company opts for indirect channel or channels it depends on outside sales force and hence the organization gets thinner. When the organization selects direct channel its size is increased as it has its own sales force.

Channels of distribution

The good marketing organization is one wherein the functions or departments have been carefully planned and coordinated towards the fulfillment of marketing objectives of business.

Marketing organization structure

The marketing organization of a business can be structured on any of the following basis:

Functional OrganizationProduct oriented marketing organization Customer oriented marketing organizationGeography oriented marketing organizationMatrix form/Combined base

Types of marketing organization structures

Functional

Product Oriented

Customer orientedGeographic

MatrixMktg Org

Under the organization the departments are created on the basis of specified functions to be performed

i.e. the activities related to marketing, distribution, customer service, marketing planning, logistics, etc.

Functional Organization

Mktg Mgr

Advt. Dept. Distribution Dept.

Mktg Research Dept.

Sales Promotion

Dept.Sales Planning

Dept.

Functional marketing organization

Division of work based on specialization

Relieves line executives of routine and specialized functions

Promotes application of expert knowledge

Helps to increase overall efficiency

Merits

◦Leads to complex relationships

◦Makes coordination ineffective

◦Promotes centralization

◦Lack of proper coordination

◦Delay in taking decisions

Demerits

Organizations that produce wide variety of products often organize marketing, trading and promotion with respect to a product.

Product oriented marketing organization

The salesmen can render better customer service as they possess good knowledge of product and may have close contacts with customers.

It makes individual departments responsible for the promotion of specific products.

It facilitates effective coordination.

Merits

It increases the employment of a number of managerial personal

Many salesmen of same enterprise attend same customer each representing a separate product which creates confusion in the minds of the customer.

There may be duplication of activities.

Demerits

When the departmentation of sales organization is done on customer basis it is called customer oriented marketing organization. Departmentation by customer may be done in enterprise engaged in providing specialized services to different classes of customers.

Customer oriented marketing organization

It takes into account needs of each class of customers.

It provides specialization among the enterprise staff

Merits

It makes coordination difficult It may lead to under utilization of resources

in same department There may be duplication of activities These types of sales organizations are not

suitable for small enterprises.

Demerits

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.

Geography/ Territory

It leads to economy in terms of times and money

It helps in taking knowledge of local customers

It helps in effective control

Merits

It requires employment of number of managerial personnel.

It dilutes control from head quarters.

Demerits

There are some business firms that incorporate in marketing organization combining all the above. Usually such firms are multi Product, multi market firms. At the head office level they have number of staff departments to take care of each specialized functions of marketing.

Matrix

Matrix structure

Marketing outsourcing refers to getting marketing function done from external professional marketing agencies.

This can be done by companies which consider that marketing is not their core competency area. Such companies may like to focus on other areas such as production.

Marketing outsourcing may also be an option for smaller organizations with limited resources

Marketing outsourcing

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