impact of market ting strategies on organizational structure design and consequent fancial...

8/3/2019 Impact of Market Ting Strategies on Organizational Structure Design and Consequent Fancial Implications

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Impact of marketing strategies

on organizational structuredesign and consequent

financial implications

Ashish Raina 58


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Marketing Strategy?

The purpose of marketing strategy isto achieve a sustainable competitiveadvantage(SCA) and thereby enhance

a business performance(Bharadwaj, 1993)


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Objectives of marketingstrategy One of the major objectives of marketing strategy

is to enhance the long-term financialperformance of a firm.

As such competitive marketing strategy serves toimprove financial performance of the firm through

the route of sustainable competitive advantages. There are four essential requirements for a

resource/ skill to be a source of SCA.1) It must be valuable;

2) It must be rare among competitors;

3) It must be imperfectly imitable;

4) There must not be any strategically equivalentsubstitutes for this resource skill.


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Objectives of marketingstrategy Sources of SCA leads to positional

competitive advantage (differentiationand low cost).

Sustainability of positional advantages

leads to superior long-term market andfinancial performance. Formulating competitive marketing

strategies also involves, recognizing

relationships between elements of themarketing mix as well as assessing theimpact of competitive and marketconditions on marketing mix formulation.


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Corporate Long -Range Plannin


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Corporate Long -RangePlanningIt is not just a

1. Budgeting

2. A rosy picture of future

3. Forecasting

4. Attempt to estimate risk


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Corporate Long -RangePlanning

CLPR as a top management tool is acontinuous process of presenting thestrategic decisions of an enterprise as a

whole, with the best availableknowledge of the future andcoordinating the efforts needed to

implement such decisions through aneffective monitoring system(MIS,RS)


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Any conscious effort towardsorganisational planning and

development requires that some basicfactors, Which generally effect changes inorigination (both structure and process),have to be accorded adequate attention:

Size of enterpriseTechnology

Strategy structure (hook-up or fit)

External environment include(state ofcompetition apart from the emergingopportunities and threats in he environment)


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Marketing organization design

A marketing organization design shouldbe geared in such a way that it cananticipate changes and react to

changes, instead of being overtakenby them.

Any conscious effort towardsdeveloping a right marketing

organization design should start with aproper dignosis of the existingorganization and to assess itscapabilities to fulfil the present as wellas future needs.


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Marketing organization design

1) Functional type

2) Territorial type

3) Product division type

4) Customer division type

5) Combined type

6) Matrix type


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Attributes of an structuredesign Strategy- structure hook- up

Motivational aspect

Proper staffing

Directness and simplicity

Succession planning should be alogical process built in the

organizational structure


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Financial Implications

Financial Implications like budgetary control areperhaps the oldest and most popular instrumentsused in planning as well as monitoring theoperations of the enterprise over a short period

or medium term time frame. Objectives Where do we want to go?

Diagnosis Where are we?

Prognosis Where are we heading?

Strategies How do we go? Tactics How do we implement the

strategy?

Control How do we monitor our course?


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Financial budget

1) Corporate objectives

2) Corporate profit planning

3) Nature of markets

4) Principal budget factor

5) Forecasting

6) Savings for future


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Financial impact parameters1) Distribution plan

2) Advertisement plan3) Salesmens recruitment and training4) Salesmen and executive travel plans5) Inventory policy

6) Credit policy7) After sales service and service charges8) Import and export9) Breakdown of sales plan into quota in respect of

the various profit centresPrevious years actual dataCurrent year latest best estimates

Budget year estimates


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