The marketing organization

the marketing organization

1. THE MARKETING ORGANIZATION

2. INTRODUCTION The organizational structure of a company is subject to many factors including technological breakthroughs by competitors, changes in people lifestyles, and those environmental in nature.

3. Structuring an organization effectively requires that any manager should know: The goals of the organization The skills of its people The needs and the goals of its subordinate The available resources The time The costs The environmental constraints that exist It requires the manager to bring together the human, technical, marketing and financial resources of the organization.

4. The HUMAN RESOURCES are brought together in units, teams or project so that job specialization can be optimized while special skills can be best used. The MARKETING DEPARTMENT should interact and coordinate with personnel in t he other major functional areas. The PRODUCTION DEPARTMENT follows the requirements set by the marketing department. The FINANCIAL DEPARTMENT efficiently allocates funds to achieve the organization’s set of objectives.

5. Marketing Organization Is the mechanism through which management translates its marketing goal into action. It provides the vehicle for making and implementing decisions on the products, marketing channels, physical distribution, promotion, and prices. It should be directed towards achieving company goals and at the same time, towards effectively serving the market , including its changing wants and desires.

6. Forms of market organization FUNCTIONAL. Responsibilities are assigned with respect to buying, selling, promotion, distribution and other marketing tasks. PRODUCT-ORIENTED. Product managers are assigned for each product category and/or brand managers take care of each individual brand. MARKET-ORIENTED FOCUS. Managers are assigned on the basis of geographic markets and customer types. for optimization purposes, a single company may use a mixture of these mentioned forms.

7. PRESIDENT SALES MANAGER SALES FORCE Figure 1 Beginning of a Marketing Organization

8. PRESIDENT Marketing VP Marketing Research Sales Advertising and Promotion Customer Relations Figure 2 Current Marketing Organization Structure

9. Marketing Structural Arrangements The organizational structure shows the corporate communication, the executive and managerial hierarchy, and creates a plan for efficient growth in the future. For managers, organizing is deciding how best to group organizational elements for a variety of structural possibilities. Managers must understand the best combination for the organization’s structure.

10. Types of Marketing Organizational Structures

11. FUNCTIONAL STRUCTURE One of the most common structural arrangements implemented by companies. In this arrangement, functional marketing managers report to a more senior marketing manager. Figure 3 clearly illustrates an example where four functional marketing managers, namely, for new products, market development, advertising and promotion, and market planning report to the senior vice-president for marketing.

12. ADVANTAGES DISADVANTAGES FUNCTIONAL STRUCTURE Functional departments arguably permit greater operational efficiency because employees with shared skills and knowledge are grouped together by functions performed. Each group of specialists can therefore operate independently with management acting as the point of cross-communication between functional areas. A disadvantage of this structure is that the different functional groups may not communicate with one another, potentially decreasing flexibility and innovation. 

13. Senior Vice-President For Marketing New Products Market Development Advertising and Promotion Market Planning Figure 3 Functional Marketing Organizational Structure

14. In this system, the market is divided into geographical units according to a certain criteria. Territorial structural arrangements have several advantages: First. Local markets can be cultivated by personnel familiar with the history of customer in the area. They know their culture: their preferences, expectations, and habits of living. Second. The company and its sales force can respond quickly to changes the competitive environment. Third. There is closer contact between managers familiar with the territory and their subordinates. TERITORIAL STRUCTURE

15. DISADVANTAGES TERRITORIAL STRUCTURE Requires more persons with general manager abilities. Tends to make maintenance of economical central services difficult and may require services such as personnel, or purchasing at the regional level. Increases problem of  top management control .

16. Figure 4 Territorial Marketing Organizational Structure National Sales Manager Sales Development Manager Luzon Region Managers National Capital Region Managers Visayas Region Managers Mindanao Region Managers Marketing Manager

17. PRODUCT STRUCTURE An organizational structure is a framework in which companies outline the different responsibilities in their company. A product-based organizational structure separates the company by products, activities, projects or geography. This allows a company to have a particular focus on specific items in its business operations.

18. ADVANTAGES DISADVANTAGES PRODUCT STRUCTURE Product-based structures allow companies to remain flexible in the business environment. This allows the company to add or remove structure sections as necessary. It can prohibit companies from achieving company-wide goals since each unit operates on its own.

19. Senior Vice-President For Marketing Electronic Division Marketing Yummy Division Goods Division Sales Services Services Sales Services Sales Marketing Marketing

20. CUSTOMER STRUCTURE Sometimes companies find that their products are being used for other purposes or are being purchased by different customer groups. This may require creation of a customer marketing structure where a separate sales force is used to deal with unexpected usage and diverse customers.

21. Executive Vice-President For MARKETING Vice-President for Industrial Products Vice-President for Consumer Products Appliance Division Air-Conditioning Division House Ware Division Equipment Division Industrial Division Electronic Division Figure 5 Product Marketing Organizational Structure

22. Market-Centered Structure Describe the wide range of structural forms that center on a group of customer needs rather than a region, product line or function. Market-centered essentially describes an organization that is decentralized by market. In effect, a market center is a profit center. The market-based structure is ideal for an organization that has products or services that are unique to specific market segments, and is particularly effective if that organization has advanced knowledge of those segments.

23. Vice-President Marketing SBU 1 Manager SBU 2 Manager SBU 3 Manager SBU 4 Manager Figure 6 SBU Organizational Structure

24. MATRIX STRUCTURE In an organization that uses a matrix structure, one must cut across departmental boundaries to get a job done. A team working on a job is compromised of a group of specialists so that the ability to work together is very important. Figure7 illustrates how teamwork among production, marketing and finance specialists is required to complete projects. The key feature is that both the functional and product lines of authority overlap where managerial authority over the people in each cell is shared by both product and functional managers. A matrix is any organization that employs a multiple “boss” arrangement. For example, a person can have two bosses, one for functional and the other for product

25. Functional Inputs New Product Development Advertising Marketing Research Sales Research and Development Finance Production A Product Team D Product Team C Product Team B Product Team Director Of Marketing Operations Product A Manager Product B Manager Product C Manager Product D Manager Personnel Department Figure 7 Matrix Organizational Structure

26. Choice of a Marketing Organizational Structure Size of the firm The Products The Market Trade Channels Competitions Marketing Policies Philosophy of Management

27. Evaluation of a Marketing Organizational Structure A number of criteria may be used in evaluating organizational structures. This criteria include the ability of the organizational structure to facilitate control , to draw coordination among the employees, to provide information , to compute for the costs involved , and to adopt a culture of flexibility .

28. QUIZ

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