Marketing Organizations

Prof. Kunal GauravDhruva College of

ManagementHyderabad

Marketing Organization?

• Refers to the structure of the marketing function within the organization.

• Marketing has undergone immense transformation from its earlier days to the present.

• Earlier, marketers only focused on the sales function and were always contemplating how to improve the sales of the company’s products or services. But now, sales comprise only a part of the marketing activity.

MARKETING ORGANIZATION: EVOLUTION

There are about five stages that describe the evolution of the marketing department over the years. Let us study each of these stages individually.

• Simple sales department• Sales department with auxiliary marketing

functions• An individual marketing department • Modern marketing department • Modern marketing company

The Designing of Marketing Organizations

• Functional organization • Geographical organization • Product or brand management organization • Market management organization • Corporate/divisional organization

Functional organization

• The marketing department of an organization is generally divided into different functional area specialists like the sales manager, marketing research manager, advertising and sales promotion manager, new products manager, customer service manager, and so on.

• These various functional heads carry on their marketing efforts effectively, as their area of operation is limited to the specialization.

• The idea behind establishing a functional marketing organization is to make its management simpler and also improve the efficiency.

Geographical organization

• Organizations arrange their marketing activities based on the geographical regions.

• A typical geographical organization set-up would comprise a national marketing manager in-charge of the entire country market, supervising four other regional managers one for each region, namely, north, south, east and west.

Product or brand management organization

• Most organizations that manufacture a lot of products normally have a product or brand management organization set-up.

• This set-up helps these organizations in efficiently managing their various products and brands. The product management organization has a product manager controlling all activities pertaining to a particular product.

• Some of the big organizations employ one manager for each product and s/he is responsible for all activities related to the product.

Market management organization

• When the organization’s span of business expands and it starts operating in more markets with more products, it becomes necessary for the organization to have a market management organization set-up.

• The markets manager supervises a set of functional experts who are in charge of identifying or developing new markets.

Corporate/divisional organization

• As the company grows in size, offering a host of products and services to markets across the world, the company begins to increasingly feel the necessity of setting up separate corporate or divisional organizations.

• A functional head, usually a vice president, is appointed to handle the sales and overall management of that particular division.

MARKET EVALUATION AND CONTROL

• The responsibility for evaluating and controlling the marketing programs of a company lies with the marketing department.

• It has to constantly assess and adjust the programs according to the market requirements.

• Finally, the company takes corrective measures to correct any deviations in the implementation process.

MARKET EVALUATION AND CONTROL

• Annual plan control • Sales analysis • Sales variance analysis • Market share analysis• Financial analysis and

market-based score card analysis

• Profitability control • Efficiency Control

Efficiency Control• Sales force efficiency• Advertising efficiency • Sales promotion

efficiency• Distribution efficiency

Marketing Audit?

• Marketing audit is defined as a comprehensive, systematic, independent and periodic evaluation of a firm’s marketing activities, goals and strategies in order to identify the opportunities and problem areas, and suggest suitable recommendations for improving the firm’s overall marketing performance.

SOCIAL RESPONSIBILITY OF MARKETING

• An organization can create a positive impact on society if it produces products that are useful to society and do not harm it.

• They have realized that organizational social commitment comprises of four types of responsibilities. They are economic, legal, ethical and philanthropic responsibilities.

Thank You!