Marketing

Organization
Contents
 Introduction
 Concept
 Essentials of marketing organization
 Principles of marketing organization
 Types of marketing organization
 A) Functional organization
 B) Product based organization
 C) Customer Based organization
 D) Geographical organization
Definition

 Marketing organization is an organization in

which marketing mechanism like branding,
advertisement, sales & promotion etc.
translated into action.

 Marketing organization provides vehicle for

marketing decisions, marketing channels, sales
& promotion, physical distribution etc.
Concept
 Organization means dividing work &
responsibilities on the basis of importance &
requirement & then regrouping into one.

 Organization is an orienting point for co-

operative endeavors & structure of human
relationship.
 Today’s organization attempts to be both profit
minded & sales minded.

 A good marketing organization is foundation for

effective sales planning & policies for systematic
execution then for controlling of all sales
activities in order to achieve maximum
efficiency, profitability without sacrificing level of
customer services & satisfaction.
Essentials of Marketing Organization
 1) Combination of activities or functions.
 2) Assignment of duties
 3) Fixation of responsibilities
 4) Co-ordination
 5) Facilities for research
 6) Adequate finance
 7) Dynamic leadership
 8) Effective salesmanship
Principles of Marketing Organization
 It is absolutely essential to give scientific basis
to principles of organization in order to have
successful working of an organization.

 Urwick has ten principles in order to have

organizational structure based on sound &
scientific principles.
Urwick’s 10 Principles
 1) Principle of objective

 2) Principle of specialisation

 3) Principle of co-ordination

 4)Principle of authority.

 5)Priniciple of responsibility.
 6) Principle of Definition

 7) Principle of correspondence

 8) Span of control.

 9) Principle of balance

 10)Principle of continuity.
Advantages of effective
Marketing Organization.
 i) Maximum sales volume at low prices.
 ii) It results in growing customer base.
 iii) Development in international market.
 iv) It can satisfy various types of consumers
& their different tastes.
 v) Builds positive image about the
organization among the people.
Types of Marketing organization
 A) Functional Organization

 B) Product based organization

 C) Customer Based Organization

 D) Geographical Organization
Functional Organization
 This is most commonly used came across
organization where several functional
specialists report to marketing manager.
 Depending upon need those functions can
be created
 e.g. i) marketing planning.
ii) distribution management.
iii) customer service.
Geographic/Territorial organization
 Activities in given area or territory is grouped &
assigned to a manager. He holds charge of a
particular area/territory.

 This type of organization is specially attractive

to large scale firms which operates over a wide
geographic area.
Product Based organization
 Activities grouped on the basis of various
products produced.
 Such companies retain functional organization
form apart from it they put another layer called
brand or product management.
 Several product managers report to chief
product manager.
Customer Based Organization.
 Under this type of organizational structure,
Concentration is on types of customers &
separate groups are designated responsibilities
for marketing programs for different classes of
customers. Viz.
i) Distributors, ii) Retailers, iii) Customers.

 Customers are the key to such organization.