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Presented by

Ajay Bansod

cONTENTS
Basic

Definition
Need for the organization
Factors affecting marketing
organization
Principles of marketing organization.
Marketing Organization Structure
Types of marketing organization
structures

Basic Definition

'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.

Physical
Distribution

Mktg
Channels

Product

Making
Decisions

Promotion

Prices

NEED FOR THE

In the market
where consumer is the king
ORGANIZATION
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:
o Divide and fix authority among the sub
ordinates
o To locate responsibility
o To establish sales routines
o To enforce proper supervision of sales force
o To avoid repetitive duties
o To enable the top executives to devote
more time for planning policy matters

Factors affecting marketing

organization

Marketing organization

It be categorized into

internal
external

factors and
factors

Internal factors
Following

are intangible factors

which affect the marketing
organization

Top

Management Philosophy
Product policy
People

Top Mgmt
Philosophy

Product
Policy

Internal
Factors

People

Top Management
Philosophy
Organizational

planning and its

working is greatly influenced by
philosophy which can be good or bad

Eg:

Centralization Vs
Decentralization

Product policy
The

width of product line of an org

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.

People

The size of the organization is not an

important factor in terms of number of people
but it is important with respect to human
values which are critical and correct decisions
regarding people cannot be made unless
taking into consideration
Number
Qualifications
Capabilities
Personality
Attitude
Fear
Suspicion

External Factors
Business

Environment

Markets
Consumer

requirements and
expectations

Channels

of distribution

Business
Environment

Chan
nel
Distributi
on

External
Factors

Customer
Requirements

Mark
ets

Business Environment
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.

Markets
This

is the factor which again affects

the marketing organization i.e. one
should note about its
Size
Scope
Nature
Location

Consumer requirements
and expectations

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.

Channels of distribution
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.

Principles of organization

Objective: objective of business orgn, eg.

Of profit max. should be clearly define.

Specialization: the activities of the

member, employee, executive manager and
other individuals should be confined to a
single function.

Co-ordination: the work so assigned to an

individual or a group of individuals are
interrelated. One function cannot be
performed in isolation from other function.

Principles

(continued)

Authority: Depending upon the level at

which the person is working in the
hierarchy, the nature of authority delegation
would differ.

Responsibility: Authority and

responsibility are co-related.

Definition: to define means to bring to an

end or to decide, or to fix the bounds or
limits.

Principles

(continued)

Correspondence: the process of action

and reaction or the process of intercourse
between individuals.

Span of Control: span means total spread,

stretch, area of jurisdiction or compass of
control.

Balance: it cannot be sound in every part

unless the whole organization is directed to
the same end.

Principles

(continued)

Continuity: it suggests that the

organizational structure should be flexible
or elastic.
The organization builder cannot simply
build for today or tomorrow, he must build a
fabric which can stand through years.

Marketing organization
structure
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.

SAMPLE OF
MARKETING
ORGANISATION

Types of marketing
organization structures
The marketing organization of a business
can be structured on any of the following
basis:
Line and staff Organization
Functional Organization
Product oriented marketing organization
Customer oriented marketing organization
Geography oriented marketing organization
Matrix form/Combined base

Mktg
Org

Line and staff organization

In most business forms especially medium

size the marketing job is structured
around few line functions and few staff
functions i.e. Major staff functions is
organized into separate department and
the line function is responsible for sales
department. The required coordination
between the line and staff function is
managed by the executive at higher level.

Merits

Provides expert advice from

specialists.
Relives line executes of routine,
specialize functions
Enables young sales executive to
acquire expertise
Helps in achieving effective
coordination
Easy to operate
Less Expensive

Demerits
Produce

confusions arriving from

indeterminate authority relationships

Curbs
Too

the authority of experts

much is expected from executives

Decision

making is taken by top

management

Functional Organization
Under

the organization the

departments are created on the
basis of specified functions to be
performed
i.e. the activities related to
marketing, distribution etc.

Functional marketing
organization
Mktg
Advt.
MgrDept.

Merits
Division

of work base on specialization

Relieves

line executives of routine and

specialized functions

Promotes

application of expert
knowledge

Helps

to increase overall efficiency

Demerits
Leads

to complex relationships

Makes

coordination ineffective

Promotes
Lack

centralization

of proper coordination

Delay

in taking decisions

Product oriented marketing

organization
Organizations

that produce wide

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

Merits
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 .

Demerits

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.

Customer oriented
marketing organization
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.

Copy
& Mediaselection
Product
Range,Branding
Selection
Training

Mktg Director/ Executive

Merits
It

takes into account needs of

each class of customers.

It

provides specialization among

the enterprise staff

Demerits
It

makes coordination difficult

It

may lead to under utilization of

resources
There
These

in same department

may be duplication of activities

types of sales organizations are

not suitable for small enterprises.

Geography/ Territory

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.

Merits
It

leads to economy in terms of

times and money

It

helps in taking knowledge of

local customers

It

helps in effective control

Demerits
It

requires employment of number of

managerial personnel.

It

dilutes control from head quarters.

Matrix
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.

Questions from previous

years paper

Q.1.

Describe various types of marketing

organizations in details and explain there
suitability. (May 10)

Q.2.What

are the types of marketing

organization? Write a note on
interdepartmental relation in modern
business organizations. ( Dec 08)

Q.3.

Short Note- 1)Matrix type of marketing

organization
(May 08).

2)

Types of marketing organization

(May 07)

Questions from previous

years paper

Q.4.

Define marketing organization. Explain the

different models and Hierarchy of a marketing
organization.(Oct 06)

Q.5.

Function approach to market (Oct 06)

Q.6.

Define marketing organization. How will you

design a marketing organization structure for a big
Indian company which intended to manufacture and
sells its bakery products on national level? Make
necessary assumptions and justify your answer. (May
06)

Q.7.

Explain the working of marketing organization.

Explain the Hierarchy and work flow in marketing
organization. ( Oct 5)

THANK
YOU