Marketing Strategy

Luciano Augusto Toledo .
Guilherme de Farias Shiraishi
Administração de Marketing
ORGANIZATIONAL STRUCTURES WITHIN THE SCOPE OF

STRATEGIC MARKETING PLANNING:
A DISCURSIVE STUDY
Estruturas Organizacionais no Âmbito do planejamento

estratégico de marketing: um estudo discursivo
Luciano Augusto Toledo

Universidade Presbiteriana Mackenzie
Doutor em Administração pela Universidade de São Paulo

Professor da Universidade Presbiteriana Mackenzie.
Rua Maria Borba 40 - Consolação
01257000 - Sao Paulo, SP - Brasil
Telefone: (11) 30915817
Homepage: http://www.mackenzie.com.br Data de submissão: 27 set. 2008 . Data de aprovação:
Email: luciano@mackenzie.br
10 abr. 2010 . Sistema de avaliação: Double blind review
. Universidade FUMEC / FACE . Prof. Dr. Cid Gonçalves Filho
Guilherme de Farias Shiraishi . Prof. Dr. Luiz Cláudio Vieira de Oliveira . Prof. Dr. Mário
Universidade Presbiteriana Mackenzie Teixeira Reis Neto
Doutor em Administração pela Universidade de São
Paulo
Endereço profissional:
Rua da Consolação, 896 - Consolação
01302-907 - Sao Paulo, SP - Brasil
Telefone: (11) 21148765 Fax: (11) 21148898
Homepage: www.mackenzie.com.br
Email: guilherme@mackenzie.com.br
ABSTRACT
The present article proposes to analyze marketing planning within the context of innovative
organizational structures. The work has been structured as an essay, and is comprised of a
review of the theoretical reference, set against a conceptual critical analysis of a few aspects
pertinent to the theme. Issues around the difference among the several strategic levels,
such as the formulation of corporate strategies, competitive and structural. Additionally,
marketing planning activities were situated in companies’ structural hierarchizing. Lastly,
a reflection is conducted, raising issues adjacent to marketing planning, strategies, and
innovative organizational structures.
KEYWORDS
Organizational structure. Marketing planning. Strategies.
R. Adm. FACES Journal Belo Horizonte · v. 9 · n. 2 · p. 125-141 · abr./jun. 2010. ISSN 1984-6975 (online). ISSN 1517-8900 (Impressa) 125
ORGANIZATIONAL STRUCTURES WITHIN THE SCOPE OF STRATEGIC MARKETING PLANNING: A DISCURSIVE STUDY
RESUMO
O presente artigo propõe-se a analisar e estudar o planejamento de marketing no contexto
de estruturas organizacionais inovadoras. O trabalho foi estruturado sob a modalidade
de ensaio, e compõe-se de uma revisão do referencial teórico, mediante uma análise
conceitual crítica de alguns aspectos pertinentes ao tema. Foram tratadas questões em
torno da diferença entre os diversos níveis estratégicos, como a formulação de estratégias
corporativas, competitivas e funcionais, além de situar as atividades de planejamento de
marketing dentro da hierarquização estrutural das empresas. Por fim, é realizada uma
reflexão e levantamento de questões adjacentes ao planejamento de marketing, estratégias
e estruturas organizacionais inovadoras.
PALAVRAS-CHAVE
Estrutura organizacional. Planejamento de marketing. Estratégias.
Introduction In this technical-cultural revolution scenario,

strategic planning and marketing planning stand
This essay tries to analyze the problems in
out as guiding instruments for the improvement
marketing planning activities, in face of the problem
of company competitiveness, push forth the
posed by the existence of innovative organizational
growth of the organization and articulate changes
structures. Lambin (2000) is emphatic in stating
in organizational structures.
that the revolution through which the world is
In this sense, all and any changes in configuration
going is notorious, as well as how this affects
in an organizational structure may or may not bring
the lives of corporations. On the one hand,
about improvements, innovative configurations.
the phenomenon of globalization unfolds and,
Thus, the aforementioned justifies a scientific
on the other, the technological evolution led
study dealing with some of the specificities of the
by the use of the Internet and other emerging
theoretical references that base the concepts of
technologies. The constant and uncontrollable
strategic and marketing planning in the scope of
changes that occur in the contemporary business
innovative organizational structures.
environment demand permanent adaptations
and adjustments in productive and administrative
Work Method
products and processes, and those who do not
attempt to adequate to the new environmental The work is structured as an essay, which is
conditions will face difficulties to grow and survive. conceived by Medeiros (2000) as a methodological
Companies are exposed to drastic changes in narrative on a subject and the offering of original
managerial and cultural paradigms, and many conclusions reached after accurate examination of
are disoriented and pathless in the face of the such subject , based on documented evidence. For
situations prevalent in the external environment. the author, the essay is, by nature, “problematic
126 R. Adm. FACES Journal Belo Horizonte · v. 9 · n. 2 · p. 125-141 · abr./jun. 2010. ISSN 1984-6975 (online). ISSN 1517-8900 (Impressa)
Luciano Augusto Toledo . Guilherme de Farias Shiraishi
rendering” and non-dogmatic, and in it, the author’s can choose a diversified growth strategy, where it
critical spirit and newness, or better, originality, tries to identify growth opportunities in businesses
should prevail. As Severino (2000) ponders, in the unrelated to the present ones (HOOLEY;
essay the author is more free to defend a certain SAUNDERS; PIERCY, 2005).
position, without having to sustain the rigorous and The decision to invest in a company will
objective apparatus of empirical and bibliographical depend on the structure of the industry analyzed,
evidence. on a case-by-case basis. Porter (1998) defined five
In fact, the essay does not dismiss the logical competitive forces that affect the attractiveness and
rigor and coherence of argumentation and, for this competitiveness of a given industry. Those forces
very reason, demands cultural information and refer to the potential entrances, the sellers’ and
intellectual maturity. The present essay proposes buyers’ bargaining power, the threat of substitute
to undertake a formal, discursive and conclusive products, and finally competition with other present
analysis and unfolds into a logical and reflexive companies. Hooley, Saunders and Piercy (2005)
narrative on strategic and marketing planning, and add that any diversified organization needs to
the model of innovative organizational structures. find methods to appraise the balance among
businesses in its portfolio and aid in resource
Theoretical Reference allocation among them.
Competitive Strategies
Corporate Strategies
After defining the markets to be served by
According to Toledo (2003), a characteristic of the organization, the company needs to conquer
strategic strategies is to assure the accomplishment and maintain them. Porter (1998) theorizes on
of the company’s growth objectives over time, this position as the process for the search for a
by evaluating the present and intended strategic competitive or business strategy. This strategy
business units and carrying out a strategic can be reached in many ways. However, it
analysis for resource allocation. The aim of those is possible to synthesize them in two global
strategies is to decide on the business transactions propositions: leadership in costs and differentiation
a company will undertake and the amount of (PORTER, 1998). Competitive strategies reflect
resources necessary o maintain them. There are the organization’s capacity to adjust in accordance
five possible growth strategies for a company, with what has been identified in terms of its
of which three are related to intensive growth attractiveness and competitiveness. Besanko,
(KOTLER; KELLER, 2006; ANSOFF, 1957), and Dranove and Shanley (2000) render relative
are described bellow. Intensive growth strategies those strategic positions by defining the concept
are aimed at identifying growth opportunities of created value. While Porter (1998) argues
for the companies’ present business and can that the best outcome is in the capacity to take
be configured as, market penetration, market advantage of the company’s value chain to reduce
development and product development. The costs or create relevant differentials for consumers,
integrated growth strategy is aimed at identifying without admitting mixed situations, Dranove and
growth opportunities in business transactions Shanley (2000) argue that the organization’s best
related to the present ones. They may try to outcome is supplying a created valued higher than
acquire companies upstream or downstream, or the competition’s, where the buyer’s surpluses are
try to accomplish horizontal integration through added to the profit made by the company minus
consolidations or takeovers. Finally, the company production costs.
Another important point in the formulation 1996), the Delta Model recognizes differentiation
of competitive strategies is the concern with and cost leadership strategies – Best Product,
maintaining a competitive edge. Competitive edges but the paradigm of delivering the best product
can be protected through isolation mechanisms that supercedes them. Additionally, according to these
neutralize the competition’s value creation sources authors, this model foresees the strategic option of
(BESANKO; DRANOVE; SHANLEY, 2000). These serving clients in the best way possible – Solutions
mechanisms can be a barrier against imitations for clients. This strategy allows the company to
(legal restrictions such as patents and copyright, anticipate the clients’ needs and increase its
exclusive access to clients, scale economies in understanding and learning about them and, lastly,
limited markets, and intangible barriers related to results in positive impacts upon the relationship.
historical circumstances and social complexity), or Finally, the model considers as an option that the
advantages resulting from quick changes (learning company should extrapolate the organizational
curves, network externalities, the brand’s reputation limits – System Lock-in. Instead of concentrating
when consumers are not sure about the product’s only on the product or the customer, the company
quality, etc.) considers all the elements of the system that
Prahalad (2004) defends that its not enough contribute towards the creation of economic value.
for the company to simply carry out competitive These elements appear as suppliers and other
positioning exercises. According to the author, organizations, named complements, and are parts
companies should try to respond to the question of the systems that supply the goods and services
of how to model their competencies in future of the main organization (HAX; MAJLUF, 1996).
scenarios. That is, instead of looking at past
Functional Strategies
analysis, one must look, in a creative and innovative
way, for new market opportunities, interactions Functional strategies are decisions subordinate
with clients, and other relevant firms and markets. to business or competitive strategies. These
Gummesson (2005) proposes two decisions are made in connection with the
phenomena that attempt to aid the understanding company’s functional activities and administrative
and formulation of the organization’s competitive processes, whether they are related to the final
strategies, the systems’ theory and the theory activities, or support areas such as marketing,
of transactional costs. In both cases, the author people management, production, finances, P
advocates that company’s borders with clients & D, information technology, etc. (HOOLEY;
and suppliers are not clear, but form relationships SAUNDERS; PIERCY, 2005).
intertwined in an orderly way. The strategy, Although these strategies are defined as a
under the systemic point of view, argues that strategic level, the subordinate decisions that
the company is in constant interaction with the operationalize the search for competitive edge and
environment and, therefore, all strategies must growth can also be seen as action programs. This
consider the client as an extension of this system. confusion results from the point-of-view adopted.
Complementing the aforementioned strategy At this hierarchical level, if the competitive strategy
models, the Delta Model reflects a description of is taken as a reference, the subordinate decisions
the success of competitive strategies (TOLEDO; can be seen as actions to reach the objective
QUELOPANA; POLERO, 2005). The authors established at the higher level. According the
argue that this model explains and aids in the definition offered by Mintzberg (2002), where the
process of making strategic decisions, in the programs are specific steps in actions necessary to
present global context. According to (HAX; MAJLUF, reach the main objectives, these activities are part
of the company’s action program. The confusion people existing in the organizations. These specific
also arises from the use of the terms “strategic clusters form units called departments. Such
plan” in the different functional areas, such as divisions allow the organizations’ collaborators
marketing, human resources, production and to be administered within this subsystems logic.
finances. These plans are operational and their Still according to the same authors, what defines
outcome is the definition of action programs of departmentalization is the breadth of control, the
each area, and they are subordinate to competitive hierarchical levels, the degree of decentralization,
strategies. One notes that the dimensions treated communications systems, and the company’s
are totally distinguished from the company’s degree of formalization. The means of formalizing
strategic and corporate planning. such structures is through organizational charts,
memos and assignments. These divisions
Organizational Structures
constitute end areas or support areas, such as data
An organizational structure can be defined as processing or accounting, or such as consultancies.
the arrangement of people and designated tasks to Organizational structures can be classified into
reach the organization’s objectives (FINK; JENKS; traditional or innovative. The first classification is
WILLITS, 1983). This structure is the outcome of more favorable in organizations whose activities are
a process of division of the authority established more predictable, and whose market environment
in the company, where activities are specified and is at a relatively stable stage. This form of structuring
communication flows are defined. It is through has the following characteristics (VASCONCELLOS;
this program that companies carry out their HEMSLEY, 2002):
strategies in order to reach their aims. Galbraith
• A high level of formalization: the levels of
(2001) completes this thought by stating that the
authority and responsibility are detailed
organizational structure is designed to maintain,
and thoroughly made explicit in manuals;
over time, the company’s strategic choices in
coherence with the established organizational • Single command, the existence of only one
goals. boss or person-in-charge for each direct
subordinate;
Barnes et al. (1970) report and believe that
companies normally use a combination of basis • A high degree of specialization, people
to group their activities and that they normally who are well trained to carry out specific
are molded around the few basis that reflect the activities;
organization’s main hierarchy. According to these • Vertical communication, communication
authors, the most common forms or grouping occurs between subordinates and the
and hierarchizing are based on several groups boss, communication among peers is not
such as: sectional or location, markets, products, valued;
functional specialization, processes or equipment, The use of traditional types of departmentalization:
tasks, etc. In addition to these categories, clusters Functional: the division criteria is based on the
can be generated based on breadth of control and clustering of departments according to the
coordination capacity, among others. knowledge necessary to carry out a certain activity.
Authors such as Vasconcellos and Hemsley Geographical: Clusters collaborators in based the
(2002) consider that an organizational structure is area in which the organization acts; Based on
comprised of three elements: authority sub-system, the Process: Clustering each stage of a process
communication sub-system and activities sub- in a specific department in order to reach a high
system, all of them managed within the clusters of level of specialization; Clients: People who serve
the same kind of client are clustered in one same People are clustered using the criteria of the project
area; Product/Service: People who deal with the in which they are involved at that specific time.
same product are clustered in the same area; The cluster’s boss is the project manager. Matrix-
Period: Organizations that function for 24 hours based – The simultaneous use of two or more
a day can cluster based on the work shift, as types of departmentalization with the same group
long as the same types of activities are carried of people. Cellular – Characterized by the almost
out; By control extent: used when the division is total absence of structure and high flexibility. New
centered only on the limits of the boss’ capacity undertakings – Innovation activities are separated
to command, ex: overseer commanding sugar- from routine activities. Multiple command:
cane cutters. The single command unit cannot always be kept
In many cases, traditional structures don’t in these structures. As in the case of the projects
resist the outer environment’s impacts. Due to of matrix-based models, conflicts between the
this complexity, some organizations have begun activities proposed by each one of the bosses
developing more flexible structures, or structures may occur. High Diversification: the high rate
known as innovative structures (VASCONCELLOS; of change makes specialization more difficult. A
HEMSLEY, 2002). With the increase in the more flexible professional is preferred to one highly
environmental turbulence, traditional models have specialized in one single function. Horizontal and
become bureaucratic obstacles tending towards diagonal communication: Communication
organizational stagnation and rigidity in the capacity occurs in all directions, considering the need for a
to respond to these changes. The metaphor of the greater volume of communication, the number of
mechanist, or, analogously, traditional organization, levels and the time necessary for their diffusion.
does not support the company’s new needs. Other Organizational structures tend to become more
metaphors then appear, such as those based bureaucratic and lose flexibility as a result of the
on the organic concept that has adapted to the growth of the company. In order to counter balance
dynamic model of survival (MORGAN, 1999), this tendency, these companies must overcome
or the flexible, collaborative model, based on the crisis resulting form such changes. They can
competencies and with horizontal communication. be summarized in five organizational growth and
Under this new reality were developed the development phases (GREINER, 1998): Initial
innovative models whose structuring allows the creativity; Functional direction, Delegation and
company to respond in an agile and efficient decentralizing; Coordination (abandoning the
way to the turbulence of the present competitive original functional structure, and focusing more on
environment. The structural characteristics of these results); Collaboration (maturity to establish a free
organizations are (VASCONCELLOS; HEMSLEY, and flexible structure).
2002): Low level of formalization: Considering Each one of these phases represents a result
the organization’s dynamics, it cannot afford the of the relationship between the organization’s size
luxury of detailing each function’s activities The and maturity. The model foresees that, throughout
use of advanced forms of departmentalization: the company’s growth, changes in the way of
Among the new forms brought to light in thinking and acting will naturally occur, and it will
face of the environment, alternatives forms of begin facing moments of crisis and overcoming.
departmentalization will appear, among them: These periods of time signify a transition period that
Profit center – Divides the company into units with results in breaking out of one phase and entering
a high degree of autonomy, those responsible for a posterior one. Greiner (1998) shows that the
act as if owners of isolated companies. Projects – speed and intensity of the organization’s transit
through phases result from the dynamics the market, greater will be the need for
of the industry’s or sector’s growth. This organizational development.
realization leads one to imagine that the Evidencing these organizational development
behavior of the companies reflected in phases in organizational structures, one deduces
these phases adjusts to the company’s that the more advanced the growth stage, the
growth strategies, in the sense that the more the organizations become structures bending
more complex and faster the growth of towards innovation (TABLE 1).
TABLE 1
Organizational structure in the company’s five stages of growth
Growth stages Organizational structure

1st Phase Informal
2nd Phase Centralized and functional
3rd Phase Decentralized and geographical
4th Phase Line / Consultancy and product groups
5th Phase Matrix-based
Source: Adapted from Greiner (1998).
Organizational structures can be composed for businesses or other companies, also called
in many ways, depending on the companies’ strategic business units, which are successively
strategies, from classical functional structures, to purchased or sold, based on financial criteria;
the forming of cooperation nets among companies Diversification based on competencies is similar
within a value system. According to Ito and Rose to the former, but it is more directed towards an
(2004), structures can be characterized as: expansion constructed upon internal competencies
functional ones split into divisions, diversification such as abilities, technologies, organizational
by conglomerates, diversification based on learning, etc. In this form of structure, long-term
competencies, keiretsus, and alliance networks, actions are more valued, while in the first form one
where: Functional structures are more efficient aims at equating investments and financial return;
when companies are small and have few product Organizations based on keirestsu have originated
lines; Structures by division are clusters based on from family-based organizations called zaibatsu.
markets or products and, within each division, The difference between the two is that the first is
departments are established around the product a modern conception, not based on personal ties
or market at hand; Diversification by conglomerates of kinship. In keiretsu, companies create a bond
is an organization characterized by the use of of dependency and functional hierarchy around
expansion strategies in the search for growth cooperation and assistance in the same way as
opportunities in connection to attractive markets. members of a large traditional family;. The alliance
This form of organization behaves like an umbrella networks, differently from keiretsu, are not formed
by bonds of friendship and loyalty among its peers. organizational structures at a higher level. In this
These networks are the consequences of the line of thought, all marketing activities dealt with
adaptive necessities for the realization of complex bellow are at a functional decision-making level
competitive strategies that can only be carried out and are not an integral part of the organizational
through joint action among organizations. They planning process as a whole.
can take on several shapes, from joint ventures At the operational level of these functional
and cooperation contracts to the total integration activities, the analysis tasks necessary to understand
of operations, the aim of which is to completely
the market’s structure and the consumer’s behavior
control a certain market.
are designated by the acronym “4 O´s”. They
The Administrative Marketing Process involve the search for information and the
understanding of four sets of issues relating to
The functions of marketing as a instrument consumer behavior: object, objective, organization
to facilitate exchanges take place through a set of and operation of purchase (CAMPOMAR, 1984):
specialized activities, which are carried out in the
Object of purchase – an analysis of what the
scope of marketing administration. According to the
consumer purchases, that is, the product and
conception of Kotler e Keller (2006), marketing
its multiple configurations, and brands (who
administration or management is the process of
to purchase from?): Objective of purchase
executing the conception, the determining of the
– an analysis of the motivations, attitudes, and
price, the promotion and distribution of ideas,
preferences of the buyer in the process of
goods and services to create transactions that
purchasing (why does he buy?); Organization
fulfil the individual and organizational objectives.
of purchase – analysis of how the purchasing
Toledo and Fortes (1989), in describing the
units are structured and the roles played by each
managerial dimension of marketing, that is,
marketing administration, point out that some member of the unit in the purchase process (who
aspects should be taken into consideration. The influences and who decides upon the purchase?);
first one of them refers to the administrative Operation of Purchase – is the way in which
process itself. Marketing, like any other functional the purchase process develops and which choices
area, carries out four classic functions that comprise can be made by the buyer as to the place (where
the administrative process: planning, organization, does he buy?); the time (when does he buy?); and
direction (coordination) and control. quantity (how much does he buy?).
However, the tasks and activities that comprise The tasks that comprehend the decisions on
the decision-making process in marketing are the controllable marketing variables, or decisions
planned, organized, coordinated, implanted and on the marketing compound, at the operational
controlled by the area’s managers, in the scope of level, are known under the acronym “4 P’s”,
an integrated management system, which should popularized by McCarthy (1996): meaning
connect to all the other functional areas, with the product, price, promotion, and place. In this sense,
purpose of reaching the company’s objectives. In in addition to the product, a crucial variable of the
this sense, the marketing administrative process marketing compound is price. The place (trading
covers activities, specialized and specific tasks and center, distribution) is another key-variable of
functions, even if many of them are shared with the marketing compound; it includes the set of
the other areas that comprise the organization’s activities accomplished by the company to make
inner value chain. the product accessible and available, supplying the
Nonetheless, it is important not to confuse time and place factors. The promotional compound
functional marketing strategies with the comprehends the activities aimed at informing and
persuasively communicating the company’s supply SAUNDERS; PIERCY, 2005). The concept of
to the target-market (McCARTHY, 1996). segmentation points to a process that develops
An important aspect in marketing compound from a phase characterized as the partition of
management, pertinent to the marketing planning the target-market, identified in marketing texts
process, refers to the issue of deciding upon the as segmentation. This stage of the strategic and
allocation of the marketing budget, among the competitive marketing process refers to raising the
several products, channels, and sales promotion segmentation variables and designing the profile
instruments (WESTWOOD, 2005). of the market segments that could be reached by
specific marketing compounds.
Campomar (1984) suggests a systemic
representation of the operational process, which In a second stage, there is a priority decision
allows for obtaining a dynamic idea of the flows to be made; in this stage one seeks to accomplish
that determine the exchange system, in addition a strategic choice of segments, in order to obtain
to evidencing the uncontrollable external variables, a competitive edge. The process culminates with
which can provoke favorable or unfavorable the positioning stage. Thus, the segmentation and
positioning processes constitute the core of the
impacts upon the company’s relationships with its
company’s strategic marketing and the essence of
respective markets. Under a strategic perspective,
the company’s achieving greater competitiveness
the marketing system requires an examination of
(HOOLEY; SAUNDERS; PIERCY, 2005). It is
the market in terms of tendencies, events and
in the context of this strategic dimension that
market demands, as well as the opportunities
market segmentation proves to be of importance
offered in the long term. In this case, the analysis
for marketing planning, particularly in formulating
work is prospective, and its objective is to raise
and implanting marketing strategies for specific
and appraise market segments to be profitably
markets (PETER; DONNELLY, 2002; McDonald;
exploited by the company, in consonance with
Dunbar 1995).
its resources and objectives. As a result of the
analysis of the marketing opportunities and Marketing Planning
the assessment of the company’s competitive
As to the issue of strategy, Harrison (2005)
potential, in comparison with the competition, it
suggests that it can be conceived as a sequence
will be enabled to decide on the position it will take
of decisions in time. Alternatively, as a process
in the market, in relation to competitors, so as to
that involves a set of actions aimed at pushing
form a differentiated image in terms of product, a company towards fulfilling its short-term goals
price, promotion and area of delivery. and long-term objectives.. Still according to the
Marketing planning is operational and same author, strategies present themselves in
subordinate to strategic planning, which is all organizations, both the simplest as the largest
broader, more encompassing and more long-term. and most complex, but they may vary in terms
However, marketing planning and, therefore, its of the degree of formalism with which they are
activities, are elevated to the strategic level when formulated and implanted. In some companies,
the demand is smaller that the company’s supply, especially those which operate in rapidly changing
and can then be called “Strategic marketing environments, or in small-scale organizations,
planning”. strategies are not described as “planned”, according
At the strategic level of functional marketing to the formal conception of the term.
structures, two closely related concepts stand out: In addition to the degree of formality, strategies
market segmentation and positioning (HOOLEY; can be considered in terms of being deliberate
o emergent (HAX; MAJLUF, 1996). In deliberate the growth of the organization. Thus, for example,
strategy, managers plan to follow a certain in each business unit, the functional marketing
predefined and intentional course of action. An area will develop the planning process bearing
emergent strategy means that it is not necessarily in mind the formulation of its strategies em
planned or intentional, but the result of patterns the achievement of the objectives of the single
and consistencies observed in the past, through business in specific markets (Kotler; Keller,
a trial and error process. These last two concepts 2006).
constitute the limits of the different combinations In medium-scale companies with one single
that form the basis for a typology that characterizes SBU, strategic marketing planning and operational
strategy formulation processes. marketing planning can be developed as a single
Strategy formulation, conceived as a process of process (STEVENS et al., 2001), and, in smaller
planning strategies, or, in the broadest sense, the organizations, the planning process incorporates
process of strategic planing, can be dismembered the three levels simultaneously. Harrison (2005)
into three levels: corporate, company-wide or adds to this, stating that when dealing with
pertaining the strategic business unit (SBU), and strategies in the scope of the corporation,
functional (Kotler; Keller, 2006). decisions are reached at the highest levels of the
organization, although the people at that level may
At the corporate level, the formulation of the
receive information from managers at lower levels.
strategy (strategic planning) refers to the definition,
If a certain organization has only one business unit,
assessment and selection of business areas in
the first and second level decisions are made by
which the organization will compete, and the
the same people. In organizations with multiple
emphasis that should be placed on each area.
businesses, decisions at the business unit level are
At this level, the main issue is the allocation of
made by the highest-level executives in the unit;
resources among the organization’s business
at the functional-area level decisions are made by
areas, according to the criteria of attractiveness
the respective managers.
and competitive position of each of the areas, and
the strategies are predominantly aimed towards Marketing Organizational Structure
the growth and permanence (survival) of the
An important aspect to be considered in
organization.
company and marketing planning processes is
Strategic formulation at the second level – of
the issue of the administrators’ participation in
the company or the strategic business area – is the process as a whole. Stevens et alii (2001)
related to the effective use of the resources and argue that, in general, the more the organization
refers to the direction towards which the company grows, more the planning activity is placed under
will aim the business scope. At this level, the the charge of groups of managers, instead of each
so-called competitive strategies prevail. Thus, manager individually. These authors point out a few
the single business strategy refers to the way in reasons for the fact that larger-scale organizations
which the organization will compete in the chosen recur to a professional planning team. In the
markets. first place, planning takes time, and, therefore, a
Strategic formulation at the functional level planning team can reduce the managers’ individual
relates to the process through which the company’s workload. A second reason is that planning requires
several functional areas will use their resources to coordination, and a specialized team can help
implement the company’s strategies, so as to integrate and coordinate each manager’s planning
gain a competitive edge and contribute towards activities. Also, since planning requires experience,
a team can contribute with a larger number of existence of some structures: product based,
instruments and techniques towards the solution of functional, geographically divided, and the matrix-
a certain problem, than a single individual. A fourth based form. Davis (1981) classifies four ways
reason refers to the fact that planning requires of organizing the marketing structure: functional,
objectivity; in this case, a planning team can have product, market and mixed (product and market).
a wider scope of vision than a single individual. Among the ways of organizing the marketing
Campomar (1984) affirms that an organization structure, the most traditional are the functional
implanting a marketing strategy presupposes the structure, product structure and market structure.
existence of a structure to operationalize activities. It The first is departmentalized by activities (sales,
is through the coordination of the people involved promotion, marketing research, marketing
in the structure that the marketing compound planning). There is an executive responsible for
decisions take place. the organization’s total marketing effort and those
Stevens et al. (2001) argue that coordination responsible for each one of the activities are
in the firm involves an ordering of combined subordinate to it. The second case occurs when
efforts to reach a common purpose, through the organization has a varied production, that is,
the members of an organization. These efforts there are several products and brands. As the
are shared among the individuals in an orderly complexity or resource administration increases, for
way, attributing to each a specific function in each one of these products, the organization finds
the implantation of the marketing compound. itself compelled to delegate a product manager for
The way of coordinating the people involved markets to each group. This happens when the
in the marketing activities is influenced by the organization offers its products to a set of highly
philosophies adopted by the organizations, diversified markets. In this case, the organizational
and may place emphasis on production, sales, structure should allow specialization per market,
innovation, or be aimed at marketing. Additionally, with areas aimed at each one of them.
marketing structures are subordinate to the According to Achrol (1991), in spite of the
organization’s general organizational structures changes in the marketing environment during the
and, accordingly, are aligned with the existing end of the last century, many times, organizational
competitive and corporate strategies (STEVENS structures are still developed on functional
et al., 2001). This reasoning leads one to believe bases. The author advocates that, in a dynamic
that the execution of marketing activities may environment, those forms should be revised.
be diluted in other departments, such as sales, Ruekert, Walker Jr e Roering (1985) have
production, institutional communication, P&D, developed a contingency-based approach to
finances, etc. of the company, and the marketing restructure these activities within the several
managers lack, many times, the power to alter the environmental settings and the proposed
existing structures. organizational objectives. According to the authors
The marketing area’s structure may take above, structures can take on bureaucratic, organic,
on different shapes, depending upon the transactional a relational forms. Where:
emphasis given to the type of coordination and • In the bureaucratic form, structures are
control intended by the organization. Boyd and rigid, formalized and loosely integrated.
Massy (1972) classify marketing structures Central control is used to monitor and
into four different groups: functional, products assess the result, activities are distributed
administration, markets administration and general in a traditional way, such as, for example,
administration. McDaniel (1979) describes the a sales department;
• In the organic form structures are marketing in many large companies is less a
decentralized, non-formalized and based on department, and is more a Diaspora of abilities
specialized groups. Activity planning takes and capacities dispersed inside and outside of
place at low levels of the organizational organizations”.
hierarchy. Marketing, P&D, market research, The same authors report that, in many
and production specialists are appointed organizations, marketing has been loosing budget
for the creation of workgroups, and there and influence over the authority structure and
may be a product manager leading the suffering several downsizing processes. Many
process in more centralizing companies. In of the traditional marketing activities, such as
this case, those structures can be termed account and customer administration, product
matrix-oriented structures. development, price definition and distribution,
• In the transactional form, structures take are being moved to other areas of the strategic
into consideration internal organizational business units. Functions related to marketing
aspects and the employment of outside information systems are sometimes included in the
organization companies. A transactional marketing assignments, sometimes excluded, and,
form is defined by centralized, formalized lastly, most companies are reducing their marketing
structures, without much interaction areas to brand management and communication
among the parts. Activities are normally areas (WEBSTER JR; MALTER; GANESAN, 2005).
carried out under standard contracts. The Webster Jr, Malter and Ganesan (2005) list,
most usual forms are: system activities and as the main causes of changes in organizational
marketing information activities, channels structures: The pressure for short-term financial
administration, etc. are delegated to third results (purchasing business units well-placed in
parties; markets, instead of developing new businesses);
• In the relational form, the structures are The difficulties marketing areas find in measuring
similar to the transactional ones. However, their productivity; the changes in power and
they are little centralized and formal, and control within value systems; the difficulty present
their parts are more integrated. An example marketing structures find in moving towards and
of the composition of such structure is in efficient administration of client relationships;
the establishment of a strategic relationship the deflection of organizational resources from
with a publicity agency. marketing to sales; the strengthening of a client and
Organizational structures are moving towards value-based orientation in management structures,
an ever more fluid situation, based on hybrid so that such issues no longer appear as belonging
structures that can take on different designs (DAY, to the marketing area.
1999). Also, marketing activities are less and
less concentrated in departments or identified Relationship between Marketing Planning, Strat-
with specific employees in the organization egies, and Innovative Organizational Structures
(GUMMESSON, 2005). The theoretical review presented indicates
In spite of the present paradigm, which places that marketing activities are executed around
great importance on marketing philosophies within philosophies and strategies formulated by
companies’ corporate and competitive strategies, companies. Those strategies and philosophies
organizations’ structures tend to dissolve the result in organizational arrangements that can be
existing marketing departments. According to grouped into traditional or innovative forms. Also,
Webster Jr, Malter and Ganesan (2005), “currently, competitive strategies based on lock-in systems or
contract theories justify the existence of innovative is the formulation of marketing planning through
organizational structures that are not limited to a its structural context, in connection with its most
single organization or to functional bases. On the relevant activities, where procedures and rules
other hand, marketing activities do not change can be assessed and executed (JOHN; MARTINS,
throughout these several structural options. 1984). This context can be identified by a matrix
Marketing functions are carried out independently that associates activities related to planning,
from the departments involved, which includes such as collaborators or areas responsible for its
marketing planning activities. Therefore, what implantation and control.
will determine the organizational formalizing and There are several instruments for formalizing
awareness building around planning activities, and activities and responsibilities that can help
not their existence, will be the way in which the the organization formalize its administrative
organization views marketing within its strategic activities, independent from traditional organization
vision. charts, and which are useful in increasing the
In structures whose philosophy and competitive organizational formalizing of marketing planning
strategies are not geared towards marketing, in (Vasconcellos; Hemsley, 2002). Among them,
those in which the organizational structure is based one can point out the functional organizational
on organic models, transactional or relational, and, chart and the ARF – administrative flow chart
finally, in the customer-oriented companies, where (BARNES et al., 1970). Where the first includes a
marketing departments have been pulverized set of roles or positions aligned in columns and a
throughout the structure or outside of it, planning set of responsibilities and authorities in lines. The
activities will be present in several organizational cells formed in this matrix reflect different persons’
departments or clusters. situation in regards to the activities, which are:
John and Martins (1984) carried out a study the individual responsible for the execution and/
around this issue. These authors investigated the or decision upon the activity, the individual who
effects of the organizational structure’s credibility on must be consulted before and after the decision
marketing planning. The results of this work indicate and/or execution of the activity, the individual
that organizational formalizing, through clear rules who must be informed after the decision and/or
and procedures, improves the use of this activity execution of the activity, among other possibilities.
and its efficient employment. Restrictions were The second instrument is similar to the first, but
placed around the bureaucratization of authority employs administrative procedures existing during
concentration structures. The work indicated that an administrative action, that is, the activities are
levels of specialization are positive for the plan to placed according to the order of their execution
be well accepted, but that excesses can engender on the columns and those responsible for the
negative assessments of its credibility (JOHN; decision, retention, direction, delegation and action
MARTINS, 1984). are listed on the lines.
The dilemma between the need to structure As an example for the application of these
planning and the tendency to deal with more instruments in marketing planning, the AFC
and more complex and innovative organizational lines could be determined in accordance with
structures suggests the creation of an organizational the description of the planning activities, such
formalization instrument that will help identify as segment identification, target-market choices
those responsible for carrying out marketing and marketing positioning. As for the columns,
planning, without the need for a marketing they could adequate to the prevailing structural
department. An alternative proposed for this end organizations in the companies, such as sales,
finances and communications departments, etc., situations coming form the external environment,
or even include external activities such as the assessing ones strengths and weaknesses, and
employment of research institutes and publicity concluding therefrom on present and future threats
agencies. and opportunities.
The author also recalls that planning favors the
Issues adjacent to Marketing Planning establishment of goals, objectives, priorities and
and the Organizational Structure strategies, in addition to leading to collaborators
The objective of this section is to critically (employees) effectively committing to any change
analyze, not the method or process itself, but in the company.
certain adjacent issues correlated to the process, Another question concerns the possibility
which are however contemplated only in an of planning retarding actions and causing some
accessory and complementary way, in texts by administrators to feel curtailed, and, consciously
specialists. or unconsciously, not allowing self-initiative and
One of the questions raised here is directly an enterprising and innovative spirit to surface.
linked to company planning and the role of Lambin (2000) suggests not a criticism of
marketing administration. Lambin (2000) firmly planning itself, but a limitation inherent to some
believes that to remain competitive it is necessary organizations that makes the process o planning
to plan and, accordingly, Kotler and Keller (2006) difficult. This limitation is related to the fact that
state that marketing has the function of leading some companies find it impossible to build
the process of staying competitive. a marketing information system that makes it
During the analysis of the available bibliographical possible to constantly monitor the movements of
material pertaining to the development of the the competition, the market and the other forces
theme, a consensus was observed between and entities in the external environment. Still
professional and entrepreneurial theorists: That it according to the author, a marketing information
is necessary to redirect planning techniques and system may be an indispensable requirement
management processes in order to encourage the for the company’s management, in seeking
marketing strategy; the realization of consistent competitive edges.
forecasts and adjustments of the corporate One characteristic of companies that employ
resources to new market opportunities. formalized operational marketing planning is that
However, some contrary ideas and positions they do this in the form of a marketing plan. As
were also identified, especially within the scope of proposed by Campomar (1983), the activities
small and medium-scale companies. Among them, inherent to a marketing plan include carrying out an
the idea that planning requires efforts that could analysis of the situation, determining the objectives,
not be fulfilled in short spaces of time stands out. developing the strategies, deciding upon action
Also, the scarcity of resources to carry out a formal programs for the components of the marketing
planning activity may be a limiting factor. compound and preparing supporting financial
In spite of the questions as to the relevance displays (budgets and profit and loss projections).
of planning, the benefits of such a process are The plan, as the advocated by the author, is the
indisputable for Lambin (2000). Still according formal document, which substantiates the mental
to the author, strategic and marketing planning process of marketing planning. In this context,
both allow for assessing the company’s position in an objection is raised against the rigidity and the
the market, identifying favorable and unfavorable authoritarian and formal conception of the plan
and planning process. Thus, a company, when sustainable competitive edges, and consequently
putting a plan into action, is risking consolidating attaining growth and profitability, in an environment
a bureaucratic attitude and behavior, which , by its characterized by uncontrollable and unforeseen
very nature, is the opposite of the desirable flexibility changes. In such cases, marketing is raised to the
necessary to deal with unstable environments. strategic level.
The importance of planning, according to It is timely to point out that strategic planning
Campomar (1984), Lambin (2000) and Kotler and marketing planning are key parts in the
and Keller (2006), is a fact, whether in the process context of the management process at its several
of re-structuring organizational hierarchies, or in hierarchical levels. In that respect, marketing
the creation of new products and services, or even planning, in organizations geared towards clients
in deciding on new ways of pricing the products or markets, plays a central role in the system,
offered. As refers to adopting new organizational as an inseparable instrument in the process
configurations in order to remain competitive, of formulating and implanting competitive and
companies must plan, and the formalizing of growth strategies and as an agent that facilitates
planning may or may not result in a marketing plan. and maintains upcoming organizational changes,
As refers to the use of innovative hierarchies by even in innovative structures that no longer have
organizations, Hooley, Saunders and Piercy (2005), a functional marketing department.
recall that innovation may be uncertain, that is, it The present article did propose to analyze
would not be possible without management. all the chains of thought in the discussion on
However, the same authors point out that the more strategy, organizational structures and marketing
and organization looks for innovation, the more planning. The intention was to bring to light a
experience it will accumulate, and, consequently, it discussion around the relationship between
will be more able to manage innovative processes these concepts, and, specifically, between them
and remain competitive. and innovative structures. The hope is that the
In accordance with the authors, one assumes insights generated throughout this study can
that innovation needs not be planned, since contribute to the development of marketing
that would be very hard to manage. However, and of future studies in the area. The aim was
throughout the organization’s natural life-cycle, to clear up the differences between the several
it begins to acquire the capacity to manage new strategic levels in the formulating of corporate,
processes of innovation and planning becomes competitive and functional strategies, in addition
lighter, independently of the structure formed for to situating the marketing planning process in
its conception. the organizational structure. Also analyzed were
the effects of these strategies in the companies’
Final Considerations structural arrangements. In this way, the fostering
of organizational structures around classic clusters,
The strategic process in an organization is a like the functional one, or aimed at innovation, may
permanent process of adjustment and adaptation go beyond the borders of companies’ properties.
of its objectives and resources, competencies Permeating the discussion above, the article
and capacities, to the opportunities offered by the “brought to light” some aspects of the function
changing business environment. and activities of marketing that are related to the
Planning, at the strategic, tactical, and activities of marketing planning and organizational
operational levels, shows itself as a mechanism structure. Finally, the text brought forth a direct
that allows for the adjustment, aimed at gaining reflection about the relationship between marketing
planning, and innovative organizational strategies structured as an essay, the intention was not to
and structures, and briefly described the ways of carry out any analytical descriptive or illustrative
enhancing its execution in innovative structures. exploratory research, in connection with the case-
The considerations made upon the authors study method. The essay has been a theoretical
were based on the interpretation of the sources and provocative contribution, the intention of which
and evidences consulted, and are, therefore, is to waken the theoretical and investigative spirit of
guided by the conception of the researcher and, future researchers. For a better contribution to the
occasionally, subject to bias, in some statements, state of the art in administration, it is suggested that
and, since this research has been of an exploratory single-case or multi-case case studies be carried
nature, the results mentioned above should not out, in order to validate future hypothesis the essay
be generalized. Since it is an academic work may have instigated in the reader.
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Luciano Augusto Toledo .

Guilherme de Farias Shiraishi

ORGANIZATIONAL STRUCTURES WITHIN THE SCOPE OF

Estruturas Organizacionais no Âmbito do planejamento

Luciano Augusto Toledo

Doutor em Administração pela Universidade de São Paulo

Introduction In this technical-cultural revolution scenario,

Growth stages Organizational structure

Source: Adapted from Greiner (1998).

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