MARKETING

Department

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

ORGANIZATION
In the market
where consumer is the king 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 subordinates
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

Factors affecting marketing

organization

It be categorized into

internal

factors and

external

factors
Internal
factor

i ng
t
e
k
r
Ma
ation
z
i
n
a
org

Internal factors
Following

are internal 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 organization

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 nature of market organization can depend upon
human resource with respect to
Number
Qualifications
Capabilities
Personality
Attitude
Fear
Suspicion

External Factors
Business

Environment

Markets
Consumer
Channels

requirements and expectations

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

Size

Location

Markets

Nature

Scope

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.

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.

Types of marketing
organization structures

The marketing organization of a business can be

structured on any of the following basis:

Functional Organization
Product oriented marketing organization
Customer oriented marketing organization
Geography oriented marketing organization
Matrix form/Combined base

Functional

Product Oriented

Matrix

Mktg
Org

Geographic

Customer
oriented

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, customer service, marketing
planning, logistics, etc.

Functional marketing
organization

Mktg Mgr

Advt. Dept.

Distribution
Dept.

Mktg Research
Dept.

Sales
Promotion
Dept.

Sales Planning
Dept.

Merits
Division

of work based on specialization

Relieves

line executives of routine and

specialized functions

Promotes
Helps

application of expert knowledge

to increase overall efficiency

Demerits
Leads to complex relationships
Makes coordination ineffective
Promotes centralization
Lack 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.

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

in same department

There
These

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.

Matrix structure

Marketing outsourcing
Marketing

outsourcing refers to getting

marketing function done from external
professional marketing agencies.

This

can be done by companies which

consider that marketing is not their core
competency area. Such companies may like
to focus on other areas such as production.

Marketing

outsourcing may also be an

option for smaller organizations with
limited resources

THANK
YOU