Marketing ion

8/9/2019 Marketing ion

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Group Members

Gaurav Jyoti (Leader)

Geeta Sharma

Gaurav Tyagi Manjeet

Kapil Setiya


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Marketing Organization

Designing its appropriate structure.

Evolution of Marketing Organization in IndianFirms

Indian Scenario.Its Importance,

Factors affecting organizational structure inOrganizations.


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Marketing Organization

Organization is not an end in itself, but means to

end of business performance and business

results. Organizational structure is an

indispensable means and a wrong structure willseriously impair business performance and may

even destroy it. The structure must be so

designed as to make it possible to attain the

business objective even Five, Ten, and Fifteenyears hence.

Peter F. Drucker


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Types of Marketing

Organizational Structures. Functional Organization.

Geographic Organization.

Product or Brand management

Organization.

Market management Organization.

Matrix management Organization.


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Functional Organization

Marketing Vice

President

Marketing

Administration

Manager

Advertising and

Sales

Promotion

Manager

Sales Manager

Marketing

Research

Manager

New Product

Manager


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Additional specialists can be

added as- Customer Service Manager Marketing Planning Manager

Marketing Logistics Manager Internet Marketing manager


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Advantages

Simplicity

Answerability

Administration

Disadvantages

Challenge to develop a working relation Inadequate planning

One superior for many specialists


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Geographic Organization

Geographic Lines

National Sales Manager

Regional Sales Manager Zonal/Branch Manager


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Product or Brand Management

Organization

Variety of Products.

Another layer of Management.

Product Manager supervises product

category Managers.

Product Manager emanating out to various

departments.


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Research

&

Development

Packaging

Publicity

Purchasing

Publicity

Sales Force

Market Research

Fiscal

Legal

Media

Promotion

Services

Advertising

Agency

Product

Manager


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Advantages

Specifically Brand Managers.

Expert in their Product area.

Manage a Brand for a Short Time.

Focus on building Market Share.

Disadvantages Not have enough authority.

Rely on Persuasion of other departments.

Rarely achieve Functional Expertise.

Costly.

More focus on building market share not on

Customer relationship.


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Market Management

Organization

Companies that produces many products blowing into

many markets.

Customer falls into different user groups with different

buying preferences and practices.

Canon sells its fax machines to Consumers, Business

and Govt. Markets.

U.S Steel sells its steel to Railroad, Construction and

Public Utility Industries.


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Matrix Management Organization

Many products flowing into many markets.

Multiproduct, Multimarket company.

Costly

Creates conflicts.

Cost of supporting all the managers.

Questions about where authority and responsibility

should reside.


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Product Management

Sales Manager(North)

Sales Manager

(South)

Sales Manager

(East)

Sales Manager

(West)

P.M 1 P.M 2 P.M 3 P.M 4

Sale s

Manag

eme

nt


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Evolution of Marketing Organization in

Indian Firms

The Manufacturing Era : In this government decidedthat what

and how much had to be produced. When the government initiated the

Five Year Plan, the country had to import almost everything and hencethe focus was on creating a manufacturing base in the core sector and

also in other areas. Hence, while public sector units were created in

product groups like steel, cement, petrochemicals etc., private sector

units came forward to set up up-stream units. Since licenses arerequired to set up manufacturing units and governmental policys focus

was on providing the basic needs of the teeming millions in the

country .


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Structure of Marketing Organization in The

Manufacturing Era

Chairman/Managing

Director

Manufacturing Finance Commercial

PurchaseSales/

Distribution


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.The Sales Era : As India entered in 1970s, the scenario started

changing. Though government continued to suspect the foreign privateinvestment and the import policy was still restricted, domestic firms were

allowed to enter many sectors. Example, in commercial steel tube

manufacturing, may units like Bharat Steel Tubes, Jain Steel Tube,

Zenith Steel Tube, and so on were allowed to set up shop and thus

complement to the Indian Tube Companys manufacturing base.


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Structure of Marketing Organization inThe SalesEraChairman/Managing

Director

General Manager

(Manufacturing)

General Manager

(Finance)

General Manager

(Commercial)

Purchase

ManagerManager

Taxation

Plant

Production

Manager

R & D

Manager

Manager

(Sales)


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The Era of Technology and Price Wars: The 1980s

were characterized by the technology push, the desire to upgrade

ones standard of living, and more disposable incomes all of

which helped creating new demand and competition in the

industry.

The technology push, the desire to upgrade ones standard of

living, and more disposable incomes all helped create new

demand and competition in the industry. More and more firms

came in. Indian firms responded to the changing environment by

penetrating the market through an expanded distribution network,offering low-priced products. Heavy advertising and promotions

were now considered essential ingredients of Marketing.


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V.P Production

Chief Executive

V.P R&D V.P. Finance V.P Marketing

Marketing Services Sales

Production Management and

Marketing ResearchAdvertising and Promotion Distribution

(A)

Chief Executive

V.P R&D V.P Finance V.P Marketing

Production Manager

(Advertising and Promotion)

Sales

Manager

V.P ProductionGeneral Manager

Purchase

Marketing Research Manager

(More Common in Pharmaceutical

Companies)

(B)

Structure of Marketing Organization in Technology

and Price Wars


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The Information and Marketing Era : Thegovernment opened the doors of the Indian economy to

foreign private investment. These changes in the Indian

Market now pose newer threats to Indian Firms. Nowincreasingly important that both quantitative and qualitative

market research be carried out before taking any strategic

decision. The strategic role of product manager is now being

realized.

Chief Executive

R&D Finance Marketing

General Manager Sales

Advertising Manager (Deciding

on Advertising Strategies)

Manufacturing General Manager HRD

Service Manager

(for Training or Personnel)Product Manager (Pricing, Product

and Distribution, Decisions, and

Marketing Research )

Present Marketing Organization


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Present Marketing Organization

Chairman

R & D Finance Marketing Manufacturing

StaffServices

Line Operations Engineering Production

AdvertisingProduct

Planning

Marketing

Research

Public

Relation

Warehousing Sales Force Product ServiceCustomer

Service

Transport Inventories


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Importance of Marketing Organization

Earning Maximum Profit

Vehicle for Marketing Decision

Convert Customer desire into product

Shift in Environmental Factor

Integrating and Coordination

It provides flexibility


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Factors Affecting Marketing

Organization

Relationship between Line and Staff

Level and Spans must be carefully planned

Effective Coordination

Clear Job Specification


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Marketing ion

Documents

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