Group Members

• Gaurav Jyoti (Leader)

• Geeta Sharma

• Gaurav Tyagi

• Manjeet

• Kapil Setiya

Marketing Organization

Designing its appropriate structure.Evolution of Marketing Organization in

Indian FirmsIndian Scenario.Its Importance,Factors affecting organizational structure

in Organizations.

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 will seriously 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 Fifteen years hence.

“Peter F. Drucker”

Types of Marketing Organizational Structures.

• Functional Organization.

• Geographic Organization.

• Product or Brand management Organization.

• Market management Organization.

• Matrix management Organization.

Functional Organization

Marketing Vice

President

Marketing

Administration

Manager

Advertising and

Sales

Promotion

Manager

Sales Manager

Marketing

Research

Manager

New Product

Manager

Additional specialists can be added as-

• Customer Service Manager

• Marketing Planning Manager

• Marketing Logistics Manager

• Internet Marketing manager

Advantages• Simplicity• Answerability• Administration

Disadvantages

• Challenge to develop a working relation• Inadequate planning• One superior for many specialists

Geographic Organization

• Geographic Lines

• National Sales Manager

• Regional Sales Manager

• Zonal/Branch Manager

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.

Research

&

Development

Packaging

Publicity

Purchasing

Publicity

Sales Force

Market Research

Fiscal

Legal

Media

Promotion

Services

Advertising

Agency

Product

Manager

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.

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.

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.

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

Sal

es M

anag

emen

t

•Evolution of Marketing Organization in

Indian Firms

•The Manufacturing Era : In this government decided that what

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

Five Year Plan, the country had to import almost everything and hence

the 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 are

required to set up manufacturing units and governmental policy’s focus

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

country .

Structure of Marketing Organization in The

Manufacturing Era

Chairman/Managing Director

Manufacturing Finance Commercial

PurchaseSales/

Distribution

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

changing. Though government continued to suspect the foreign private

investment 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 Company’s manufacturing base.

Structure of Marketing Organization in The Sales Era

Chairman/Managing Director

General Manager(Manufacturing)

General Manager(Finance)

General Manager(Commercial)

PurchaseManager

ManagerTaxation

Plant Production

Manager

R & D Manager

Manager(Sales)

•The Era of Technology and Price Wars: The 1980s

were characterized by the technology push, the desire to upgrade

one’s 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 one’s 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.

V.P Production

Chief Executive

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

Marketing Services Sales

Production Management and Marketing Research

Advertising 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

The Information and Marketing Era : The government opened the doors of the Indian economy to foreign private investment. These changes in the Indian Market now pose newer threats to Indian Firms. Now increasingly 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

Chairman

R & D Finance Marketing Manufacturing

Staff Services

Line Operations Engineering Production

AdvertisingProduct Planning

Marketing Research

Public Relation

Warehousing Sales Force Product ServiceCustomer Service

Transport Inventories

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

Factors Affecting Marketing Organization

• Relationship between Line and Staff• Level and Spans must be carefully planned• Effective Coordination• Clear Job Specification