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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