Marketing Organization

Presented by:
Kauser Naz
2nd Sem, MBA
H.M.S.I.T

Presenting to:
Pasha Sir
MBA Dept, H.M.S.I.T
 Definition of Marketing Organization:-
According to Cundiff, Still and Govoni, “The marketing organization
provides the vehicle for making decisions on products, marketing
channels, physical distribution, promotion and prices”.

Need of marketing organization:-

 Relationship between line and staff functions:While
structuring and developing a marketing organization, a proper
work relation has to be ensured.
 Levels and span must be carefully planned:If there are too
many levels, the info flow gets delayed, resulting in ineffective
communication and poor control.
 Effective coordination: It should also provide for effective
coordination among the various departments within marketing.
 Other needs: To divide and fix authority, to locate
responsibility, to establish sales routines, to avoid repetitive
duties etc..
 Factors Influencing Size Of Marketing Organization:
1. Internal factors: These are as follows:
 Top management philosophy: Organizational planning and its
working is greatly influenced by the management philosophy
which may be good or bad, implict vs explict, management
attitudes etc..
 Product philosophy: It is the width of product line of an
organization that determines its size.As the product offerings
become increasingly diverse, there is a tendency to move away
from a straight functional approach to a product group approach.
 People: The size of the organization is not mere the number of
people in it. It is because, human values are critical and correct
decisions regarding people cannot be made unless one takes into
account their type, number, fear, attitude, etc..
 Factors Influencing Size Of Marketing Organization:
1. External factors: These are as follows:
 Business environment: With regard to business environment,
3 points are worth considering; 1) type of environment 2)
the nature of environment and 3)the rate of change.
 Markets: Talking of market as a factor, one should note
about its size, scope, nature and location.
 Channels of distribution: It is the type of channel of
distribution selected by the marketing firm that has its say
on size.
 Consumer requirements and expectations: Consumers are
having their own sets of requirements and expectations from
the organization.
 Types of marketing structures/organizations:
1. Line and staff organization:- It is a modification of line
organization and more complex than line organization. In
this organization specialized and supportive activities are
attached to the line of command by appointing staff
supervisors and staff specialists who are attached to the line
of command.
The following are some advantages and disadvantages of line and
staff organization:-
ADVANTAGES DISADVANTAGES
1. It is planned specialisation. Conflict between line and staff.
2. Better unity of command. Ineffective staff.
3. Sound and quick decisions. Lack of responsibility.
4. Scope for growth and Loss of judgment and
expansion. initiative.
 2)Functional organization: As organizations grow and
develop a number of related products and markets, their
structures frequently change to reflect greater
specialization in functional business.

The advantages and disadvantages of functional organization

are:
ADVANTAGES DISADVANTAGES
1. Scope for specialisation. Conflict in authority.
2. Increase in efficiency. Lack of coordination.
3. Relief to top executives. Difficulty in fixing duties.
4. Economy of operations. Poor discipline.
5. Better supervision. Expensive.
6. Democratic control. Group rivalries.
7. Flexibility. Centralization.
 3)Product based marketing organisation: Under this
method for each product marketed by the organization, there is a
separate department to look after its promotion, sales, etc. Each
unit is relatively self contained in that it has the resources to
operate independently of other divisions.
The advantages and disadvantages of this organization are as
follows:
ADVANTAGES DISADVANTAGES
1. Better customer service. Requires large no of people.
2. It establishes specialization. Creates confusion in people.
3. Effective coordination. Control work difficult.
4. Individual departments Duplication of activities.
responsible for the prom-
otion of specific products.
 4)Customer based marketing organization: In this form, the
organization is divided by marketing manager into several sales
executive groups so as to target particular customers. Each unit is
than contact with salesman of different areas to attract target
customers.
The following are the advantages and disadvantages of this
organization:
ADVANTAGES DISADVANTAGES
1. It takes into account the It makes coordination
needs of each class of difficult.
customers.
1. It promotes specialisation. Under utilization of resources.
2. Benefit of knowledge Not suitable to small
by departments regarding the enterprises.
needs of each customers.
 5)Territory based marketing organization: Here the
responsibility for marketing the various products rests almost
entirely with the line executives. Each unit is relatively self
contained in that it has the resources to operate independently of
other divisions.
The following are the advantages and disadvantages of this
organization:
ADVANTAGES DISADVANTAGES
 It leads to economy in terms Large amount of employment.
of time and money.
 It facilitates effective span It dilutes control from the
of control. headquarters.
 It enables the firm to gain It may lead to duplication of
intimate knowledge about activities.
customers in local markets.
 6)Complex/ Matrix form/ Combined base structure: In
this type the arrangement is intended to combine project
management and functional departmentation so as to drive the
benefits of both.
The following are the advantages and disadvantages of this
organization:
ADVANTAGES DISADVANTAGES
1. Dual benefit. Complex relationships.
2. Better planning and control. Power struggle.
3. Environmental adaptivity. Heterogeneity.
4. Better motivation. Flexible structure.
5. Development of personnel. Pooling expertise.
6. Utilization of personnel Excessive emphasis on
knowledge. conflict resolution.
THANK YOU