Marketing Department - Class4
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Transcript of Marketing Department - Class4
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MARKETING Department
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'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.
Basic Definition
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ProductMktg Channels
Physical Distribution
Promotion Prices
Making Decisions
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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:oDivide and fix authority among the subordinatesoTo locate responsibilityoTo establish sales routinesoTo enforce proper supervision of sales forceoTo avoid repetitive dutiesoTo enable the top executives to devote more time for
planning policy matters
NEED FOR THE ORGANIZATION
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It be categorized into
internal factors and
external factors
Factors affecting marketing organization
Marketing
organization
Internal factor
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Following are internal factors which affect the marketing organization
Top Management PhilosophyProduct policyPeople
Internal factors
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Top Mgmt Philosophy
Internal Factors
Product Policy
People
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Organizational planning and its working is greatly influenced by philosophy which can be good or bad
Eg: Centralization Vs Decentralization
Top Management Philosophy
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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.
Product policy
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The nature of market organization can depend upon human resource with respect to
Number Qualifications Capabilities Personality Attitude Fear Suspicion
People
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Business Environment
Markets
Consumer requirements and expectations
Channels of distribution
External Factors
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External Factors
Business Environment
Markets
Customer Requirements
Channel
Distribution
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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.
Business Environment
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This is the factor which again affects the marketing organization i.e. one should note about its
Size Scope Nature Location
Markets
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Markets
Size
Scope
Nature
Location
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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.
Consumer requirements and expectations
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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.
Channels of distribution
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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.
Marketing organization structure
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The marketing organization of a business can be structured on any of the following basis:
Functional OrganizationProduct oriented marketing organization Customer oriented marketing organizationGeography oriented marketing organizationMatrix form/Combined base
Types of marketing organization structures
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Functional
Product Oriented
Customer orientedGeographic
MatrixMktg Org
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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 Organization
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Mktg Mgr
Advt. Dept. Distribution Dept.
Mktg Research Dept.
Sales Promotion
Dept.Sales Planning
Dept.
Functional marketing organization
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Division of work based on specialization
Relieves line executives of routine and specialized functions
Promotes application of expert knowledge
Helps to increase overall efficiency
Merits
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◦Leads to complex relationships
◦Makes coordination ineffective
◦Promotes centralization
◦Lack of proper coordination
◦Delay in taking decisions
Demerits
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Organizations that produce wide variety of products often organize marketing, trading and promotion with respect to a product.
Product oriented marketing organization
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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.
Merits
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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.
Demerits
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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.
Customer oriented marketing organization
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It takes into account needs of each class of customers.
It provides specialization among the enterprise staff
Merits
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It makes coordination difficult It may lead to under utilization of resources
in same department There may be duplication of activities These types of sales organizations are not
suitable for small enterprises.
Demerits
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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.
Geography/ Territory
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It leads to economy in terms of times and money
It helps in taking knowledge of local customers
It helps in effective control
Merits
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It requires employment of number of managerial personnel.
It dilutes control from head quarters.
Demerits
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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
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Matrix structure
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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
Marketing outsourcing
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