MARKETING ORGANIZATION

—Marketing Organization
Marketing organization is a specified structural entity in the organization. It executes and carries out multiple responsibilities on mutually agreed business goals, to achieve group/department goal by discharging the assigned roles, responsibility and job.
—A proper Marketing organization function as a vehicle for achieving both the organization and individual’s goals in term of higher sales, market share, customers loyalty and brand image in the market.
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— —Developing a company-wide passion for customers. Organizing around customer segments instead of products
—Understanding customers through qualitative and quantitative research.
—The foremost function of MO is to undertake the effective marketing of products. It should ensure timely distribution of products to the customers in an economical and efficient manner. It should strengthen the all logistic and supply channel/chain more effective.


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 Designing of Marketing Organization:

—Marketing organization can be refer to any system, group of people, comprising various system and sub- systems or parts which are interrelated and or interdependent on each other for achieving organization’s marketing goals.
—A Marketing Organization has a structure with various levels of hierarchy with job responsibility and accountability. It has designed information flow system and reporting system. Irrespective of the nature of the organization it has to have the following principles in the structure of organization.
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 Principles of the Marketing Organization

1 Specialization:

On basis of division of labor a specified activity will be assigned to a group to carry-out the job.

2 Departmentalization:

It involves integration of specialized group into department.

3 Standardization:

It refers to the existence of procedure, systems, rules and regulation for the entire organization.

4 Formulization:

It refers to the above set of rules and regulation, system procedure laid down in writing, so that it acquire substantial life span than any other person. (E.g. Constitution of India)
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— 5 Centralization:

It indicates the authority for the decision-making is concentrated. It has designed reporting system and control process.

6 Evaluation:

It refers to the appraisal and reward & compensation system.

7 Structure:

It refers to total configuration or arrangement of system, individual, groups and reporting system etc., will give a complete and specific shape.

MO, it can be a firm or company, a non-business organization such as University, Institutions, Hospitals, a social organization, charitable trust or a government agencies, which has a set of marketing goals.

Changing Role of Marketing Organization:

—At the early period marketing is known as selling of products, which are produces by the factory and it was functioning as adjunct to the production. There was one line marketing organization, which is shown herein,
—Mktg Organization role change from simple to complex with more number of function. Let us study the same.

1. Simple Sales Department

2. Sales Deptt with Mktg function.

3. Separate Marketing Department

4. Integrated Marketing Department

5. Marketing Oriented Organization.

— Marketing Oriented Organization has distinctive quality of understanding customer & guided by customer’s need & taste.
—MOO, it is headed by Director Marketing/Vice-President Marketing The need of the organization is based on nature of industry, area of functioning and products line etc.,

—Types of Marketing Organizations:

 The formulation of marketing organization totally based on need of organization and its marketing environment and its product lines & area of marketing. In marketing we have two types of method to sell the products viz;

Direct Sales and Indirect Selling

—In the direct selling manufacture selling the finished products to the end customer directly, mostly it happens in the industry products, and in the indirect selling, the manufacture uses some agencies like distributors, wholesalers, middlemen and retailers to sell the products to the end customer. Thus a Marketing 

Organization may be classified into;

— —One line Organization.

In this system all the marketing decisions are taken by the top person and it flow down the line for execution. It always happens in the small firms and family based organization.

—Geographic Organization.

In this system entire area is divided into the Regions, Zones and other segment based on the different characteristic of the market. Such Organization again will have demographic classification to cover the market efficiently to have better share of sales.

 —Functional Organization.

Functional Chart and Organization is based on the functions like market research, advertisement, information systems, product development and sales service. The model of function chart we have seen in the above marketing oriented organization.

—Product line Organization. 

In this organization, the authority and accountability is made based on the products of the organization e.g., Liril product, Lux product, Nano product, Usha fan product etc,. All the marketing hierarchy will be based on the products than corporate hierarchy.

Sales Vs Marketing

SALES: 

1. Emphasis is on the product

2. Company Manufactures the product first

3. Management is sales volume oriented

4. Planning is short-run-oriented in terms of today’s products and markets

5. Stresses needs of seller
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6. Views business as a good producing process

7. Emphasis on staying with existing technology & reducing costs

8. Different departments work as in a highly separate water tight compartments

9. Cost determines Price

10. Selling views customer as a last link in business

MARKETING:

1. Emphasis on consumer needs and wants

2. Company first determines customers needs and wants and then decides how to deliver a product to satisfy.

3. Management is profit oriented

4. Planning is long-run-oriented in today’s products and new products, tomorrow’s markets and future growth

5. Stresses needs and wants of buyers

6. Views business as consumer producing process satisfying process

7. Emphasis on innovation and technology on providing better costs value to the customer with superior technology

8. All departments of the business integrated manner, the sole purpose being generation of consumer satisfaction

9. Consumer determine price, price determines cost

10. Marketing views the customer the first and last link in business as the very purpose of the business
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                                                            *** Marketing Organization ***

MARKETING MIX

MARKETING MIX
In marketing management, segmentation and targeting plays vital role and preparation of marketing-mix based on variables of market is more significant for the successful marketing. According to the element of market variables, the marketer makes up the marketing mix, the market variables are (Marketing Mix) ;



1.Decision on products or service.
2.Decision on price.
3.Decision on promotion.
4.Decision on distribution / place.

The Marketing Mix (The 4 P's of Marketing); with the help of the marketing mix, marketer need to understand how to position the offering in the market.

What is marketing?
The definition that many marketers learn as they start out in the industry is: Putting the right product in the right place, at the right price, at the right time.

—It's simple! You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made!
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The term "marketing mix" became popularized after Neil H. Borden published his article in 1964. The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's. The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding analysis.

—E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:

Understanding the Marketing Mix Tool



Discussion on Marketing Mix

—Product Decisions;

It refers to tangible, physical products & services. Examples of the product decisions to be made: 

• —Brand name 
• —Functionality 
• —Quality & Styling 
• —Safety &Warranty 
• —Packaging 
• —Repairs and Support 
• —Accessories and services 

—Price Decisions; 

Some examples of pricing decisions include:

• —Pricing strategy -skim, penetration 
• —Suggested retail & wholesale price 
• —Volume discounts & Cash discounts 
• —Seasonal pricing 
• —Bundling 
• —Price flexibility 
• —Price discrimination 

Distribution (Place) Decisions;
Examples includes;

• —Distribution channels
• —Market coverage (inclusive, selective, or exclusive distribution)
• —Specific channel members
• —Inventory management & Warehousing
• —Distribution centers &Order processing
• —Transportation & Reverse logistics

—Promotion Decisions;

Various aspects of Mktg communication, the information about the product. It decisions include:

•  —Promotional strategy (push, pull, etc) 
• —Advertising & Sales promotions 
• —Personal selling & sales force 
• —Public relations & publicity 
• — Marketing communications budget

Limitations of the Marketing Mix Framework
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Marketing mix framework was particularly useful in the early days, when physical products represented a larger portion of the economy.
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Today, marketing is more integrated into organizations & wider variety of products & markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc.
Marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.

—Four Ps Vs Cs
The Four Ps is replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication. The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing. Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model of marketing management.

4P's

• Product 
• Price
• —Place
• Promotion 

4C's

• Customer Solution
• Customer Cost
• Convenience
• Communication

—In the practice most of the companies considered marketing mix viz P’s in their marketing function for instance; Coca-Cola considered marketing mix as;

1.Product.
2.Price.
3.Promotion.
4.Place.
5.Potential.
6.Penetration, and
7.Profit.

Four Cs in 7Cs Compass Model 

7Cs Compass Model is in a customer oriented Mktg Mix.
—(C1) Corporation (Competitor)
—(C2) Commodity
—(C3) Cost
— (C4) Communication
— (C5) Channel
—(C6)Consumer
—(C7) Circumstances

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Compass
—Consumer: N = Needs, W = Wants, S = Security, E = Education
—Circumstances: N = National and International, W=Weather, S = Social and Cultural, E = Economic
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7Cs Compass Model is customer oriented marketing mix.

—(C1) Corporation ( and competitor) is the core of 4Cs. 
—1) It is necessary to place more emphases on the organization of the companies;
—2) It is necessary to execute marketing plans in conjunction with the company's objectives;
—3) It is necessary to tackle the internal communication related problems like corporate communication or corporate identity system(CIS), etc. In the market, there are the companies of the same business, the competitors.
— —At the time of economics downturn,
—companies or corporations (CI) produce the convenient (C2) “commodities” for the consumers with the consideration of the total marketing (C3) “cost” and gain their consents through the sufficient (C4) “communications” and then their confidences by selecting the effective (C5) “channels” in conjunction with the uncontrollable external circumstances. This is the way to survive in the period of low growth economics.
— —(C6) Consumers are those people encircling the companies. Instead of just the customers of 4P marketing model, they are the ordinary citizens nurtured by the motto of the consumerism. However of course they are also including the customers and the potential customers.
—(C7) Circumstances, besides the customers, there are also various uncontrollable external environmental factors encircling the companies.

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MARKETING STRATEGY

—A well known management authority, P. Drucker, believes that marketing is not merely a function of business enterprises, but it is the business and it is synonymous with whole the business unit as economic organ to provide goods and services. The primary function of a business (marketing company) is to create and maintain a satisfied customer. No longer profit is the effective marketing performance. Profit will be the reward for the skillful delivery of satisfaction. Marketing management shall give emphasis upon delivery customer satisfaction through real consumer concerns and profit will accrue only through service demand.
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 —As we know the existence of human being is based on some needs hence there will always, consumption which need goods and services. But the aim of marketing is to strategize selling superfluous and converting consumer into hindous by add on features to the products. The aim is to know and understand the customers well that the product or service fits him and sells it-self. Ideally, marketing should result in a customer who is ready to buy.

—Marketing Department need to strategizes best marketing strategy to get edge over other competitors and gain better market share. Hence optimally utilization of marketing mix will be the best knock to formulate marketing strategy.


— —An organization business success largely depends on how efficiently the products and services are delivered to customers and how differently do the customers perceive the difference in delivery in comparison to the competitors. This is true of all firms – from large business enterprises to small firms, from multinationals operating in different countries to small firms operating in small markets, from giant enterprises like Sony, Lever, General Motors to the next-door kirana shop. Quality production and efficient marketing are the key success factors in building sustainable competitive edge for ever business corporation.

Marketing Strategy

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