—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 ***
