Marketing organisation meaning need factors structure

Marketing organization establishes the authority relationship for making a certain decision and performing certain activities. The Marketing organization provides the vehicle for marketing decision on products, marketing channels, physical distribution, promotion, and prices it is also a vehicle through which these decisions are implemented.

MARKETING ORGANIZATION TRY TO FULFILL THE FOLLOWING GOALS.

1. To earn profits so that the company may survive wants to effectively.

2. Firms operating under the marketing concept needs making continuing adjustments in operations and hence in organizational structure than those having traditional marketing methods.

The company before marketing reorganization

shows that before reorganization, the coordination of marketing functions, both with one another and with other departments do not take place except through the top executive (chairman or President). Some marketing functions, such as marketing research and advertising is performed in isolation from one another, other, such as sales for casting and product planning, may not even exist.

The Company Before Marketing Reorganization

The Company After the Marketing Organisation: Gives that after reorganization, all marketing functions are combined under the chief marketing executive who is also responsible for maintaining lines of communication with other departments. The marketing functions are organized into two major sub-group staff-services-which look after marketing research, product planning, and promotion; and line operations which look after the distribution, selling and servicing the product.

The Company After the Marketing Organisation

Geographical Organizational Structure by regions/territories

When the sales force is appointed to cover a widely distributed area, line authority may be divided on a geographical basis. The total marketing area is divided into smaller units (divisions or regions) and divisional and regional sales manager in place in charge. Division of authority along the geographical line is especially appropriate when the nature of the market or characteristic of consumer or both very significantly from region to region. in such cases each sales regions can adapt its selling method more closely to the needs and customs of local markets.

The main idea behind this division is to improve the sales force's effectiveness by increasing the frequency of executive contacts with a salesperson and by simplifying and strengthening their supervision.

Under this type, when a large company that markets products throughout the nation may organize its marketing units by geographical regions. for example, the total area may be divided into 5 or 6 regions and they are further subdivided into small sub-regions. All the regional manager report directly to the executive marketing manager. The organizational structure based on geographic/regional distribution is shown below.

Geographical Organizational Structure

Product Organizational structure

Under this type, a business that produces different products organizes its marketing units according to products group or brand. the products manager, in charges, takes full responsibility for marketing the products. He takes and executes decisions on matters like advertising and sales promotions, in consultation with the advertising, sales promotions, marketing research and publications with the managers. 

This type gives a firm the flexibility to develop social marketing mixes for different products. For Example, it can hire specialists in the marketing of specifics types of productions. However, the disadvantages are that some marketing activities may be duplicated by different products groups. the production organizations structure is shown below.

Product Organizational Structure

Functions-Oriented Organizational 

Structure

The work of the marketing department is divided according to functions, such as products development, marketing research, sales promotions, advertising, distributions, and customers relations. The personnel in charge of these departments reports directly to the top-level marketing executive. This type is based upon the principle that "more varied skills are needed to handle different marketing functions effectively than to manage different products or regions or customer".This types is the simplest and most commonly used in small business house with a centeralized company in which products and types of customers are not many or diverse. The function-oriented organization's structure is shown below.

Functions-Oriented Organizational Structure

Organizational Structure by Customer/Market

Under these types, the organizations are done on the basis of the types of customers such as large retail stores, wholesalers and institutions. In this type, the marketing manager for each customer group reports to the marketing executive. The marketing manager for each group is responsible for most marketing activities for that specific group. Usually, the manager of various marketing functions helps to direct the activities required for marketing products to a specific customer group. This type of organization is suitable for a firm that has several. This types of organization are suitable for a firm that has several groups of customers whose needs and problems are different. This organizational structure based on customer/market is shown below.

Organizational Structure by Market/customer

 The combined form of Organizational 

Structure

The functional and products types of structure are combined with the territorial type. such types of the organization usually have a functional manager of sales, marketing services, and marketing information; products manager of goods, chemicals, pharmaceuticals, toiletries, etc. and the markets manager of consumer, agricultural and industrial products. 

Division and allocation of "staff authority" is an important organizational decision for marketing management. it involves fact-finding, analysis, and planning and coordinating activities.

This division and allocation of staff authority is on the basis of areas of specialization.

Staff personnel is generally concentrated at the central office because many of these activities are similar for all products, marketing channels, and geographical territories. centralization allows coordination of efforts and pooling of financial resources so that the best available personnel and equipment can be brought together.

The combined forms of organizational structure are shown below.

The combined form of Organizational 

Structure