the marketing organization

1. THE
MARKETING
ORGANIZATION

2. INTRODUCTION
The organizational structure of a company is
subject to many factors including technological
breakthroughs by competitors, changes in people
lifestyles, and those environmental in nature.

3. Structuring an organization
effectively requires that any
manager should know:
The goals of the organization
The skills of its people
The needs and the goals of its subordinate
The available resources
The time
The costs
The environmental constraints that exist
It requires the manager to bring together the human, technical,
marketing and financial resources of the organization.

4. The HUMAN RESOURCES are brought together
in units, teams or project so that job specialization
can be optimized while special skills can be best
used.
 The MARKETING DEPARTMENT should interact
and coordinate with personnel in the other major
functional areas.
The PRODUCTION DEPARTMENT follows the
requirements set by the marketing department.
The FINANCIAL DEPARTMENT efficiently
allocates funds to achieve the organization’s set of
objectives.

5. Marketing Organization
Is the mechanism through which management
translates its marketing goal into action.
It provides the vehicle for making and implementing
decisions on the products, marketing channels,
physical distribution, promotion, and prices.
It should be directed towards achieving company
goals and at the same time, towards effectively
serving the market , including its changing wants
and desires.

6. Forms of market organization
 FUNCTIONAL. Responsibilities are assigned with
respect to buying, selling, promotion, distribution and
other marketing tasks.
 PRODUCT-ORIENTED. Product managers are
assigned for each product category and/or brand
managers take care of each individual brand.
 MARKET-ORIENTED FOCUS. Managers are assigned
on the basis of geographic markets and customer types.
for optimization purposes, a single company may
use a mixture of these mentioned forms.

7. PRESIDENT
SALES MANAGER
SALES FORCE
Figure 1
Beginning of a Marketing Organization

8. PRESIDENT
Marketing VP
Marketing
Research
Sales
Advertising
and
Promotion
Customer
Relations
Figure 2
Current Marketing Organization Structure

9. Marketing Structural
Arrangements
The organizational structure shows the corporate
communication, the executive and managerial
hierarchy, and creates a plan for efficient growth in
the future.
For managers, organizing is deciding how best to
group organizational elements for a variety of
structural possibilities.
Managers must understand the best combination
for the organization’s structure.

10. Types of Marketing
Organizational
Structures

11. FUNCTIONAL STRUCTURE
One of the most common structural
arrangements implemented by companies. In
this arrangement, functional marketing managers
report to a more senior marketing manager.
Figure 3 clearly illustrates an example where
four functional marketing managers, namely, for
new products, market development, advertising
and promotion, and market planning report to the
senior vice-president for marketing.

12. ADVANTAGES DISADVANTAGES
FUNCTIONAL STRUCTURE
 Functional departments
arguably permit greater
operational efficiency because
employees with shared skills
and knowledge are grouped
together by functions
performed. Each group of
specialists can therefore
operate independently with
management acting as the
point of cross-communication
between functional areas.
 A disadvantage of this
structure is that the different
functional groups may not
communicate with one
another, potentially
decreasing flexibility and
innovation.

13. Senior Vice-President
For Marketing
New
Products
Market
Development
Advertising
and
Promotion
Market
Planning
Figure 3
Functional Marketing Organizational Structure

14.  In this system, the market is divided into geographical units
according to a certain criteria. Territorial structural arrangements
have several advantages:
First. Local markets can be cultivated by personnel familiar with
the history of customer in the area. They know their culture:
their preferences, expectations, and habits of living.
Second. The company and its sales force can respond quickly
to changes the competitive environment.
Third. There is closer contact between managers familiar with
the territory and their subordinates.
TERITORIAL STRUCTURE

15. DISADVANTAGES
TERRITORIAL STRUCTURE
 Requires more persons with general
manager abilities.
 Tends to make maintenance of economical
central services difficult and may require
services such as personnel, or purchasing
at the regional level.
 Increases problem of top management
control.

16. Figure 4
Territorial Marketing Organizational Structure
National Sales
Manager
Sales Development
Manager
Luzon Region
Managers
National Capital
Region
Managers
Visayas Region
Managers
Mindanao Region
Managers
Marketing
Manager

17. PRODUCT STRUCTURE
An organizational structure is a framework
in which companies outline the different
responsibilities in their company. A product-
based organizational structure separates
the company by products, activities,
projects or geography. This allows a
company to have a particular focus on
specific items in its business operations.

18. ADVANTAGES DISADVANTAGES
PRODUCT STRUCTURE
Product-based structures
allow companies to
remain flexible in the
business environment.
This allows the company
to add or remove
structure sections as
necessary.
It can prohibit
companies from
achieving company-
wide goals since each
unit operates on its
own.

19. Senior Vice-President
For Marketing
Electronic
Division
Marketing
Yummy
Division
Goods
Division
Sales Services ServicesSalesServicesSales MarketingMarketing

20. CUSTOMER STRUCTURE
Sometimes companies find that their
products are being used for other purposes
or are being purchased by different
customer groups. This may require creation
of a customer marketing structure where a
separate sales force is used to deal with
unexpected usage and diverse customers.

21. Executive Vice-President
For MARKETING
Vice-President for
Industrial Products
Vice-President for
Consumer Products
Appliance
Division
Air-Conditioning
Division
House Ware
Division
Equipment
Division
Industrial
Division
Electronic
Division
Figure 5
Product Marketing Organizational Structure

22. Market-Centered Structure
Describe the wide range of structural forms that
center on a group of customer needs rather than a
region, product line or function. Market-centered
essentially describes an organization that is
decentralized by market. In effect, a market center
is a profit center.
The market-based structure is ideal for an
organization that has products or services that are
unique to specific market segments, and is
particularly effective if that organization has
advanced knowledge of those segments.

23. Vice-President
Marketing
SBU 1
Manager
SBU 2
Manager
SBU 3
Manager
SBU 4
Manager
Figure 6
SBU Organizational Structure

24. MATRIX STRUCTURE
 In an organization that uses a matrix structure, one must cut
across departmental boundaries to get a job done. A team
working on a job is compromised of a group of specialists so
that the ability to work together is very important. Figure7
illustrates how teamwork among production, marketing and
finance specialists is required to complete projects. The key
feature is that both the functional and product lines of authority
overlap where managerial authority over the people in each
cell is shared by both product and functional managers.
 A matrix is any organization that employs a multiple “boss”
arrangement. For example, a person can have two bosses,
one for functional and the other for product

25. Functional Inputs
New Product
Development
Advertising
Marketing Research
Sales
Research and
Development
Finance
Production
A
Product
Team
D
Product
Team
C
Product
Team
B
Product
Team
Director Of
Marketing
Operations
Product
A
Manager
Product
B
Manager
Product
C
Manager
Product
D
Manager
Personnel
Department
Figure 7
Matrix Organizational
Structure

26. Choice of a Marketing
Organizational Structure
Size of the firm
 The Products
The Market
Trade Channels
Competitions
Marketing Policies
Philosophy of Management

27. Evaluation of a Marketing
Organizational Structure
 A number of criteria may be used in
evaluating organizational structures.
This criteria include the ability of the
organizational structure to facilitate
control, to draw coordination among
the employees, to provide information,
to compute for the costs involved, and
to adopt a culture of flexibility.

28. QUIZ

29. THANK YOU
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