Group Members

• Gaurav Jyoti (Leader)

• Geeta Sharma
• Gaurav Tyagi
• Manjeet
• Kapil Setiya
 Marketing Organization
 Designing its appropriate structure.
 Evolution of Marketing Organization in Indian
Firms
 Indian Scenario.
 Its Importance,
 Factors affecting organizational structure in
Organizations.
 Marketing Organization
Organization is not an end in itself, but means to
end of business performance and business
results. Organizational structure is an
indispensable means and a wrong structure will
seriously impair business performance and may
even destroy it. The structure must be so
designed as to make it possible to attain the
business objective even Five, Ten, and Fifteen
years hence.
“Peter F. Drucker”
 Types of Marketing
Organizational Structures.
• Functional Organization.
• Geographic Organization.
• Product or Brand management
Organization.
• Market management Organization.
• Matrix management Organization.
 Functional Organization

Marketing Vice
President

Advertising and
Marketing Marketing
Sales New Product
Administration Sales Manager Research
Promotion Manager
Manager Manager
Manager
 Additional specialists can be
added as-
• Customer Service Manager
• Marketing Planning Manager
• Marketing Logistics Manager
• Internet Marketing manager
 Advantages
Simplicity
•
Answerability
•
Administration
•

Disadvantages
• Challenge to develop a working relation
• Inadequate planning
• One superior for many specialists
 Geographic Organization
• Geographic Lines
• National Sales Manager
• Regional Sales Manager
• Zonal/Branch Manager
 Product or Brand Management
Organization
• Variety of Products.
• Another layer of Management.
• Product Manager supervises product
category Managers.
• Product Manager emanating out to various
departments.
 Advertising
Research Agency Promotion
&
Development
Services

Packaging Media

Product
Publicity Legal
Manager

Purchasing Fiscal

Publicity Market Research

Sales Force
 Advantages
• Specifically Brand Managers.
• Expert in their Product area.
• Manage a Brand for a Short Time.
• Focus on building Market Share.

Disadvantages
• Not have enough authority.
• Rely on Persuasion of other departments.
• Rarely achieve Functional Expertise.
• Costly.
• More focus on building market share not on
Customer relationship.
 Market Management
Organization
• Companies that produces many products blowing into
many markets.
• Customer falls into different user groups with different
buying preferences and practices.
• “Canon” sells its fax machines to Consumers, Business
and Govt. Markets.
• “U.S Steel” sells its steel to Railroad, Construction and
Public Utility Industries.
Matrix Management Organization
• Many products flowing into many markets.
• Multiproduct, Multimarket company.
• Costly
• Creates conflicts.
• Cost of supporting all the managers.
• Questions about where authority and responsibility
should reside.
 Product Management
Sales Management

P.M 1 P.M 2 P.M 3 P.M 4

Sales Manager
(North)
Sales Manager
(South)

Sales Manager
(East)

Sales Manager
(West)
 •Evolution of Marketing Organization in
Indian Firms
•The Manufacturing Era : In this government decided that what
and how much had to be produced. When the government initiated the
Five Year Plan, the country had to import almost everything and hence
the focus was on creating a manufacturing base in the core sector and
also in other areas. Hence, while public sector units were created in
product groups like steel, cement, petrochemicals etc., private sector
units came forward to set up up-stream units. Since licenses are
required to set up manufacturing units and governmental policy’s focus
was on providing the basic needs of the teeming millions in the
country .
Structure of Marketing Organization in The
Manufacturing Era
Chairman/Managing
Director

Manufacturing Finance Commercial

Sales/
Purchase
Distribution
.The Sales Era : As India entered in 1970’s, the scenario started
changing. Though government continued to suspect the foreign private
investment and the import policy was still restricted, domestic firms were
allowed to enter many sectors. Example, in commercial steel tube
manufacturing, may units like Bharat Steel Tubes, Jain Steel Tube,
Zenith Steel Tube, and so on were allowed to set up shop and thus
complement to the Indian Tube Company’s manufacturing base.
 Structure of Marketing Organization in
The Sales Era
Chairman/Managing
Director

General Manager General Manager General Manager Manager

(Manufacturing) (Finance) (Commercial) (Sales)

Plant Purchase Manager

R&D
Production Manager Taxation
Manager
Manager
•The Era of Technology and Price Wars: The 1980s
were characterized by the technology push, the desire to upgrade
one’s standard of living, and more disposable incomes – all of
which helped creating new demand and competition in the
industry.
The technology push, the desire to upgrade one’s standard of
living, and more disposable incomes all helped create new
demand and competition in the industry. More and more firms
came in. Indian firms responded to the changing environment by
penetrating the market through an expanded distribution network,
offering low-priced products. Heavy advertising and promotions
were now considered essential ingredients of Marketing.
 Structure of Marketing Organization in Technology
and
(A)Price Wars
Chief Executive

V.P Production V.P R&D V.P. Finance V.P Marketing

Marketing Services Sales

Production Management and

Advertising and Promotion Distribution
Marketing Research

(B)
Chief Executive

V.P Finance General Manager V.P Marketing

V.P Production V.P R&D Purchase

Marketing Research Manager Sales

Production Manager (More Common in Pharmaceutical Manager
(Advertising and Promotion) Companies)
 The Information and Marketing Era : The
government opened the doors of the Indian economy to
foreign private investment. These changes in the Indian
Market now pose newer threats to Indian Firms. Now
increasingly important that both quantitative and qualitative
market research be carried out before taking any strategic
decision. The strategic role of product manager is now being
realized.
Chief Executive

Manufacturing R&D Finance General Manager HRD Marketing

General Manager Sales Service Manager Product Manager (Pricing, Product

(for Training or Personnel) and Distribution, Decisions, and
Marketing Research )

Advertising Manager (Deciding

on Advertising Strategies)
 Present Marketing Organization

Chairman

R&D Finance Marketing Manufacturing

Staff
Line Operations Engineering Production
Services

Public Marketing Product Advertising

Relation Research Planning

Customer
Warehousing Sales Force Product Service
Service

Transport Inventories
 Importance of Marketing Organization

• Earning Maximum Profit

• Vehicle for Marketing Decision
• Convert Customer desire into product
• Shift in Environmental Factor
• Integrating and Coordination
• It provides flexibility
 Factors Affecting Marketing
Organization
• Relationship between Line and Staff
• Level and Spans must be carefully planned
• Effective Coordination
• Clear Job Specification