1. Introduction
• A group of persons who are working
together as a team towards certain
common objectives.
• A organization is the mechanism through
which managerial philosophy is translated
into action
• Aim:
– Securing maximum results from marketing
personnel under executives.
– Coordinating marketing activities with other
departments.

2. Need for the organization:
In the market where consumer is the king we need to
satisfy the consumer. So a good marketing operation
is required. Marketing organization is the pillar for
success of any organizations and provides a
framework for the following:
 Divide and fix authority among the sub ordinates
 To locate responsibility
 To establish sales routines
 To enforce proper supervision of sales force
 To avoid repetitive duties
 To enable the top executives to devote more time
for planning policy matters Need for the
organization

3. Requirements.
• Assurance of homogeneous activities.
• Knowledge of responsibilities.
• Knowledge of relationships with other groups.
• Knowledge of authority.

4. Models
• Functional Division: under this type of
organization small plans are prepared for
each function.(Small industries).
Managing Director
Finance Marketing M.R. H. R.
Manager Manager Manager Manager
Market Research Product Plans
Manager Manager
Sales Advertising Sales Promotion
Manager Manager Manager

5. Functional Structure
Advantages Disadvantages
• Specialisation – each • Closed communication
department focuses on could lead to lack
its own work of focus
• Departments can
• Accountability –
become resistant
someone is responsible to change
for the section • Coordination
• Clarity – know your and may take too long
others’ roles • Gap between top and
bottom

6. Geographic/ Territory :
In a territory oriented marketing
organization, the responsibilities for
marketing of various products rests almost
entirely with lines executives. The territory
managers are given varying nomenclatures
like depot manager, district manager, area
manager, zonal manager, divisional
manager etc .

7. Sales
Manager
Geographic Division
Northern Southern Western Eastern
Area 1 Area 2 Area 1 Area 2 Area 1 Area 2 Area 1 Area 2
Sales
SM SM SM SM SM SM SM
man
SM SM SM SM SM SM SM SM
SM SM SM SM SM SM SM SM

8. Organisation by Area
Advantages Disadvantages
• Serve local needs better • Conflict between local
• Positive competition and central management
• More effective • It is not suitable for small
communication between organization.
firm and local customers

9. Product Based Organization :In this case marketing
planning is made for each product separately. medium
size industries producing different products
Marketing Manager
Cosmetics
Pharmaceuticals Chemicals Food
Mkt

10. Organisation by Product
Advantages Disadvantages
• Clear focus on market • Duplication of functions
segment helps meet (e.g. different sales
customers’ needs force for each division)
• Positive competition
• Negative effects of
between divisions
competition
• Better control as each
division can act as • Lack of central control
separate profit centre over each separate
division

11. Customer Based Organization :Under this type of
organization m.o.is centered round the characteristic of
different types customer.
Mkt Manager
Distributor Manager Retailer manager Consumer Manager

12. CUSTOMER BASED MARKETING ORANIZATION
Advantages :
1 Full attention can be paid to each class of customer
&the problem can be well understood by the
organization.
2 The organization comes in the contact with the
customer regularly .It then becomes easier for the
organization to estimate their demands &satisfy them.
Disadvantages: Although customer satisfaction is the
main aim of the structure ,it is only suitable for those
organization to estimate where the nature of customer
different.

13. Matrix organization
In a matrix organization, two different
structures overlap on the same hierarchical
level, that is to say, a vertical structure is
combined with a horizontal structure. With
relation to Organizational Management, the
points where the two structures intersect
can represent the positions, which are
responsible for carrying out the tasks in
both the vertical and horizontal structures.

14. Matrix type
Regions Manager Manager Manager Mngr
Customers East West South North
Market
Manager
Adults
Market
Manager
Youngster
Market
Manager
Children
Market

15. Matrix Type Organization.
When the companies produces
multiproduct or many types of products
and carry large number of multi-market,
they form a matrix types of organization

16. Matrix management
Is a type of organizational management in which
people with similar skills are pooled for work
assignments. For example, all engineers may be
in one engineering department and report to an
engineering manager, but these same engineers
may be assigned to different projects and report to
a different engineering manager or a project
manager while working on that project. Therefore,
each engineer may have to work under several
managers to get their job done.

17. Culture of Marketing Organization
• High Value system.
• The art of prioritization.
• Emotional involvement.
• Interdependence.
• Leadership V/s Management.
• Working with passion.

18. Successful Organization
• Requires marketing people with N-ach.
– They formulate concrete goals.
– The goal stretches their ability to effort.
– They select moderate risk goals.
– They develop a strong internal commitment
with the goal.
– They like to take personal responsibility for
the outcome.
– They actively explore the environment to
create opportunity.

19. • They often experiment with novel activities in
order to reach the goal.
• They try to anticipate possibilities of
succeeding.

20. Model Organization
• Organization with achievement motivation.
– An organization with high need of
achievement is more self confident, enjoy
taking carefully calculated risks, researches
its environment actively and is very much
interested in concrete measures of how well it
is doing.
» David C. McClelland.

21. Questions
• State and explain the different approaches
to organizational restructuring.
• Critically evaluate the statement “ Modern
marketing organization must be
professionally rigid.”