Marketing organisation and control
Organization is defined as a group of
people working together to achieve common goals and objectives of the
business. Marketing organization provides a vehicle for making decisions on
products, marketing channels , physical distributions, promotions and prices.
Marketing Organisation: Marketing organization is the
framework for planning and making marketing decision that are essential to
marketing success. It is the vehicle for making decision on all marketing areas
such as product, price, place and promotion.
Need for the organization: to be competitive in the market
where consumer is the king we need to satisfy the consumer.
a. Divide
and fix authority among the sub ordinates
b. TO
locate responsibility
c. To
establish sales routines
d. To
enforce proper supervision of sales force
e. To
avoid repetitive duties
f. To
enable the top executives to devote more time for planning policy matters
FACTORS AFFECTING MARKETING
ORGANIZATION
Factors influencing marketing org can
be categorized into internal and external factors.
Internal Factors:
1. Top
Management Philosophy:
2. Product
policy:
3. People:
External Factors:
1. Business
Environment:
2. Markets:
a. Size
b. Scope
c. Nature
d. Location
3. Consumer
requirements and expectations:
4. Channels
of distribution:
TYPES OF MARKETING ORGANIZATION
STRUCTURES
Types of marketing organization
structures: The marketing organization of a business can be structured on any
of the following basis:
a. Line
and staff organization
b. Functional
Organization
c. Product
oriented marketing organization
d. Customer
oriented marketing organization
e. Geography
oriented marketing organization
f. Matrix
form / Combined base
1. Line and Staff Organization: In most business
forms especially medium size the marketing job is structured around
few line functions and few staff functions i.e. Major staff functions is
organized into separate department and the line function is responsible for
sales department. The required coordination between the line and staff function
is managed by the executive at higher level.
Merits:
1. Provides
expert advice from specialists
2. Relives
line executes of routine, specialize functions
3. Enables
young sales executive to acquire expertise
4. Helps in
achieving effective coordination
5. Easy to
operate
6. Less
Expensive
Demerits:
1. Produce
confusions arriving from indeterminate authority relationships
2. Curbs
the authority of experts
3. Too
much is expected from executives
4. Decision
making is taken by top management
2. Functional: Under the organization the
departments are created on the basis of specified functions to be performed
i.e. The Activities related to marketing, distribution etc
Merits:
1. Division
of work base on specialization
2. Relives
line executives of routine and specialized functions
3. Promotes
application of expert knowledge
4. Helps to
increase overall efficiency
Demerits:
1. Leads
to complex relationships
2. Makes
coordination ineffective
3. Promotes
centralization
4. Lack
of proper coordination
5. Delay
in taking decisions
3. Product Oriented Marketing Organization: Organizations
that produce wide variety of products often organize marketing, training and
promotion with respect to a product.
Merits:
1. The
salesmen can render better customer service as they possess good knowledge of
product and may have close contacts with customers.
2. It
makes individual departments responsible for the promotion of specific products.
3. It
facilitates effective coordination
Demerits:
1. It
increases the employment of a number of managerial personal
2. Many
salesmen of same enterprise attend same customer each representing a separate
product which creates confusion in the minds of the customer.
3. There
may be duplication of activities
4. Customer Oriented Marketing Organization: When
the departmentation of sales organization is done on customer basis it is
called customer oriented marketing organization. Departmental by
customer may be done in enterprise engaged in providing specialized services to
different classes of customers.
Merits:
1. It
takes into account needs of each class of customers.
2. IT
provides specialization among the enterprise staff
Demerits:
1. It
makes coordination difficult
2. It
may lead to under utilization of resources in same department
3. There
may be duplication of activities
4. These
types of sales organizations are not suitable for small enterprises.
5. Geography/Territory: In a territory oriented
marketing organization , the responsibilities for marketing of various
products rests almost entirely with line executives .The territory managers are
given varying nomenclatures like depot manager, district manager, area manager,
zonal manager , divisional manager etc.
Merits:
1. It
leads to economy in terms of times and money
2. It
helps in taking knowledge of local customers
3. It
helps in effective control
Demerits:
1. It
requires employment of number of managerial personnel.
2. It
dilutes control from head quarters
Marketing Control:
Marketing control is concerned with
analyzing the performance of marketing decision, identifying the
problem/opportunities and taking actions to take advantage of opportunities and
resolving problems. It is the sequel to marketing planning. All manager need to
exercise control over their decision and marketing operations.
Specifically
marketing performance is measured in terms of market share, sales, profits.
Hence most control measures are designed with these parameters in mind. But
today's marketing needs to measure the following.
a) Market
share
b) Sales
and profits
c) Marketing
effectiveness
d) Customer
satisfaction
e) Customer
perception of the firms and its brands
There are four types of controls with
different objectives and tools and exist with different levels of management.
1) Annual
plan control: It is with top or middle level mgmt to evaluate actual
performance with targeted to analyze differences or gaps. The tools used are
sales analysis, market share analysis, sales and expense ratios, and financial
analysis.
2) Profitability
control: It is used by marketing department to examine profitability by
product, territory, customer segment and trade channel.
3) Efficiency
control: It is used to asses the effectiveness of money spend on sales force,
advertising, sales promotion and distribution. It is used by both line and
staff executives.
4) Strategic
control: It is used by the top mgmt to examine wether the firm and marketing
capable to cope with environment or not. The major tool used here is marketing
audit.
Marketing Control Process:
Marketing Control Process includes
monitoring, evaluating and improving the performance in each activity. There
are six steps in this
a) Decide the
aspect of marketing operation to be evaluated:
b) Establish
measurement criterion
c) Establishing
monitoring mechanism
d) Compare actual
results with standards of performance
e) Analyze
performance improvement
Marketing Audit:
Definition: Marketing audit is systematic review
and appraisal of the basic objectives and policies of marketing function and of
the marketing organization methods, procedures and personal employed to
implement those policies and to achieve those goals. Marketing audit is one of
the important tool to asses the effectiveness of different marketing mix
elements.
Types of Marketing Audit:
1.
Marketing
Environment Audit: It is divided into two groups i.e macro
environment and task environment. Macro environment audit includes analysis of
political, economical, technological and cultural aspects. Task environment
audit covers customers,competitors, markets, dealer/distributors, suppliers,
marketing firms and public.
1. Marketing Strategy Audit: This audit
reviews firms marketing mission, objectives, goals, and strategies and to
appraise their adaptability to present and future environment.
1. Marketing Organisation Audit: The
audit evaluates the firms capability in implementing necessary strategies for
the future environment. It also reviews formal organization structure and
efficiency.
1.
Marketing
Systems Audit: It evaluates the subsystems of a system such as marketing
information system, marketing planning system, marketing control system and new
product development system.
1.
Marketing
productivity Audit: This audit critically examines the profitability of
different marketing entities and cost effectiveness of different heads of
marketing expenditure.
1.
Marketing
Function Audit: It is a functional audit mainly covering marketing mix
components namely product, price, place and promotion (advertising, sales
promotion, sales force and publicity).
0 Comments