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
Agency
Research
Promotion
&
Services
Development

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 :

1. 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
2. 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 Price Wars
(A)

Chief Executive

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

Marketing Sales
Services

Production Management Advertising and

and Marketing Research Promotion Distribution

(B)
Chief Executive

V.P V.P General Manager V.P

Production V.P R&D Finance Purchase Marketing

Marketing Research Sales

Production Manager Manager (More Common Manager
(Advertising and Promotion) in Pharmaceutical
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

General Marketing
Manufacturing R&D Finance
Manager HRD

General Manager Service Manager Product Manager

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

Advertising Manager
(Deciding on
Advertising Strategies)
 Present Marketing Organization

Chairman

R&D Finance Marketing Manufacturing

Staff Line
Services Operations Engineering Production

Public Marketing Product Advertising

Relation Research Planning

Product Customer
Warehousing Sales Force
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