National Institute of Business Management

Chennai - 020

FIRST SEMESTER EMBA/ MBA

Subject : Marketing Management

Name : DEVADI MANJU

Roll No: : N15NOV/6682

Enrollment No: : MBA1/MAY15N/66821432379211F

2. Explain the different Marketing Environments and the role of culture and
subculture?
THE MACRO ENVIRONMENT:

The only certain thing in this world is change. Sometimes change occurs so slowly that it is
virtually imperceptible. We are often unaware that change is occurring until it is too ate too late
to do anything about it. At other times change is so rapid that, even though it is obvious, we find
it difficult to react quickly enough. Although none of us possess the power to foresee the future ,
we can be sure that it will be different from today, and that change is a fact of life. We have little
power to stop it, and the sensible course of action is to welcome change and attempt to adapt to
it.

In order for a firm to be able to adapt successfully to changing circumstances, management

needs to have an understanding and appreciation of the factors and forces influencing such
changes, ideally a firm should be in a position to adapt to changes as they are occurring, or even
in advance. Firms should attempt to capitalize upon change rather than merely reacting to it. By
identifying environmental trends soon enough, management should be able, at least in part, to
anticipate where such trends are leading and what future conditions are likely to result from such
changes.

Unless firm are able to identify and react to change quickly enough , they are likely to be
dictated to by circumstances beyond their control. Instead of being part of the changes occurring
, and leading the market, they will, of necessity, be forced into being market followers. Instead
of adopting to change and even going some way towards influencing events, events will
instead influence them, perhaps in an unfavourable way.
The competitive environment :

There are very few firms that are fortunate enough to have no competitors . Except in the case
of the centrally planned economies , of which, of course, there are fewer and fewer as they
increasingly turn towards free market mechanisms. On the other hand , there are very few
markets which possess all the characteristics of what the economist calls a perfectly
competitive market structure where no company has any differential advantage and where
all products are homogenous and companies therefore must accept the market price. Rather ,
most markets fall somewhere in between these two extremes but are characterized by
intense competition.

Supplier environment:

Suppliers are other business firms and individuals who provide the resources needed by the
marketing firm to produce goods and / or services . Nearly every firm , whether engaged in
manufacturing, wholesaling or retailing., is likely to have supplier. Large firms such as Marks
and Spencer or the Ford Motor Company are Likely to have numerous suppliers. For example,
Ford must obtain glass windscreens , headlamp units brake pads, tyres, steel sheet , fabric for
interior upholstery and a number of other materials in order to produce cars.

Why some of these product constituents will come from major manufacturers such as British
Steel Pilkington's Glass, Lucas and Dunlop, other components, ranging from industrial fasteners
to engine gaskets, will often be supplied by a large number of smaller, less well known
companies.

As you will appreciate, Ford depends on possibly hundreds of suppliers for its manufacturing
capability and commercial prosperity. In the same way, hundreds of firms depend on Ford for
orders. The firms that supply Ford wit finished components are also likely to be supplied with
raw materials or semi-processed goods by a host of other suppliers.

the distributive environment:

Many firms, particularly in industrial markets where products are often buyer-specified market
and deliver their products direct to the final customer. Other firms use some form of intermediate
distribution system. The distribution system is then made up of one more 'middlemen' who can
be individuals or other organizations. They range from agents, distributors, factors and
wholesalers to retailers.

Because of the seeming permanence of the distributive environment at any point in time, many
firms make the mistake of thinking it is static. In fact, distribution channels change and evolve
just like any other facet of business life. As Davidson explains:
 Distribution channels resemble the hour hand of a watch. They are always moving, but each
individual movement is so small as to be invisible in isolation. The cumulative movement over a
number of years can, however, be massie.

Because distribution channels change relatively slow, it is easy for manufacturers to respond too
slowly to their evolution. Existing channels may be declining in their popularity of efficiency,
while new potential channels of distribution may be developing, unnoticed by the marketing
firm.

the role of culture:

A society's culture is completely learned way of life which is handed down from generation to
generation. Cultural influences give each society its own peculiar attributes. Although the norms
and values with a society are the result of many years of cultural conditioning, they are not static.
It is cultural changes, and the resulting revised norms and values within a society, that is of
particular interest to the marketing firm. Nowhere is the aspect more poignant than when the
company is marketing internationally.

The English anthropologist, E.B. Taylor, defined culture as:

that complex whole which includes knowledge, brief, art, morals, law, custom, and any
other capabilities and habits acquired by man as a member of society.

Taylor's definition is an accepted classic in defining some of the major facets of culture, and in
emphasizing that culture is very much a learned phenomenon. British culture has historically
been largely materialistic, derided as it is from the protestant work ethic of self-help, hard work,
thrift and the accumulation of wealth. Arguably, other Western cultures such as the United
States, Germany and Japan are even more materialistically oriented. This factor is often thought
to be one of the reasons for these countries' superior economic performance. Cultural values do,
however, change over time, and a number of western core values are currently undergoing major
changes. Some of the changing cultural values are particularly prevalent among the young
include:

-A questioning of materialism and its values.

-A decline in respect for authority and the law.

-A belief in the rightness of militancy and conformation.

-A desire for innovation and change.

-A shift towards informality.

sub-cultural influences:
 Within each culture are numerous sub-groups with their own distinguishing modes of behaviour.
In the United States black Americans represent the largest racial/ethnic sub-culture. In the UK is
the Asian community. American marketing firms realize that it is impossible to treat such a large
group of consumers as a homogeneous mass, a number studies though indicate that their
consumption habits are significantly different from those of the remainder of Americans. As a
result, American firms are now designing products and advertising campaigns aimed specifically
at this large minority markets. This has now also happened in th UK.

Indeed, although the UK is more culturally homogeneous than the USA, firms can no longer
ignore the cultural difference of the ethnic population. Ethnic heterogeneity is slowly being
recognized by more enlightened firms as potential source of marketing opportunities. Cannon
highlights a number if interesting examples of marketing opportunities and problems related to
sub-cultures.

- Products may need to meet special religious needs (e,g, kosher foods).

- Marketing intermediaries may be different (e.g. the importance of small, Asian-run, shops)

- Consumer tastes may differ (e.g. Cadbury Typhoo's poundo Yam, aimed mainly at consumers
of Caribbean origin)

- Language can be a problem in marketing communications (e.g.in the UK, 77percent of

Pakistani-origin women and 43 percent of Pakistani-origin men cannot speak working English).

The culturally aware marketing firm will recognize that sub-cultures represent distinct market
segments and will seek to increase their awareness of the needs, attitudes and motivations of sub-
groups.

POLITICAL ENVIRONMENT:

To an increasing extent, the operation of business firms is influenced by the political framework
and processes in our society. Marketing management must be alert to changes in the political
attitudes are 'climate', which depend on the policies of the government of the day. The political
environment cannot be examined in a vacuum. Political philosophies ob their own are nothing
without action. The outcome of political decisions can be seen in the legislation and economic
policies of government. In this sense, you will appreciate that, although for clarity of exposition
we are examining the various macro-environmental forces in isolation; in reality they are very
much interrelated. Many of the legal, economic and social developments in our society and other
countries are nothing more than the result of political decision put into action. For example, in
the 1980s the conservative Party favoured a monetarist approach to the management of the Uk
economy. It attached great importance to the control of money supply and hence government
public expenditure.
ECONOMIC ENVIRONMENT:

Marketing management must understand the effects of the mainly economic variables that are
likely to affect their business operations. We see in the mass media that inflation is rising or
falling, that exchange rates are affecting the value of the currency or influencing the level of
interest rates. We hear discussion on the level of unemployment, industrial output, or the current
state of the balance of payments. Such economic factors are of concern to marketing firms
because they influence costs, prices and demand.

Although world economic forces are of paramount importance to marketing firms,

particularly those involved with either importing or exporting, domestic economic forces usually
have the most immediate impact. The level of domestic unemployment affects the demand for
many consumer products, especially those classed as 'luxury goods’. This in turn affects the
demand for many industrial products, particularly manufacturing plant such as machine tools.
The rate of inflation and the cost of borrowing capital affect the potential returns from new
investment and inhibit the adoption of new technologies. Governments of every persuasion
attempt to encourage economic growth through various policy measures. Tax concessions,
government grants, employment subsides and capital depreciation allowances are some of the
measures that have been used.

TECHNOLOGICAL ENVIRONMENT:

Technology is a major environmental influence up in the marketing firm. It affects not only the
firm's operations and product, but also consumers' life styles and consumption patterns.
Management must be aware of the impact of technological changes. As Wilson explains in
relation to electronics:

The development of the microprocessor and its large production has revolutionized
information collection, processing and dissemination which in turn is affecting th whole
spectrum of marketing activity.

The impact of new information technology has been particularly marked in the marketing
research area. For example, it is now possible to design and administer questionnaires via
computer terminals. In the past this method has been used on a limited basis, but is being more
and more frequently used. Computer assisted telephone interviewing (CATI) has revolutionized
the speed with which surveys can be completed. Responses are fed immediately into a computer
and a report 'hard copy' can be available immediately after the final interview is completed As
Thomas explains:

On-line interviewing is now in widespread use in the larger data gathering market research
firms. Interviews, using telephone, work from a questionnaire which is displayed on a VDU and
responses are keyed straight into the computer.
3. Explain the Importance of Consumer Behavior form Markets?
Answer:

Objectives of Consumer Behavior

Characteristics of consumer behavior: Consumer behavior can be studied from two different
perspectives. The most popular, traditional way is to focus on this subject as a pure science,
wherein the research findings from behavioral sciences like psychology and also from social
sciences like sociology, anthropology and economics, are drawn to explain the various facets of
consumer behavior. The other perspective is to analyze this subject as an applied science, with
emphasis on its application in business organizations. a) Consumer Perspective In this approach,
the focus of consumer behavior study is on enquiring into how people buy, what they buy, when
they buy and why they buy, more as a pure science, rather than for application to marketing
decision-making. It blends elements from psychology, sociology, socio-psychology,
anthropology and economics. It attempts to understand the buyer consumption process, both
individually and in groups. It studies characteristics of individual consumers such as
demographics, psychographics, and behavioral variables, in an attempt to understand people's
wants. It also tries to assess influences on the consumer from groups such as family, friends,
reference groups, and society in general. This approach focuses more on the nature of the
consumption experience, rather than the purchase process. This approach may throw many
insights that may or may not be actionable from a marketer’s perspective. There is no sufficient
emphasis on the consumer purchase decision process. Hence this approach may have limited use
for marketers, since they must understand how consumers take purchase decisions if they have to
influence the consumers.

b) Managerial Perspective In this approach, consumer behavior is studied as an applied social

science and the main objective of such an approach is to find a basis for marketing strategies in
business organizations. From a managerial perspective, the stress is on predicting the action
sequence of a consumer decision process, in order to help a marketer in deciding on suitable
marketing strategies. As an improvement of this, a new approach was enunciated by Sheth &
Mittal, who expanded the study of consumer behaviors to include several facets, which would be
more practical while applying this knowledge to practical situations in business organizations.
There are two variations in this approach, which are more meaningful from the managerial
perspective: a) All the different aspects of consumer behavior study have been applied in this
new approach to business organizations as consumers. Normally, most textbooks limit such
analysis to individual consumers and some of them extend it to households. However, in the new
approach, the behavioral aspects are looked at from the angle of business-to-business
transactions, which are very relevant and useful in such situations. 1 b) The second approach is
in extending the study of consumer behavior to include different roles of a customer in
understanding the decision making process. Traditionally, the consumer is the user of the product
or service and most of the studies limit the application of this knowledge to understand the
behavior of customers as users/consumers. The new approach considers three roles of the
customer viz. User, Payer and Buyer as important, to apply this knowledge in real life situations
in business organizations. In fact the title of the study is called Customer Behaviour instead of
Consumer Behaviour•, to make it amply clear that all three roles of the customer have to be
looked at in order to analyze and apply the various research findings more effectively. In the
traditional methods of study of consumer behavior, the applications get limited to mostly fast
moving consumer goods (FMCGs) and also to individual/ household users/ consumers. The
second approach expands the applications of these studies to encompass practically all markets
and products, in all types of marketing situations that would make more sense from a managerial
perspective. Why study consumer behavior?

Vignette Proctor and Gamble (P&G) is an American Global Corporation established in 1837
with several successful current brands like Tide and Ariel detergent powders, Duracell batteries,
Gillette safety razors, Max Factor cosmetics, Pantene hair care products, Pampers brand diapers,
etc. When they entered the Japanese market for Pampers in 1977, they used the American
product range, American advertising and American sales and promotional strategies. The product
was quite thick and designed for American mothers who would leave the diapers on their babies
for long periods. The Japanese mothers were however; highly cleanliness minded and would
change the diapers on their babies at least twice as often as the American mothers do. Seeing this
opportunity, many Japanese companies introduced thinner leak proof diapers that were better
suited to Japanese mothers. This resulted in Pampers market share crashing to 7% in 1985, from
a high of 90% in 1977. The company realized their mistakes after a market study and an
improved product with one third of the original thickness was introduced. This resulted in their
improving their share to about 35% in 1990 and the same product was introduced in the
American market with a new brand name-Ultra Pampers. The above example is a classic case of
how a study of consumer behavior is most important to the success of products. For any
marketing oriented company, such a study should be the basic starting point for all marketing
strategy decisions.

One of the most difficult tasks of marketing management is how to predict the consumer
behavior.

The objective of the consumer behavior is to conscious about consumer behavior and marketing.

The consumer is continually exposed to new experiences and different influences and as the
circumstances change, new needs and wants are invoked in the customers. It is the essence of
marketing centers to identify and satisfy these needs and wants. They also need to recognize
what influences these needs and how consumers go about satisfying them.

Consumer behavior can be formally defined as the act of individuals directly involved in
obtaining and using economic goods and services, including the decision processes that precede
and determine these acts.
The consumer behavior is very complex and for the marketing to be successful, it is not
sufficient just to recognize what customers require. It is equally important to recognize why it
is required. some of the Questions that relate to consumer buyer behavior are:

-Who constitutes the market?

-What does the market buy ?

- When does the market buy ?

- Who participate in the buying ?

- How does the market buy ?

-Where does the market buy ?

IMPORTANCES OF CONSUMER BEHAVIOUR FOR MARKETERS

Consumer behavior helps the Marketing Manager to understand the purchase behavior and
preferences of different customers. In marketing terminology, specific types or group of
consumers who buy different products represents different market segments.

For successful marketing to different segments, the Marketing managers need to know about
appropriate marketing strategies which can be decided only when all factors affecting consumer
behavior are recognized.

To survive in the ever changing market scenario, the firm has to aware of the latest consumer
trends and tastes. Consumer behavior gives clues and guidelines to marketers on new
technological frontiers which they should explore.

Since the consumer behavior can be influenced to some extent by specific elements of the
marketing strategy, the marketer must give significance to recognize those influencing factors.
Once they are identified, a marketer can study and even manipulate these factors.

Thus, the importance of consumer behavior is that the behavior of a person can be understood
and influenced to ensure a positive purchase decision.

The modern marketing management tries to solve the basic problems of consumers in the area of
consumption. To survive in the market, a firm has to be constantly innovating and understand the
latest consumer needs and tastes. It will be extremely useful in exploiting marketing
opportunities and in meeting the challenges that the Indian market offers. It is important for the
marketers to understand the buyer behaviour due to the following reasons.
 The study of consumer behaviour for any product is of vital importance to marketers in
shaping the fortunes of their organisations.

It is significant for regulating consumption of goods and thereby maintaining economic
stability.

It is useful in developing ways for the more efficient utilisation of resources of
marketing. It also helps in solving marketing management problems in more effective
manner.

Today consumers give more importance on environment friendly products. They are
concerned about health, hygiene and fitness. They prefer natural products. Hence detailed
study on upcoming groups of consumers is essential for any firm.

 The growth of consumer protection movement has created an urgent need to understand
how consumers make their consumption and buying decision.

Consumers’ tastes and preferences are ever changing. Study of consumer behaviour
gives information regarding colour, design, size etc. which consumers want. In short,
consumer behaviour helps in formulating of production policy.

for effective market segmentation and target marketing, it is essential to have an

understanding of consumers and their behaviour.
5. What is the role of Consumer Behavior in marketing? Explain
Answer:

Consumer Behaviour refers to the study of buying tendencies of consumers. An individual who
goes for shopping does not necessarily end up buying products. There are several stages a
consumer goes through before he finally picks up things available in the market. Various factors,
be it cultural, social, personal or psychological influence the buying decision of individuals.

Marketers need to understand the buying behaviour of consumers for their products to do well. It
is really important for marketers to understand what prompts a consumer to purchase a particular
product and what stops him from buying.

a) Consumer Behavior and Marketing Strategy: All marketing decisions and strategies are based
on assumptions about consumer behavior. It is impossible to think of any aspect or decision in
marketing, which can be independent of some analysis of consumer behavior. Before deciding
on any marketing strategy, the marketers have to first base their judgments on explicit
assumptions resulting from sound theory and research, rather than implicit intuition. Knowledge
of consumer behavior can give an important competitive advantage and greatly reduce the odds
of bad decisions. The first step in developing a marketing strategy is to analyze the market in
which the firm is operating. This requires a detailed analysis of the organizations capabilities,
strengths and weaknesses of competitors, the economic and technological factors affecting the
market and finally, the current and future potential customers in the market. On the basis of the
analysis of consumers at this stage, the company identifies the groups of individuals, households
or firms with similar needs. These are known as market segments, which can be described in
terms of demographics, geographic locations, lifestyles, etc. The firm can then select one or more
of these segments as target markets, based on their capabilities in comparison with the
competition, in the given current and forecasted economic and technological environment. The
next step is to formulate the marketing strategy. The objective of the marketing strategy is to
provide the customer with more value than the competitor brands while maximizing the profits
for the firm. Marketing strategy is then formulated in terms of the marketing mix. This involves
the determination of the four of marketing viz. product features, pricing, promotional mix and
distribution policies, which would offer superior value to the customer. It is most important to
note that an analysis of the consumer is the key to formulating a sound marketing strategy and
the reaction of the consumer to the marketing mix determines ultimately the success or failure of
the strategy.

b) Study of Consumer Behavior and Marketing Careers: Most students of consumer behavior
aspire for careers in Marketing Management, Sales or Advertising. Many students expect that the
skills acquired by them in these courses will be like accounting or science subjects, wherein a set
of rules can be applied across a wide variety of situations to arrive at the correct solution.
Unfortunately the consumer is a living, breathing, changing and many times stubborn individual
and dealing with such an uncertain element can be very frustrating to such students. However, an
understanding of consumer behavior in its proper perspective can bring out many understandable
situations, which can be applied in developing suitable marketing strategies. This can then
become a very exciting field. This is not to suggest that scientific principles and procedures are
not applicable in such situations. In fact, many scientific theories and models of psychology,
psychoanalysis, sociology, etc. have been successfully utilized in the study of consumer
behavior. Successful utilization of these principles in practical situations have to be done with
proper human judgments, which in itself can be a very challenging task leading to excitement
and job satisfaction.

What marketers need to understand?

The psychology of consumers (what they feel about a particular product and their brand on the
whole).

How consumers are influenced by their immediate surroundings, family members, friends, co
workers and so on

What a consumer thinks when he goes out for shopping ?

A marketer needs to first identify his target consumers and understand their lifestyles,
psychologies, income, spending capabilities, mentalities to offer them the right product.

Individuals from lower income group would never be interested in buying expensive and
luxurious products. He would first fulfil his basic physiological needs like food, air, water etc.
Trying to sell a Mercedes or a Rado watch to someone who finds it difficult to make ends meet
would definitely be a disaster.

Kellogg’s K special would hardly find any takers in the low income group. In this segment,
individuals would be more interested in buying fresh fruits, vegetables, pulses which are
necessary for their survival rather than spending on health supplements.

It is really essential for the marketers to understand the needs of consumers. Find out what they
are actually looking for?

There are ideally two different ways which enable marketers to understand their consumers.

1. Primary Research
2. Secondary Research

Primary Research - Primary Research refers to a research methodology where marketers

interact with consumers directly and gather as much information as they can. Information is
generally collected through surveys, questionnaires, feedback forms, interviews etc.
Secondary Research - Secondary Research often refers to relying on information which has
been collected by others at some point of time.

The background and family status of an individual also influence his/her buying behaviour.

Selling a laptop to an individual who is not much educated would be pointless. Remember
consumers would show interest in your products only if they are of any use to them or their
immediate family members. A low grade worker would never be interested in purchasing
business suits or formal shirts.

Canned juices are a hit among middle and higher income group where individuals are really
conscious about their health and fitness. Individuals who live hand to mouth would never spend
on sugar free tablets, health supplements, or for that matter “Diet Coke”.

It is also important to give complete information to end-users. Do not hide anything from them.
It is not ethical. All tobacco products come with a warning. Individuals should be familiar with
not only the benefits but also the side effects of the products.

Marketers must also take into account:

1. Age group of consumers

2. Geographical location
3. Lifestyle of consumers
4. Social Status of consumers

Funky designs, loud colours would be a hit among teenagers whereas middle aged and elderly
people would prefer subtle colours and sophisticated designs.

Salwar Suits are extremely popular in North India whereas females prefer saris and skirt blouses
in eastern and southern parts of India.

Individuals from posh localities and good jobs would show keen interest towards buying
exclusive and unique products as compared to individuals who do not come from an affluent
background.
 6. What are the basic principles of organization Design? Explain the techniques
and methods for designing Organization structure.

ANSWER:

A business organization must have a separate marketing department to focus on customer needs
and expectations.

BASIC PRINCIPLES OF ORGANIZATION DESIGN:

Traditionally, marketers played the role of middlemen, involved in realizing the customer
needs and transmitting the voice of the customer to various functional areas in the organization.
Today, marketing has evolved into full-fledged departments with functions depending upon the
nature of the company. Marketing departments are of the following designs:

1. Simple sales department: Small companies with a sales vice-president who manages
the sales force and also performs some selling, have a simple sales department configuration.

2. Sales departments with Ancillary marketing functions: Larger companies require

conducting marketing research to learn about customer needs and market potential. It also has to
advertise its products and services. An Advertising Manager may be hired to handle these
activities.

3. Separate Marketing Department: As the company grows further, it makes additional

investments in marketing research, new product development, advertising and sales promotion.
The CEO recognises the advantages of establishing a separate marketing department headed by a
Marketing Vice President or Executive Vice-President. This recognizes sales and marketing as
separate functions that work closely together.

4. Modern Marketing Department: The modern marketing department has a

Marketing and Sales Executive Vice-President with managers of all marketing
functions(including sales management) reporting to them. This is to reduce friction between
sales and marketing departments as all the conflicts are settled between the Executive Vice-
Presidents.

5. Effective Marketing Company: For a company to do marketing effectively, all the

departments of the company should take up responsibilities of marketing. Only when all the
employees realize that their jobs are created by customers, the company becomes an effective
marketer.

6. Process and outcome based company: Many companies are shifting their
structure from departmental organization to process and outcome based organization. This
ensures that the marketing and sales people are consequently spending more time within a team
as process team members. This team is also responsible for training its marketing personnel,
assigning them to new teams, and evaluating their overall performance.

Though all the departments of the company are expected to interact harmoniously to pursue the
firm’s overall objectives, there usually exists deep rivalries and distrust amongst them. This
conflict starts from differences in opinion as to what is in the company’s best interest.

TECHNIQUES AND METHODS FOR DESIGING ORGANIZATION STRUCTURE:

The modern marketing department can be of the following structures based on function,
geographic area, products of customer markets.

FUNCTIONAL ORGANIZATION:

It is the most common form of marketing organization structure and consists of functional
specialists reporting to a marketing vice-president, who coordinates their activities.

GEOGRAPHIC ORGANIZATION:

This kind of organization structure is followed by companies selling in a national market. The
functions like sales force and marketing are organized along geographic lines.Geographic
organization is of the following structure.

I. National Sales Manager

II. Regional Sales Managers
III. Zonal Sales Managers
IV. District Sales Managers
V. Sales People

Product-Or Brand Management Organization:

This kind of organization is seen in companies dealing with a wide variety of products (or
brands). In this kind of structure, a Product Manager supervises product category managers, who
in turn supervise specific product and brand managers. The following are the main functions
performed by product and brand managers:

I. Developing a long range and competitive strategy for the product.

II. Preparation of annual marketing plans and sales forecast.
III. Dealing with advertising and merchandising agencies.
IV. Encouraging the sales force and the distributors.
V. Performing regular studies on product’s performance, customer and changing dealer
attitudes, and new problems and opportunities.
The interactions of the Product Manager:

MEDIA

Advertising Agencies

RESEARCH &

DEVELOPMENT

PURCHASING

MARKET

RESEARCH

PRODUCT

MANAGER

PUBLICITY

PACKAGING

SALES

FORCE

Market-Management Organization:

This kind of organization is common in companies which sell their products to a diverse set of
markets. When customer falls into different user groups with distinct buying preferences and
practices, a market management organization is desirable. In this kind of organization, the
following structure is preferred

Market- Management organization Structure

Market Manager

Market Development Market Industry

Managers Specialists Specialists

Many companies have recognized the significance of having a market entered organization and
are finding a substantial positive effect of market orientation on both commodity and non-
commodity business.
Corporate – Divisional Organization:

This kind of organization structure is very popular with companies that grow very rapidly. They
often convert their larger product or market groups into separate divisions. The divisions have
their own departments and services. The potential contribution of a corporate marketing staff
varies in different stages of the company’s evolution. At the beginning stages companies have
weak marketing skills and require a corporate staff to guide them but in the later stages corporate
marketing has much less to offer.

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