Marketing Organization: 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. Marketing organization is a group of marketing persons working together towards the attainment of certain common objectives. Marketing organization provides a system of relationships among various marketing functions to be performed by coordinating among marketing people.
Need for the organization: to be competitive in the market where consumer is the king we need to satisfy the consumer. So a good marketing organization is required to satisfy the customers. Marketing organization is the pillar for success for many 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
FACTORS AFFECTING MARKETING ORGANIZATION
Factors influencing marketing org can be categorized into internal and external factors .
Internal Factors include:
1. Top Management Philosophy: Organizational planning and its working is greatly influenced by philosophy which can be good or bad eg: Centralization Vs Decentralization
2. Product policy: the width of product line of an org determines its size as the product offerings becomes increasingly diverse. Eg: There could be a need to move away from straight functional approach to product group approach.
3. People: The size of the organization is not an important factor in terms of number of people but it is important with respect to human values which are critical and correct decisions regarding people cannot be made unless taking into consideration of the following i.e number, qualifications, capabilities, personality, attitude and fear, suspicion, and ambition of the people.
External Factors include:
1. Business Environment:
The type of environment in which the firm is operating in terms of operations and size.
The Nature of particular requirement for success in a given business which again determines the size.
The rate of change in industries being served which again decides on its size and working.
2. Markets: This is the factor which again affects the marketing organization i.e. one should know about its size, scope, nature and location
2. Consumer requirements and expectations: Consumers have their own set of requirements and expectations from the organization. The more varied and vivid services they expect that the usual requirements. as a marketer we need to increase the workload depending upon the consumer requirements and expectations
4. Channels of distribution: It is the type of channel of distribution which a marketing firm selects based on its size. Egg : Incase the company opts for indirect channel or channels it depends on outside sales force and hence the organization gets thinner .When the organization selects direct channel its size is increased as it has its own sales force.
