The Marketing Organization
The Marketing Organization
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Internal marketing requires that everyone in the organization accept the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.
Roman Law:
“A slave with three masters is a free man”
in “Drucker, P. 1999, “Management Challenges for the 21th Century”, Buttherworth-Heinemann, Oxford”
“it is a tool for making people productive in working together”
in “Drucker, P. 1999, “Management Challenges for the 21th Century”, Buttherworth-Heinemann, Oxford”
Modern marketing departments can be organized in a number of different, sometimes overlapping ways: functionally, geographically, by product or brand, by market, or in a matrix.
FUNCTIONAL ORGANIZATION
FUNCTIONAL ORGANIZATION
Functional specialists report to a marketing vice president who coordinates their activities
Functional specialists report to a marketing vice president who coordinates their activities
GEOGRAPHIC ORGANIZATION
GEOGRAPHIC ORGANIZATION
A company selling in a national market often organizes its sales force (and sometimes marketing) along geographic lines. T
A company selling in a national market often organizes its sales force (and sometimes marketing) along geographic lines. T
PRODUCT- OR BRAND-MANAGEMENT ORGANIZATION
PRODUCT- OR BRAND-MANAGEMENT ORGANIZATION
Companies producing a variety of products and brands often establish a product- (or brand-) management organization.
The product-management organization lets the product manager concentrate on developing a cost-effective marketing program and react more quickly to new products in the marketplace; it also gives the company’s smaller brands a product advocate. However, it has disadvantages too:
• Product and brand managers may lack authority to carry out their responsibilities.
• They become experts in their product area but rarely achieve functional expertise.
• The system often proves costly. One person is appointed to manage each major product or brand, and soon more are appointed to manage even minor products and brands.
• Brand managers normally manage a brand for only a short time. Short-term involvement leads to short-term planning and fails to build long-term strengths.
• The fragmentation of markets makes it harder to develop a national strategy. Brand managers must please regional and local sales groups, transferring power from marketing to sales.
• Product and brand managers focus the company on building market share rather than customer relationship
Marketing department?
Marketing department?
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