Understanding Marketing Organization and Management Influence

Prof(Dr)B.L.Verma Professor Department of Business Administration UCCMS,MLSU,UDAIPUR

Meaning An organization is a group of people that is structured and managed to achieve a common goal. Every organization have a defined structure that determines relationship between its members, and assigns their roles, responsibilities, and authority. Meaning of of Organization Organization Meaning Marketing organization is a group of marketing persons brought together to make decisions on marketing areas like product, price, place, and promotion. Marketing organization is the foundation of effective sales planning for systematic execution of plans and policies. Marketing organization provides a system of relationships among various marketing functions to be performed by proper coordination among marketing persons. Meaning of of Marketing Marketing Organization Organization

Definition of Marketing Organization "Marketing organization can be defined as a formal or informal group of individuals working together to reach quantitative and qualitative marketing objectives by making decisions on product, price, place, and promotion." Definition of Marketing Organization

The Marketing organization is the vehicle for making decisions on all marketing areas viz. products, marketing channels, prices, promotions. It establishes the authority relationships among marketing personals and specialists who are responsible for making planning that are essential for the success of any business firm. physical distributions and marketing decisions and

1. 1.Management s Management s Philosophy Philosophy: : One of the major factors influencing size of philosophy management. Management may pursue different centralization individual action or group action, their attitude and value judgment. marketing organization of is the the company s philosophy like decentralization, that of or

2. Type of Product 2. Type of Product: : The nature of product has significant influence on the size of marketing organization. Technical products like engineering goods require greater explanation, hence direct selling became a better option, and this requires larger sales force and organisation. On the other hand, fast moving goods (FMCG) can be easily sold through the distribution channel and hence require smaller sales force and small organization

3. Product Line The length of the product line organisation is a major factor determining the size of sales organisation. 3. Product Line: : If the firm deals in large number of product, it re- quires big size organization. To sell big variety of products, firm has to develop market oriented organisation structure so as to cover new areas and new markets. For small number of products, functional organization is suitable

4. Markets Markets relates to various factors like size of the market, location of the market, nature of the market, scope of the market etc. Each of these factors influences the size of the organisation. 4. Markets: : If the markets are widely dispersed, large sales force is required and so the size of the organisation is large and vice versa.

5 5. . Channel Channel of of Distribution Distribution: : The distribution channel developed by a firm has a direct effect on the size of the marketing organization. Under indirect channels, intermediaries are there, who sell the product, thus, the size of organization is small whereas, under direct channel system, firm employees its own sales people to sell the goods, therefore the size of organization is large.

6. Needs and Requirements of the Customers: Market, today are highly complex as there is a continuous change in the customer s requirements and expectation from the company. As a result as customer s demand better facilities and new facilities, company has to accordingly adjust its sales organization. 6. Needs and Requirements of the Customers: 7. The environment in which a unit carries out its activities also has an impact on the size of the marketing organization. 7. Business Conditions and Environment: Business Conditions and Environment: The requirement of success in that industries and the rate of changes in that industry is an important factor that decides the size of organization.

8. 8. Sales Activity: Sales Activity: The size of marketing organization depends to a large extent on the sales activity of the form. If more sales and sales related activities are there, the size will be large and vice versa.