MM316 Marketing Strategy and Management Dr Sujana Adapa Lecturer in Management (Strategy & Marketing) UNE Business School

Section 4: Implementing and Measuring Marketing Strategies CHAPTER 12 Organising and Planning for Effective Performance

Learning Objectives To familiarise with the appropriate designing strategies for administrative relationships To understand the appropriate designing strategies for organisational structures and processes To identify the various steps in the marketing plan that forms the foundation for implementing marketing actions

Designing Appropriate Administrative Relationships For the implementation of different competitive strategies: The degree of autonomy provided to each business unit manager The degree to which the business unit shares functional programs and facilities with other units The manner in which the corporation evaluates and rewards the performance of its SBU managers Image by geralt. Public Domain. Pixabay.Pixabay

Designing Appropriate Administrative Relationships Business-Unit autonomy: Prospectors are likely to perform better on the critical dimensions of new product success Low-cost defender SBUs perform better on ROI and cash flow by giving their managers relatively little autonomy by San Diego Shooter San Diego Shooter

Designing Appropriate Administrative Relationships Shared programs and facilities: Firms (some) attempt to avoid the trade-off between efficiency and adaptability by designing relatively small, narrowly focused units, but then having two or more units share functional programs or facilities Sharing resources can pose a problem for prospector business units Functional independence usually facilitates good performance for prospector businesses Image by geralt, Public Domain, PixabayPixabay

Designing Appropriate Administrative Relationships Evaluation and reward systems: For defenders in relatively mature markets, operating efficiency and profitability tend to be the most important objectives Basing too large a portion of managers’ rewards on current profitability may cause problems for prospectors Systems that place more emphasis on sales volume or market share objectives, or on the percentage of volume generated by new products, may be more appropriate for prospectors by jDevaun.Photography jDevaun.Photography

Designing Appropriate Organisational Structures and Processes Successful implementation of a given strategy is more likely when the business: Has the functional competencies demanded by its strategy and support them with substantial resources relative to competitors Is organised suitably for its technical, market, and competitive environment Has developed appropriate mechanisms for coordinating efforts and resolving conflicts across functional departments Image by geralt. Public Domain. Pixabay.Pixabay.

Designing Appropriate Organisational Structures and Processes Functional competencies and resource allocation: Competence in marketing, sales, product R&D, and engineering are critical to the success of prospector businesses The functional areas are most directly related to operating efficiency in low- cost defender businesses

Designing Appropriate Organisational Structures and Processes Service organisations: Competence in HRD (Human Resource Development) is more crucial for service businesses pursuing prospector strategies than for those focused primarily on efficiency and low cost Personnel management is an important adjunct to the production and marketing efforts of high-contact service organisations Image adapted from PublicDomainPictures. Public Domain. Pixabay.Pixabay

Designing Appropriate Organisational Structures and Processes Organisational structures: Formalisation is the degree to which formal rules and standard policies and procedures govern decisions and working relationships Centralisation refers to the location of decision authority and control within an organisation’s hierarchy Specialisation refers to the division of tasks and activities across positions within the organisational unit by ePublicist ePublicist

Functional Organisation of an SBU SBU GM/ President Marketing Marketing Research Sales AdvertisingSales PromotionProductionR&D Human Resources Finance/Control

Designing Appropriate Organisational Structures and Processes Functional Organisations: The simplest and most bureaucratic design Most centralised and formalised organisation form Relies primarily on hierarchical mechanisms for resolving conflicts Image by OpenClips. Public Domain. Pixabay.Pixabay

Marketing Department – Product Management Organisation Marketing VC/ Director Group Product Manager Product Manager Product A Product Manager Product B Product Manager Product C Marketing Research SalesAdvertising Sales Promotion

Designing Appropriate Organisational Structures and Processes Product management organisations: This structure decentralises decision- making while increasing the amount of product specialisation Although the product managers are responsible for obtaining cooperation from other functional areas both within and outside the marketing department, they have no formal authority over these areas

Marketing Department – Market Management Organisation Marketing VP/ Director Marketing Research Sales Advertising Sales Promotion Group Markets Manager Manager Market A Manager Market B Manager Market C

Designing Appropriate Organisational Structures and Processes Market management organisations: In some industries an SBU may market a single product to a large number of markets where customers have very different requirements and preferences The intermediaries and marketing activities involved in selling to the different markets are so different that it makes sense to have separate market managers in charge of each Image by Nemo. Public Domain. Pixabay.Pixabay

Designing Appropriate Organisational Structures and Processes Matrix organisations: The least bureaucratic or centralised and the most specialised type of organisation Brings together two or more different types of specialists within a participative coordination structure Suits prospector businesses and the management of new product development projects within analyser or differentiated defender businesses Sendible Insights. (n.d.). 6 Features Franchise Businesses should look for when evaluating social media management tools. Retrieved from: ng/

Designing Appropriate Organisational Structures and Processes Recent trends in organisational design: Organisations will increasingly emphasise the managing of business processes in contrast to functional areas Process management is quite different from the management of a function as - It uses external objectives - People with different skills are grouped to undertake a complete piece of work Their work is done simultaneously, not in sequence Information flows directly to where it is used The use of self-managing teams Collaborative networks

Designing Appropriate Organisational Structures and Processes Organisational adjustments as firms grow and markets change Organisational designs for global markets Little or no formal organisation (ranges between the domestic organisation handling international transactions and a separate export department) An international division (serves best with a limited number of products that lack cultural sensitivity) Global structures (based on products) Decision-making and organisational structure Image by geralt. Public Domain. Pixabay.Pixabay

Marketing Plans Executive summary Current situation and trends Performance review Key issues Objectives Marketing strategy Action plans Projected profit and loss statement Controls Contingency plans Image by OpenClips. Public Domain. Pixabay.Pixabay

Take-Aways Strategies are worthless without good implementation Different administrative relationships between the business unit and corporate headquarters are appropriate for different competitive strategies (firms with multiple businesses/product lines) Different functional competencies, levels of specialisation, amounts of employee participation in decision-making, and mechanisms for resolution of internal conflicts are needed to effectively implement varying competitive strategies Several different organisational designs incorporate differences in both structural variables and mechanisms for resolving interfunctional conflicts

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