CHAPTER 18 1 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Ways to Organize Marketing Tasks 2 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Functional Organization 3 Fig Simple functional organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Product Organization 4 Fig Product or market organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Sales Organization 5 Fig Product or market sales organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Geographic or Area Organization 6 Fig Geographic or area organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Mixed Market Organization 7 Fig Mixed market organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Export Department 8 Fig Export department Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Global product. Global area. Global functional. Mixed or hybrid. Matrix. International Organizational Structures 9 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Matrix Organization 10 Fig Matrix organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Develop and communicate a clear corporate vision. Use human resources to broaden individual perspectives and develop identification with corporate goals. Integrate individual thinking into the corporate agenda. Changing Organizational Thinking 11 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Clarity of authority and ownership to each specific function. Optimal balance of vertical and horizontal power across units. Consideration of organizational units as catalysts for innovation vs. those for constraining opportunities in assigning formal power. Understand practices that are culture-challenging or culture- friendly. Balancing the cost of management time vs. allowing more input. Be open to new ideas. Improve Matrix Effectiveness 12 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Characteristics – Even communication flow. – No fixed leadership. – Status from knowledge and skill. – Use of broader range of skills. Drawbacks – Time-consuming discussions and leadership issues. – Difficult to identify career paths. – The bigger the organization – the more complex communication. – Organization becomes more hierarchical during stable conditions. Organismic Structures 13 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Organizational Structure 14 Fig Factors affecting organizational structure Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Accurately interpret the changing needs of the product line business. Draw together complete and imaginative plans. Develop specific programs for product improvements. Devise a follow-up system so that plans can be modified if the objectives are not met. Successful Product Managers 15 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Roles and responsibilities must be sharply defined. Team members often need to learn new skills. Information systems need to be improved so that all can get information quickly. Cross-functional career paths must be developed. Incentives for success must be carefully aligned with team results. Instituting Cross-Functional Teams 16 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Is the marketing structure capable of implementing the plans? Does the marketing focus the organization on priority markets or products? Are managers suitably empowered? Does the firm meet its sales and profit objectives? Is the organization responding to customer needs or competitive actions? Does the marketing department produce creative business strategies and plans? When to Restructure 17 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Changes in structure blur career paths. Effort put into building relationships can be wasted. Changes often mean learning new roles. Learning new roles means more mistakes will be made. Enforced change encourages people to look for new jobs. The most talented staff are the best able to find a new job. Changes in structure mean changes in status. Managing Change 18 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Acceptance of Structural Change 19 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013

Case Figure 1 20 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013 KIS organization

Summary 21 There are many types of organization structure. The trade-off is usually simplicity vs. concentration on the right segment. Most organization structures grow incrementally rather than being designed from the start. Globalization adds another layer of complexity. Centralization or decentralization is a major issue in global firms. Effectiveness of organizations is based upon internal and external factors. The best organization structures include: simplicity, easy exchange of information, putting best people closer to customers. Changing the structure may not be as effective as moving staff into appropriate places. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN Published by Routledge 2013