Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I BASICS OF MARKETING I Session 3 Internal Environment

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Learning Objectives To understand different ways in which a marketing department in an organization is structured. To understand advantages and disadvantages of each. To understand relationship of marketing department with other departments.

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Marketing Organization Marketing structure depends on the following: How best to satisfy customer needs E.g. In-house service department The firm’s resources E.g. Having a sales force or distributors sales force or the fact the smaller marketing organizations outsource marketing services like Market Research, Advertising etc

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Functionally Focused Finance Head of Co/Div Mfg Sales Mktg Prod Mktg Advtg Mkt Research

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Functionally Focused Strengths Marketing planning for the business centered in one position Increases efficiencies and expertise in selected marketing activities through specialization ‘Administrative simplicity’ puts specific people and resources in place for key marketing functions

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Vulnerabilities Tends to have a very high level of closure for the development and approval of integrated marketing programs Potential redundancy in the development of programs ‘Management myopia’ few marketing managers have responsibility for actual marketplace results and most tend to identify with a specific function within marketing Functionally Focused

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Market Focused Finance Head of Co/Div Mfg Sales Mktg Mkt Research Mkt Mgr AMkt Mgr BMkt Mgr C

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Market-Focused Organization Strengths Concentrated focus on a defined group of customers Encourages attention to and expertise in the purchase and usage characteristics of certain industries Aids coordinated delivery of diverse products to a given customer segment and development of ‘systems’ ’solutions’-oriented programs Many FMCG companies have managers looking after specific markets like organized retail or rural markets

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Market-focused Vulnerabilities Complicates interfaces with other parts of the company,such as manufacturing and R&D,which are generally product focused Creates potential inefficiencies in manufacturing and field operations ‘Market myopia’ tends to focus attention on currently largest customer segments to relative exclusion of small but growing segments Dilutes focus on product management

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Product Focused Head of Co/Div Mfg SalesMktg Finance Advtg Prod Mgt Mkt Research Mktg Support Staff Prod Mgr A Prod Mgr B Prod Mgr C Prod Mgr D

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Strengths A special case of functionally focused organization Puts one person in charge of making a business plan work for each major product Broad-based,cross functional training and exposure:clear career path with increasing responsibilities Shortens response time between changes in strategy and changes in product plans and programs E.g. In many FMCG Companies, there are brand managers looking after individual brads reporting to category managers Product Focused

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Product Focused Vulnerabilities Creates potential duplication in support functions ‘Marketing myopia' tends to focus attention on specific product requirements rather than market needs Complicates coordination of marketing activities if several products are sold to the same customer (s) Dilutes functional expertise

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Product Teams Alternative can be to switch from product managers to product teams Vertical product team Triangular product team Horizontal product team

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Marketing Organization PM APM PA Vertical product team R C PM Triangular product team PM R C S D F E Horizontal product team Ref: Marketing Management by Philip Kotler

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Internal Relations Marketing department has two tasks: Co-ordinate the company’s internal marketing activities. Co-ordinate marketing with other company functions.

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Ref: Marketing Management by Saxena

Designed & developed by E4 SBA SEMESTER ONE Session 3 BASICS OF MARKETING- I Internal Relations Marketing and manufacturing department expects marketing to have simple products, narrow product lines and high volume production Marketing and Finance: there often conflict over control of funds as marketing requires sizable funds over a long period.