designed & developed by e4 sba semester one session 3 basics of marketing- i basics of marketing...
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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 resourcesE.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 A Mkt Mgr B Mkt 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 Sales Mktg 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
PMAPMPA
Vertical product team
R C
PM Triangular product team
PM
R C S D F EHorizontal 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.