Organization of marketing activities
After studying the material of the chapter, the student must:
• the structure of the organizational structure of marketing in the enterprise;
• Modern processes of integrating marketing management into the overall management of an enterprise;
be able to
• analyze current trends in marketing organization at United States enterprises;
• establish functional marketing communications in the enterprise;
• skills to make the necessary timely decisions to implement the marketing efforts of the enterprise;
• Skills and certain levels of competence for the implementation of functional tasks.
The Role of the Marketing Service in Enterprise Activities
The goal of marketers are firms. The transformation takes place in four main areas relevant to the company as a whole:
• Change in knowledge about the company's purpose and directions, their assessments based on information about consumers, competitors, sales markets;
• removal of barriers within the company, development of new approaches to assess the effectiveness of employees of the enterprise, taking into account the final results of the company's activities on the market;
• advertising the most successful products or services of the company;
• redistribution of the rights and duties of employees of the company in order to create more favorable conditions for increasing the efficiency of its work.
The marketing department needs to establish direct and reverse links with the leading divisions of the company. So, to the economic department, in order to choose and plan the nomenclature, one must constantly have information about the number of different materials and the prices assumed on them. The department is also required to inform the marketing department in advance about the nomenclature of these materials for planning and preparing advertising campaigns.
The sales department is informed of the requirements and volumes of delivery of products. It, in turn, provides the marketing department with schedules for the shipment of goods so that optimal sales channels are prepared in time. The logistics department receives information on how the release of the product is provided by raw materials and material components. It is necessary to transfer requests to the personnel department on time for specialists required to work in a particular market or in the marketing department itself, as well as to inform personnel about the requirements for specialists.
Marketing service organizational structures
In the first stage of the marketing service, it is extremely important and very difficult to develop an organizational management structure that is clearly in line with the goals and tasks facing the department. The problem is that the universal scheme for solving this issue has not yet been worked out. The company is to consider several alternative options for organizing a marketing department.
Naturally, the organizational structure of the company's department should be built on the basis of internal features of the enterprise's functioning, its capabilities, and also taking into account the environmental factors affecting the company's operations.
We will name the factors that determine the organizational structure of the marketing service:
• Specificity and variety of produced and (or) sold goods;
• company size;
• Scale of sales activity;
• the number and condition of markets (local, regional, world) sales of products, features of sales markets.
When developing the organizational structure of the marketing department, one should be guided by the general model of the firm's management structure.
Let's give a description of the basic principles of building organizational structures for managing the marketing department.
1. Functional organization of marketing service - the organization of marketing, based on division of labor of employees of department according to functions of marketing.
This is the simplest of the structures, which is the basis for other types of organization.
When building a marketing service on a functional principle, it includes departments that deal with advertising, product planning, sales and promotion, after-sales services, etc.
The functional organization of the marketing service is effective if the company:
• produces a limited range of products of a certain amount;
• realizes its production through the same distribution channels;
• Delivers it to a few, even homogeneous markets.
The merits of such a structure include the absence of duplication in the activities of the units (staff) of the service, ease of management, the necessary maneuverability.
The effectiveness of this organizational structure falls with the increase in the range of products and the number of markets that have their own specific features.
For example, in the absence of an employee responsible for a certain product, with an increase in the range of products, there should not be a momentary change in the market environment.
The functional structure of the marketing service is distinguished by the orientation to the momentary (to achieve the current effect), which in general does not require any improvements. This forms the indifference of the marketing service to innovation.
2. Geographical organization of marketing service - the organizational structure of marketing management, which involves the grouping of specialists in specific geographical areas.
Such a structure is called regional (territorial).
The regional organization of marketing management is used more often by large decentralized enterprises, which have extensive sales markets in clearly delineated geographic regions with their specific consumer demand.
It is advisable to use the territorial structure of the marketing organization for international companies, since such an organization of the marketing department enables specialists to better take into account the needs of consumers in a particular region (if, of course, the regions have differences). The structure allows you to reduce the time and money for travel.
The shortcomings of this marketing structure (however, like those of organizational structures that are focused on products and markets) include the inevitable duplication of a number of functions by local units and the problems of coordination within the company.
3. The product marketing organization assumes responsibility for the marketing of a particular product or product group of the product manager, who is subordinate to the specialists who carry out all marketing functions in relation to this product.
The product form of marketing service organization is expedient if the organization of marketing, advertising, service of each product (group of goods) has its own specifics, and the sales volume of each product provides coverage for the costs of duplicating marketing functions in each department by product, inevitable in this situation.
In developed countries, the marketing form of the organization is mainly used by large decentralized companies that orient their branches to work with a certain product.
The merits of this structure include the speed of the company's reaction to those changes that occur on the market in relation to this product. Speed is provided by coordinating all marketing for a particular product by one manager. The disadvantage of the product form is the growth of the company's expenses for the salaries of employees due to the increase in staff. In addition, the duplication of marketing functions in separate units is inevitable.
4. With marketing organization marketing , there are market managers responsible for marketing in a particular market. Such an organization is suitable for firms that sell goods in various large enough markets, differing in preferences and specific service of the goods. As markets are considered industries (oil companies, for example) or segments of homogeneous consumers.
In the market organization of the marketing service, each unit leads a separate group of customers or a market segment. If the client is very important for the company, it is served by a separate manager.
The advantages of this marketing structure include specialization in the release of the product, taking into account a specific market or group of buyers.
The complexity of coordination of specific directions, the duplication of a number of common functions (research, marketing, supply, etc.) and the large cost of a market organization of a marketing service, in comparison with the functional structure, are attributed to the shortcomings of the structure.
With a divisional approach, a number of marketing activities are identified, i.e. division occurs depending on the object, and not on the functions (as objects act clients, goods, market, etc.). This way of organizing a marketing service is convenient, if the company's production program includes a significant number of different products that are produced independently by individual units of the enterprise. Divisions, being constituent components of the structure, act as separate relatively independent structural units, which may include their own functional units.
For the successful operation of divisions, there is a need for a variety of markets, as well as a certain size of the company (with its growth, the possibility of diversifying the output of products increases, which makes the use of the divisional structure more meaningful).
The advantages of divisions include coverage of all products produced by the enterprise, a more flexible response to market changes, better opportunities for coordinating marketing service units. As shortcomings, the fact that the organization and functioning of the divisional structure requires significant time and material costs, leads to the growth of staff, is difficult to manage.
Creating a temporary organizational structure, necessary for the development and implementation of a project, often use the so-called matrix approach. Structuring criteria for the matrix structures of the organization of marketing services are: 1) regions; 2) customers; 3) goods; 4) functions. For example, the matrix structure includes two structures - functional and project. In this case, in addition to permanent functional departments, it will be necessary to create temporary project teams to solve specific problems with the involvement of specialists from functional departments. The matrix structure effectively functions with a clear division of powers, creating conditions for more successful communication between specialists, and admissibility of the growth of the number of marketers.
The advantages of matrix structures include flexibility, ease of internal adjustment when solving a new task, insignificant loss of information, ability to better coordinate activities.
A significant shortcoming of the matrix structure is the conflicts that arise among employees about their competencies. The reason for such conflicts is seen in the duality of leadership, characteristic of matrix type structures. If problems arise in the execution of the program, it is not always clear what the essence of the matter is, who is responsible for its solution. This, of course, reduces the speed of decision-making.
To level this deficit, it is recommended to clearly define the responsibilities and principles of authority, on the one hand, the program manager, and on the other hand - the functional manager. The program manager is fully responsible for the implementation of this program, and the functional manager is responsible for managing the activities of specialists, supervising the activities of subordinates. Having delineated the powers of managers, the company can achieve a reduction in the likelihood of friction and conflict, which are due to the fact that there is no one-man management in the matrix structures.
The organization of management of marketing activities involves promoting the development of the marketing function, the formation of a marketing system and the development of the activities of the marketing department in the company. Fundamental is the establishment of links between marketing and production, finance, supply and sales.
The functions of managers and marketers are related to the preparation and adoption of strategic and operational decisions at all levels of management of the firm. These specialists are called upon to directly implement these decisions, as well as perform all sorts of auxiliary technical work.
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