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Functional organization of the marketing service. Geographic, product and market structure of the organization of marketing at the enterprise. Matrix structures and their role in marketing

organizing a nationwide sales force for the company based on service to specific geographic areas.

  • Big Dictionary of Economics

  • - a form of organization of the marketing service, in which the main markets are assigned to market managers, collaborating with specialists from various functional services in developing plans for their market ...

    Big Dictionary of Economics

  • - organizing a marketing service using both product managers and market managers ...

    Big Dictionary of Economics

  • - a structural structure for managing marketing functions, establishing subordination and responsibility for the implementation of certain tasks ...

    Big Dictionary of Economics

  • - organization of a marketing service, in which marketing specialists conduct different directions of marketing activities and are subordinate to one of the company's leaders ...

    Economic Dictionary

  • - a scheme for organizing marketing in a company with a division of activities by market and by product ...

    Business glossary

  • - See Organization ...

    Business glossary

  • - marketing service organization applying both product and market management ...

    Business glossary

  • - organization of marketing activities based on the service of certain territories ...

    Business glossary

  • - the organization of a marketing service in which the division of responsibilities corresponds to the division of markets ...

    Business glossary

  • - organization of a marketing service, in which the division of responsibility occurs depending on the functions performed by employees ...

    Business glossary

  • - organizing a nationwide sales force for a company based on service to specific geographic areas. See also: Marketing Services & nbsp ...

    Financial vocabulary

  • - organizing a marketing service in which the main markets are assigned to market managers, who collaborate with specialists from various functional services in developing plans for their market. See & nbsp ...

    Financial vocabulary

  • - breakdown of the market into geographic units: states, regions, counties, cities, etc. See also: Marketing segmentation of markets & nbsp ...

    Financial vocabulary

  • - a methodology for conducting segmentation analysis, which is based on geographic factors ...

    Big Dictionary of Economics

  • - ....

    Encyclopedic Dictionary of Economics and Law

"ORGANIZATION OF MARKETING BY GEOGRAPHICAL PRINCIPLE" in books

Geographic sales organization

From the book Sales Department Management the author Petrov Konstantin Nikolaevich

Organization of sales by geography This is the simplest and most common method of organizing the work of a company's sales staff. Its essence lies in the fact that a separate region or territory is assigned to each sales representative. In duties

Organization of international marketing

From the book Advertising. Principles and practice author Wells William

Organization of international marketing Once an exporter settles in several countries of one regional bloc, he often begins to create regional control centers and transfer to them the functions of day-to-day business management. For example, Coca-Cola has

12. CONCEPT, PURPOSE AND ORGANIZATION OF MARKETING

From the book Enterprise Planning: A Cheat Sheet the author author unknown

12. CONCEPT, PURPOSE AND ORGANIZATION OF MARKETING The volume of sales and production of products are interdependent. In conditions of limited production possibilities and unlimited demand, priority is given to the volume of production, which determines the volume of costs. But on

3. Organization of the diary material according to the principle of genre division

From the book Russian literary diary of the 19th century. History and theory of the genre the author Egorov Oleg Georgievich

3. Organization of the diary material according to the principle of genre division The second type of diary composition involves consideration of its material as a whole, and not of one of its structural units - daily entries. This principle applies to the group of "non-classical" diaries,

Question 79 Marketing organization

From the book Marketing the author

Question 79 Organization of marketing Answer Organization of marketing includes the following questions: building and improving the organizational structure of marketing management in the company; selection of marketers and improvement of their qualifications; organization

Question 80 Organization of marketing according to the functional principle

From the book Marketing the author Rozova Natalia Konstantinovna

Question 80 Organization of marketing according to the functional principle Answer In a small business, all the main marketing functions can be performed by one person (as a rule, a manager, less often a specialist whose position can be called differently, for example, a manager

Question 81 Organization of marketing on a commodity basis

From the book Marketing the author Rozova Natalia Konstantinovna

Question 81 Organization of marketing on a commodity basis Answer Commodity (product) organization means the presence in the structure of units specializing in the marketing of certain products or product groups (Fig. 117). This structure is typical for companies

Question 82 Organization of marketing on a regional basis

From the book Marketing the author Rozova Natalia Konstantinovna

Question 82 Organization of marketing by regional principle Answer Regional organization of marketing management is typical for companies operating in heterogeneous, with clearly delineated markets (Fig. 118). In this case, the goods produced by the company must be

Question 83 Organization of marketing according to the market principle

From the book Marketing the author Rozova Natalia Konstantinovna

Question 83 Organization of marketing according to the market principle Answer To the greatest extent, the marketing concept corresponds to the market organization of marketing management in the company (Fig. 119). It is aimed at more complete satisfaction of the requirements for the product of an individual

Marketing service organization

author Melnikov Ilya

Marketing service organization

Functional organization of the marketing service

From the book Marketing Plan. Marketing service author Melnikov Ilya

Functional organization of the marketing service With the functional structure of marketing management, departments and services are formed according to the marketing functions performed, or responsibility for the performance of each function is assigned to an individual employee or group

Commodity organization of marketing services

From the book Marketing Plan. Marketing service author Melnikov Ilya

Commodity organization of marketing services At enterprises that produce a large number of various goods that require specific conditions for production and sales, commodity marketing organization is used. In this case, for each product or product group, there is

Market Marketing Organization

From the book Marketing Plan. Marketing service author Melnikov Ilya

Market organization of marketing In enterprises selling products in different markets that have different customer needs, they use a market structure of marketing management, in which a strategy is developed for each market.

Marketing failure on the principle of "me too"

From the book Brand Engagement. How to get a buyer to work for a company the author Vipperfürth Alex

Failure of “Me Too Marketing” Following the success of Red Bull, the “big guys” - Pepsi, Coca-Cola and Anheuser-Busch - also flocked to the energy drink segment. All three have tried to copy Red Bull's low-key marketing approach, but have so far had little success.

Geographic classification "River flow styles" and "South - north"

From the book Dancing Phoenix: Secrets of the Inner Wushu Schools the author Alexey Maslov

Geographic classification "River flow styles" and "South -

Geographic organization of the marketing service is an organizational structure for marketing management in which marketers are grouped by geographic area.
The regional marketing management organization is usually used by large decentralized enterprises with large sales markets that can be subdivided into clearly delineated geographic regions, each with its own characteristics of consumer demand.
This organization of the marketing department allows the employees of this department to better consider the needs of their customers in each individual geographic region (assuming that there are real differences by region), in addition, this structure reduces the time and money spent on traveling.
Product (commodity) organization of the marketing service- a marketing management structure in which the product manager is responsible for the marketing of a particular product or group of products, to whom the employees who carry out all the marketing functions necessary for this product are subordinate.

The commodity form of the organization of the marketing service makes sense when the market requirements for sales organization, advertising, service for each product (product group) have their own characteristics, and the sales volume of each product is sufficient to cover the costs of the inevitable duplication of marketing functions in each separate division by product.
4. Market organization of the marketing service- organizational structure of marketing management, which is characterized by the presence of market managers, each of whom is responsible for marketing activities in a particular market.
The organization of a marketing service by market makes sense for an enterprise that sells products in different markets, which are large enough and in which there are differences in preferences, and the goods require specific service. In this case, an industry sector (for example, the market of machine-building enterprises) or a segment of homogeneous buyers can be considered as a market.
At the same time, each marketing division is assigned a separate group of customers or a part of the market. In case of particular importance for the company of a given client, he can be assigned to a separate manager.
The advantage of this marketing organizational structure is the specialization in the release of goods based on specific markets or customers.

68. Mixed structures of marketing management: Functional-product, functional-market, product-market and functional-product-market.

1. Functional organization - a management structure in which the activities of specialists in marketing departments are organized based on the marketing functions they perform (marketing research, sales advertising, etc.).

2. Geographic organization - a marketing management structure in which marketing professionals, primarily salespeople, are grouped into separate geographic regions.

3. Commodity (product) orientation of the structure lies in the fact that for each product or group of similar products a special marketing manager is appointed, to whom the managers for advertising and sales promotion, for product movement, sales, for service provision are subordinate.

4. The market orientation is similar in structure to the commodity one, however, the division is taken not by goods, but by markets. To organize marketing on this principle prompts a large number of markets in which the company operates, while the range of products is not too large (or of the same type).

5. Functional-product organization - a marketing management structure in which the functional marketing services of an industrial enterprise develop and coordinate the implementation of some common goals and objectives of marketing for an industrial enterprise. At the same time, the product manager is responsible for developing and implementing the marketing strategy and plans for a specific product or product group.

6. The functional-market organizational structure of marketing management means that the functional marketing services of an industrial enterprise develop and coordinate the implementation of some common goals and objectives of marketing for an industrial enterprise. At the same time, the managers responsible for operating in those markets are responsible for developing and implementing marketing strategies and plans for specific markets.

7. The matrix organizational structure of management has become widespread, which can be used to the greatest extent at Russian industrial enterprises in the development and implementation of marketing programs.

69. Marketing control system: control of plans and control of profitability.

To constantly monitor the implementation of plans and the compliance of the goals set in them in the current marketing situation, a marketing control system is created. This system is represented by three types of control: control over the implementation of annual plans; control of profitability and strategic control.

Monitoring the implementation of annual plans is intended to monitor the implementation of plans by comparing current indicators with the target figures of the plan. The main means of control include: analysis of sales opportunities, analysis of market share, analysis of the relationship between marketing and sales costs, observation of customer relationships.

Profitability control is designed to identify the most promising areas of investment, which is achieved by determining the levels of profitability in the context of individual products, regions, market segments, distribution channels and order sizes.

Strategic control serves as a means of monitoring the compliance of programs, objectives and strategies of the firm with the current and projected market situation. It is done through a marketing audit.

All types of control are completed with the development of proposals for adjusting plans (strategy tasks) and correcting the current situation.

70. Control of the effectiveness of the marketing service: the effectiveness of sales personnel, the effectiveness of advertising, the effectiveness of sales promotion, the effectiveness of distribution.

Evaluating the effectiveness of the sales force

Sales managers should evaluate the performance of managers, based, for example, on the following average indicators:

Number of phone calls (with an offer to conclude a deal) per employee;

Time of one telephone contact;

Income per call;

Costs per call;

Visitor reception costs;

The number of new buyers for a certain period;

Lost customers in the same period;

The cost of maintaining a sales staff (as a percentage of sales), etc.

For example, if it is found that managers spend too much time on ordering, then it is advisable to assign this function to less qualified operators; If the number of lost customers exceeds the number of new ones, it is necessary to reorient employees to work with proven customers.

Many people think that it is almost impossible to estimate the result of advertising costs. However, the big picture can be drawn by analyzing the following indicators:

The cost of attracting thousands of target consumers using this advertising medium (GRP indicator);

The percentage of the audience who noticed, watched or read most of the ad message;

Clients' opinion on the content and effectiveness of advertising;

Evaluating the effectiveness of sales promotion

To assess the effectiveness of sales promotion activities, you need to record the costs of each such event and assess its impact on the level of sales. The following indicators should be monitored:

Percentage of sales made as part of a sales promotion event;

The amount of sales promotion costs for each hryvnia (dollar) from sales, etc.

Assessment of distribution efficiency

A company should always strive to reduce its distribution costs. Indeed, one of the main problems is that if a company's sales volume rises sharply, the efficiency of distribution of goods decreases sharply. For example, a firm may not be able to meet target delivery dates. Naturally, this negatively affects her reputation, and in the end, the volume of sales decreases. To avoid this, the company's management needs to identify bottlenecks in a timely manner and invest sufficient funds in measures to improve distribution efficiency (think about improving the location of warehouses, transportation methods, etc.).

The economic meaning of the use of marketing is to accelerate the return on the production assets of enterprises, increase the mobility of production, the level of competitiveness of the technologies and goods created, ensure promotion to markets, and especially to those of them where the maximum commercial success can be achieved.

That is, marketing is designed to help create and maintain a stock of competitive stability of the enterprise.

The core of all the company's activities is the product. If he is not able to meet the needs of the buyer, then marketing will not be able to improve his position in the market.

Each product stays on the market for a limited time. The life cycle of a product is characterized by several stages: introduction, growth, maturity, saturation, decline. Marketing activity is based on this objective truth. The most important thing is to timely grasp the stage of saturation and, in particular, recession, since it is not only unprofitable to keep a "sick" product in the assortment of goods, but it is also harmful to the prestige of the company.

Obviously, in the foreseeable future, they will face the need to reorient from sales to marketing. At the same time, such problems as the assessment of the production, resource and marketing capabilities of the enterprise; analysis of its financial and economic situation; development of the product range; diagnostics and accounting of production capacities, material and technical base and scientific and technical potential.

The marketing service should have the status of a coordinating, planning and supervising body, and its activities should meet the following basic requirements: competence, initiative, mobility, contact, adaptability, relative simplicity, compliance with the scale of sales and assortment, the number and nature of sales markets. This service should decide when to modernize products, so as not to incur increased costs for advertising and sale of obsolete goods and not to reduce the price of it (ie determine the optimal "market novelty" of the product); to plan the movement of goods, incl. sales operations, and constantly monitor the state and prospects of market development in the area of ​​interests of your company, as well as manage the supply-demand ratio in the commodity markets

For successful activity, the marketing service must be delegated, within its competence, certain rights (powers):

  • · Draw up a draft program of the enterprise's activities;
  • · Coordinate and adjust production and sales activities and the system of commodity circulation, based on the requirements of the market;
  • · Require the approval of the marketing service of all decisions that can lead to a change in the position of the enterprise in the market, shake its prestige or change its image;
  • · Monitor the implementation of marketing activities.

The organization of marketing activities or marketing includes:

  • · Construction (improvement) of the organizational structure of marketing management; selection of marketing specialists (marketers) with appropriate qualifications;
  • · Distribution of tasks, rights and responsibilities in the marketing management system;
  • · Creation of conditions for effective work of marketing services employees (organization of their workplaces, provision of the necessary information, office equipment, etc.), organization of effective interaction of marketing services with other services of the organization.

There is no single recipe for using well-defined marketing management structures.

The organizational structure of marketing activities in an enterprise can be defined as the structure of the organization on the basis of which marketing management is carried out, in other words, it is a set of services, departments, divisions, which include employees engaged in one or another marketing activity. Any organizational structure of marketing management should be built on the basis of the following dimensions: functions, geographic areas of activity, products (goods) and consumer markets.

Based on the foregoing, the following principles of organizing marketing units are distinguished: functional organization, geographic organization, product organization, market organization, and others.

Functional organization

The structure of the functional type is appropriate for enterprises in which the number of goods and markets is small. In this case, the markets and manufactured goods are regarded as homogeneous, for which specialized departments are created. Figure 1 shows a diagram of a marketing function organized by function. In addition to these divisions, the marketing department can be created departments: marketing planning, product management, new goods. The functional organization of marketing is based on the division of labor according to established and newly emerging functions, on the specialization of workers. With a small range of products, a functional marketing organization is highly maneuverable due to ease of management. However, with the expansion of the range of products, production flexibility decreases, since the period of reaction to changes in external conditions increases. The functional structure of marketing is characterized by weak flexibility of the strategy, since it focuses on achieving the current effect, and not on the introduction of innovations. This kind of marketing structure is not conducive to dynamism and innovation. In general, such a structure is an effective form of organization only with sustainable production of a limited range of products. The functional marketing structure is basic for the rest of the forms.

In addition to the above, the important tasks of functional marketing services: is to ensure the orientation of all activities of the organization to the use of marketing principles, coordination of the work of all departments and services of the organization in this direction.

Product (commodity) organization

A marketing management organizational structure in which the product manager is responsible for developing and implementing marketing strategies and plans for a specific product or group of products. Used by organizations that produce diversified products that are very different from each other.

The advantages of this type of organizational management structure are as follows:

  • - a manager dealing with a specific product has the ability to coordinate various work across the entire marketing mix for this product;
  • - the manager can quickly respond to market demands;
  • - all models of the product, both in high demand and less popular with buyers, are constantly in the field of view of the manager;
  • - it is easier to identify capable employees, as they are involved in all areas of operational marketing activities.

However, this type of organizational structure, especially when the enterprise also has functional marketing services in parallel, has certain disadvantages;

  • - the manager responsible for a certain product is not endowed with powers that would fully correspond to his activities;
  • The product organization is often more expensive than expected. Managers are initially assigned to core products. However, soon in the structure of the enterprise there appear managers, responsible for a less important product, with their own staff of assistants;
  • - employees of product departments may have double lines of reporting: their immediate supervisors and the heads of functional marketing services.

Market organization

For enterprises selling their products in different markets, where there are different product preferences, and the goods require specific services, it is advisable to organize marketing by market (Fig. 3). The market can be an industry sector or a segment of homogeneous buyers. The introduction of the position of market manager puts customer needs at the center of attention. The main markets are assigned to market managers, the latter collaborate with specialists from functional units to develop plans for various areas of functional activity. Each market must have its own marketing strategy.

Geographic organization

At enterprises producing products purchased by many regions, in each of which it is advisable to take into account the specifics of the consumption of these products, marketing structures can be organized by region (Fig. 4) When organizing marketing on a regional basis, sales agents can live within the served territory and work with minimal expenditure of time and money for traveling. This marketing structure is most often found in large decentralized firms (especially international ones) with large markets that are sometimes demarcated into separate zones and districts. The disadvantage of such a marketing structure, as well as of structures focused on goods and markets, is the duplication of work, as well as the problems of coordination of activities.

More often, a combination of these organizational principles is used, for example, functional-product (commodity), functional-market, product-market and functional-product-market structure of marketing management.

Functional food organization ation

This is the organizational structure of marketing management, in which the functional marketing services of the enterprise develop and coordinate the implementation of some common goals and objectives of marketing for the enterprise. At the same time, they are responsible for the development and implementation of marketing strategies and plans.

The product manager is responsible for developing and implementing marketing strategies and plans for a specific product or group of products. It also formulates specific product marketing assignments for the functional marketing services of the enterprise.

Functional market organization

This is a marketing management structure in which the functional marketing services of the enterprise develop and coordinate the implementation of some common marketing goals and objectives for the enterprise. At the same time, managers responsible for operating in those markets are responsible for developing and implementing marketing strategies and plans for specific markets. They also formulate marketing assignments in specific markets for the functional marketing services of the enterprise.

There is no single recipe for using well-defined marketing management structures. It should be noted that the optimal structure and form of marketing organization depend on various factors and conditions of the situation in which the company is located. The determining factors are:

1. Objectives of the enterprise:

from a technical and economic point of view, the organization should ensure the fulfillment of tasks, facilitate the management of the enterprise;

the mobility of the organization, the motivation of employees and the realization of their creative potential must be ensured.

2. Environmental conditions:

External conditions: competition; external distribution channels; the number and size of markets; number, structure of consumers and purchasing power of consumers, legal regulations, political and social relations.

Internal conditions: the size of the enterprise and its age; the number and diversity of products; qualifications of employees; financial potential; available distribution channels.

marketing planning service

There is an opinion that marketing management is the search for a number of consumers sufficient for a given level of production of a company. But is marketing management necessary for a company that already has a sufficient number of clients? Sure. Indeed, at any moment the demand can change - become insufficient or excessive. In case of excessive demand, they are used. In other words, marketing management is impact on the level and character, on its distribution in time.

Demand management means consumer management... The demand for the company's products comes from two groups of consumers: new and regular customers. Traditional marketing theory and practice has focused on attracting new customers and selling their products and services to them. Today, the situation has changed. Modern marketing is aimed not only at attracting new customers, but also at maintaining good relationships with existing customers.

Marketing management- includes analysis, planning, implementation of events and control over the implementation of activities aimed at establishing, strengthening and maintaining profitable exchanges with target customers in order to achieve the required levels of sales, profits and market share.

A marketing manager at an enterprise is an official who is engaged in creating and expanding demand for the company's products or services, problems of reducing demand.

The organization develops an idea of ​​the required level of demand for its goods and services. The marketing manager is responsible for the implementation of the plans.

The marketing management process includes:
  • Market Opportunity Analysis
    • Individual consumer markets
    • Enterprise Markets
  • Selection of target markets
    • Determination of demand volumes
    • Market segmentation
    • Product positioning on the market
  • Marketing mix development
    • Product development
    • Determining the price of a product
    • Distribution Methods
    • Promotion of goods
  • Implementation of marketing activities
    • Planning and control of marketing activities

Marketing service organization diagrams.

Organization of a marketing service at the enterprise

Depending on the type of product, production volume, market capacity, various options for organizing a marketing service are possible, which is usually headed by a deputy director or vice president of marketing. Each company creates a marketing department (service) in such a way that it would best contribute to the achievement of marketing goals (identifying unmet demand, geographic expansion of the market, identifying new market segments, increasing profits, etc.). Marketing services can be built in accordance with one of the following principles: functional organization (a department consists of several functional units - advertising, sales, market research, etc.; a commodity organization (along with the functional division of department employees, they are differentiated by types of goods); market organization (if there are market segments); commodity market (matrix) organization (for firms with a wide range of goods).

Organization of the service according to the functional principle(Fig. 2.4.) is formed in cases where the number of goods and markets is small and they are considered as some kind of homogeneity. The company creates special departments that perform all marketing functions: market research, production and marketing planning, sales management, sales promotion, etc.

Functional organization. The most common scheme is the functional organization of the marketing service. In this case, marketing specialists manage different types (functions) of marketing activities. They report to the VP of Marketing, who coordinates their work. There are five such individuals in the diagram: the marketing manager, the advertising and sales manager, the sales manager, the marketing research manager, and the new product manager. In addition to them, there may also be a customer service manager, a marketing planning service manager and a product distribution service manager.

The main advantage of a functional organization is ease of management. On the other hand, as the product range and markets of the firm grow, this scheme loses its effectiveness more and more. It becomes increasingly difficult to develop specific plans for each individual market or product, as well as coordinate the marketing activities of the firm as a whole.

Rice. 2.4. The organization of the marketing service according to the functional principle.

Organization of the marketing service on a commodity basis is used when a firm produces different goods or product groups that require special production, sales, service, which requires the allocation of special groups of specialists in marketing for each of the goods (Fig. 2.5.).

Organization for commodity production... Firms with a wide range of products and / or a variety of branded products use a merchandise or merchandise production organization. The organization for commodity production does not replace the functional organization, but is another level of management. All commodity production is managed by a commodity manager, to whom several commodity managers are subordinate, to whom, in turn, commodity managers are subordinate, each responsible for the production of his particular product. Each product manager independently develops his own production plans, monitors their implementation, controls the results, and, if necessary, revises these plans.

The organization for commodity production justifies itself in cases when the products produced by the company differ sharply from each other and / or there are so many varieties of these products that it is no longer possible to manage all this nomenclature with a functional organization of marketing. A commodity production organization has a number of advantages. First, the product manager coordinates the entire marketing mix for that product. Second, the product manager can respond faster than individual specialists to emerging market problems. Thirdly, the attention is also paid to smaller, secondary branded goods, since the production of each of them is managed by its own manager. Fourthly, product management is an excellent school for young leaders, because in this work they are involved in almost all areas of the firm's operational activities.

However, these advantages are associated with costs. First, the commodity production management system generates a number of conflicts and disappointments. Often, commodity managers are not empowered to effectively discharge their responsibilities. Second, by becoming experts in everything about their product, product managers rarely become specialists in functional areas. Third, the management system for commodity production is often more expensive than originally anticipated due to the increased cost of wages for more workers.

Rice. 2.5 Diagram of the organization of the marketing service on a commodity basis

It does not replace the functional scheme of the organization of the marketing service, but eliminates its shortcomings, since it more accurately responds to changes in the market situation, is a good school for training. At the same time, it can lead to a contradiction in the powers of managers at different levels, increase management costs, narrow product specialization does not contribute to the acquisition of skills by employees in other functional areas.

At the same time, each product (product group) has its own manager with a division of employees who perform all the functional marketing tasks for this product. Marketing of a specific product is more important because product differentiation is becoming one of the main factors in the competitive struggle. The main functions of the product manager are:

· Drawing up a plan and budget for marketing your product;

· Forecasting possible changes in the product market;

· Collecting information and studying the activities of competitors;

· Coordination of the activities of all divisions of the enterprise that affect the marketing of a particular product;

· Control over the ratio of prices and compliance with budget items;

· Introduction of new goods and removal from production of old ones.

For enterprises selling their goods in markets with different purchasing preferences, and the goods themselves require special service, it is advisable market organization of the marketing service rice. 2.6.

Rice. 2.6 Organization diagram of the marketing service based on the market principle.

With this scheme, the needs of buyers in specific market segments are optimally taken into account. The main markets are assigned to market managers, the latter collaborate with specialists from functional units to develop plans for various areas of functional activity.

Market based organization. Many firms sell their assortment products in different markets. For example, Smith-Crown sells its electric typewriters in three markets — individual consumers, businesses, and government agencies. The use of a market-based organization is desirable when different markets have different buying habits or different product preferences.

The organization by the market principle is similar to the system of organization by commodity production. The market manager oversees the activities of several market managers. The Market Manager is responsible for the development of long-term and annual plans for sales and other functional activities. The main advantage of this system lies in the fact that the firm builds its work in relation to the needs of consumers who make up specific market segments.

The limitation of the commodity and market organization of marketing services is overcome by the introduction of a commodity-market or matrix scheme (Fig. 2.7).

Rice. 2.7 Scheme of the product-market organization of the marketing service

Under this scheme, product managers are responsible for planning the sales and profits of their products, while market managers are responsible for developing markets for existing and potential products. Such an organizational structure is justified in enterprises with a wide range of products and a large number of markets in which it operates.

Organization on a commodity market principle. Firms that sell many different products in many different markets are faced with the challenge of using a product organization system that requires product managers to know very different markets, or adopting a market based organization system in which product managers working with the markets must be familiar with a variety of products purchased in their markets. A firm can also have both commodity managers and market managers at the same time, i.e. apply the so-called matrix organization.

Geographic organization. In companies selling throughout the country, the subordination of sellers often takes the form of a geographic organization. The diagram shows the national sales manager, then the regional sales managers, then the area sales managers, district sales managers, and sales agents. By organizing geographically, salespeople can live within the territories they serve, get to know their customers better, and work effectively with minimal travel time and money.

However, it should always be borne in mind that there is no ideal organizational structure for a marketing service that works equally well in all conditions. Each of them has its own advantages and disadvantages. Some of them are given in table. 2.1.

Table 2.1. Advantages and Disadvantages of Different Marketing Services Organization Schemes

Organization chart Dignity Flaws
Functional
  • Ease of Management
  • Description of employee responsibilities
  • Functional specialization and staff development
Lack of marketing management of specific products Lack of marketing management in specific markets
Commodity
  • Complete marketing of each product
  • Deeper study of the specifics of market needs and their satisfaction
Increased costs and increased responsibilities for employees make it difficult to increase their qualifications The presence of duplicating departments
Market
  • High coordination of services during market introduction
Complex structure Low degree of activity specialization Duplication of functions Poor knowledge of the product nomenclature Lack of flexibility
Commodity-market
  • Good organization of work when introducing to the market
  • Development of a comprehensive program for market introduction
  • More reliable market forecast
  • Good product knowledge
High management costs Possibility of conflict between different services when dealing with issues in the same market

The developed or implemented structure of the marketing service must meet the following requirements:

  • be as simple as possible;
  • to provide an effective system of communication between departments;
  • be low-level (low link);
  • have good flexibility and adaptability.

Similar information.