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FACTORS AFFECTING DESIGNING OF A MARKETING ORGANISATION


FACTORS AFFECTING DESIGNING OF A MARKETING ORGANISATION

1. Marketing Objectives of the Company: The marketing objectives of the company substantially influence the marketing organisation. These objectives may pertain to desired market share desired profit/sales, desired position in the industry etc. Organisation should be designed to achieve such objectives.

(2) Size of the Enterprise: If the size of the enterprise is small, there will be lesser number of consumers and Market and therefore, the marketing organisation will be simple. If the sized of the enterprise is large, there will be mass production with vast markets and customers.

(3) Area of Operations: The area of marketing operations may be local, regional, national or global. The larger the marketing operations, the more complex the marketing organisation would be able to explore new markets or to meet the needs of the customers.

(4) Nature of Products: Companies who deal in consumer durable or product which are simple to operate need not look for sales people with specialized knowledge when organizing marketing set-up. On the other hand, product such as air-conditioners, fridge, industrial machines plants and computers require that marketing people must have the functional knowledge about the equipment before marketing them.

(5) Numbers of Product: Marketing organisation would be simple if company deals only in a single product. With the increasing number of products it becomes complex.

(6) Nature of Market: The number and size of market is another factor which influences decision regarding the type of marketing organisation that a company should adopt. If there are many markets located at different geographical areas, the company may have no choice but to have separate marketing organisation for different markets.

(7) Distribution Channel: Channel decision of the enterprise also affects the marketing organisation. If the company is interested in selling its production directly to the customers it will establish its own selling outlets and marketing organisation would be larger. If the company uses larger number of intermediaries, the organisation structure would be smaller.

(8) Management Approach: If the attitude of the management is to closely monitor the marketing operations, it will centralize all the marketing operations at the headquarters of the company but if the attitude of the management is to decentralize marketing operation, the structure will be more complex as marketing function would be transferred to the regional offices.

(9) Price of the Product: If the price of the product is high, like air-conditioners, cars, etc. there will be lesser number of customers. Hence, the structure will be simple. In case of low price products, there will be large number of customers therefore the structure will be larger.

(10) Environment: The environment in which it operates also influences marketing organisation. For an enterprise, environment is consisting of economic, social, political, legal and cultural factors. These factors impinge on all operations of the firm including marketing.

(11) Technological Advancement: The marketing organisation is also affected by the information processing and communication technology. The use of computers have replaced human beings by machine for information processing enables lesser number of supervisor and managers are required for supervision and control and greater decentralization in decision making. This has resulted in reduction in intermediate levels and flatter structure in place of taller structures.

(12) Financial Strength of the Company: This factor influence a great deal the number of position/ departments to be created. Creation of a new department require additional personnel, space and equipment that a company with sound financial position can afford.

(13) Competition: The state of competition prevailing in the market also affects the marketing structure. If the competition is intense, there would be more decentralization and structure would be more flat to meet the customer’ requirement promptly. In case of less competition, there would be taller structure.

(14) Others: Besides the above factors, marketing strategies of the company, managerial capabilities, and trends in the industry regarding organisational structure may also affect designing a marketing organisational.

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