MBA Notes - Marketing Organisations

Question - What do you mean by marketing organisation? Explain different types of marketing organisations.

Meaning of Organisation
An organisation is a group of people that is structured and managed to achieve a common goal. Every organisation have a defined structure that determines relationship between its members, and assigns their roles, responsibilities, and authority.

Meaning of Marketing Organisation
Marketing organisation is a group of marketing persons brought together to make decisions on marketing areas like product, price, place, and promotion. Marketing organisation is the foundation of effective sales planning for systematic execution of plans and policies. Marketing organisation provides a system of relationships among various marketing functions to be performed by proper coordination among marketing persons.

Definition of Marketing Organisation
"Marketing organisation can be defined as a  formal or informal group of individuals working together to reach quantitative and  qualitative marketing objectives  by making decisions on product, price, place, and promotion."

Types of Marketing Organisations
Marketers must have knowledge of what type of marketing organisation they have in place; and what type of marketing organisation the company actually needs. Following are the different types of marketing organisation that commonly exists today :-
  • Functional Type of  Marketing Organisation;
  • Product Oriented  Marketing Organisation;
  • Market/Territory Oriented  Marketing Organisation;
  • Customer Oriented  Marketing Organisation;
In functional type of marketing organisation the different marketing activities are grouped on the basis of functions to be performed like - product planning, market research, advertising, sales, or promotion. Each main function is further divided to sub-functions to be performed to achieve marketing objectives. Each sub function is managed by separate manager under the control of marketing manager.

Product oriented marketing organisation is common where organisation is producing or marketing wide variety of products. For each product or group of products a separate product manager is assigned and made responsible for marketing decisions for that particular product or group of products.

Market oriented marketing organisation is common in big organisations serving large number of customers spreading over large territories. Depot manager, district manager, area manager, zonal manager, divisional manager, etc., are assigned to manage each territories.

Customer oriented marketing organisation is common in organisations engaged in providing specialised services to different class of customer.

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