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Marketing Organisation


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Traditional Structure of a marketing department


Equations are omitted for technical reasons - download the original pdf

Each firm has to make a decision regarding how to organise its marketing department and each structure has advantages and disadvantages. The traditional structure involves dividing the marketing department under a marketing director into three divisions: sales, product development and marketing, with separate managers and possibly separate regional divisions and product managers. The advantage is a clear structure with specialist staff in each division; the disadvantage is that unless communication is particularly good, the overall picture of what is happening to any one product may be lost, with potentially disastrous consequences. These disadvantages could destroy a company if combined with any of the following: 1. Absence of clear objectives, or company policy. 2. Failure to understand the market. 3. Lack of communication. 4. Failure to plan for production capacity. 5. No agreed cost accounting principles. 6. Chasing technological elegance for its own sake. 7. Failure to design for production. 8. No project management. Lack of control and no "drive". 9. Unwarrented interference by top management. 10. Lack of financial provisioning.
Contents of
Marketing Organisation

1 Traditional Structure of a marketing department
2 Product/brand manager with a team in a marketing department
3 Marketing by geographical area of type of customer.

Related articles: (1) Determinants of Demand, (2) Marketing Organisation