2. M A R K E T I N G
P L A N N I N G, O R G A N I Z A T I O N A N D A U D I T
A G U R U R A J P H A T A K PRESENTATION
3. Marketing Organization
This Module Includes
Marketing Planning: Meaning, Concepts of Marketing plan, Steps
involved in planning.
Marketing Organization: Factors influencing the size of the marketing
organization, various types of marketing structures/Organizations.
Marketing Audit: Meaning, Features of marketing audit, various
components of marketing audit.
4. Marketing Organization
Marketing Planning
• A marketing plan is a written document that details the necessary actions to
achieve one or more marketing objectives.
• It can be for a product or service, a brand, or a product line. Marketing plans cover
between one and five years.
• A marketing plan may be part of an overall business plan.
• Solid marketing strategy is the foundation of a well-written marketing plan. While a
marketing plan contains a list of actions, a marketing plan without a sound strategic
foundation is of little use.
• A marketing plan is a written document containing the guidelines for the business
centers marketing the programmes and allocations over the planning period.
• A written plan provides a vehicle for communication between different functional
areas of the organization like manufacturing ,sales finance, and distribution which
is very vital for successful implementation of the plan.
• Marketing plan can be prepared for one product or brand ,for an entire product
category ,or for specific brands depending on the priority and size of each.
5. Marketing Organization
Marketing Planning: Objectives
• To define the current situation facing the product
• To define problems and opportunities facing the business.
• To establish objectives.
• To define the strategies and programmes necessary to achieve the
objectives.
• To pinpoint the responsibilities for achieving the objectives.
• To encourage careful and disciplined thinking
• To establish a customer –competitor orientation
6. Marketing Organization
Marketing Planning-Steps
1. Determine the firm’s mission.
2. Set company goals.
3. Perform external analysis.
4. Perform internal analysis.
5. Establish marketing goals.
6. Define strategies to achieve your goals.
7. Research and refine strategies.
8. Create and refine promotional and sales tactics.
9. Implement the plan.
10. Evaluate the plan in action.
DSP PED RCIE
7. Marketing Organization
Marketing Plan-Components
a) Executive summary
b) Situation analysis
c) Threats and opportunity analysis
d) Objectives
e) Marketing strategies
f) Marketing action programmes
g) budget allocation
h) Monitors and controls
8. Marketing Organization
Marketing Plan-Advantages and Limitations
Advantages
identifies needs and wants of
consumers
determines demand for product
aids in design of products that fulfill
consumers needs
identifies competitors and analyzes
your product's or firm's competitive
advantage
identifies new product areas
identifies new and/or potential
customers
allows for test to see if strategies
are giving the desired results
Disadvantages/Limitations
identifies weaknesses in your
business skills
leads to faulty marketing decisions
based on improperly analyzed data
creates unrealistic financial
projections if information is
interpreted incorrectly
identifies weaknesses in your
overall business plan
9. Marketing Organization
Marketing Organization
• Marketing Organization:
• any organization that markets one or more systems, applications, and/or
components produced by a development organization to potential customer
organizations.
• Responsibilities
The typical responsibilities of a Marketing Organization are to:
• Market applications to the customer organization(s).
• Provide change requests based on customer feedback to the development
organization.
• Act as a source of requirements during the performance of the requirements
identification task.
• This organization typically inherits the common responsibilities from the
organization method component
10. Marketing Organization
Marketing Organization
• Modern marketing organization are structured on the basis of
concepts like production marketing hrm etc in most companies. This
modern marketing organization structure has evolved after passing
through many stages
Simple sales department
Sales department with some marketing function
Separate marketing department
Integrated marketing department
Modern marketing oriented organization
11. Marketing Organization
Marketing Organization-Factors Influencing MO
Factors influencing marketing org can be categorized into internal and external factors
Internal:
1. Top Management Philosophy: Organizational planning and its working is greatly
influenced by philosophy which can be good or bad eg: Centralization Vs
Decentralization
2. Product policy: the width of product line of an org determines its size as the
product offerings becomes increasingly diverse. Eg: There could be a need to move
away from straight functional approach to product group approach.
3. People: The size of the organization is not an important factor in terms of number
of people but it is important with respect to human values which are critical and
correct decisions
regarding people cannot be made unless taking into consideration
Number
Qualifications
Capabilities
Personality
Attitude
12. Marketing Organization
External Factors:
1. Business Environment: With regards to business environment three points are
important.
a. The type of environment in which the firm is operating in terms of operations and size.
b. The Nature of particular requirement for success in a given business which again
determines the size.
c. The rate of change in industries being served which again decides on its size and
working.
2. Markets: This is the factor which again affects the marketing organization i.e. one
should note about its a. Size b. Scope c. Nature d. Location Based on the above aspects
we need to design the size of the organization.
3. Consumer requirements and expectations: Consumers have their own set of
requirements and expectations from the organization. The more varied and vivid services
they expect that the usual requirements. as a marketer we need to increase the workload
depending upon the consumer requirements and expectations
4. Channels of distribution: It is the type of channel of distribution which a marketing firm
selects based on its size. Ex : Incase the company opts for indirect channel or channels it
depends on outside sales force and hence the organization gets thinner. When the
organization selects direct channel its size is increased as it has its own sales force.
Marketing Organization-Factors Influencing MO
13. Marketing Organization
Marketing Organization: Roles of Manager
• Develop long-range and competitive strategy for each
product
• Prepare annual marketing plan and sales forecast
• Work with advertising and merchandising agencies to
develop campaigns
• Increase support of the product among channel members
• Gather continuous intelligence on product performance,
customer attitudes
• Initiate product improvements
14. Marketing Organization
Marketing Organization Types
a. Line and staff organization
b. Functional Organization
c. Product oriented marketing organization
d. Customer oriented marketing organization
e. Geography oriented marketing organization
f. Matrix form / Combined base
15. Marketing Organization
Line and Staff Organization
1. Line and Staff Organization: In most business forms especially medium size the
marketing job is structured around few line functions and few staff functions i.e.
Major staff functions is organized into separate department and the line function is
responsible for sales department. The required coordination between the line and
staff function is managed by the executive at higher level.
Merits:
1. Provides expert advice from specialists
2. Relives line executes of routine, specialize functions
3. Enables young sales executive to acquire expertise
4. Helps in achieving effective coordination
5. Easy to operate
6. Less Expensive
Demerits:
1. Produce confusions arriving from indeterminate authority relationships
2. Curbs the authority of experts
3. Too much is expected from executives
4. Decision making is taken by top management - Head marketing
16. Marketing Organization
Functional Organization
Advantages
It is administratively simple as the
groups are designed to parallel to
normal marketing activities
It gives scope for specialization or
functional training.
Specialisation – each department
focuses on its own work
Accountability – someone is
responsible for the section
Clarity – know your and others’
roles
Disadvantages
Closed communication could lead to lack of
focus
Departments can become unwilling to change
Coordination may take too long
Gap between top and bottom
17. Marketing Organization
Product Oriented Marketing Organization
Organizations that produce wide variety of products often organize
marketing, training and promotion with respect to a product.
Merits:
1. The salesmen can render better customer service as they possess
good knowledge of product and may have close contacts with
customers.
2. It makes individual departments responsible for the promotion of
specific products.
3. It facilitates effective coordination
Demerits:
1. It increases the employment of a number of managerial personal
2. Many salesmen of same enterprise attend same customer each
representing a separate product which creates confusion in the minds
of the customer.
3. There may be duplication of activities
18. Marketing Organization
Marketing Organization: Product Based
• PM = Product Manager
• APM = Associate PM
• PA = Product Assistant
Triangular Product Team
• PM = Product Manager
• R = Market Researcher
• C = Communication Specialist
Horizontal Product Team
• PM = Product Manager
• R = Market Researcher
• C = Communication Specialist
• S = Sales Manager
• D = Distribution Specialist
• F = Finance Specialist
• E = Engineer
20. Marketing Organization
Customer Oriented Organization
Customer Oriented Marketing Organization: When the departmentation of sales
organization is done on customer basis it is called customer oriented marketing
organization. Departmentation by customer may be done in enterprise engaged in
providing specialized services to different classes of customers.
Merits:
1. It takes into account needs of each class of customers.
2. IT provides specialization among the enterprise staff
Demerits:
1. It makes coordination difficult
2. It may lead to under utilization of resources in same department
3. There may be duplication of activities
4. These types of sales organizations are not suitable for small enterprises.
21. Marketing Organization
Geography/Territorial Organizations
Geography/Territory: In a territory oriented marketing organization , the responsibilities for
marketing of various products rests almost entirely with line executives .The territory managers
are given varying nomenclatures like depot manager, district manager, area manager, zonal
manager , divisional manager etc.
Merits:
1. It leads to economy in terms of times and money
2. It helps in taking knowledge of local customers
3. It helps in effective control
Demerits:
1. It requires employment of number of managerial personnel.
2. It dilutes control from head quarters
23. Marketing Organization
Marketing Audit
The marketing audit has certain similarities to a financial audit in that it is a review or appraisal
of your existing marketing activities.
Carrying out the marketing audit provides the opportunity to review and appraise your whole
marketing activity, enabling you to assess past and present performance as well as to provide
the basis for evaluating possible future courses of action.
Because the business environment is constantly changing, the marketing audit should be used
as a reference tool, with constant updates reflecting changes in the external environment and
your own internal business experiences.
Strategic tool used to review the effectiveness of a marketing program. A marketing audit is a
comprehensive, systematic, periodic evaluation of a company's marketing capabilities. The audit
examines the goals, policies, and strategies of the marketing function as well as the methods of
the organization and the personnel who carry out the goals, policies, and strategies of the
marketing function.
Marketing audits are performed on a regular basis by an unbiased, independent company and
are used to improve a company's overall marketing performance or to establish new marketing
plans.
24. Marketing Organization
Marketing Audit
Definition:
Marketing Audit is a comprehensive, systematic,
independent, periodic examination of a company’s or
business unit’s marketing environment, objectives,
strategies, and activities with a view to determining
problem areas and opportunities, and recommending a
plan of action to improve the company’s marketing
performance.
According to:
The Father of Modern Marketing
Prof. PHILIP KOTLER
And
Father of Brand Management
Prof. KEVIN LANE KELLER
25. Marketing Organization
Marketing Audit Features
1. Comprehensive. The marketing audit covers all the major marketing activities of a
business. A comprehensive marketing audit is more effective in locating the real
source of company‘s marketing problems.
2. Systematic. Marketing audit is an orderly examination of the organisation‘s total
marketing environment, marketing objectives and strategies, marketing systems, and
specific marketing activities. The diagnosis is followed by a corrective action plan to
improve the organization's overall marketing effort.
3. Independent. Marketing audit is an independent and intelligent activity in that it
can be conducted in six ways: self audit, audit from across, audit from above company
auditing office, company task force audit and outsider audit. Generally speaking, the
best audits come from outside audit consultants.
4. Periodic. A sound marketing audit is one which is conducted periodically as a
weapon to signal the troubles or the signs of success. Typically, marketing audits are
initiated only after sales have turned down, salesforce morale has fallen, and other
company problems have occurred.
27. Marketing Organization
Marketing Audit Components
Part I:Marketing-Environment Audit
Part II: Marketing-Strategy Audit
Part III: Marketing-Organization Audit
Part 1V: Marketing-Systems Audit
Part V:Marketing-Productivity Audit
Part VI: Marketing-Function Audits
28. Marketing Organization
Marketing Audit Components
Part 1:Marketing-Environment
1.Macro environment
A Demographic
What major demographic developments and / or trends pose opportunities or threats to
this company
What actions company has taken in response to these developments and / or trends?
B Economic
What major developments in the income, prices, or savings of company’s consumers will
affect company
Is company competing as a form of entertainment for consumers?
What actions has company been taking in response to these developments and trends?
C. Ecological
What is the outlook for the cost and availability of natural resources and energy needed
by the company?
What concerns have been expressed about the company's role in pollution and
conservation, and what steps has the company taken?
29. Marketing Organization
Marketing Audit Components
D Technological
• What major changes are occurring in product technology? What is the company's
position in these technologies?
• What major generic substitutes might replace this product
E Political
• What laws are being proposed that could affect marketing strategy and tactics?
• What federal, state, and local actions should be watched? What is happening in
the areas of pollution control, equal employment opportunity, product safety,
advertising, price control, and so forth, that affects marketing strategy?
F Cultural
• What is the public's attitude toward business and toward the products produced
by the company?
• What changes in consumer and business lifestyles and values have a bearing on
the company?
30. Marketing Organization
Marketing Audit Components
2.Task Environment
A. Markets
• What is happening to market size, growth, geographical distribution, and
profits?
• What are the major market segments?
B. Customers
• How do customers and prospects rate the company and its competitors on
reputation, product quality, service, sales force, and price?
• How do different customer segments make their buying decisions?
C. Competitors
• Who are the major competitors? What are their objectives and strategies, their
strengths and weaknesses, their sizes and market shares?
What trends will affect future competition and substitutes for this product?
D. Suppliers
• What is the outlook for the availability of key resources used in production?
• What trends are occurring among suppliers in their pattern of selling?
31. Marketing Organization
Marketing Audit Components
E. Distribution and Dealers
• What are the main trade channels for bringing products to and Dealers
customers?
• What are the efficiency levels and growth potentials of the different trade
channels?
F. Facilitator and Marketing Firms
• What is the cost and availability outlook for transportation Marketing Firms
services?
• What is the cost and availability outlook for warehousing facilities?
• What is the cost and availability outlook for financial resources?
• How effective are the company's advertising agencies and marketing research
firms?
G. Publics
• What publics represent particular opportunities or problems for the company?
• What steps has the company taken to deal with each public?
32. Marketing OrganizationMarketing Audit Components
• Part II. Marketing-Strategy Audit
A. Business Mission
• Is the business mission clearly stated in market-oriented terms? Is it feasible?
B. Marketing Objectives and Goals
• Are the corporate and marketing objectives stated in the form of clear goals to guide
marketing planning and performance measurement?
• Are the marketing objectives appropriate, given the company's competitive position,
resources, and opportunities?
C. Strategy
• Is management able to articulate a clear marketing strategy for achieving its marketing
objectives? Is the strategy convincing? Is the strategy appropriate to the stage of the
product life cycle, competitors' strategies, and the state of the economy?
• Is the company using the best basis for market segmentation? Does it have sound criteria
for rating the segments and choosing the best ones? Has it developed accurate profiles of
each target segment?
• Has the company developed a sound positioning and marketing mix for each target
segment? Are marketing resources allocated optimally to the major elements of the
marketing mix -- i.e., product quality, service, sales force, advertising, promotion, and
distribution?
• Are enough resources or too many resources budgeted to accomplish the marketing
objectives?
33. Marketing Organization
Marketing Audit Components
• Part III. Marketing-Organization Audit
A. Formal Structure
• Does the marketing officer have adequate authority over, and responsibility for,
Structure company activities that affect the customer's satisfaction?
• Are the marketing activities optimally structured along functional, product, end-
user, and territorial lines?
B. Functional Efficiency
• Are there good communication and working relations between marketing and
Efficiency sales?
• Is the product management system working effectively? Are product managers
able to plan profits or only sales volume?
• Are there any groups in marketing that need more training, motivation,
supervision, or evaluation?
C. Interface Efficiency
• Are there any problems between marketing and manufacturing, R&D,
purchasing, Efficiency finance, accounting, and legal that need attention.
34. Marketing Organization
Marketing Audit Components
• Part 1V. Marketing-Systems Audit
A. Marketing Information System
• Is the marketing intelligence system producing accurate, sufficient, and timely
information about marketplace developments with respect to customers,
prospects, distributors and dealers, competitors, suppliers, and various publics?
• Are company decision makers asking for enough marketing research, and are
they using the results?
• Is the company employing the best methods for market and sales forecasting?
B. Marketing Planning System
• Is the marketing planning system well conceived and effective?
• Is sales forecasting and market potential measurement soundly carried out?
• Are sales quotas set on a proper basis?
35. Marketing Organization
Marketing Audit Components
C. Marketing Control System
• Are the control procedures adequate to ensure that the annual-plan objectives
are being achieved?
• Does management periodically analyze the profitability of products, markets,
territories, and channels of distribution?
• Are marketing costs periodically examined?
D. New-Product Development System
• Is the company well organized to gather, generate, and screen new-product
ideas?
• Does the company do adequate concept research and business analysis before
investing in new ideas?
• Does the company carry out adequate product and market testing before
launching new products?
36. Marketing Organization
• Part V. Marketing-Productivity Audit
A. Profitability Analysis
• What is the profitability of the company's different products, markets,
territories and channels of distribution?
• Should the company enter, expand, contract, or withdraw from any business
segments and what would be the short- and long-run profit consequences?
B. Cost Effectiveness Analysis
• Do any marketing activities seem to have excessive costs? Can cost-reducing
steps be taken?
Marketing Audit Components
37. Marketing Organization
Marketing Audit Components
• Part VI. Marketing-Function Audits
A. Products
• What are the product-line objectives? Are these objectives sound? Is the current product
line meeting the objectives?
• Should the product line be stretched or contracted upward, downward, or both ways?
• Which products should be phased out? Which products should be added?
• What is the buyers' knowledge and attitudes toward the company's and competitors'
product quality, features, styling, brand names, etc.? What areas of product strategy
need improvement?
B. Price
• what are the pricing objectives, policies, strategies, and procedures? To what extent are
prices set on cost, demand, and competitive criteria?
• Do the customers see the company's prices as being in line with the value of its offer?
• What does management know about the price elasticity of demand experience curve
effects, and competitors' prices and pricing policies?
• To what extent are price policies compatible with the needs of distributors and dealers,
suppliers, and government regulation?
38. Marketing Organization
Marketing Audit Components
C. Distribution
• What are the distribution objectives and strategies?
• Is there adequate market coverage and service?
• How effective are the following channel members distributors, dealers,
manufacturers representatives, brokers, agents, etc.?
• Should the company consider changing its distribution channels?
D. Advertising, Sales Promotion, and Publicity
• What are the organization's advertising objectives? Are they sound?
• Is the right amount being spent on advertising? How is the budget determined?
• Are the ad themes and copy effective? What do customers and the public think
and Publicity about the advertising?
• Are the advertising media well chosen?
• Is the internal advertising staff adequate?
• Is the sales-promotion budget adequate? Is there effective and sufficient use of
sales-promotion tools such as samples, coupons, displays, sales contests?
• Is the publicity budget adequate? Is the public relations staff competent and
creative?
39. Marketing Organization
Marketing Audit Components
E. Sales force
What are the organization's sales force objectives?
Is the sales force large enough to accomplish the company's objectives?
Is the sales force organized along the proper principles of specialization (territory,
market, product)? Are there enough (or too many) sales managers to guide the field
sales representatives?
Does the sales-compensation level and structure provide adequate incentive and
reward?
Does the sales force show high morale, ability, and effort?
Are the procedures adequate for setting quotas and evaluating performances?
How does the company's sales force compare to competitors sales force?
40. Marketing Organization
Marketing In Indian Railways
Movies i.e. Indian Film Industry is Associated with Indian Railways which is a Strategy to
Market there movies Across the Country.
41. All the Best For Exams
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