Marketing organizations may be of various types. The most important of them all include:
1. Function Oriented
2. Market Oriented
3. Product Oriented
4. Customer Oriented
5. Combined Type
Let us understand each of them one by one.
- Function Oriented: This is the most simple and common type of organization. Under this type, the activities are grouped on the basis of function, such as production planning, marketing research, advertising, and sales. There are separate managers for specific functions and each of these functions is further subdivided into various sub-functions like product planning, marketing research, advertising, sales promotion, physical distribution, customer service, etc.
The main advantages of a function-oriented marketing organization are increased efficiency and elasticity in the organization.
2. Market-Oriented: This type of structure is used by big companies who serve a large number of customers spread over a very large territory. The structure is divided into a regional basis and specific areas are assigned to different persons. Each region may be under a supervisor whose numbers depend on the characteristics and requirements of a particular region. Each supervisor is given a number of salesmen under his control. Thus the market is fragmented into sale territories which may be a district, division, or region.
The main advantage of this type of marketing structure is that it enjoys all the advantages of being functional. Additionally, such an organization is in constant touch with the customers. It comes to know the changing habits, fashion, and needs of the customers of every region and therefore can make necessary changes in their products in a short span of time. Also, the responsibility can be fixed in such an organization very easily for any lapse.
3. Product Oriented: Big companies, as well as smaller concerns, exist side by side in the field of production. The smaller companies have another popular form or structure which assigns product managers and brand managers with the responsibility for marketing decisions of particular products or groups of products. Advertising, sales promotion, marketing research, etc. can be centralized activities. The product manager takes decisions and executes decisions regarding advertising and sales promotions after taking necessary suggestions from the advertising manager and sales promotion manager respectively.
This type of structure is best suited to industries producing different products or brands. Every department can be controlled efficiently by the department in charge, rendering thereon, an additional benefit of making it possible for evaluation and comparison of the performance of the different departments.
4. Customer Oriented: Under this type of structure, concentration is on the type of customers. Notes
Separate groups are designated responsible for marketing classes of their different classes of customers such as:
(a) Distributors
(b) Retailers
(c) Customers
Under this type of organization, full attention can be paid to each class of customers and their problems can be well understood by the organization. As an organization comes in contact with the customers regularly, it is easier to estimate their demand and satisfy them. Although customer satisfaction is the main aim of the structure, it is suitable in those organizations only where the nature of customers is different.
5. Combined Type: The four types discussed above are basic concepts regarding organization structures. Any structure in its pure form is rarely found in an organization. In practice, one normally comes across a combination such as:
(a) Functional with territorial structure, or
(b) Functional with product-oriented structure, or
(c) Market-oriented with product structure
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