Friday, 15 July 2011

Meaning of Marketing Organization

Weihrich and Koontz (1994) observe that organization is a word many people use loosely. But it implies a formalized intentional structure of roles or positions. Fifield and Gilligan (2000) believe that the way in which an organization develops and implements its plans is inexorably linked to its structure and managerial culture and determine organizational efficiency and effectiveness. Boyd et al (2002) explain that successful implementation of a given strategy is more likely when the business has the functional competencies demanded by its strategy and supports them with substantial resources relative to competitors; is organized suitably for its technical, market, and competitive environment; and has developed appropriate mechanisms for coordinating efforts and resolving conflicts across functional departments.

An organization consists of two interrelated dimensions: the formal structure and informal structure. The formal structure relates to the authority hierarchy, the division of labour to job specifications. The informal organization is concerned with the social dimensions and relationships within the business. It can be used both for getting things done and for creating obstacles. For effective implementation of plans, these two structures should be recognized.

The type of structure in any organization determined:
  • The size
  • The financial status
  • The skills available within
  • The value system of the organization
  • The product the organization intend to produce
  • The type of market / customer it intend to serve etc

However companies may not have marketing department or marketing organization structure as this is a common situation with small companies because it cannot afford the luxury of managerial expertise.

In small companies, the owner or manager may carry out some or all of the functions of marketing such as relationship marketing, product development, marketing research. Large organization may use the traditional structure based on functional lives of production, personnel, finance and sales the same task; may still be carry out by these department. Some of the multinational companies in Nigeria have embraced the use of marketing structure in implementing marketing programmes. Such companies include PZ Industries PLC, Cadbury Nig Plc, Nestle Plc, WAMCO Nig Plc, and so on. It should be noted that not all companies that do not have marketing department are poor at marketing nor did the existence of a marketing department guarantee marketing orientation or success.

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