While structuring the marketing organization, one has to carefully avoid certain imperfection and anomalies that commonly creep in.
Pitfalls can be avoided only by a correct understanding of the role and functions of each department and each executive position. The ultimate aims of the organization have to be kept in focus while grouping the functions and deciding the hierarchy.
Modification of Organization in a going Concern:
Marketing organization in ongoing concerns accordingly require modifications. Usually, organizational modifications become necessary on account of two main factors:
1. The need for improved performance
2. The need for coping with the changes in the marketing environment
Need or Improved performance may Necessitate Organizational Modification:
Often, modification of existing organization structure may become necessary in the interest of improved marketing performance. Through analysis, it can be found whether the existing organization structure inhibits improved performance. If so, the organization structure has to be modified suitably. A close look should be taken at each department within marketing and ways of improving its functioning must be found. One approach is to compare the existing organization with the ideal organization, to identify the gaps between the existing and the ideal, and fill these gaps to the extent possible. Another approach is bench marking against the best in the industry.
The concept of marketing is essentially a concept of customer orientation. For long time it has been preached by all that the customer is king. What this implies is that products/services are bought not merely because of their quality, packaging or brand name etc., but because they satisfy a specific need of a customer. It also implies that organization have to provide service to their customer and that too without any obligation. In other words, marketing means understanding and responding to customers needs, a prerequisite for any organization’s success. And this cannot be ignored by any organization in today’s competitive environment.
However, to be successful any organization has also to be competition-oriented. It has to continuously determine its competition advantage and should take steps to further augment it, competition, government policy, technology etc before the competition.
Modification so as to keep pace with Environmental and external changes:
Marketing being a very dynamic function, marketing organization cannot remain static. A given structure might have perfectly met the requirements of yesterday, but may not be adequate to meet the requirements of today and tomorrow. After all, changes take place all the time in the environmental variables of marketing. Competition may become unusually tough. The distributive trade may change its approach and make new demands on the firm. Similarly changes also take place in the internal environment of the firm. The firm may introduce a new product. The size of the firm may expand. Any such change in the external and internal environment may call for an adjustment in the marketing organization.
This is not to suggest that one should constantly meddle with a marketing organization. When a change is called for due to changed circumstances, the organization must be capable of rising to the occasion. The change however should be made only after a thorough analysis of the need and its implications.
Commonly occurring pitfalls while structuring the marketing organizations:
1. Haphazard grouping of functions resulting in overlap of responsibilities and duplication of efforts
2. Vagueness regarding responsibilities assigned to different executive positions, resulting in lack of role clarity
3. Unimaginative break up of a unified function.
4. Ambiguous and misleading designations, the designations hiding rather than revealing, the actual job done by the concerned executives.
5. Dual control or absence of unity of command.
6. Unequal or distorted allocation of functions among the personnel
7. Certain important functions are far removed from to key position.
8. Improper delegation, either the delegation is in adequate throughout the organization, or there is only delegation of responsibility, but no delegation of authority.
9. Over-formalization; the organization structure has too much compartmentalization resulting in tension, adversely affecting efficiency.