Management for All: Marketing

Showing posts with label Marketing. Show all posts

Sunday, November 24, 2013

MARKET-CENTRED ORGANISATION

Market-Centred Organisation

The principles of organisation apply whether you are designing the entire organisation or a department within it. The three most basic functions necessary for any business organisation are finance, production and marketing. Each of these functions is organised separately. Thus, within the organisation structure of the firm you would have distinct organisations for each function.

Broadly speaking, marketing is concerned with all aspects of the product, pricing, promotion and distribution. All sub-functions or activities relating to these four basic dimensions are included in the marketing function. You have to account for these various activities when designing the marketing organisation.

The structure of a marketing organisation can be studied at different levels, such as overall firm level or divisional level or market level.

There are many ways of organising the marketing department. We shall discuss in detail the four basic methods:

A. Functional Organisation,

B. Product Management Organisation;

C. Market Centred Organisation and

D. Matrix Organisation.

Methods other than these four are either their derivatives or combinations.

MARKET CENTRED ORGANISATION

We have seen that some companies with a product manager organisation have started to group together products which serve similar needs. Thus the basis for differentiation is-shifting from products to customers. A group of customers with similar needs and a common link between them constitute a market. When different markets, rather than functions or products form_,the basis for differentiating marketing roles, the organisation is known as market-centred.

A company marketing building hardware such as door and window handles, window frames and locks has two distinct customers. One, hardware retailers who sell to individual household customers and second, construction companies. These two distinct customer segments represent separate markets each requiring a different marketing mix of advertising, distribution channel, and pricing. Airlines, railways, and road transportation companies have two major distinct markets to serve. They provide transportation for people (passengers) and goods (cargo). Each market (passenger vs. cargo) has its distinct characteristics and needs a suitable marketing strategy and a matching marketing organisation with relevant skill to formulate and implement the strategy.

A market-centred firm seeks its growth by serving new needs in markets where it is already well established. Since knowledge and access to the market is the basis for organising the marketing set-up, the question to be asked is "what other needs of the markets that we know well can we serve profitably?^"For instance, an airlines company, within the passenger markets can further identify markets such as group travel, and charter flights. This constitutes an instance of growth through intensively serving a well establish need (transportation) in a well established market (people). However, a market-centred organisation also has the flexibility to grow extensively by searching out closely related needs and entering new businesses around these. The airlines may enter a new business by providing a courier service. The need is still that of transportation, but the market is not people, or cargo but important documents and parcels. Through the extensive and intensive approach, a market-centred firm seeks to grow by the meeting the greatest number of inter-related needs of every market it serves.

In terms of organisation structure, a market-centred organisation can be organised in the same way as a product management organisation. Instead of product managers, with detailed knowledge of the product you would have market managers each having thorough knowledge about his market. However, we have seen that there are problems of control and authority associated with the product manager organisation. To overcome these, a market-centre should be treated as a profit centre and its manager be assigned the role of a business manager with full accountability for generating profits. The business manager is the chief `line' officer, with full authority overall the other functions supporting and reporting to him.

At this stage, you may like to ask the question "why should I reorganise my marketing organisation to being a market-centred organisation?" There are two specific situations in which a market-centred organisation can be more effective than any other kind of organisation and if you happen to be facing any one of them, a change to a market-centred marketing organisation is advisable.

1. When competitors have developed the same level of product sophistication and quality as the market leader and the leader's supremacy based on price advantage is seriously threatened. In such a situation, market centring can help the leader revive its competitive advantages, detailed knowledge of customer and retailers helps frame creative marketing strategies.

2. When a firm wants to diversify either to expand the profit base, or gain a total hold on existing customers.

The first objective can be served by adding on higher margin products and services to the existing product line. The second objective is served by marketing a package or system of correlated products and services, enabling the firm to act as a one-stop supplier for each market.

Friday, November 22, 2013

MARKETING ORGANISATION DESIGNING

METHODS OF DESIGNING THE

MARKETING ORGANISATION

An organisation’s design is a function of the objectives which it has to accomplish, the diversity and complexity of the tasks to be performed and the environment in which the organisation operates. Similarly, a marketing organisation's design is a function of the diversity of products, markets and product/market combinations that it is involved with and its environment comprising competition, technology, socio-economic and legal factors, and the marketing objectives. Depending on the combination of these factors and the relative importance of each_,of them in achieving the marketing objectives, you can design an organisation which is suited to your specific requirements.

Designing an Organisation

Organisation refers to any system, body or group of people, comprising various sub-systems or parts which are inter-related and or inter-dependent on each other. An organisation may be informal or formal. An informal organisation has no specific objective to achieve. A formal organisation has specific objectives to achieve and that is the very reason for the organisation^'s existence. Objectives may relate to making profit or there may be no consideration of profit whatsoever. Thus, when we refer to an organisation it can mean a firm or company involved in business, a non-business organisation such as university, hospital, a social organisation such as club, charitable trust, or a government agency. Irrespective of the nature of an organisation, the principles involved in its design are the same. These are:

Specialisation: The division of labour on the basis of which a particular type (or set) of activity is differentiated from another. Jobs are assigned to individuals on the basis of their specialisation.

Departmentalisation: The integration of differentiated (or specialised) activities^.and grouping of individuals into departments, divisions etc.

Standardisation: The existence of procedures and systems, which help integrate the entire organisation.

Formalisation: The extent to which all procedures, systems and policies are written, so that the organisation becomes independent of the person(s) who founded it and acquires a life-span substantially longer than any one individual.

Centralisation: The level at which authority for decision-making is concentrated. It involves designing formal reporting relationships and information systems, leading to hierarchical levels and spans of control.

Evaluation: Providing systems for appraisal and compensation.

Structure: The total configuration or arrangement of individuals, departments, reporting ' relationships, information flows, span of control, all of which give the organisation its specific 'shape'.

Given these basic principles, you have many kinds of organisation structures to choose from. In making the choice, you must evaluate the alternative structures on the basis of:

- facilitating achievement of objectives and accomplishment of tasks,

- managerial control, and

- cost

What is Marketing Organisation

The structure of a marketing organisation can be studied at different levels, such as overall firm level or divisional level or market level.

There are many ways of organising the marketing department. We shall discuss in detail the four basic methods:

A. Functional Organisation,

B. Product Management Organisation;

C. Market Centred Organisation and

D. Matrix Organisation.

Methods other than these four are either their derivatives or combinations.

Wednesday, October 2, 2013

MARKETING : MEANING AND CONCEPT

What is the meaning and concept of marketing, marketing mix and marketing strategies ?

In USA, 300 college administrators were asked about the meaning of marketing. As many as 90 per cent said that marketing was selling, advertising and/or public relations. It is no wonder that the Americans are bombarded with TV commercials, newspaper advertising, sales calls, etc.

The American Marketing Association defines marketing as follows:

"Marketing is the performance of business activities that directs the flow of goods and services from producer to consumer or user."

The entrepreneur has first to decide what product he should select. This he can do only if he can identify the needs, which require satisfaction among human beings. Once he has identified the need of a group of human beings (called market segment), he can determine the product, which can help to satisfy that need. This is a part of the modern philosophy of marketing or the marketing concept.

Friday, July 1, 2011

Technology Management

What is technology management ? How technology development progress from invention to innovation ? Explain citing one such example.

WHAT IS TECHNOLOGY MANAGEMENT :

Many factors make up the technology development framework and there are several ways of condensing these into a manageable number of grouping. These factors are grouped around six broad dimensions (as in figure-1) :

1. Objective

2. Decision Criteria

3. Time

4. Constraints

5. Activities

6. Mechanism

Fig-1 : Dimensions of Technology Management

Monday, June 20, 2011

Interpersonal Relation

Interpersonal relation and factors affecting interpersonal relations ?

INTERPERSONAL RELATION:

Performance of members of any organisation depends on their ability to effectively interact with their superiors, subordinates and co-workers within the organisation and consumers, suppliers and general public outside. Interpersonal relation, therefore is a very important issue involving any organisation. Most organisations have people problems rather than business problems. People problems are due to faulty interpersonal relations, which hinders the attainment of organisational goal. Efforts are therefore made to enhance the interpersonal skills of the people at work.

FACTORS AFFECTING INTERPERSONAL RELATIONS :

Based on past experience people make assumptions about the nature of the other and of the particular kind of situation they are in (e.g. Competition or Cooperation). Each person develops positive or negative feelings that contribute to enhanced or diminished perceptions of self, the other and the current situation. These perceptions contribute to evaluation of the other person in this situation and lead to the formulation of intentions to interact in specific ways to accomplish personal objectives. The consequences of that behaviour and subsequent interactions generate new inputs for another set of reactions.

A. Personality Factors:

When trying to understand your feelings and behaviour, it helps to be aware that how you think and feel about yourself and others may be very unlike how they think and feel about themselves and you. These different evaluation and reactions depend on each individual's self-concepts, value system; frame of reference, defensiveness, interpersonal relationship needs and feelings.

Thursday, November 19, 2009

Merger and Acquisition

Explain the concept of merger and acquisition. Describe the role of agencies in the formation of mergers and acquisitions. Illustrate the process of merger and acquisition with reference to an organization.

Ans : Management theory and practice has given change theories, models and tools but intense competition forces organizations to grapple the change which is changing faster than change itself. One of the successful ways of meeting such contingencies is restructuring. The current restructuring modes all over the world appear to be the phenomenon of mergers and acquisitions.

Every mergers or acquisition goes through a learning process of its own. Peter Drucker, for instance provides a set of ‘rules’ of successful acquisition. If managed properly merger and acquisition (M & A) can help the organization take a path of growth and prosperity.

Concept of merger and acquisition :

Wednesday, November 11, 2009

Organisation Culture

What is organization culture? Describe how organizational culture change can take place ? illustrate from an organization where culture change had taken place.

Ans : Organization culture covers a wide range of behaviour : the methods of production, job skills and technical knowledge, attitude towards discipline and punishment, the customs and habits of managerial behaviour; the objectives of the concern, its way of doing business, the methods of payment, the values placed on different types of works, belief in democratic living and joint consultation, and the less conscious conventions and taboos.

Definitions of Culture :

According to Schein (1885) the term “culture” should be reserved for the deeper level of basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously, and that define in a basic “ taken-for-granted” fashion an organisation’s view of itself an its environment. The assumptions and beliefs are learned responses to a group’s problems of survival in its external environment and its problems of internal integration.

Sunday, November 2, 2008

Reward System

Explain what is reward system ? Describe the reward system of your organization you are acquainted with. How financial reward systems have been helping in improving organizational performance?

REWARD SYSTEM

One of important attributes of work organization is the ability to give reward to their members. Pay, promotions, fringe benefits, and status symbols are perhaps the most important rewards. Because these rewards are important, the ways they are distributed have a profound effect on the quality of work life as well as on the effectiveness of organization.

Organization typically rely on reward system to do four things :

1. Motivate employees to perform effectively.

2. Motivate employee to join the organization.

3. Motivate employee to come to work, and

4. Motivate individuals by indicating their position in the organization structure.

There are several principles for setting up an effective reward system in an organization :

Friday, October 3, 2008

Competency Mapping

Define competency mapping. Briefly discuss the steps involved in competency mapping and its limitations. Explain the methods of competency mapping being followed in any organization familiar with and its effects.

COMPETENCY MAPPING

Competency mapping is a process to identify key competencies for an organization and / or job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization . A competency is defined as behavior rather than skill or ability. Competency approach to a job involves competency mapping.

The steps involved in competency mapping is presented below:
a) Conduct a job analysis by taking incumbents to complete a Position Information Questionnaire (PIQ). This can be provided for incumbents to complete or used as a basis for conducting one-on-one interviews using the PIQ as a guide. The primary goals is to gather from incumbents what they feel are the key behavior necessary to perform their respective jobs.

b) Using the results of job analysis, a competency based job description is developed.

c) With a competency based job description, mapping the competencies can be done. The competencies of the respective job description become factor for assessment on the performance evaluation. Using competencies will help to perform more objective evaluations based on displayed or not displayed behavior.

d) Taking the competency mapping one step further, one can use the results of one’s evaluation to identify in what competencies individuals need additional development or training. This will help in focusing on training needs required to achieve the goals of the position and company and help the employees develop toward the ultimate success of the organization.

Competency Mapping

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The benifits of Competency Approach :

Increased Productivity
Improved work performance.
Training that is focused on organizational objectives.
Employee know up front what is expected of them.
Employees are empowered to become partners in their own performance development

Competency approach to job analysis : Competency is a skill requires knowledge, experience, attitude, and feed back. Performance assessment criteria clearly define the acceptance level of competency in each skill is required to perform the job. The individual’s level of competency in each skill is measured against a performance standard established by the organization.

Wednesday, August 20, 2008

HRM

Explain the meaning and concept of HRM. Discuss the function of HR in your organization or any organization you are familiar with.

Ans :

Meaning of HRM :

Human Resource Management(HRM) is a process of bringing people and organization together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resources in an organization. It tries to secure the best from people by winning the whole hearted cooperation.

HRM may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in a effective and efficient manner.

According to Invacevich and Glueck, “ HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is a way of managing people at work, so that they give their best to the organization.

Concept of HRM :
HRM is a strategic approach to the acquisition, motivation, development and management of the organisation’s human resources.It is a specialized field that attempts to deriving an appropriate corporate culture, and introducing programmes which reflect and support the core values of the enterprises and ensure its success.

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