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4.Complex organisation
Complex organizations are those organizations which are a mixture of line and staff organization, product based organization, territory based organization. These types of organization can also be called as multi product or multi-market firms. They have the head offices which have many staff departments which deals with specialized functions of marketing.
Effective Coordination
The marketing organizations should also provide for effective coordination among the different levels within marketing. There must be effective coordination between the marketing departments and other departments like production, finance, personnel, etc.,
Unambiguous job specifications The integral part of creating a marketing organization is defining clear job specifications with respect to each executive position in marketing organization. It helps in the removal of the ambiguities and provides role clarity. It also reduces friction in an organization.
Plan performances are regularly checked by managers using the five tools described as follows. Sales analysis Analyzing company's share Marketing costs to sales analysis Financial analysis
Sales analysis
This tool appraises and assesses actual sales achieved relative to the target. Two separate tools are used in this exercise. Sales variance analysis to calculate the contribution of various factors to the short fall in sales.
Financial analysis
The expenses to sales ratios must be scrutinised within a larger financial pattern, so as to enable the company to identify exactly where the profits are emanating.
Efficiency Control
Profitability analysis is a regular activity carried out by all companies. When the company notes that some products, areas or specific markets are realising low profits, it must take corrective action or in other ways find more competent and effective means to manage its sales team, its advertising and sales promotion and channels of distribution. They assist brand managers with budgeting and advise and inform marketing executives on the financial consequences of marketing decisions. The sales teams Advertising efficiency Sales promotion Distribution efficiency
Advertising Efficiency
It is generally accepted that one cannot assess or evaluate the value received in return for the money spent on advertising. Even so, it is imperative for advertising managers to monitor the following. Cost of exposure per thousand consumers for each separate advertising medium used; the percentage of targeted consumers who actually were attracted by and saw the advertisement in a newspaper or magazine.
Sales promotion
Sales promotion utilises a generous number of tools to motivate consumer interest in a product, and also to induce trying it out. To enhance the achievement of sales promotion, the management should; document the cost incurred on each promotion and also the revenue earned by it; the number of coupons exchanged; enquiries received in response to demonstrations; cost of display per sales rupee.
Distribution efficiency
It is essential for managements to economise on stocks, sites for warehouse and types of transport used. There are many tools available to achieve the above actions. Management also needs to keep an eye on the cost of logistics, accuracy of order filling, timely deliveries and the mistakes in its invoicing system.
Profitability Control
In this era of competition the companies are trying to adopt new marketing strategies to sometimes beat up the competitor or some other times to stay in competition. The companies try to follow profit making strategies which determine the profit from products, territories and even trade channels. Phillip kotler have suggested 3 steps for profitability control. They are, i. Identifying the functional expenses ii. Assign the functional expenses to marketing entities iii. Prepare a profit and loss statement for each marketing entry.
Strategic Control
The companies to stay in competition and beat up the competitor should always have detailed reviews of their marketing strategies, the success achieved and etc. the system of strategic control helps the management to determine the fit between the firms marketing and its external environment.
This can be done with the help of 2 tools namely, i. Customer relationship barometer and ii. Marketing audit.
Marketing audit
A marketing audit is an extensive, orderly, regular appraisal of the companys marketing environment, its goals, strategies and other operations, preferably carried out by an independent organisation to: identify areas where there are problems or opportunities; and advise the company as to be taken to improve its performance. We shall first take a detailed look at the four main aspects of a marketing audit. There are six options available to conduct marketing audits. They are known as self audit, audit from across, audit from above, companys auditors, company task force audit or outside audit.
Marketing Audit
Marketing audit can be explained, as a systematic, independent, critical , unbiased, periodic, comprehensive review and appraisal of its policies, programmes, strategies, environment, activities to determine the problem areas and opportunities and recommending a plan of action to improve the companys marketing performance. Marketing audit has four characteristics. They are as follows, 1. Comprehensive 2. Systematic 3. Independent 4. Periodic
1. Comprehensive
Marketing audit is vast in nature and it thus covers all the major marketing activities of a business not just few problems. Marketing audit is pervasive in nature. If the audit covers only few areas such as sales force, pricing or some other marketing activity then it would be called as functional audit.
2.Systematic
The marketing audit is a very systematic scrutinization of the organization's micro and macro environment, the marketing goals and strategies, the marketing systems and specific activities. The audit identifies the areas which needs improvement and an action plan is then implemented to achieve the desired objectives. The action plans can be both for long term as well as short term in nature.
3.Independent
There are six ways to conduct a marketing audit : self audit, audit from across, audit from above, company auditing office, company task force audit and outsider audit. The best audit among the following is the outsider audit as the audit is being done by the outsider consultants who devote their time and attentions and who also have experience in various industries and they impartial in their operations to carry out the audit.
4. Periodic
Usually the marketing audits are conducted only after facing certain drawbacks like the decrease in sales value, fall in the sales force morale and various similar difficulties. Normally the companies do not go for marketing audit in good times but rather they conduct the marketing audit in the crisis period.
Task environment 1. Markets 2. Customers 3. Competitors 4. Distribution and dealers 5. Suppliers 6. Facilitators and marketing firms 7. Public
Online Marketing
Online marketing is the achievement of marketing goals through the utilization of the internet and the web based technologies. Online marketing is also known as internet marketing is also known as internet marketing or marketing on the web. Online marketing has two channels. They are as follows, 1. Commercial online service and 2. Internet
The Internet
This is a vast international network, connecting other computer networks as well as companies, universities, libraries and so on. With the introduction of the worldwide web the usage of the internet increased very rapidly. The use of the internet itself is free. Users only need to pay for the services of a commercial provider that enables the user to access the internet. Steps involved in online marketing
1. Registration of a domain name which is interest sites address it acts as the telephone number for people who wish to visit the site. 2. Secondly the companies develop a web site contains web pages often called as world wide web(www) which contains text, picture, or sound.
Benefits to sellers
1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 4. 5. 6. Access to all markets Global marketing Scope for unimpeded, constraints free growth Offers many services and products from a single stop Targets the customer individually Helps in building relationships with customers Helps to reduce costs A versatile medium of communication Convenience Search advantage and wider options Customers can bargain on Net with a Host of Sellers Transparency and Accuracy Costumers can get More for Less The power equation shifts in favour of the customer
Benefits to customers