Rends In Company Organization

M ARKETING ORGANIZATION

Programs part five

Managing and Delivering Marketing

Over the years, marketing has grown from a simple sales department into a complex group of activities. We will examine how marketing departments have evolved in companies, how they are organized, and how they interact with other company departments.

FIGURE

Stages in the Evolution of the Marketing Department

(a) Stage 1: Simple Sales Department

President

Sales VP

Sales VP

Other marketing

Sales force

functions

(hired from

outside)

(b) Stage 2: Sales Department with Ancillary Marketing Functions

President

Sales VP

President

Sales VP

Marketing Director Other marketing functions (internal staff and external support)

Marketing Director Other marketing functions (internal staff and external support)

This arrangement permits the CEO to obtain a more balanced view of company opportunities and problems. Suppose sales start slipping. The sales vice president might recommend hiring more salespeople, raising sales compensation, running a sales contest, providing more sales training, or cutting the price so the product will be easier to sell. The marketing vice president will want to analyze the forces affecting the marketplace. Is the company going after the right segments and customers? Do the target customers have a changing view of the company's and competitors' products? Are changes in product features, styling, packaging, services, distribution, or promotion warranted?

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