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24 years in management consulting covering business planning,
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Expert: Leo Lingham Date: 3/28/2008 Subject: Hello sir
Question What are the major considerations involved in designing marketing organisations in the following situations:
1) Large sized cement marketer with all India operations.
2) Premium toy marketer focusing major Indian cities
Answer NAVREET,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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a) What are the major considerations involved in designing marketing organisations in the following situations
a) Large sized cement marketer with all India operations
b) Premium toy marketer focusing major Indian cities.
IN DEVELOPING THE MARKETING ORGANIZATION FOR THE
TWO ORGANIZATIONS
-most of the considered factors are the same
-while designing the organization, you must consider two sets of factors
1.organization strategic factors. 1. market orientation of the organization.
The only major difference between the two, is the DISTRIBUTION/ CHANNEL SELECTION.
a) Large sized cement marketer with all India operations
-MAJOR KEY ACCOUNTS [ LARGE BUILDERS]
-WHOLESALERS
-RETAILERS [ often serviced by large wholesalers]
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b) Premium toy marketer focusing major Indian cities.
-LARGE CHAIN STORES [ like BIG BAZAAR/ SPENCERS who buy from manufacturers directly]
-WHOLESALERS
-RETAILERS [ often serviced by large wholesalers ]
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CONSIDERATIONS IN DESIGNING MARKETING ORGANIZATION
Organization design is central to an enterprise’s ability to be market driven, adaptive, innovative, and more – in short, to be able to compete effectively.
REMEMBER,
*Organization design is more than just structure
– it is the integration of structure, processes, people, culture, systems and technology
*Strategy is the starting point
– organization design must be driven by, and supportive of, overall strategy
*Clarity and accountability underpin sound organization design
–when good people know what to do and are held accountable, they achieve results
*Transitioning to a new organization end-state requires an integrated approach to change management
Strategic Organization Design
The Need:
The objective must be clearly stated for the need to change/set up an organization.
The Process:
Organization Design is a four-phase participative process intended to provide senior leaders with a systematic, step-by-step method for examining the structure of their organizations. The four-phases are as follows:
1.The preliminary analysis involves the collection of information necessary for making design decisions.
2.Structured interviews are conducted focusing on the strategy of the organization, the key tasks being performed and current strengths and weaknesses of the organization.
3.Operational design involves the structuring of supervisory roles, information flows, and jobs within the context of the strategic design decisions.
4.Implementation involves managing the transition from the current design to a new design.
Organization Design Process Outline
Objective: To provide a systematic participative process to help leaders structure their organizations in a way which helps accomplish the overall business strategy as well as the day-to-day work.
Phase I: Preliminary Analysis
Conduct structured interviews to:
v Identify strengths and weaknesses of the existing organization
v Clarify issues related to business strategy and organizational design
Phase II: Strategic Organization Design
v Design Criteria: Review information from the preliminary analysis and
generate criteria for a new design
v Grouping: Generate several design options and evaluate against criteria
- Grouping By Output – Product, Service, or Project
- Grouping By Activity – Function, Work Process, Knowledge or Skill
- Grouping By Customer – Market Segment, Customer Need, Or Geography
v Linking: Identify information flow requirements, select ways to
facilitate the flow of information to meet the requirements, and
evaluate against the criteria
v Impact Analysis: Analyze each option to determine feasibility given the
existing leadership skills, power relationships, and work environment.
Phase III: Operational Design
v Carry out the operational homework necessary to put organization design
decisions in place
v Design work charters, reporting relationships, information flows, etc.
Phase IV: Implementation
v Develop a strategy for implementing the new design
v Assess the potential resistance to the new organization
v Determine the best way to manage the transition from the old
organization to the new one.
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TO MAKE THE MARKETING ORGANIZATION , REALLY MARKET ORIENTED,
FACTORS TO CONSIDER
1. Overall Orientation:
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1. Does everyone takes the customer's perspective?
2. Does the Senior management consider the priorities and interests of marketing?
3. Emphasis in orienting the business toward serving the needs and wants of chosen markets?
4. How is market knowledge sharing viewed?
5. Is there an Emphasis in market strategy development?
6. Is there an Orientation to target competitors?
7. Is there emphasis on Relationships with customers?
8. Is there an emphasis on Attitudes toward channels?
9. Is there a Willingness to innovate?
10.Is there an emphasis in Management of product/service quality?
11. How well is market thinking at the top communicated and implemented throughout the organization?
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2. Market Sensing Capability
1. How extensively does the business explore and understand its customers and channel partners?
2. Extent of market monitoring?
3. Willingness of customer contact employees to feed market information to management?
4. Extent of search for innovative product concepts?
5. Frequency that functions other than sales and marketing meet with customers and channels?
6. Knowledge of market segments?
7. Knowledge of competitors?
8. Use of customer complaints?
9. Knowledge of cost effectiveness of marketing programs7
10.Willingness to undertake regular post‑audits of unsuccessful programs and communicate results widely?
11. Adequacy of market information systems?
12. Integration of customer and competitive information into the new product development process?
13. Role of the market research function7
14. Reliance on outsiders for market analysis and interpretation?
15. Sharing of lessons about market behavior and activity between functions and countries?
-------------------------------------------------------------------------- 3. Market‑Relating Capability
1. What is the prevailing mind‑set?
2. Knowledge of individual customer loyalty and profitability?
3. Ability to differentiate among customers?
4. Relationships with key accounts?
5. Role of sales force?
6. Extent of efforts to align business systems toward increasing customer retention?
7. How are channel intermediaries viewed?
8. Utilization of advances in network technology?
9. Management of brand equity?
10. Measure of relationship effectiveness?
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4. Strategic marketing Thinking
1. What is the orientation of the planning process ?
2. Design of the planning process ?
3‑ Participation in the strategic planning process?
4. Length of planning horizon?
5‑ Quality of strategic analysis?
6. Knowledge of market?
7. How are market initiatives evaluated?
8. Adequacy of marketing resources?
9. Extent of contingency thinking andplanning?
10. Type of strategv review by senior management ?
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5. Organizational Alignment
1. Relations between marketing department and functional groups?
2. Understanding of business strategy?
3. Coordination and integration of functional groups and departments in serving customer needs?
4. Ability of information systems to support interfunctional coordination?
5. Interactions with customers, clients and channel members?
6. How are marketing/sales executives rewarded?
7. Ability of management to react quickly and effectively to on‑the‑spot
developments and new opportunities?
8.Emphasis of incentive systems?
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