Lec 06- Organizing and managing marketing department

Summary

This video script delves into the organization and management of marketing departments, highlighting various departmental structures such as functional, geographical, product, market, and matrix organizations, each with its advantages and disadvantages. It emphasizes the pivotal roles of the CEO and CMO in fostering a customer-centric approach, the importance of aligning marketing activities with company goals, and the necessity for cross-departmental coordination to create market value. The script also underscores the evolution of marketing from traditional to modern, customer-oriented organizations, where customer satisfaction is paramount.

Takeaways

• 📚 Module 6 focuses on organizing and managing marketing departments, highlighting the importance of structure and coordination in creating market value.
• 🏢 Different marketing department structures have their own advantages and disadvantages, including functional, geographical, product/brand, market, and matrix organizations.
• 👥 The roles of CEO and CMO are crucial in defining the marketing strategy and ensuring a customer-oriented approach within the organization.
• 🔄 A customer-oriented organization is essential for modern marketing, where traditional hierarchies are being replaced by structures that prioritize customer interaction and satisfaction.
• 🌟 The success of a company is determined not only by the skills of individual marketers but also by how they are organized into a high-performing marketing team.
• 🛰️ Modern marketing departments can be organized in various ways, sometimes overlapping, to meet the needs of distinct customer groups and market conditions.
• 🔑 The functional organization of a marketing department offers administrative simplicity but can face challenges in coordination as the number of products and markets grows.
• 🌐 Geographic organization is beneficial for companies operating in diverse regions where local market specialists can tailor strategies to specific customer needs.
• 📈 Product or brand management organizations are effective when dealing with a variety of products, ensuring each has a dedicated manager to oversee strategy and performance.
• 🤝 The matrix organization can be complex, but it allows for a dual focus on both product and market needs, though it may create conflicts and require clear authority structures.
• 💡 Building a customer-oriented organization involves transforming the traditional hierarchy to ensure that customer satisfaction is at the forefront of all business decisions and operations.

Q & A

What are the four main topics discussed in Module 6 about organizing and managing marketing departments?

The four main topics discussed are: 1) Different structures of the marketing department and their advantages and disadvantages, 2) Managing the marketing department by defining the role of the CEO and CMO, 3) Building a customer-oriented organization, and 4) Defining traditional versus modern customer-oriented organizations.

Why is the structure of the marketing department important for a company?

The structure of the marketing department is important because it plays a crucial role in the company's ability to create market value and affects the company's success not only by the skills of individual marketers but also by how they are organized to form a high-performing marketing team.

What are the five common ways of organizing a marketing department mentioned in the script?

The five common ways of organizing a marketing department are: 1) Functionally, 2) Geographically, 3) Product or brand organization, 4) Market organization, and 5) Matrix organization.

What is the main advantage of a functionally organized marketing department?

The main advantage of a functionally organized marketing department is its administrative simplicity, allowing for clear reporting lines and coordination of activities under the chief marketing officer.

How does a geographic organization differ from a functional one in terms of structure?

A geographic organization arranges the sales force and sometimes marketing along geographic lines, with a national sales manager overseeing regional sales managers, who in turn oversee zone managers, district sales managers, and salespeople.

What is the role of a product or brand manager in a product or brand management organization?

A product or brand manager supervises product category managers who oversee specific product and brand managers. They are responsible for developing long-range and competitive strategies for the offerings, preparing annual marketing plans and sales forecasts, and managing support for the product among the sales force and distributors.

Why is a market management organization desirable for companies with distinct target markets?

A market management organization is desirable when customers fall into different user categories with distinct buying preferences and practices, allowing the company to develop diverse production services targeted at those distinct markets.

What are the key responsibilities of a CMO in an organization?

A CMO is responsible for leading all marketing functions, including product development, brand management, communication, market research, data analytics, sales promotion, distribution management, pricing, and customer service. They must also handle digital technologies and have strong quantitative and qualitative skills.

How does the role of the CEO contribute to the success of a marketing organization?

The CEO contributes by recognizing the importance of marketing in building strong brands and a loyal customer base, which are intangible assets that heavily contribute to the firm's value. The CEO also facilitates the creation of strong in-house marketing training programs and ensures the company's reward system aligns with strategic goals.

What are some of the key priorities for a successful CMO as identified by marketing experts George Day and Robert Malcolm?

The key priorities include acting as the visionary for the company's future, building adaptive marketing capabilities, winning the war for marketing talent, tightening the alignment with sales, and taking accountability for returns on marketing spending.

How does a customer-oriented organization differ from a traditional organization in terms of structure and focus?

A customer-oriented organization places the customer at the center of all activities and decisions, with top priority given to front-line people who interact with customers. In contrast, a traditional organization has a hierarchical structure with top management at the top and customers at the bottom, often focusing on products and sales rather than the customer's needs.

Outlines

00:00

📚 Introduction to Module 6: Marketing Department Organization

The script begins by introducing Module 6, which focuses on organizing and managing marketing departments. It outlines the four main topics to be discussed: the structure of marketing departments, their advantages and disadvantages; the role of CEOs and CMOs and their relationship with other departments; building a customer-oriented organization; and the comparison between traditional and modern customer-oriented organizations. The importance of the marketing department's structure in creating market value and the impact of organization on the company's success are emphasized. The script then delves into the various ways marketing departments can be organized, such as functionally, geographically, by product or brand, by market, and through matrix organization. Each method is briefly explained, highlighting the roles and hierarchy within a functional organization.

05:01

🌐 Geographic and Product/Brand Organizational Structures

This paragraph continues the discussion on marketing department organization by examining geographic and product or brand organizational structures. The geographic organization is described, where a company's sales force is organized along geographic lines, with examples of how a national sales manager might oversee regional and zone managers down to individual salespeople. The importance of adapting marketing strategies based on geographic differences is highlighted. The product or brand organization is then detailed, where companies with a variety of products establish a separate management layer for each product or brand. The role of product managers in coordinating various departments and developing strategies for their offerings is explained, along with the potential complexity of this structure.

10:04

🛒 Market and Matrix Organizational Approaches

The third paragraph explores the market and matrix organizational approaches within marketing departments. Market organization is deemed necessary when a company targets distinct markets with diverse needs, and market managers oversee market development managers and specialists. The matrix organization is introduced as a structure that combines product and market management, suitable for companies with many products and markets, but it also brings challenges such as cost and potential conflicts over authority and responsibility. The paragraph concludes with a discussion on the importance of cross-functional teams in modern organizations, which can include both for-profit and non-profit entities.

15:05

👤 The Role of CEO and CMO in Marketing Management

This section emphasizes the pivotal roles of the CEO and CMO in managing the marketing department. The CEO's role in fostering a customer-focused approach and building strong brands and a loyal customer base is highlighted. The script outlines steps a CEO can take to create a marketing-oriented organization, such as convincing senior managers of the importance of customer focus and appointing a CMO. The CMO's responsibilities include leading all marketing functions and adapting to digital technologies. The evolving role of the CMO is discussed, along with five key priorities for successful CMOs, such as acting as a visionary and taking accountability for marketing spending.

20:06

🤝 Coordination with Other Departments and Building Customer-Oriented Organizations

The script discusses the importance of coordination between the marketing department and other company functions to serve customers effectively. It stresses that a company's success depends on both individual department performance and the coordination of these departments. The role of the marketing vice president or CMO in internal marketing activities and their interaction with customer insights, data analytics teams, communication agencies, and channel partners is detailed. The shift towards building customer-oriented organizations is explored, emphasizing the creation of superior customer experiences and the need for managers at all levels to be engaged with customers.

25:07

🚀 Transforming into a Customer-Centric Organization

The final paragraph focuses on the transformation into a customer-centric organization. It contrasts traditional organization charts, which place top management at the top and customers at the bottom, with modern customer-oriented models where customers are at the center, encompassing all levels of the organization. The characteristics of customer-centric organizations are compared with those that are less focused on customers, highlighting the shift from product-driven to market-driven approaches. The need for strategic innovation and imagination to differentiate in a competitive market is discussed, along with the importance of being alert to market trends and fostering creativity within the company.

Keywords

💡Marketing Department Structure

This refers to the way a marketing department is organized within a company. The video discusses different structures, such as functional, geographic, product/brand, market, and matrix organizations. These structures determine how marketing activities are coordinated and aligned with the company’s goals. For example, a functional structure organizes marketing tasks by specialty, while a geographic structure is based on different regions where the company operates.

💡Chief Marketing Officer (CMO)

The Chief Marketing Officer is a key executive responsible for all marketing activities within an organization. The CMO's role includes overseeing product development, brand management, communication, market research, and sales promotion. The video emphasizes the importance of the CMO in driving a customer-oriented approach and adapting to digital marketing trends.

💡Customer-Oriented Organization

A customer-oriented organization is one that prioritizes customer needs and experiences in every aspect of its operations. The video describes how such organizations structure their activities to deliver superior customer experiences and emphasizes the importance of having the customer at the center of decision-making processes. This contrasts with traditional, product-driven organizations.

💡Matrix Organization

A matrix organization is a complex structure that combines aspects of both product and market organization. This structure is used by companies that produce many products for diverse markets. The video highlights that while this structure can effectively meet diverse customer needs, it also presents challenges such as potential conflicts and high costs.

💡Functional Organization

A functional organization is one of the most common forms of marketing department structures, where specialists report to the Chief Marketing Officer. This structure allows for administrative simplicity but can create challenges in coordinating activities across departments, especially as the company grows or diversifies its products.

💡Geographic Organization

This structure organizes a company’s marketing and sales efforts based on geographic regions. It is particularly useful for companies operating in national or international markets where customer needs and preferences vary significantly across regions. The video uses the example of a company targeting Hispanic and Latino markets in Miami to illustrate this concept.

💡Product/Brand Management Organization

In this type of organization, companies with a diverse product range establish a product or brand management layer that does not replace functional organization but adds another layer of management. Product or brand managers are responsible for long-range planning, sales forecasting, and managing advertising campaigns. The video explains how this structure is effective when a company’s products are too diverse for a functional organization to handle alone.

💡Market Management Organization

A market management organization focuses on managing the marketing activities for specific target markets rather than products. This structure is ideal for companies that sell to distinct market segments, such as consumers, businesses, and government entities. The video explains how this approach helps companies tailor their marketing strategies to the unique needs of each market.

💡Role of CEO in Marketing

The Chief Executive Officer plays a critical role in creating a marketing-oriented organization by convincing senior management of the importance of being customer-focused, hiring strong marketing talent, and aligning the company’s reward system with strategic marketing goals. The video emphasizes that a successful CEO helps foster a culture where every decision is made with the customer in mind.

💡Cross-Functional Teams

Cross-functional teams are groups that bring together members from different departments to collaborate on projects, particularly in re-engineered companies aiming to improve efficiency and customer satisfaction. The video mentions that companies like AT&T and LexisNexis have adopted cross-functional teams to better integrate marketing activities with other business functions.

Highlights

Module 6 focuses on organizing and managing marketing departments and their impact on a company's ability to create market value.

Different structures of the marketing department include functional, geographical, product/brand, market, and matrix organizations, each with their advantages and disadvantages.

Functional organization offers administrative simplicity but can struggle with coordination as the number of products and markets grows.

Geographic organization aligns marketing efforts with regional differences, adapting strategies to local markets effectively.

Product or brand organization adds a layer of management to oversee distinct product lines and brands, enhancing focus on individual offerings.

Market organization targets distinct consumer groups with tailored marketing strategies, recognizing different buying preferences and practices.

Matrix organization combines product and market management, suitable for companies with diverse products and markets but can be costly and create conflicts.

The role of CEO and CMO is crucial in defining and managing the marketing department, with the CEO emphasizing the importance of customer focus.

CMOs are responsible for leading all marketing functions and must adapt to advancements in digital and online marketing technologies.

Building a customer-oriented organization involves creating a superior customer experience and re-envisioning the company's structure around customer needs.

Characteristics of customer-centric organizations include market-driven focus, customer advocacy, and teamwork, as opposed to product-driven and hierarchical structures.

Marketers must integrate all customer-involving processes to present a unified front to customers, avoiding a fragmented interaction experience.

Strategic innovation and imagination are key capabilities for companies to differentiate themselves in a rapidly changing market environment.

Market leaders can miss trends if they focus too much on protecting existing markets and physical resources rather than innovation.

The material for the course was sourced from three recommended books, providing a comprehensive understanding of marketing department structures and strategies.

The course concludes with a discussion on the importance of adapting traditional marketing approaches to modern, customer-oriented strategies for success.

Transcripts

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now we will talk about module 6 and in

this module we will talk about

how to organize and manage marketing

departments

and this is module 6. now in this module

these are the four things that we will

discuss today the first is what are the

different structures of the marketing

department and their advantages and

disadvantages

second is how to manage the marketing

department by defining the role of CEO

and CMO that is the chief marketing

officer and chief executive officer and

relationship with other departments

then we will discuss how to build a

customer oriented organization and

thereafter we will we will Define

traditional versus modern customer

oriented organizations do start with the

structure of the marketing department

plays a important role in the company's

ability to create market value so this

is why we we wish to understand and talk

about marketing department because that

will affect the company's ability to

create market value so company's success

is determined not only by the skills of

the individual marketers but also to a

large degree by the way the marketers

are organized to create a high

performing marketing team so that is

important not the individual marketers

but but the way they are organized so

that it becomes a high performing

marketing team in this context

organizing and managing the marketing

department are of utmost importance in

creating a modern marketing organization

so now let us look at organizing the

marketing department modern marketing

departments can be organized in several

different ways

but sometimes they may overlap so

following are some popular ways of

organizing the marketing department one

is the functionally organization

second is geographically organization

the third is product of brand

organization fourth is market

organization and the fifth one is a

matrix organization now we will look at

each one of these organizations in some

more detail so it is one of the most

common form of marketing organization in

this functional Specialists report to

the chief marketing officer who

coordinate their activities so that is

the Hallmark of this functional

specialist reporting to the marketing

officer so and in the next slide that is

figure 6.1 we will show seven

Specialists other specialist might

include a marketing planning manager a

market logistic manager a direct market

manager a social a direct marketing

manager a social media manager and the

digital marketing manager so now you see

that here at the top

of this hierarchy we have Chief

marketing officer

then we have a market research manager

product manager service manager

communication manager

sales manager public relations manager

and the brand manager so this is what

this functional organization looks like

the main advantage of the functional

marketing organization is its

administrative simplicity

so that is the main advantage

however it can be quite a challenge for

the Departments to develop smooth

working relationships which can result

in in adequate planning as the number of

products and Market increases and the

functional groups why for the budget and

Status marketing vice president

constantly weighs competing claims and

faces a difficult coordination problem

the second type of organization of

organization is the geographic

organization a company selling in a

national Market offer organizes its

sales force and sometimes is marketing

along the geographic lines

the national sales manager

May supervise four Regional sales

managers who each supervised six Zone

managers each of whom supervises eight

district sales managers who supervisors

10 sales who supervisors 10 sales people

a piece some companies are adding area

Market specialists

for example Regional or local marketing

managers to support sales efforts in

high volume markets to illustrate

consider how one such Market might work

in Miami

Dade County Florida where almost

two-thirds of households are Hispanic

and Latinos

the Miami specialist would know Miami's

customers and trade markups

helping marketing managers at the

headquarter adjust their marketing mix

for Miami and prepare local annual and

long-range plans for selling all the

companies products there some companies

must develop different marketing

programs in different parts of the

country because geography substantially

Alters their brand development

activities the third is product of brand

organization

companies producing a variety of

products and Brands often establish a

product or brand management

organizations so when you have variety

of production brand then companies use

this kind of organization this does not

replace the functional organization but

serves as another layer of management a

group product manager supervisors

product category managers who in turn

supervise specific product and brand

managers Now product management

organization makes sense if the

company's products are quite different

so that is one thing or if there are

more products than the functional

organization can handle this form is

sometimes categorized as a hub and spoke

system the brand or product manager is

figuratively at the center with spokes

leading to various departments

representing working relationships as we

see in figure 6.2 so here in the middle

we have

or in the center we have the product and

brand manager and these r d product

design communication distribution sales

promotion Salesforce

marketing research

customer service and legal they are all

coordinating with the product of brand

manager a managers function involved

developing a long range and competitive

strategy for the offering

so this is what the manager is supposed

to do preparing an annual marketing plan

and sales forecast working with

advertising digital and marketing

agencies to develop copy programs and

campaigns

managing support of the product among

the Salesforce and distributors

Gathering continuous intelligence about

the product performance customer and

dealer attitudes and new problems and

opportunities and initiating product

improvements to meet changing Market

needs so now you see how many jobs are

supposed to be done by this person

working with advertising digital and

Merchandising agencies to develop copy

programs and campaigns managing support

for the product among the Salesforce and

Distributors Gathering continuous

intelligence

customer and dealer attitude

initiating new improvements to meet the

changing Market needs the fourth type of

organization is the market organization

companies often develop diverse

Production Services to Target distinct

Target markets for example Canon sales

printers to Consumers businesses and

government markets so the same product

that is this printer

so this is the product that the company

this is the company

and these are the

markets in which it operates consumers

businesses and government Market

Nippon still sells to the railroad

cross fraction and public utility

industry when customers fall into

different user category with distinct

buying preferences and practices a

market management organization is

desirable so this is when this is the

situation when

the market management organization

should be there Market managers

supervise several Market development

managers Market Specialist or industry

specialist and draw on functional

Services as needed marketing managers of

important markets might even have

functional Specialists reporting to them

market manager staff not line people

with duties like those of product

managers they develop long range and

annual plans for their markets and are

judged by their markets growth and

profitability the fifth is the Matrix

organization because this system

organizes marketing activity to meet the

needs of the distinct customer groups it

share many of the advantages and

disadvantages of product management

system

companies that produce many products for

many markets May adopt a matrix

structure employing both the product and

Market managers so in this situation

when there are many product and many

markets then this kind of Matrix

structure that is a mix of the product

and Market organizations

is is more desirable the rub is that

this choice is costly an offer and often

creates conflicts thus the cost of

supporting all the managers and the

issue of resolving questions about where

Authority and responsibility for

marketing activity should decide at

headquarters or the divisions so this is

the problem here in this

type of organization

some corporate marketing groups assist

top managers with overall opportunity

evaluation that is run provide divisions

with Consulting assistance on request

help division that have little or no

marketing and promote the marketing

concept throughout the company many

companies have re-engineered their

workflows and have built

cross-functional teams that are

responsible for each process

a TNT Lexus Nexus and Pratt Whitney

have reorganized their employees into

cross-functional teams cross-functional

teams operated non-profit and government

organizations also so it is not only in

a business in a company in a for-profit

company that we have across functional

teams they also operate in non-profit

and government organizations

one of the key disadvantages or the

mattress structure is the potential lack

of clear focus and accountability next

we will look at how to manage the

marketing department as David pakad of

HP observed marketing is a far too

important to leave to the marketing

department alone so now it has become so

important

that we it cannot be left to the only

through the marketing people or

marketing department in a truly great

marketing organization you can't tell

who is in the marketing department

everyone in the organization has to make

decisions based on the impact on the

customers so here the customer is at the

center although marketing activities

should not be relegated to a single

Department many Enterprise can benefit

from having an organizational unit that

is in charge of all companies marketing

activities and manage day-to-day

operations next we will look at the role

of the chief executive officer and the

chief marketing officer only a select

group of companies have historically

stood out as Master marketers managers

these companies focus on the customer

and are organized to respond effectively

to the changing needs so focusing on

customer means that the company is able

to focus on the changing customer needs

so that is what focusing on customer

means

they all have well staffed marketing

departments and their other department

except the customer is the king

they also often have a strong marketing

leadership in the form of a successful

CEO and CMO

CEO recognizes that marketing builds

strong Brands and a loyal customer base

the strong brand

one loyal customer base two

intangible assets

that contributes heavily to the value of

the firm so these are the two things

that make up this intangible assets so

one is strong Brands second is the

customer base and they make up this

intangible assets many firms including

service and non-profit forms now have a

chief marketing officer to put marketing

on a more equal footing with

other sea level Executives such as the

Chief Financial Officer and the Chief

Information officer so wherever you find

the C C Level written it it is it means

chief

chief executive officer marketing

officer Financial Officer technology

officer information officer

now we will specifically look at the

role of the CEO to create true marketing

organization a CEO can take following

steps one

convince senior manager of The

Importance of Being customer focused so

all the Senior Management

should now

understand The Importance of Being

customer focused

then hire a strong marketing Talent

facilitate the creation strong in-house

marketing training program and ensure

that the company's reward system is

aligned with its strategic goal

of creating market value how by

developing A Satisfied and loyal

customer base personally exemplifying

strong customer commitment and reward

those in the organizations who do

likewise

and so that is the fifth one the sixth

one is to appoint a chief marketing

officer who is ultimately responsible

for marketing activities in the

organization now let us look at the role

of the CMO that is the chief marketing

officer

the CMO is a member of the sea suit

and typically reports to the CEO and is

responsible for the following the first

one is that the chief marketing officer

leads all marketing functions in the

organizations including product

development brand management

communication market research and data

analytics sales promotion distribution

management pricing and customer service

in the 21st century

with the advancement of digital online

and mobile marketing the CMO must also

be able to handle digital Technologies

so this is the added responsibility in

addition to those given here that the

CMO is supposed to do so this is the

first this is the second the third is

CMOS must have a strong quantitative and

qualitative skills

they must have an independent

entrepreneurial attitude but work

closely with other departments and they

must capture the voice of the customers

yet have a keen bottom line

understanding of how marketing creates

value marketing experts George day and

Robert Malcolm believes that predictable

Marketplace trends

the changing role of C suit and

uncertainty about the economy and

organization design will change the role

of the CMO in the coming years so this

is how

the role of the CMO keeps on evolving

so this his role is not a static one but

a dynamic role

so they also identify five key

priorities for any successful CMO the

first one of which is act as the

Visionary for the future of the company

the second is build adaptive marketing

capabilities

the third is when the war for marketing

Talent the forces tighten the alignment

with sales and the fifth one is to take

accountability for Returns on marketing

spendings perhaps the most important

role of any CMO is to infuse a customer

perspective in the consumer decision

affecting any customer touch point so

that is what the bottom line of any CMO

role is to infuse the customer

perspective and business decision making

affecting any and all of the touch

points where the touch and what is the

touch point

touch point is where a customer directly

or indirectly interacts with the company

now let us look at the relationship with

other departments the firm's success

depends not only how well each

department performs its work

so this is one thing but it is also

depend on how well the company

coordinates departmental activities to

conduct Core Business processes

so

these departments are not to work in

silos independently but coming together

and working together

to achieve the company's objectives and

have the customer at their heart under

the marketing concept all departments

need to think customers work together to

satisfy customer needs and expectations

the marketing vice president or the CMO

must therefore coordinate the company's

internal marketing activities

one and coordinate marketing with

Finance operations and other companies

functions to serve the customer in

particular because of the growing

importance of understanding the needs of

individual customers marketers first

closely with the following

first is customer insights and data

analytics team

the second is different communication

agencies and different Channel Partners

so there are different types of patch

Channel partners

because of the online and the offline

thing then there are different

communication agencies

furthermore to reach consumers in an

effective and cost efficient manner

marketers must work closely with

different communication agencies from

traditional agencies to social media

agencies publicity agencies and event

management companies

finally to be able to deliver the

company's offering to the right place at

the right time companies offering to the

right place at the right time

what com the marketer should do they

must work closely with the company's

Channel Partners both in the brick and

mortar space and in the e-commerce space

so that is the physical space

and this is the virtual space

now let us look at how to build a

customer oriented organization

creating a superior customer experience

has become a priority for companies in

nearly every industry

so this is for the objective of this

customer oriented organization is

superior customer experience

the main theme of any customer oriented

organization is

providing creating

Superior customer experience the

proliferation of products services and

brands one increased consumer knowledge

about Market offerings consumers ability

to influence public opinion about

companies and their offerings all have

underscored the importance of building a

customer oriented organization most

companies now realize that the path to

creating a stakeholder value begins with

re-envisioning the organization as

focused on creating long-term customer

value so now

you see that by creating long-term

customer value

the companies will create

value for the stakeholders

managers who believe the customer is the

company's only to profit Center consider

the traditional organization chart in

figure 3 6.3 a a pyramid with the

president at the top Management in the

middle and front line people and

customer at the bottom to be obsolete so

keep in mind this kind of thing is

obsolete out

of fashion

so now in this figure 6.3 and on this

slide we are comparing

traditional organization with modern

customer oriented company organization

so as you can see in this traditional

organization chart

so at the top is the top management then

comes the service managers the front

line employees and the customers so they

work at the Strategic level they work at

the Tactical level and they work at the

operational level

and then they delivered the product or

service to the customer

on the right is this

modern customer oriented organization

chart now you see that the top

management

service managers and Frontline employees

customer is encompassing all of them and

customer can reach here the customer was

interacting with these people only the

front line employees

but now the customer is interacting with

the front line employees with service

managers and he also has approach to the

top managers now how to build a customer

oriented organization successful

marketing companies transform the

traditional organization hierarchy chart

to look like a chart in figure 6.3 B

which we have seen which is there on the

right hand side the company's top

priority are customers next and

importance are the front line people who

meet serve and satisfy these customers

so

at the top priority are customers but

then who are serving the customer who

are meeting serving and satisfying the

customers and they are the front line

people

so the marketing manager should not or

the companies should not only worry

about the customers but also the front

line people who are

meeting serving and satisfying those

customers

then comes service managers whose job is

to support the front line people

so they can serve customers well and

finally there is the top management

whose job is to hire and support good

service managers the key to developing a

customer oriented company is that

manages at every level must be

personally engaged in understanding

meeting and serving customers

so this is the key

to have this customer oriented company

managers at every level top middle and

at the bottom the front line should

engage in understanding meeting and

serving the customers

some companies have been founded

on a customer focused business model and

customer advocacy has been their

strategy so the their business model is

customer focused and customer advocacy

is the strategy and competitive

Advantage all along with the rise of

digital Technologies increasingly

informed consumers expect companies to

do more than connect with satisfy or

even Delight them they expect company to

listen and to respond them so it is not

only about connecting or satisfying or

even delighting them but customer now

want companies to listen to them and to

respond to their their voice so the

characteristics of the customer Centric

organization are given in this table 6.1

on the left hand side we have

those companies which are low on

customer centricity on the right hand

side we have those companies which are

high on customer centricity so the

companies that are low on customer

centricity they are product driven they

have a mass Market Focus they are

process oriented

they react to the competitors

they are price driven and they have and

they have a hierarchical organization

while the companies that are high on

customer centricity are Market driven

customer focused outcome oriented making

competitors is relevant value driven and

teamwork

so you see how

the organizations are changing from low

customer centricity to

those organizations which are high on

customer centricity traditionally

marketers played the role of

intimidaries charged with understanding

customer needs and transmitting their

voices to various functional areas of

the company

but in a networked Enterprise every

functional area can interact directly

with the customer so in that traditional

type of organization only the front line

people were interacting with the

customer now

every functional area can interact

directly with the customers

marketers no longer have sole ownership

of the customer interaction it now must

integrate all customer involving

processes so that customers see a single

phase and hear a single voice when they

interact with the form so it is not that

one person is standing here and there

are so many people

the standing in front of him and all of

them are talking at the same time now he

wants only a single phase that is one to

one

and here a single voice

when they interact with this form many

companies realize they are not yet

really market and customer driven rather

they are product and sales driven

transforming into a true market driven

company requires among other actions

developing a company-wide passion for

customers

one

organizing around customer segments

instead of products to and understanding

customer through qualitative and

quantitative research although it is

necessary to be customer oriented but it

is not enough the organizations must

also be creative companies should copy

one another's advantages and strategies

with increasing speed making

differentiation harder to achieve and

lowering the margins as funds becomes

more alike so because of the changing

environments companies are also changing

fast and they are copying each other and

therefore this they have started looking

more similar

the best answer to this dilemma is to

build capabilities in strategic

Innovation and Imagination now how to

come out of that situation to build

capabilities in the Strategic Innovation

and Imagination

the capability comes from assembling

tools processes skills and measures

tools processes skills and measures

that let the firm generate more and

better ideas than their customers to

encourage such capability companies

should strive to put together inspiring

workspaces that help stimulate new ideas

and Foster imagination

companies must be alert to Trends and

and stand ready to capitalize on them

Nestle was late seeing the trend towards

coffee house which paves the way for the

change such as Starbucks

Coca-Cola was slow to pick up on the

beverage strength towards fruit flavored

drinks such as Snapple energy drinks

such as Gatorade and designer water

brands Market leaders can miss trends

when they are risk hours

obsessed about protecting their existing

markets and physical resources and more

interested in efficiency and profit than

Innovation so to conclude in this module

we have covered the different structure

of the marketing department and their

advantages and disadvantages

then we have discussed how to manage the

marketing department by defining the

role of the chief executive officer and

the chief marketing officer the

relationship of marketing with other

departments

we then discussed about building a

customer oriented organization and

finally we defined traditional versus

modern customer oriented organization

and these are the three books from which

the material for this course was taken

thank you

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thank you

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