Management of Marketing Department and Function

Marketing Management Revision Article Series

In the 13th Edition Kotler explained this topic under the chapter heading 'Managing A Holistic Marketing Organization for the Long Run"


While CEO is the ultimate head of all departments, there is a Chief Marketing Officer to provide full time attention to the management of marketing department as well as marketing function.

Marketing is a function of business and many persons of the organization participate in marketing activities. But there is a department termed as marketing department that has specialists whose main focus is marketing. While CEO is the ultimate head of all departments, there is a Chief Marketing Officer to provide full time attention to the management of marketing department as well as marketing function.

Marketing Management Department Organization

There are various types of organizations in existence. Functional organization, geographical area organization, product based organization, customer segment based organization and some form of hybrids can be observed.

Functional marketing organization: The important functional areas can be marketing research, new product marketing, advertising and sales promotion, sales management, physical distribution (marketing logistics), and marketing administration. As organizations become big more specialized functions within marketing can be organized as independent sections.

Geographical Area Based Organization: Companies selling across the nation generally set up branch sales offices and regional sales offices.

Product Based Organization (Brand Management): In product based organization each product or brand has a manager who looks after its marketing activities. The sales staff can be common staff and they report to a sales manager.

Coordination Between Marketing and Other Departments

Kotler highlighted the fact that each business function has a potential impact on customer satisfaction. All departments need to think of customer satisfaction and work together to fulfill customer needs and expectations. The chief marketing man in the organization has two tasks: One is to manage the marketing department and other is to coordinate marketing specialist activities with marketing related activities of operations, finance, and other functions in the organization.

Research and Development and Marketing

R&D and marketing have to coordinate their activities for successful market-oriented research, development and new product introduction. Gupta,Raj,and Wilemon in their paper "A Model for Studying R&D-Marketing Interface in the Product Innovation Process" (Journal of Marketing, April 1986, pp. 7-17) found that R&D-Marketing coordination had a strong correlation with innovation success.

Engineering and Marketing

Engineering is responsible for details of design and manufacturing that provide the products with quality and profit potential. Marketing is also concerned with profits for the company. The view points of marketing and engineering are to be coordinated with good engineering economy analysis combined with demand analysis of marketers.

Manufacturing and Marketing

Balance and harmony in the company demand that manufacturing and marketing jointly determine what is in the company's best interests whenever a dispute arises between the departments. Solutions include joint seminars of issues of common interest and joint analytical problem solving. Company profitability is greatly affected by marketing-manufacturing coordination which is another name for customer service - profit analysis. Marketing can't take credit for revenue and blame manufacturing for costs. Marketing itself may be responsible for the costs and it may be recovering lower prices from customers. This is bad marketing decision making.

Finance and Marketing

Finance persons have to concur with economic analysis of marketing persons. The long term implications of marketing expenditures may not be understood by finance persons. Both finance and marketing department personnel need cross training and joining training to develop common or share understanding.

Marketing Practices and Management Practice Innovations and Developments

Many new developments in management were embraced by practitioners.

Reengineering
Outsourcing
Benchmarking
Supplier partnering
Customer partnering
Mergers and Acquisitions
Globalizing
Flat organization
Agile organization
Lean organization
Empowerment

Marketing departments also implemented these concepts.

Industrial Engineering of Marketing System

Marketing System Efficiency Engineering

Companies today are striving to make their marketing operations more efficient and their return on marketing investment more measurable. Marketing costs can amount to as much as a quarter of a company’s total operating budget. Marketers need better templates for marketing processes, better management of marketing assets, and better allocation of marketing resources.

More Details on marketing system efficiency engineering

Evaluation and Control of Marketing Activities, Investments and Expenditures


Originally posted by me in
Knol Number  3388

Updated 2018 - 24 February
 14 Mar 2016, 12 Nov 2012

Developing Lean Leaders and Managers

DEVELOPING LEADER SKILLS
Published on February 7, 2018 on Linkedin
George Trachilis, P.Eng.
CEO and co-Founder (with Jeff Liker) at Lean Leadership Institute
https://www.linkedin.com/pulse/developing-leader-skills-george-trachilis-p-eng-/


Leadership Skills at Different Levels within a Lean Organization
https://pomsmeetings.org/ConfPapers/011/011-0035.pdf


Developing Lean Leaders at All Levels - Chapter 1 - Jeff Liker
LeanGurus
Published on 14 Jul 2016

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Videos on other chapters 

https://www.youtube.com/watch?v=23wbTgSQxdI

The Nature of Organizing - Review Notes

Principles of Management Revision/Review Articles - List

Shortcoming of Management Theory in the Area of Organization

I would like to mention right at the start that Henri Fayol clearly wrote that material organization and people organization are to be be set up by managers after the planning function is completed for a project or a period. But in his brief note, Fayol discussed only people organization. Authors subsequent to Fayol have not progressed further. The development of material organization was not attempted by authors of books on management and principles of management. It is a big shortcoming in the theory of management and somebody has to fill it.

In this connection I appreciate the following definitions/explanations of public administration.

Felix A. Nigro - “Administration is the organisation and use of men and materials to accomplish a purpose”.

J.M. Pfiffner and R. Presthus - “Administration is the organisation and direction of human and material resources to achieve desired ends”.

We need to study the full descriptions of administration by Nigro and Pfiffner-Presthus to understand organization of material resources.

The Nature of Organizing - Explanation by Koontz and O'Donnel 

Koontz and O'Donnel explain organizing as (1) the identification and classification of required activities. (2) the grouping of activities necessary to attain objectives, (3) the assignment of each grouping to a manager with the authority (delegation) necessary to supervise it, and (4) the provision of coordination horizontally (on the same organizational level) and vertically( departments with headquarters etc.)

The first step identification and classification of required activities is based on the technology or techniques employed. One has to first create one person equivalent jobs from the total activities needed to be done by the organization. This one person equivalent jobs are to be created so that each person is effective and efficient (that is he able to produce the required product feature or service feature to the specification and he is able to have high productivity). Only when this stage is done that the second stage of grouping of the activities or people into units to be put under managers can be attempted.  A single person cannot do all the managing activities for all the activities to be done in an organization. So middle managers are necessary between a CEO (chief manager in more general terms) and actual operators who are predominantly technical people. Managers have business skills, people skills and training skills in the technical activities that they manage. As it has been stated at the starting management texts ignored the process involved in the first step totally.

Organization implies a formalized intentional structure of roles or positions.  Intentional structure means each person in the structure has a certain specified role designed to ensure that required activities to fulfill the objectives of the organization are carried out effectively and efficiently in groups.

While organization implies a formalized intentional structure of roles which is the formal organization built by managers, an informal organization comes into existence certain people help each other in their employment related work as well as personal work.

Formal organization

Formal organization must be flexible. There should be room for discretion, for advantageous utilization of creative talents, and also for adjusting roles based on individual likes and dislikes. Yet efforts of all individuals must be channeled toward group and organization goals.

Informal organization

Chester Barnard recognized informational organization.

Span of control or management

Span of control refers to the number of subordinates a person can supervise. This number is usually four to eight at top levels and eight to fifteen at lower levels.

Delegation

Logic of organizing



13th Edition by Heinz Weirich, Mark V. Cannice and Harold Koontz

They explain the process or logic or organizing in the following steps:

1. Establishing enterprise objectives.
2.Formulating supporting objectives, policies, and plans.
3. Identifying, analyzing, and classifying the activities necessary to accomplish these objectives. (Technology adopted is a major determinant of activities and then the capital equipment and raw materials also play a role in the activities necessary. Human resource requirement is arrived at on the basis of technology, capital equipment and raw material inputs)
4. Grouping these activities in light of the human and material resources available and the best way under the circumstances of using them.
5. Delegating to the head of each group the authority necessary to perform the activities.
6. Tying the groups together horizontally and vertically, through authority relationships and information flows.

The steps three and four are important steps but have not received attention and have not been developed in basic management theory.

3. Identifying, analyzing, and classifying the activities necessary to accomplish these objectives.

4. Grouping these activities in light of the human and material resources available and the best way under the circumstances of using them.

In the step 3 activities required to accomplish the objectives have to be identified. This requires identification various technologies, required equipment,  energy sources and materials. Even the feasibility of training personnel in the technology and use of materials has to be considered. An optimal combination that provides return on investment has to be identified. It is a complex and iterative process that needs to be developed and described for proper management practice.

4. Grouping these activities in light of the human and material resources available and the best way under the circumstances of using them.

Note that step 4 brings the material resources into picture to group activities. Hence organization process assumes that material resource decisions are taken before hand. But where and when in the management process. This aspect was not specified. This is the drawback that I am referred in the current theory of management.

Basic Questions for Effective Organizing of Human Resources

1. What determines the span of management and hence, levels of organization?
2. What determines the basic framework of departmentation, and what are the strengths and weaknesses of the basic forms?
3. What kinds of authority relationships exist in organizations?
4. How should authority be dispersed throughout the organization structure, and what determines this dispersion?
5. How should the manager make organization theory work in practice?


Please give your comments and suggestions on issues to be added to this short revision notes. Also please inform the recent research in this area.

Updated 2018 - 1 February,

  1 Feb 2016,   2 Feb 2015,  5 Jan 2015, 28 July 2014, 12 Dec 2011


MBA Core Management Knowledge - One Year Revision Schedule


Related topics

Related topics

The Nature and Purpose of Planning
The Nature of Organizing
Resourcing - A Function of Management
Leading - Introduction
Planning and Execution - Theory and Practice
The System and Process of Controlling

Work Force 4.0 - Industry 4.0 Work Force

What is required for Workforce 4.0?
December 13, 2017
http://workforceplanningtools.com.au/what-is-required-for-workforce-4-0/


Man and Machine in Industry 4.0
How Will Technology Transform the Industrial Workforce Through 2025?

SEPTEMBER 28, 2015
Markus  Lorenz , Michael Rüßmann , Rainer Strack , Knud Lueth , and Moritz Bolle
https://www.bcg.com/en-in/publications/2015/technology-business-transformation-engineered-products-infrastructure-man-machine-industry-4.aspx

WEF - Global Challenge Insight Report
The Future of Jobs
Employment, Skills and
Workforce Strategy for the
Fourth Industrial Revolution
January 2016
http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf

Advancing the Autonomous Workforce 4.0
January 4, 2018
Frank Groenteman. MBA
https://www.linkedin.com/pulse/advancing-autonomous-workforce-40-frank-groenteman-mba/

Public Administration - Bibliography

There are two broad views with regard to the nature of Public Administration, viz. (a) the Managerial View and (b) the Integral View:
http://vle.du.ac.in/mod/book/print.php?id=13704&chapterid=30481

Books on Public Administration

The Next Public Administration: Debates and Dilemmas

B Guy Peters, Jon Pierre
SAGE, 23-Oct-2017 - Political Science - 192 pages


Written by two of the leading scholars in the field, this book explores public administration in the past, present and future, critically reviewing the modernization of public management reform. It reasserts public administration as an integral component of democratic governance and fostering a state-citizen relationship.

Wide-ranging in scope, The Next Public Administration:

Extends basic public administration to consider issues associated with management, governance and democracy
Covers core public administration concepts and their evolution through time
Draws on an international spread of examples, bringing theoretical discussions to life
https://books.google.co.in/books?id=B7E1DwAAQBAJ

Public Administration: Political science, Public administration

CTI Reviews
Cram101 Textbook Reviews, 16-Oct-2016 - 40 pages


Facts101 is your complete guide to Public Administration. In this book, you will learn topics such as as those in your book plus much more. With key features such as key terms, people and places, Facts101 gives you all the information you need to prepare for your next exam. Our practice tests are specific to the textbook and we have designed tools to make the most of your limited study time.

https://books.google.co.in/books?id=htl8pXgl3W8C

Introducing Public Administration

Jay M. Shafritz, E. W. Russell, Christopher P. Borick, Albert C. Hyde
Taylor & Francis, 13-Sep-2016 - 632 pages


Now in an extensively revised 9th edition, Introducing Public Administration provides students with the conceptual foundation they need, while introducing them to important trends in the discipline. Known for its lively and witty writing style, this beloved textbook examines the most important issues in the field of public administration through the use of examples from various disciplines and modern culture. This unique approach captivates students and encourages them to think critically about the nature of public administration today. Refreshed and revised throughout, the 9th edition contains a number of imporant updates:

An examination of the effect of the administration changes on the discipline, especially economic and financial management and budgetary policy, allowing students to apply the theories and concepts in the text to recent US government practice.

An exploration of the 2008 economic meltdown and its consequences for the regulation of financial markets, cut-back management, and social equity, providing students with a critical look at the recent changes in the global economy.

All-new images, international examples, keynotes, and case studies have been incorporated to reflect the diversity of public servants throughout history.

New sections on careers in public service, whistleblowing and public employee dissent, networks and collaboration across organizations, social innovation, managerialism and productivity improvement, Big Data and cloud computing, collaboration and civic engagement, and evidence-based policy and management.
https://books.google.co.in/books?id=H0QlDwAAQBAJ

Blogs

http://publicadministrationtheone.blogspot.com

Digital Transformation In Finance Area and Financial Management

Finance Transformation in the Big Data Era
Published on Published onJanuary 27, 2018
Karen (Yan) Wang
EMBA，AAIA，Certified Green Belt, Senior Finance Manager at Honeywell
https://www.linkedin.com/pulse/finance-transformation-big-data-era-karen-yan-wang/


Finance in a digital world: It’s crunch time for CFO’s!
A series on digital transformation in finance
https://www2.deloitte.com/us/en/pages/finance-transformation/articles/finance-digital-transformation-for-cfos.html



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EMAGIA CORPORATION
Published on 15 Nov 2016

Objectives and Goals - Review Notes

Principles of Management Revision/Review Articles - List

Koontz and O'Donnell state that they used objectives and goals as synonymous terms in the book.

Different authors provide different explanations for these concepts. I like the explanations that I studied. The explanation I narrate in this article is based on the treatment of the concepts in the book “Strategy and Policy: Concepts and Cases” by Thompson and Strickland, Business Publications, Texas, 1978.

Objectives

Objectives specify the results sought through the ongoing, long-run operations of the organization. These outcomes may consist not only of the desired results insofar as the organization's customer is concerned but also of what the organization perceives as the long range results it intends to achieve internally.

To have meaningful impact, objectives must be capable of being converted into specific targets and specific actions. They must give direction to the activity of the organization. They must set forth long-run organizational priorities. They must become the basis for work and for achievement. They must serve as standards against which performance is to be measured.

Since the role of objectives is to guide the concentration of resources and effort towards the desired ends, objectives should be selective. Objectives are needed in all areas on which the long-term survival and success of the organization depend. The important areas are:

1. Market
2. Technology
3. Innovation
4. Profitability
5. Efficiency
6. Resources
7. Social responsibility


The objectives of an organization may undergo revision over a period of time to meet changing circumstances.

Mission or Purpose



A business is defined by the want the customer satisfies when he buys a product or a service from a business organization.

To satisfy the customer (means to satisfy a specific want of the customer) is the mission and purpose of every business.

The question "What is our business?" can be answered only by looking at the business from the outside, from the view point of customer and market.

The purpose of a company has to be one of the wants of customers in the market.

The customer is not attached to any product, service or company. He wants to know what the product or service will do for him tomorrow. He is interested in his own wants, his values and his desires and world as he sees it. Therefore any serious attempt to define "what our business is" must start with the customer, his wants, his situation, his behavior, his expectations, and his values.

Therefore a searching enquiry needs to carried out to answer questions such as:

Who is our customer and what are his needs?
Where is the customer?
What does the customer buy?
Is it status? Comfort? Satisfaction of a physical need? An ego need? Security?

What is value to the customer?
Is it price? Function? Quality? Service? Economy of use? Durability? Styling? Convenience?

These questions plainly need to be posed and answered at the inception of a business and whenever it gets into trouble.

But even when the business is successful, the organizations have to examine their business purpose as the definition may become obsolete in the context of changes in the products and markets. The periodical examination of purpose in the light of customer studies and research will help the organization to look ahead and anticipate the impact of changes in the environment.

At any point of time, the purpose stated by the company has to be the answer to the question "What should our business be?" This question is periodically answered by the top management as a part of its setting the strategy for the future period.

A Hierarchy of Objectives

Objectives of an organization form a hierarchy. The zenith of the hierarchy is the socioeconomic purpose of society, that requires the organization to contribute to the welfare of the people by providing goods and services at a price that is affordable or people are willing to buy.

Objectives of an Organization - Explanation

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Goals

The goals of an organization are the intermediate quantitative and qualitative "performance targets" which management seeks to attain in moving toward organizational objectives.

Thus whereas objectives are long range in nature, goals are short range. They serve to indicate the speed and momentum which management seeks to maintain in accomplishing the organization's objectives.

They direct the attention of both management and employees toward the desired standards of performance and behavior in the near term.

Illustrations of goals:

1. Our target is to have market share of 15 percent this year and 17.5 percent next year.

2. We seek to gain enough accounts this year to reach our goal of $50 million in assets under management.

Goals become the rallying point for coordinating the activities of subunits as they act as a basis for establishing common goalposts.

Acceptance of the objectives of the organization and goals derived there from promotes teamwork and a united approach to the working of the organization.

Updated 23 January 2018, 22 July 2014