Marketing_Management_14th_Edition-min

MANAGING A HOLISTIC MARKETING ORGANIZATION FOR THE LONG RUN | CHAPTER 22 625
Some companies employ market
specialists who focus on very
specific regions of the country,
for example, Miami-Dade County
in Florida.
a marketing planning manager, a market logistics manager, a direct marketing manager, and a
digital marketing manager.
The main advantage of a functional marketing organization is its administrative simplicity. It
can be quite a challenge for the department to develop smooth working relationships, however. This
form also can result in inadequate planning as the number of products and markets increases and
each functional group vies for budget and status. The marketing vice president constantly weighs
competing claims and faces a difficult coordination problem.
GEOGRAPHIC ORGANIZATION A company selling in a national market often organizes
its sales force (and sometimes marketing) along geographic lines. 13 The national sales manager
may supervise 4 regional sales managers, who each supervise 6 zone managers, who in turn
supervise 8 district sales managers, who each supervise 10 salespeople.
Some companies are adding area market specialists (regional or local marketing managers) to
support sales efforts in high-volume markets. One such market might be Miami-Dade County,
Florida, where almost two-thirds of the households are Hispanic. 14 The Miami specialist would
know Miami’s customer and trade makeup, help marketing managers at headquarters adjust their
marketing mix for Miami, and prepare local annual and long-range plans for selling all the company’s
products there. Some companies must develop different marketing programs in different parts of the
country because geography alters their brand development so much.
PRODUCT- OR BRAND-MANAGEMENT ORGANIZATION Companies producing a
variety of products and brands often establish a product- (or brand-) management organization.
This does not replace the functional organization but serves as another layer of management.
A group product manager supervises product category managers, who in turn supervise specific
product and brand managers.
A product-management organization makes sense if the company’s products are quite different
or there are more than a functional organization can handle. This form is sometimes characterized
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 (see Figure 22.2). The manager
may:
• Develop a long-range and competitive strategy for the product.
• Prepare an annual marketing plan and sales forecast.
• Work with advertising and merchandising agencies to develop copy, programs, and campaigns.
• Increase support of the product among the sales force and distributors.
• Gather continuous intelligence about the product’s performance, customer and dealer attitudes,
and new problems and opportunities.
• Initiate product improvements to meet changing market needs.
The product-management organization lets the product manager concentrate on developing
a cost-effective marketing program and react more quickly to new products in the