Ashish Sachdeva

16FT-174
Section-E

Understanding of the Topic

In an organization, the sales planning and sales policies are formulated on
the basis of marketing organization. It ensures the smooth and systematic
implementation of plans, policies and programs which are much needed for
the control of sales activities so as to maximize the efficiency and
profitability.
There are basically 3 models of marketing organizations and the nature of
their marketing activities varies in each model.
1. Product Focused
2. Market focused
3. Function focused
There also exist many other hybrid and complex marketing organizations
as well.
Product Focused marketing organization-

Head of the
company

Manufacturi
ng Head

Marketing
Head

Field Sales
Manager

Advertising
Manager

Product
Manager

Market
Research
Manager

Product A

Product B

Product C

Suppor Staff
head

Ashish Sachdeva
16FT-174
Section-E

This type of organization structure establishes a product or a brand manager,

which is responsible to implement it marketing plans, ensuring a proper
implementation and realizing its preset goals or objective.
This type of structure is usually common which companies having many
products in its portfolio.
That is why this type of structure is usually employed in FMCG companies. As
they have many different brands under their umbrella and each would
require a different approach to establish itself in the market.
Roles of Product Manager1. To Plan, develop and direct marketing efforts for a particular brand or
product.
2. Create strategies to take advantage of market opportunities.
3. Manage external marketing partners such as advertising agencies,
digital marketing firms.
4. Assist integration of campaigns with brand consistency
5. Track consumer and market insights by reviewing metrics such as sales
volume, market share, profit projections, pricing and distribution, and
by conducting consumer research
6. Work closely with departments such as manufacturing and R&D to
consult on package and product as it relates to branding.
The product manager is also responsible to coordinate among
manufacturing, sales and market programs in order to serve the interest of
each.
Their one major challenge is to maintain a cost competitive product line that
matches evolving customer demand.
Major Advantages of such a model is that there is only one person in charge
of making a business plan, so theres no mismatch or ambiguity over the
vision and plans of the product.
It also shortens the time required to bring about a change in the strategy.

Ashish Sachdeva
16FT-174
Section-E

Market Focused OrganizationIn this structure, the focus in on the market segments rather than on
products.
This type of organization is based on the different types of customers. The
enterprises have adopted customer-oriented marketing and thus there arise
different sets of organizations through which the needs of customers or
market are met; i.e., subdivision of markets on the basis of, industrial or
individual customers, rich and poor customers and on the basis of sex,
income, taste, age etc. A firm may have different groups of customers, who
have different needs and problems. Thus, each section can look into the
needs of each group of consumers and facilitate their buying-wholesale
section, retail section etc.
Merits (Consumer type):
1. This type of structure help to focus on heavy users in a given
market.this structure also provides an opportunity to focus on
individual market for the development of industry specific expertise
concerning delivery, service and distribution needs.

2. This type of organization can encourage consumers with clearly

defined services.
Demerits
1. It complicates interfaces with the other part of the company such as
manufacturing and R&D, which are generally product-focused.

Ashish Sachdeva
16FT-174
Section-E

2. Can create duplication of support activities for each product line, which
increases the overhead costs.

Functionally Focused Organization-

Head of the
company.

Manufacturi
ng Head

Field Sales
Manager

Product
Marketing
Manager

Marketing
Head

Industry
Marketing
Manager

Advertising
Head

CFO

Sales
Promotion
Manager

In these type of organizations, a separate department is established for each

type of marketing function. This type of structure is required in organizations
where certain marketing tasks require deep insights and special attention.
Each department does its function for the entire organization. Sales

Ashish Sachdeva
16FT-174
Section-E

department does the function for the whole enterprise. Functional

organization is based on expert knowledge and makes the greatest use of
division of labor resulting in high efficiency and specialization.
Merits1. Marketing planning for the organization is centered in one position.
2. It increases efficiency and expertise in selected marketing activities
through specialization.

Case Study Marico Industries LTD.

Central Sales Organization- Established in 1998, it was responsible for the
sale of all company products. The companys organizational structure was
also changed from a functional structure, now it was based on Strategic
business units.
SBU consisted of 2 operating Units- Health care and Nature Care.
This had manufacturing and marketing activities, with respect to individual
products and three supporting units- Sales, HR and Finance.

Ashish Sachdeva
16FT-174
Section-E

Chairman &MD

Central Sales
Organization
Head

CFO

Nature care
CEO

Health care
CEO
Manufacturin
g Head
Marketing
Head

HR Head

Manufacturin
g Head
Marketing
Head

Reasons for setting up CSO

1. To introduce niche brands, they wanted to build new areas of
competence, such as gathering market intelligence and sales detailing
from field sales force.
2. Target expansion of geographical reach, which required strenthing of
their distribution channel.

Ashish Sachdeva
16FT-174
Section-E

3. Driving down costs in sales value chain. This was required as FMCG
was a low-margin business, therefore aggressive cost structure and
sales promotion was required.
Marketing Efforts of Marico
1. Transforming entire sales force (125 in number) on three
dimensions: competencies, culture and customer
2. Front end tertiary sales officer

From volume deliverer to trainer and market strategist

3. Distributor

from trader of goods to sales manager, planning and

measuring and reviewing the work of salespersons

4. Distributing salesman

From an intermediary to tracker keeping tabs on number of

outlets covered

5. Carrying and Forwarding Agent (CF&A)

From space provider to depot manager

6. Adding value by CSO serving as distribution arms to other

companies

Ashish Sachdeva
16FT-174
Section-E

It added Rs.10 million in bottom line from distribution of P&G and IndoNissan products
Cost Cutting Through IT.
Marico used to source its copra from terminal markets of Kerala where lot of
agents and unions were operational. There was the transporter, who doubled
up as trading facilitator; traders undertook fumigation, drying and sorting; a
workers' union also sorted; another union filled copra into sacks, and stitched
and loaded them; and yet another union stacked the sacks in trucks. All
these activities cost around Rs 500 a tonne and gunny bags cost another Rs
300 per tonne.
1998 : The company stopped sourcing copra (primary raw material) from
terminal

markets, instead went to individual contractors. This helped

them in streamlining the supply chain and establishing a relationship

with the smallest farmer possible, without engaging in contract
farming. Marico has suffered during two bull runs in coprain 2003-05
and in 2008-09as middlemen salted away copra in warehouses.
Marico diversified into buying directly from individual traders, who
moved truckloads of copra directly to its factory.
2002: Developed a software called MIDAS, which doubled up as ERP solutions
for distributors. It simplified procedures and, eliminating paper work,
stockouts dropped from an average of 30 days to 20 days.

Ashish Sachdeva
16FT-174
Section-E

Functional Organisational structure of Geta Corp.

Marketing
Manager
Planning
and
Control
Cell
Sales
Engineer

Regional
Office
Head
Regional
Manager

Servicing
Manager
Service
Engineer
Technician
s

Marico

Geta

Nature of Product

Consumer Goods

Industrial Product

Objective of promotional

Tracking changes in

Ensure maximum possible

activities

consumer attitudes,

market penetration

Ashish Sachdeva
16FT-174
Section-E

Develop and consolidate

with maximum profit

core distribution network

and add value for 3rd party
sales

Marketing efforts

New product

Personal Selling most

development, lower

important promotion

pack sizes, rural

technique

marketing, alternate
channels, Cutting
cost using IT.

Catalogue most
important
advertising medium
in media