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Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Unit V Marketing Planning Organising and Control for Marketing Management MCOM Sem 2 Delhi University : Production and marketing of goods and services are the essence of economic life in any society. All organizations perform these two basic functions to satisfy their commitments to their stakeholders – the owners, the customers and the society, at large. They create a benefit that economists call utility which is the want-satisfying power of a good or service. There are four basic kinds of utility – form, time, place and ownership utility. Form utility is created when the firm converts raw materials and component inputs into finished goods and services.

Although marketing provides important inputs that specify consumer preference, the organization’s production function is responsible for the actual creation of form utility. Marketing function creates time, place and ownership utilities. Time and place utility occur when consumers find goods and services available when and where they want to purchase them. Online retailers with 24*7 format emphasize time utility. Vending machines focus on providing place utility for people buying snacks and soft drinks. The transfer of title to goods or services at the time of purchase creates ownership utility.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Continuous exposure to advertising and personal selling leads many people to link marketing and selling, or to think that marketing activities start once goods and services have been produced. While marketing certainly includes selling and advertising, it encompasses much more. Marketing also involves analyzing consumer needs, securing information needed to design and produce goods or services that match buyer expectations and creating and maintaining relationships with customers and suppliers.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

The marketing process can be divided in several different ways. One popular conceptualization of marketing tasks is:

1. Strategy formulation – the development of the broadest marketing/business strategies with the longest term impact.

2. Marketing planning – the development of longer-term plans which have generally stronger impact than the short-term programs

3. Marketing programming, allocating and budgeting – the development of short-term programs which generally focus on integrated approaches for a given product and on the allocation of scarce resources such as sales effort or product development time across various products and functions

4. Marketing implementation – the actual task of getting the marketing job done

5. Monitoring and auditing – the review and analysis of programs, plans and strategies to assess their success and to determine what changes must be made 6. Analysis and research – the deliberate and careful acquisition and examination of qualitative and quantitative data to improve decision making

Though implied and considered as part of the overall corporate planning, the importance of situation analysis can never be undermined during marketing strategy formulation. Especially under product policies, but throughout the marketing mix elements, the company, customer and competitive scanning is so essential to marketing success. Situation analysis describes the process by which environmental assessment, marketing research and market size/growth estimates get done. It pays particular attention to environment scanning skills useful in forecasting and modeling consumer behaviour.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Marketing Planning

Marketing planning involves objectives and plans with a 2-5 year time horizon and is thus further from day-to-day activity of implementation. Because of their broader nature and longer-term impact, plans are typically developed by a combination of higher level line managers and staff specialists. If the specialists take over the process, it loses the commitment and expertise of the line managers who are responsible for carrying out the plan. The planning process is probably more important than the final planning document. The process ensures that a realistic, sensible, consistent document is produced and leads to important organizational learning and development in its own right.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Organization is defined as a group of people working together to achieve common goals  and objectives of the business. Marketing organization provides a vehicle for making decisions on products, marketing channels , physical distributions, promotions and prices.

Marketing Organisation: Marketing organization is the framework for planning and making marketing decision that are essential to marketing success. It is the vehicle for making decision on all marketing areas such as product, price, place and promotion. Marketing organization is a group of marketing persons working together towards the attainment of certain common objectives. Marketing organization provides a system of relationships among various marketing functions to be performed by coordinating among marketing people.

Need for the organization: to be competitive in the market where consumer is the king we need to satisfy the consumer. So a good marketing organization is required to satisfy the customers. Marketing organization is the pillar for success for many organizations and provides a framework for the following:

  1. Divide and fix authority among the sub ordinates
  2. To locate responsibility
  3. To establish sales routines
  4. To enforce proper supervision of sales force
  5. To avoid repetitive duties
  6. To enable the top executives to devote more time for planning policy matters

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

FACTORS AFFECTING MARKETING ORGANIZATION

Factors influencing marketing org can be categorized into internal and external factors .

Internal:

  1. Top Management Philosophy: Organizational planning and its working is greatly influenced by philosophy which can be good or bad eg: Centralization Vs Decentralization
  2. Product policy: the width of product line of an org determines its size as the product offerings becomes increasingly diverse. Eg: There could be a need to move away from straight functional approach to product group approach.
  3. People: The size of the organization is not an important factor in terms of number of people but it is important with respect to human values which are critical and correct decisions regarding people cannot be made unless taking into consideration
  • Number
  • Qualifications
  • Capabilities
  • Personality
  • Attitude
  • Fear
  • Suspicion
  •  Ambition

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

External Factors:

  • Business Environment: With regards to business environment three points are important.
  1. The type of environment in which the firm is operating in terms of operations and size.
  2. The Nature of particular requirement for success in a given business which again determines the size.
  3. The rate of change in industries being served which again decides on its size and working.
  • Markets: This is the factor which again affects the marketing organization i.e. one should note about its
  1. Size
  2. Scope
  3. Nature
  4. Location

Based on the above aspects we need to design the size of the organization.

  • Consumer requirements and expectations:

Consumers have their own set of requirements and expectations from the organization. The more varied and vivid services they expect that the usual requirements. as a marketer we need to increase the workload depending upon the consumer requirements and expectations

  • Channels of distribution:

It is the type of channel of distribution which a marketing firm selects based on its size. Egg : Incase the company opts for indirect channel or channels it depends on outside sales force and hence the organization gets thinner .When the organization selects direct channel its size is increased as it has its own sales force.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

TYPES OF MARKETING ORGANIZATION STRUCTURES

Types of marketing organization structures: The marketing organization of a business can be structured on any of the following basis:

  1. Line and staff organization
  2. Functional Organization
  3. Product oriented marketing organization
  4. Customer oriented marketing organization
  5. Geography oriented marketing organization
  6. Matrix form / Combined base

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

  1. Line and Staff Organization:

In most business formsespecially medium size the marketing job is structured around few line functions and few staff functions i.e. Major staff functions is organized into separate department and the line function is responsible for sales department. The required coordination between the line and staff function is managed by the executive at higher level.

            Merits:

  1. Provides expert advice from specialists
  2. Relives line executes of routine, specialize functions
  3. Enables young sales executive to acquire expertise
  4. Helps in achieving effective coordination
  5. Easy to operate
  6. Less Expensive

Demerits:

  1. Produce confusions arriving from indeterminate authority relationships
  2. Curbs the authority of experts
  3. Too much is expected from executives
  4. Decision making is taken by top management

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

  1. Functional:

Under the organization the departments are created on the basis of specified functions to be performed i.e. The Activities related to marketing, distribution etc

             Merits:

  1. Division of work base on specialization
  2. Relives line executives of routine and specialized functions
  3. Promotes application of expert knowledge
  4. Helps to increase overall efficiency

Demerits:

  1. Leads to complex relationships
  2. Makes coordination ineffective
  3. Promotes centralization
  4. Lack of proper coordination
  5. Delay in taking decisions

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

  1. Product Oriented Marketing Organization:

Organizations that produce wide variety of products often organize marketing, training and promotion with respect to a product.

            Merits:

  1. The salesmen can render better customer service as they possess good knowledge of product and may have close contacts with customers.
  2. It makes individual departments responsible for the promotion of specific products.
  3. It facilitates effective coordination

Demerits:

  1. It increases the employment of a number of managerial personal
  2. Many salesmen of same enterprise attend same customer each representing a separate product which creates confusion in the minds of the customer.
  3. There may be duplication of activities

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

  1. Customer Oriented Marketing Organization:

When the departmentation of sales organization is done on customer basis it is called customer oriented marketing organization. Deparmtnetation by customer may be done in enterprise engaged in providing specialized services to different classes of customers.

Merits:

  1. It takes into account needs of each class of customers.
  2. IT provides specialization among the enterprise staff

Demerits:

  1. It makes coordination difficult
  2. It may lead to under utilization of resources in same department
  3. There may be duplication of activities
  4. These types of sales organizations are not suitable for small enterprises.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

5.Geography/Territory:

In a territory oriented marketing organization , the responsibilities for marketing of various products rests almost entirely with line executives .The territory managers are given varying nomenclatures like depot manager, district manager, area manager, zonal manager , divisional manager etc.

Merits:

  1. It leads to economy in terms of times and money
  2. It helps in taking knowledge of local customers
  3. It helps in effective control

Demerits:

  1. It requires employment of number of managerial personnel.
  2. It dilutes control from head quarters

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Marketing Control:

Marketing control is concerned with analyzing the performance of marketing decision, identifying the problem/opportunities and taking actions to take advantage of opportunities and resolving problems. It is the sequel to marketing planning. All manager need to exercise control over their decision and marketing operations.

            Specifically marketing performance is measured in terms of market share, sales, profits. Hence most control measures are designed with these parameters in mind. But today’s marketing needs to measure the following.

  1. a)Market share
  2. b)Sales and profits
  3. c)Marketing effectiveness
  4. d)Customer satisfaction
  5. e)Customer perception of the firms and its brands

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

There are four types of controls with different objectives and tools and exist with different levels of management.

1)  Annual plan control:  It is with top or middle level mgmt to evaluate actual performance with targeted to analyze differences or gaps. The tools used are sales analysis, market share analysis, sales and expense ratios, and financial analysis.

2) Profitability control: It is used by marketing department to examine profitability by product, territory, customer segment and trade channel.

3) Efficiency control: It is used to asses the effectiveness of money spend on sales force, advertising, sales promotion and distribution. It is used by both line and staff executives.

4)  Strategic control: It is used by the top mgmt to examine wether the firm and marketing capable to cope with environment or not. The major tool used here is marketing audit.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

Marketing Control Process:

Marketing Control Process includes monitoring, evaluating and improving the performance in each activity. There are six steps in this

  1. a)Decide the aspect of marketing operation to be evaluated:

The first step in mcp is deciding about the marketing operation to evaluate.

Eg: effectiveness of media for product advertisement, sales person performance, or performance of company product

  1. b)Establish measurement criterion

In this stage performance standards are decided against which actual performance is evaluated.

Eg: control sales person performance, in this one can measure new accounts obtained, call frequency ratio and order per call

  1. c)Establishing monitoring mechanism

After setting the standards, the next step is to develop monitoring mechanism tools like marketing information system(MIS). MIS is used to record performance of all marketing areas like monthly sales volume for products.

  1. d)Compare actual results with standards of performance

In this stage, results obtained through monitoring process are compared with pre established standards of performance.

  1. e)Analyze performance improvement

If the results/performance are not up to the desired standards, a corrective action is to be taken to enhance the performance levels. For this performance improvement analysis is to be done.

Unit V Marketing Planning Organising and Control for Marketing Management Mcom Sem 2 Delhi University

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