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ORGANIZING FOR MAXIMUM EFFECTIVENESS

ORGANIZING FOR MAXIMUM EFFECTIVENESS. CHAPTER 18. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013. 1. Ways to Organize Marketing Tasks.

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ORGANIZING FOR MAXIMUM EFFECTIVENESS

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  1. ORGANIZING FOR MAXIMUM EFFECTIVENESS CHAPTER 18 Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 1

  2. Ways to Organize Marketing Tasks Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 2

  3. Functional Organization Fig. 18.1 Simple functional organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 3

  4. Product Organization Fig. 18.2 Product or market organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 4

  5. Sales Organization Fig. 18.3 Product or market sales organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 5

  6. Geographic or Area Organization Fig. 18.4 Geographic or area organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 6

  7. Mixed Market Organization Fig. 18.5 Mixed market organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 7

  8. Export Department Fig. 18.6 Export department Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 8

  9. International Organizational Structures • Global product. • Global area. • Global functional. • Mixed or hybrid. • Matrix. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 9

  10. Matrix Organization Fig. 18.7 Matrix organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 10

  11. Changing Organizational Thinking • Develop and communicate a clear corporate vision. • Use human resources to broaden individual perspectives and develop identification with corporate goals. • Integrate individual thinking into the corporate agenda. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 11

  12. Improve Matrix Effectiveness • Clarity of authority and ownership to each specific function. • Optimal balance of vertical and horizontal power across units. • Consideration of organizational units as catalysts for innovation vs. those for constraining opportunities in assigning formal power. • Understand practices that are culture-challenging or culture-friendly. • Balancing the cost of management time vs. allowing more input. • Be open to new ideas. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 12

  13. Organismic Structures • Characteristics • Even communication flow. • No fixed leadership. • Status from knowledge and skill. • Use of broader range of skills. • Drawbacks • Time-consuming discussions and leadership issues. • Difficult to identify career paths. • The bigger the organization – the more complex communication. • Organization becomes more hierarchical during stable conditions. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 13

  14. Organizational Structure Fig. 18.8 Factors affecting organizational structure Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 14

  15. Successful Product Managers • Accurately interpret the changing needs of the product line business. • Draw together complete and imaginative plans. • Develop specific programs for product improvements. • Devise a follow-up system so that plans can be modified if the objectives are not met. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 15

  16. Instituting Cross-Functional Teams • Roles and responsibilities must be sharply defined. • Team members often need to learn new skills. • Information systems need to be improved so that all can get information quickly. • Cross-functional career paths must be developed. • Incentives for success must be carefully aligned with team results. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 16

  17. When to Restructure • Is the marketing structure capable of implementing the plans? • Does the marketing focus the organization on priority markets or products? • Are managers suitably empowered? • Does the firm meet its sales and profit objectives? • Is the organization responding to customer needs or competitive actions? • Does the marketing department produce creative business strategies and plans? Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 17

  18. Managing Change • Changes in structure blur career paths. • Effort put into building relationships can be wasted. • Changes often mean learning new roles. • Learning new roles means more mistakes will be made. • Enforced change encourages people to look for new jobs. • The most talented staff are the best able to find a new job. • Changes in structure mean changes in status. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 18

  19. Acceptance of Structural Change Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 19

  20. Case Figure 1 KIS organization Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 20

  21. Summary • There are many types of organization structure. • The trade-off is usually simplicity vs. concentration on the right segment. • Most organization structures grow incrementally rather than being designed from the start. • Globalization adds another layer of complexity. • Centralization or decentralization is a major issue in global firms. • Effectiveness of organizations is based upon internal and external factors. • The best organization structures include: simplicity, easy exchange of information, putting best people closer to customers. • Changing the structure may not be as effective as moving staff into appropriate places. Use with BUSINESS TO BUSINESS MARKETING MANAGEMENT: A GLOBAL PERSPECTIVE ISBN 978-0-415-53702-5 Published by Routledge 2013 21

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