Describe the concept and significance of marketing organisation?

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mkcapen1's profile pic

mkcapen1 | Middle School Teacher | (Level 3) Valedictorian

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In order for a company to grow and meet the demands of a growing firm, there is a need for the hierarchy of services and who is assigned to which task, to be mapped out.  The system of mapping is called marketing organization.  The concept is based on the four P’s of marketing, product, price, place, and promotion. 

The benefit of having a strong marketing organization is that the operations will flow more smoothly, allow for changes when necessary, and allow a business to be able to determine when changes are necessary within the company.  If sales are down the areas that would be screened within the organization would lean towards persons employed in price and distribution.  Each area has its own niche and serves to improve production of sales or services within those specific areas.  It allows for specialization.

krishna-agrawala's profile pic

krishna-agrawala | College Teacher | (Level 3) Valedictorian

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Use of the term "marketing organization" is somewhat confusing. As commonly used in business this term refers to the part of the total organisation structure of a company primarily responsible for the marketing functions of the company. In this sense of the term, it does not make much sense to speak of its concept and significance. We can say that significance of marketing organization is directly related to the concept and importance for marketing function. Therefore, in my answer below, I have discussed the concept and importance of marketing.

Marketing is the function within a company that deals with determining the nature of products and services to be produced and sold by it, and planning and execution of product pricing, promotion and distribution to deliver value to the customer and in turn meet profit and other goals of the company. The marketing concept has evolve over a period as a means of achieving competitive advantage replacing earlier business concepts such as production concept, product concept and selling concept. The production concept concentrated on reducing the production cost and increasing production. The product concept concentrated on offering better product and increased capability features that relied on design innovation rather than focusing on customer needs. Selling concept concentrated on selling more and more of the products that a company could produce. The approach of selling is to convince customers to buy what is produced. Marketing concept is in a way reverse of this. It focuses on producing what what the customers will want to buy.

In this way marketing benefits both customers and the company. It increases the customer benefits by producing and selling what they need most. At the same time it benefits company by increasing its sales and profits. It also improves continued customer patronage for the company and its products.

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