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Effective Organizational Strategies in B2B Marketing Management

Chapter 18 of "Business to Business Marketing Management: A Global Perspective" explores various organizational structures that can enhance marketing effectiveness. It discusses approaches such as functional, product, sales, geographic, and mixed market organizations. The chapter emphasizes the importance of clarity in authority, the role of cross-functional teams, and the need for flexibility in organizational design to adapt to changing market conditions. Additionally, it guides on when to restructure for optimal performance and responsiveness to customer needs.

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Effective Organizational Strategies in B2B Marketing Management

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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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