SELECTING AN

ORG STRUCTURE
FOR MARKETING

HOW-TO GUIDE
 Selecting an Org Structure for Marketing
HOW-TO GUIDE

Does your marketing department have a solid infrastructure? Do all of your company’s marketing
professionals understand their role/function in the organization? Is the chain of command easily
understood or only loosely communicated to marketing staff?

Organizational (org) structures provide a framework within a company that ensures all employees
are aware of their role and how they fit into the ecosystem of the business. Org structures present
themselves on a spectrum anywhere from a traditional, top-down approach to more collaborative,
flexible approaches.

Org structures vary by company size, industry, and business needs. Ideally, each company will
create its structure based on their specific requirements, and continue to update the org structure
as changes occur, both internally and externally.

As marketing departments become more complex, with new technologies and initiatives appearing
all the time, it is important that Marketing builds and maintains an org structure that will enhance
their current and future plans.

This How-To Guide was designed to help you understand what the common org charts look like,
the pros and cons of each structure, and how to select the best org structure for your company.

2 SELECTING AN ORG STRUCTURE FOR MARKETING

Common Organizational Structures
The most common org structures for a marketing department are Centralized, Marketing Services,
Center of Excellence, Decentralized, and Circular.

The five figures reviewed in this section do not show the entirety of each structure; however, they
do provide a glance at how each structure is arranged.

Here are graphics of five common marketing org charts:

FIGURE 1
Centralized Org Structure

CMO

VP, VP, Strategic VP, Customer VP, Marketing Ops

Demand Generation Communications Success and Finance

Director, Content Director, Customer

Marketing Engagement

Director, Event
Marketing

FIGURE 2
Marketing Services Org Structure

CEO

President, Business President, Business President, Business

Unit A Unit B Unit C Marketing
Services

Budget Budget Budget

3 SELECTING AN ORG STRUCTURE FOR MARKETING

FIGURE 3
Center Of Excellence Org Structure

Head of Corporate VP, Strategy and

Comm and Marketing Branding

President, Business VP, Marketing

Unit A Programs - BU A
CEO
President, Business VP, Marketing
Unit B Programs - BU B

President, Business VP, Marketing

Unit C Programs - BU C

FIGURE 4
Decentralized Org Structure

CEO

Business Unit Business Unit Business Unit

Head A Head B Head C

VP, Marketing Strat. and VP, Marketing Strat. and VP, Marketing Strat. and
Programs - BU A Programs - BU B Programs - BU C

Content Marketing Content Marketing Event Marketing

Manager Manager Manager

Event Marketing
Manager

Creative Services
Manager

4 SELECTING AN ORG STRUCTURE FOR MARKETING

FIGURE 5
Circular Org Structure

Event Marketing Manager

VP, Demand Gen

Marketing VP, VP, Strategic

CMO PR Manager
Ops Manager Marketing Ops Comm
and Finance

VP, Customer Success

Customer Success Manager

5 SELECTING AN ORG STRUCTURE FOR MARKETING

Organizational Structure Descriptions
Each org chart in the previous section has its own unique attributes. While each org structure has
its pros, there are also cons that should be considered before implementation or restructuring. The
following table details the key attributes, pros, and cons of each chart:

Org.
Description Pros Cons
Structure

Provides an easily
Is the top-down
deciphered chain Can create
approach traditionally
of command; challenges with
used by mid-sized to
Enables highly communication
large organizations.
Figure 1 Centralized specialized job and adjustments
It relies on a singular,
functions; Allows to market changes
centralized marketing
for continued if all departments
department that reports
growth as a are silo'ed.
directly to the CMO/CEO.
company expands.

Marketing Services acts

as an internal agency for
All marketing
all marketing activities
activities are
and programs. This
executed and
group obtains budget
managed in the Marketing Services
requirements from each
same "command group does
Business Unit (BU), and
center"; Can be not control the
Marketing provides the Marketing
Figure 2 easily scaled budget; May be
Services function based on the
for growing issues maintaining
requirements for each
companies; consistency across
individual BU. This could
Remains cost BUs.
be considered "internal
effective with one
outsourcing," BUs can
main source of
be based on product,
marketing activity.
market segment, or
geographic location.

6 SELECTING AN ORG STRUCTURE FOR MARKETING

 Org.
Description Pros Cons
Structure

Provides a
Is similar to the Trad-
"command center"
itional model; however,
for Marketing
the origanization is Can cause serious
strategy that is
structured by Business communication
filtered down
Unit (BU). Business Units loss and transfer
to each BU,
can be based on product of knowledge;
which maintains
division, market segment, Can provide
some level of
Center of or geographic location. In each BU with too
Figure 3 consistency
Excellence this model, the corpora- much autonomy
across the
tion (as a whole) main- and a chance
entire company;
tains the strategy portion to stray from
Empowers each
of Marketing, but the the company's
BU to market its
individual BU manages overarching
product or its
and monitors the unique strategic goals.
segment on their
programs and budget of
own with their
Marketing.
unique knowledge.

Allows each BU
to utilize their Creates a great
knowledge of the deal of autonomy
Each Business Unit
specific division, for each BU; Can
(BU) is responsible for
market segment, cause an overlap
Marketing in its entirety.
Figure 4 Decentralized or location to in work if similar
Marketing strategy and
drive collateral job roles are
programs are run by
and marketing implemented to
each BU.
programs that each BU to do
increase sales similar programs.
opps and closes.

Is a more organic
organizational structure.
It still provides a loose
chain of command with
the executive/leader at
the center; however, the Allows a free flow Employees may
ideology is that the exec/ of knowledge and have a hard time
leader will "radiate" their ideas throughout deciphering
vision and knowledge the organization; their place in the
Figure 5 Circular
throughout the Encourages organization;
department. There are constant immediate chain of
bands for each job level communication command can be
that indicate different and collaboration. difficult to maintain.
levels of knowledge
transfer and functionality.
This model is typically
seen in SMBs or start-up
companies.

7 SELECTING AN ORG STRUCTURE FOR MARKETING

How To Select The Right Org Structure
Since there are so many ways that a company can organize their infrastructure, there are several
characteristics each organization must consider in order to properly select the right org structure
for their needs. As mentioned previously in this guide, an org structure must be specific to each
company’s size, industry and business needs.

Consider the following items when implementing an org structure or restructuring your company:

Chain of Command
The chain of command indicates exactly how an organization is structured from the top of the
organization (i.e. CEO) all the way down to the bottom. A chain of command can be long (i.e. CEO
to SVP to Director to Manager to Specialist) or short (i.e. CEO to Manager). It can also be rigid (see
Figure 1) or loose (see Figure 5).

SMB: The majority of small to mid-sized businesses will most likely see a short chain of command
since there will be less employees than the standard Enterprise. SMBs should consider the
benefits of both rigid and loose chains of command. A loose structure provides more flexibility
with communication, reporting, and adding new roles. A more rigid structure will provide a
solid backbone if your company is gearing up for rapid growth.

Enterprise: Large corporations will typically have long chains of command as there tend to be
more responsibilities that need to be covered. The majority of Enterprises will prefer a more
rigid structure as well to ensure all employees are aware of their direct reports.

Centralization
In order to determine how centralized your org structure needs to be, you will first need to under-
stand where the decision-making power lies. A centralized org structure (Figure 1) indicates a main
source of decision-making power, while a decentralized org structure (Figure 4) suggests that the
decision-making power is spread out through different parts of the organization.

Figures 2 and 3 show a combination of the two, with parts of Marketing being shared between
a “command center” and other parts of the organization. Both SMBs and Enterprises may fall
anywhere on the spectrum based on the number of business units required, the number of depart-
ments needed, and/or the specialization/formalization of job roles.

8 SELECTING AN ORG STRUCTURE FOR MARKETING

Product/Market/Geographic Needs
Organizations that offer more than one product, serve more than one market segment or do busi-
ness in more than one location (i.e. regions, countries, continents) must consider how marketing
strategy and programs may differ for each product, market, and/or location.

Single Product/Market/Location: Organizations that do not handle more than one of these
should not concern themselves with this characteristic unless new products, markets, or
geographic locations emerge.

Multiple Products/Markets/Locations: Companies that handle more than one of these should
consider Figure 2, Figure 3, and Figure 4 from the previous section. Each of these structures
have their merits, and help multi-faceted organizations divide up responsibilities and know-
ledge in order to properly serve all customers.

As your company grows, encounters internal changes, and/or sees developments in the market-
place, you will need to re-evaluate your org structure to supplement business needs. An organ-
ization’s marketing infrastructure can help or hinder business development, sales success, and
customer engagement.

Bottom Line
Organizational structures are a critical asset of any company. They promote an understanding of job
role/function, a guide for how information should disseminated through the company and a frame-
work for responsibility and reporting.

Marketing departments are no exception to the need for an org structure. In fact, as more tech-
nologies and programs are introduced into the marketing space, it is imperative that Marketing
considers how their functions are arranged and managed. CEOs, CMOs and marketing leaders
should review the specific requirements of their businesses in order to properly structure the
marketing function for productivity and growth.

9 SELECTING AN ORG STRUCTURE FOR MARKETING

 Action Plan
STEP 1 - Review Org Charts In Figures 1 To 5

Review Org Study the Org Charts and

1 Charts In
Figures 1 To 5 Compare them to Your
Business

Arrange Or Review the org charts

2 Rebuild? in Figures 1 to 5 and the
corresponding descriptions.
Identify which org chart is most
closely oriented to your current
structure.
Build Your New
3 Org Chart

Share Your
4 Organizational
Plans

10 SELECTING AN ORG STRUCTURE FOR MARKETING

 Action Plan
STEP 2 - Arrange Or Rebuild?

Review Org
Plan the Adaptations
1 Charts In
or Rebuild of Your
Figures 1 To 5
Infrastructure

2 Arrange Or Follow the guidelines in the

Rebuild? “How to Select the Right
Org Structure” section of
this guide and relate it to the
associated org charts above.

Build Your New

3 Org Chart

Share Your
4 Organizational
Plans

11 SELECTING AN ORG STRUCTURE FOR MARKETING

 Action Plan
STEP 3 - Build Your New Org Chart

Review Org
Use the Modern Marketing
1 Charts In
Department Structure Here
Figures 1 To 5

Utilize our Modern Marketing

Arrange Or Department Structure as a
2 Rebuild? foundation to build your own
organizational plan.

3 Build Your New

Org Chart

Modern Marketing Department Structure

Share Your
4 Organizational
Plans VIEW RESOURCE

12 SELECTING AN ORG STRUCTURE FOR MARKETING

 Action Plan
STEP 4 - Share Your Organizational Plans

Review Org
Set Responsibilities
1 Charts In
with Clear Plans and
Figures 1 To 5
Communication

Arrange Or
2 Rebuild?
Share your organizational
plans with key executives
and begin to disseminate
roles, functions, and
responsibilities through your
new channels of leadership
Build Your New
3 Org Chart
and communication.

Share Your
4 Organizational
Plans

13 SELECTING AN ORG STRUCTURE FOR MARKETING

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