LESSON 14

Managing Business Organisation

Effectively

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Company
LOGO
SYNOPSIS

LESSON 14 basically introduces the

candidates to the importance of
managing business organisations
effectively. This lesson also stresses the
importance for business organisations to
take up the responsibilities required of
them by society through social
responsibility.
 Learning Outcome
After completing LESSON 14,
candidates should be able to:
• describe what makes internal
marketing effective.
• •describe ways of how
business organizations can be
responsible social marketers.
• •describe what makes a
business organisation ‘perfect’
or holistic.

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 What are the trends in Marketing
Practices?
Among actions taken by
Among trends observed in companies to suit the
today’s marketing trends:
macroenvironment: •Reengineering
• Globalization •Outsourcing
• Deregulation •Benchmarking
• Technological advances •Supplier partnering
•Customer partnering
• Customer empowerment
•Merging
• Market fragmentation •Globalizing
•Flattening
•Accelerating
•Focusing
•Empowering
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 What is Internal Marketing?

• All marketing activities directed to everyone

within a business organisation so that they will
understand and follow the concepts and goals of
marketing. As a result, everyone will be engaged
in choosing, providing, and communicating
customer value.
• Marketing is no longer a sole responsibility of
marketing department but everyone.
• Business organisation will be transformed into a
customer-driven company.

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 How to organize Marketing
Department?
• Can be organised according to the following or
combination of them:
– Functionally
– Geographically
– By product or brand
– By market
– In a matrix-management
– By corporate or division

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 What is functional organisation?
• Most commonly used due to its administrative simplicity
• Problem arises when products and markets increase

Marketing vice president

Manager Manager Manager Manager Manager

for for Ads & for Sales for for
Marketing Sales Product Marketing
Admin Promotion Brand Research

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 What is geographic organisation?
• used because sales force and other organisational
functions are organised along geographical lines.
• Area market specialists
National Sales Manager

Regional 1 Regional 2 Regional 3 Regional 4

Sales Sales Sales Sales
Manager Manager Manager Manager

District District District District District District District District District

1 1 2 2 3 3 3 4 4
Sales Sales Sales Sales Sales Sales Sales Sales Sales
Mgr Mgr Mgr Mgr Mgr Mgr Mgr Mgr Mgr
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 What is product or brand
organisation?
• It does not replace the functional organisation, instead
it serves as another management layer.
• Hub and spoke system
Manufacturing
& distribution
Advertising
Purchasing Agency
Product
Legal manager Media

Sales force Packaging

Market research

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 What is market management
organisation?
• used usually when different customer groups (different
buying preference, practices) exist

Market manager

Market Market Market Market

development development development development
Manager 1 Manager 2 Manager 3 Manager 4

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 What is matrix-management
organisation?
• Used usually when company offers multiproduct and
serves multimarket.
• •Costly, can create conflict, and questionable as to
where authority and responsibility should lie.

Market managers
Children’s Home Industrial
menswear
wear furnishing markets

Nylon

Product Rayon
managers

Orlon

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How to build a creative marketing
organisation?

• develop a company-wide passion for

customers
• organise activities and strategies around
customers instead of around products
• develop a deep understanding of
customers via research –i.e. qualitative
and quantitative research

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 What is Socially Responsible
Marketing?
• Ethical Corporate Marketing or Green Marketing
• Examples include green branding, highlighting the
inclusion of recycled materials, or noting that a portion of
profits will be donated to charity
• Practice ethical marketing and concern for society
– corporate social responsibility
• •Legal behavior
• •Ethical behavior
• •Social responsibility behaviour

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• -socially responsible marketing is a
marketing philosophy that a company
should take into consideration; "What is in
the best interest of society in the present
and long term?"
• - It is based on the idea that market
offerings must not be only profit-driven, but
they must also reinforce social and ethical
values for the benefit of citizens.

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• 1. Tentree
• As a brand that’s big on sustainability, Tentree’s no stranger to social responsibility. The brand
understands that their customers are highly conscious about their buying choices and how they
impact the environment. To address these concerns, Tentree introduced Climate Plus, a subscription
plan that would allow customers to plant trees and offset their carbon footprint.

• 2. Fenty Beauty
• Fenty Beauty keeps it simple with their social responsibility marketing by maintaining transparency
about their earth-conscious initiatives. The brand has a dedicated page on their website explaining
the actions they’re taking to reduce the impact of their products on the environment. They explain
how they’ve eliminated boxes wherever possible and chosen recyclable materials even for the
protective paper boxes they still use.

• 3. Tesco
• Tesco’s food division has been actively supporting several important social causes and promoting
these initiatives through Instagram. This includes partnering with an influential cancer advocate to
raise awareness about the signs and symptoms of bowel cancer and making donations to the
Bowelbabe Fund.
The brand has also organized Food Collection events to help families who are
experiencing economic hardships. Tesco shared an Instagram post encouraging
followers to donate and support their Food Collection.

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 What is Cause Related Marketing?
• Marketing where company contributes to a certain
selected cause using its resources and/or its partners’
resources
• A mutually beneficial collaboration between a corporation
and a nonprofit designed to promote the former's sales
and the latter's cause
– Corporate societal marketing (CSM)
• Non-economic objective
• Social welfare
• E.g. volunteerism, strategic philanthrophy

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 What is Social Marketing?
• to influence behaviors that benefit individuals
and communities for the greater social good.
• social marketing can result in community
behavioral changes and with the right
involvement; increase a company’s reputation.
• Example:
– Action campaign: motivate people to donate blood
– Behavioral campaign: no smoking campaign
– Value campaign: change attitude of the public
through save water campaign

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What skills are needed to implement
marketing program?

1. Diagnostic skills

2. Identification of
company level

3. Implementation
skills

4. Evaluation skills

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 What to look for in Evaluation and
Control?
1. Efficiency control:
• what do you look for?
• Salesforce efficiency
• Advertising efficiency
• Sales promotion efficiency
• Distribution efficiency
2. Strategic control:
• what do you look for?
• marketing effectiveness review
• marketing audit
• marketing excellence review
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What is the
future of
marketing?

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 •Customer relationship
What management (CRM)
proficiency •Partner relationship
management (PRM)
needed to •Database marketing & data
ensure holistic mining
marketing •Contact center management
and telemarketing
achieved? •Public relations marketing
•Brand building & brand asset
management
•Experiential marketing
•Integrated Marketing
Communications (IMC)
•Profitability analysis by
segment, customer, channel
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 Memory Recall
Tutorial Exercises

1.What is internal marketing? Give

examples.

2.What is socially responsible marketing?

Why is it important? Give examples.

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 Issues Arising for Discussion

1. I am sure you have observed quite a number of

marketing weaknesses practiced in your
company. Why do you think they happened in
the first place? Can you turn them around to be
strengths instead?
2. Do you think business organisations should
emphasise on their corporate social
responsibility role? Do you think their business
will be affected if they don’t do this at all? Why?

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