What are the keys to effective internal marketing?

What are the keys to

effective internal

marketing?

By,Anurag KarB.Tech. StudentDepartment of E and ECEIIT Kharagpur

Based on Chapter 21: Managing a Holistic Marketing Organisation for the Long Run

OfMarketing Management: A South Asian

PerspectiveBy Kotler, Keller, Koshy and Jha

INTERNAL MARKETING

Requires everyone in the organization to accept the

concepts and goals of marketing….

And engage in choosing, providing and

communicating customer value.

There are

3Major Steps to effectiveInternal Marketing

1.Organising the

Marketing

Department

Modern marketing departments can be

organized in a number of ways…

Modern marketing departments can be

organized in a number of ways…

Functional Organization

GeographicOrganization

Product or Brand

Management Organization

Market-Management Organization

Matrix-Management Organisation

Functional

Organization

1.

Most common form of marketing organization.

Functional specialists report to a marketing vice-

president who coordinates their activities.

Marketing Vice President

Marketing Administration

manager

Advertising and sales promotion manager

Sales Manager

Marketing Research Manager

New ProductsManager

Functional Organization

Geographic

Organization

2.

A company selling in a national market

Often organize their sales force along geographic lines.

Some companies are adding area market specialists to

support sales efforts in high volume markets.

Product or Brand

Management Organization

3.

Companies producing a variety of products and brands…

often establish a product management organization.This serves as another layer

of management.

A product management organization makes sense only if the company’s products are very different.

Brand/ProductManager

AdvertisingAgency Media

PromotionServices

Packaging

Purchasing

PublicitySales Force

MarketResearch

Fiscal

Legal

R&D

ManufacturingAnd

Distribution

This form of the product management organization is called “hub and spoke”system.

Market Management

Organization

4.

When customers fall into different user groups with distinct buying preferences…

a Marketing Management organization is desirable.

These companies have adopted a market

management organization.

Marketing managers supervise several market development managers, market specialists, or industry specialists and on functional services as needed.

Matrix Management

Organization

5.

Companies that produce many products for many markets

May adopt a matrix organization.

Not this MATRIX.

A matrix organization employs both product and marketing managers.

The only problem being…


It’s costly.


It’s costly.

and often creates conflict.

2.Relationships

with Other

Departments

Under the marketing concept, all departments need to…

“THINKCUSTOMER”

The marketing vice president must work through…


Persuasion


Persuasion

rather than

Authority


Persuasion

rather than

Authority

To coordinate the company’s internal marketing activities.

And to coordinate marketing with finance, operations and other company functions to serve the customer.

Many companies now focus on key processes rather than departments…

Because departmental organization can be a

barrier to smooth performance.

3.Building a

Creative Marketing

Organization

Transforming into a true market-driven company

requires…

1. Developing a company wide passion for customers.

2. Organizing around customer

segments instead of products.





3. Understanding customers through qualitative and quantitative research.

Thank You!

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Based on “Marketing Management: A South Asian Perspective”By Kohler, Kelter, Koshy and Jha

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