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What are the keys to
effective internal
marketing?
By,
Anurag Kar
B.Tech. Student
Department of E and ECE
IIT Kharagpur
Based on Chapter 21: Managing a Holistic
Marketing Organisation for the Long Run
Of
Marketing Management: A South Asian
Perspective
By 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
3
Major Steps to effective
Internal 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
Geographic
Organization
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 Products
Manager
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/Product
Manager
Advertising
Agency
Media
Promotion
Services
Packaging
Purchasing
Publicity
Sales Force
Market
Research
Fiscal
Legal
R&D
Manufacturing
And
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…
The only problem
being…
It’s costly.
The only problem
being…
It’s costly.
and often creates
conflict.
2.
Relationships
with Other
Departments
Under the marketing
concept, all departments
need to…
“THINK
CUSTOMER”
The marketing vice
president must work
through…
The marketing vice
president must work
through…
Persuasion
The marketing vice
president must work
through…
Persuasion
rather than
Authority
The marketing vice
president must work
through…
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.
2. Organizing
around customer
segments instead of
products.
2. Organizing
around customer
segments instead of
products.
3. Understanding
customers through
qualitative and
quantitative research.
Thank You!
Credits
Pictures Sourced from:
www.flickr.com
www.pinterest.com
http://commons.wikimedia.org
www.theguardian.com
www.imgur.com
Fonts Sourced from:
www.fontsquirrel.com
Based on “Marketing Management: A South Asian Perspective”
By Kohler, Kelter, Koshy and Jha

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