Question.

3. Importance of Consumer Behavior form Markets ?

Answer:
Objectives of Consumer Behavior
One of the most difficult tasks of marketing management is how
to predict the consumer behavior.
The objectives of the consumer behavior is to make the readers
aware about consumer behavior

and marketing.

The consumer is continually exposed to new experiences and

different influences and as the circumstances change, new needs
and wants are invoked in the customers. It is the essence of
marketing centres to identify and satisfy these needs and wants.
They also need to recognize what influences these needs and how
consumers go about satisfying them.
Consumer behavior can be formally defined as the act of
individuals directly involved in obtaining and using economic
goods and services, including the decision processes that precede
and determine these acts.
The consumer behavior is very complex and for the marketing to
be successful, it is not sufficient just to recognize what

customers

require. It is equally important to recognize why it is required .

some of the Questions that relate to consumer buyer behavior are:
-Who constitutes the market?
-What does the market buy ?
- When does the market buy ?
- Who participate in the buying ?

- How does the market buy ?

-Where does the market buy ?

IMPORTANCES OF CONSUMER BEHAVIOUR FOR MARKETERS

Consumer behavior helps the Marketing Manager to understand
the purchase behavior and preferences of different customers. In
marketing terminology, specific types or group of consumers who
buy different products represents different market segments.
For successful marketing to different segments, the Marketing
managers need to know about appropriate marketing strategies
which can be decided only when all factors affecting consumer
behaviour are recognized.
To survive in the ever changing market scenario, the firm has to
aware of the latest consumer trends and tastes. Consumer
behavior gives clues and guidelines to marketers on new
technological frontiers which they should explore.
Since the consumer behaviour can be influenced to some extent by
specific elements of the marketing strategy, the marketer must
give significance to recognize those influencing factors. Once they
are identified, a marketer can study and even manipulate these
factors.
Thus , the importance of consumer behaviour is that the
behaviour of a person can be understood and influenced to
ensure a positive purchase decision.

The modern marketing management tries to solve the basic

problems of consumers in the area of consumption. To survive in
the

market,

a firm

has

to

be

constantly

innovating

and

understand the latest consumer needs and tastes. It will be

extremely useful in exploiting marketing opportunities and in

meeting the challenges that the Indian market offers. It is

important for the marketers to understand the buyer behaviour
due to the following reasons.

The study of consumer behaviour for any product is of

vital importance to marketers in shaping the fortunes of
their organisations.

It is significant for regulating consumption of goods and

thereby maintaining economic stability.

It is useful in developing ways for the more efficient

utilisation of resources of marketing. It also helps in solving
marketing management problems in more effective manner.

Today consumers give more importance on environment

friendly products. They are concerned about health, hygiene
and fitness. They prefer natural products. Hence detailed
study on upcoming groups of consumers is essential for any
firm.

The growth of consumer protection movement has created

an urgent need to understand how consumers make their
consumption and buying decision.

Consumers tastes and preferences are ever changing. Study

of consumer behaviour gives information regarding colour,
design, size etc. which consumers want. In short, consumer
behaviour helps in formulating of production policy.

For effective market segmentation and target marketing, it

is essential to have an understanding of consumers and
their behaviour.

Question.5

5. What is the role of consumer behaviour in marketing ? Explain

Answer:
Consumer Behaviour refers to the study of buying tendencies of
consumers. An individual who goes for shopping does not
necessarily end up buying products. There are several stages a
consumer goes through before he finally picks up things available
in the market. Various factors, be it cultural, social, personal or
psychological influence the buying decision of individuals.
Marketers need to understand the buying behaviour of consumers
for their products to do well. It is really important for marketers
to understand what prompts a consumer to purchase a particular
product and what stops him from buying.
What marketers need to understand ?
The psychology of consumers (what they feel about a particular
product and their brand on the whole).
How consumers are influenced by their immediate surroundings,
family members, friends, co workers and so on.
What a consumer thinks when he goes out for shopping ?
A marketer needs to first identify his target consumers and
understand their lifestyles, psychologies, income, spending
capabilities, mentalities to offer them the right product.
Individuals from lower income group would never be interested
in buying expensive and luxurious products. He would first fulfill
his basic physiological needs like food, air, water etc. Trying to
sell a Mercedes or a Rado watch to someone who finds it difficult
to make ends meet would definitely be a disaster.
Kelloggs K special would hardly find any takers in the low
income group. In this segment, individuals would be more
interested in buying fresh fruits, vegetables, pulses which are

necessary for their survival rather than spending on health

supplements.
It is really essential for the marketers to understand the needs of
consumers. Find out what they are actually looking for?
There are ideally two different ways which enable marketers to
understand their consumers.

Primary Research
Secondary Research

Primary Research - Primary Research refers to a research

methodology where marketers interact with consumers directly
and gather as much information as they can. Information is
generally collected through surveys, questionnaires, feedback
forms, interviews etc.
Secondary Research - Secondary Research often refers to relying
on information which has been collected by others at some point
of time.
The background and family status of an individual also
influence his/her buying behaviour.
Selling a laptop to an individual who is not much educated
would be pointless. Remember consumers would show interest in
your products only if they are of any use to them or their
immediate family members. A low grade worker would never be
interested in purchasing business suits or formal shirts.
Canned juices are a hit among middle and higher income group
where individuals are really conscious about their health and
fitness. Individuals who live hand to mouth would never spend on
sugar free tablets, health supplements, or for that matter Diet
Coke.
It is also important to give complete information to end-users. Do
not hide anything from them. It is not ethical. All tobacco
products come with a warning. Individuals should be familiar
with not only the benefits but also the side effects of the products.
Marketers must also take into account:

Age group of consumers

Geographical location
Lifestyle of consumers
Social Status of consumers

Funky designs, loud colours would be a hit among teenagers

whereas middle aged and elderly people would prefer subtle
colours and sophisticated designs.
Salwar Suits are extremely popular in North India whereas
females prefer saris and skirt blouses in eastern and southern
parts of India.
Individuals from posh localities and good jobs would show keen
interest towards buying exclusive and unique products as
compared to individuals who do not come from an affluent
background.

________________________________________________________

Question no.2
2. Explain the different Marketing Environments and the role of
culture and subculture?
ANSWER:
THE MACRO ENVIRONMENT:
The only certain thing in this world is change. Sometimes
change occurs so slowly that it is virtually imperceptible. We are
often unaware that change is occurring until it is too ate too late
to do anything about it. At other times change is so rapid that,
even though it is obvious, we find it difficult to react quickly
enough. Although none of us possess the power to foresee the future
, we can be sure that it will be different from today, and that
change is a fact of life. We have little power to stop it, and the
sensible course of action is to welcome change and attempt to
adapt to it.
In order for a firm to be able to adapt successfully to
changing circumstances, management needs to have an
understanding and appreciation of the factors and forces
influencing such changes, ideally a firm should be in a position
to adapt to changes as they are occurring, or even in advance.
Firms should attempt to capitalize upon change rather than
merely reacting to it. By identifying environmental trends soon
enough, management should be able, at least in part, to
anticipate where such trends are leading and what future
conditions are likely to result from such changes.

Unless firm are able to identify and react to change quickly

enough , they are likely to be dictated to by circumstances beyond
their control. Instead of being part of the changes occurring ,
and leading the market, they will, of necessity, be forced into
being market followers. Instead of adopting to change and
even going some way towards influencing

events, events will

instead influence them, perhaps in an unfavourable way.

The competitive environment :

There are very few firms that are fortunate enough to have no
competitors . Except in the case of the centrally planned
economies , of which, of course, there are fewer and fewer as they
increasingly turn towards free market mechanisms. On the
other hand , there are very few markets which possess all the
characteristics of what the economist calls a perfectly competitive
market structure where no company has any differential
advantage and where

all products are homogenous and

companies therefore must accept the market price. Rather , most

markets fall some where in between these two extremes but are
characterized by intense competition.

Supplier environment:
Suppliers are other

business firms and individuals who provide

the resources needed by the marketing firm to produce goods

and / or services . Nearly every firm , whether engaged in
manufacturing, wholesaling or retailing., is likely to have
supplier. Large firms such as Marks and Spencer or the Ford Motor
Company are Likely to have numerous suppliers. For example,
Ford must obtain glass windscreens , headlamp units brake
pads, tyres, steel sheet , fabric for interior upholstery and a
number of other materials in order to produce cars.
Whie some of thesse product constitutents will come from major
manfacturers such as British Steel Pilkington's Glass, Lucas and
Dunlop, other compontents, ranging from industrial fasteners to
engine gaskets, will often be supplied by a large number of
smaller, less well known companies.
As you will appreciate, Ford depends on possibly hundreds of
suppliers for its manufacturing capability and commercial
rosperity. In the same way, hundreds of firms depend on Ford for
orders. The firms that supply Ford wit finished components are

also likely to be supplied with raw materials or semi-processed

goods by a host of other suppliers.

THE DISTRIBUTIVE ENVIRONMENT:

Many firms, particularly in industrial markets where prodcts are
often buyer-specified market and deliver their products direct to
the final cusstomer. Other firms use some form of intermediate
distribution system. The distributio system is then made up of one
more 'middlemen' who can be individuals or other
organizations. They range from agents, distributors, factors and
wole salers to retailers.
Because of the seeming permanence of the distributive
environment at any point in time, many firms make the mistake
of thinking it is static. In fact, distribution chanels change and
evolve just like any other facet of business life. As Davidson
explains :
Distribution channels resemble the hour hand of a watch. They
are always moving, but each individual movement is so small as
to be invisible in isolation. The cumulative movement over a
number of years can, however, be massie.
Because distribution channels change relatively slow, it is easy
for manufacturers to respond too slowly to their evolution.
Existing channels may be declining in their popularity of
efficiency, while new potential channels of distribution may be
developing, unnoticed by the marketing firm.

THE ROLE OF CULTURE:

A society's culture is completely learned way of life which is
handed down from generation to generation. Cultural influences
give each society its own peculiar attributes. Although the norms
and values with a society are the result of many years of cltural
conditioning, they are not static. It is cultural changes, and the

resulting revised norms and values within a society, that is of

particular interest to the marketing firm. Nowhere is the aspect
more poignant than when the company is marketing
internationally.
The English anthropologist, E.B. Taylor, 10 defined culture
as:

that complex whole which includes knowledge, brief, art,

morals, law, custom, and any other capabilities and habitss
acquried by man as a member of society.
Taylor's definition is an accepted classic in defining some of the
mahor facets of culture, and in emphasizing that culture is very
much a learned phenomenon. British culture has historically
been largely materialstic, dericed as it is from the protestant work
ethic of self-help, hard work, thrift and the accumulation of
wealth. Arguably, other Western cultures such as the United
States, Germany and Japan are even more materialistically
oriented. This factor is often thought to be one of the reasons for
these countries' superior economic performance. Cultural valyes
do, however, change over time, and a number of western core
values are currently undergoing major changes. Some of the
changing cultural values are particularly prevalent among the
young include:
-A questioning of materialism and itss values.
-A decline in respecct for authority and the law.
-A belief in the rghtness of militancy and conformation.
-A desire for innovation and change.
-A shift towards informality.

SUB-CULTURAL INFLUENCES:
With in each culture are numerous sub-groups with their own
distinguishing modes of behaviour. In the United States black
Americans represent the largest racial/ethnic sub-culture. In the
UK is the Asian community. American marketing firms realize
that it is impossible to treat such a large group of consumers as a
homogeneous mass, a number studies though indicate that their
consumption habits are significantly different from those of the
remainder of Americans. As a result, American firs are now
designing products and advertising campaigns aimed
specifically at this large minority markets. This has now also
happend in th UK.
Indeed,although the UK is more culturally homogeneous
than the USA, firms can no longer ignore the cultural difference
of the ethnic population. Ethnic heterogeneity is slowly being
recognized by more enlightened firms as potential source of
marketing opportunities. Cannon highlights a number if
interesting examples of marketing opportunities and problems
related to sub-cultures.
- Products may need to meet special religious needs(e,g, kosher
foods).
- Marketing intermediaries may be different(e.g. the importance
of small, Asian-run, shops)
- Consumer tastes may differ(e.g. Cadbury Typhoo's poundo Yam,
aimed mainly at consumers of Caribbean origin)
- Language can be a problem in marketing
communications(e.g.in the UK, 77percent of Pakistani-origin
women and 43 percent of Pakistani-origin men cannot speak
working English).
The culturally aware marketing firm will recognize that subcultures represent distinct market segmentss and will seek to
increase their awarness of the needs, attitudes and motivations of
sub-groups.

POLITICAL ENVIRONMENT:
To an increasing extent, the operation of business firms is
influenced by the political framework and processes in our society.
Marketing management must be alert to changes in the political
attitudes are 'climate', which depend on the policies of the
government of the day. The political environment cannot be
examined in a vacuum. Political philosophies ob their own are
nothing without action. The outcome of political decisions can be
seen in the legislation and economic policies of government. In
this sense,you will appreciate that, although for clarity of
exposition we are examining the various macro-envionmental
forces in isolation, in reality they are very much interrelated.
Many of the legal, economic and social developments in our
society and other countries are nothing more than the result of
political decision put into action. For example, in the 1980s the
conservative Party favored a monetarist approach to the
managment of the Uk economy. It attached great importance to
the control of money supply and hence government public
expenditure.

ECONOMIC ENVIRONMENT:
Marketing management must understan the effects of the mainly
economic variables that are likely to affect their business
operations. We see in the mass media that inflation is rising or
falling, that exchange rates are affecting the value of the
currency or influencing the level of interest rates.We hear
discussion on the level of unemployment, industrial output, or the
current state of the balance of payments. Such economic factors
are of concern to marketing firms because they influence costs,
pricess and demand.
Although world economic forces are of paramont importance
to marketing firms, particularly thhose involved with either

importing or exporting, domestic economic forces usually have

the most immediate impact. The leel of domestic unemployment
affects the demand for many consumer products, especially those
classed as 'luxury goods' . This in turn affects the demand for
many industrial products, particularly manufacturing plant
such as machine tools. The rate of inflation and the cost of
borrowing captial affect the potential returns from new invesment
and inhibit the adoption of new techologies. Governments of every
persuasion attempt to encourage eonomic growt through various
policy measures. Tax concessions, government grants, employment
subsides and captial depreciation allowances are some of the
measures that have been used.

TECHNOLOGICAL ENVIRONMENT:
Technology is a major environmental influence upin the
marketing firm. It affects not only the firm's operations and
product, but also consumers' life styles and consumption patterns.
Management must be aware of the impact of technological
changess. As Wilson explains in relation to electronics:
The development of the microprocessor and its large production
has revolutionized information collection, processing and
dissemination which in turn is affecting th whole spectrum of
marketing activity.
The impact of new information technolog has been particularly
marked in the marketing research area. For example, it is now
possible to design and administer questionnaries via computer
terminals. In the past this method has been used on a limited
basis, but is being more and more frequently used. Computer
assisted telephone interviewing (CATI) has revolutionized the
speed with which surveys can be completed. Responses are fed
immediatley into a computer and a report 'hard copy' can be
available immediatley after the final interview is completed As
Thomas explains:

On-line interviewing is now in widespread use in the larger data

gathering market research firms. Interviews, using telephone,
work from a questionnaire which is displayed on a VDU and
responses are keyed straight into the computer.

QUESTION :1
1.EXAMINE THE BASIC PRINCIPLES OF ORGANISATION DESIGN ?

ANSWER:

A business organization must have a separate marketing

department to focus on customer needs and expectations.
Objective of this chapter is to make the reader aware about
the meaning of marketing organization, basic principles of
organization design, techniques and methods for designing
organization structure, functional organization in marketing
and strategy for building a companywide marketing
orientation.
MARKETING ORGANIZATION-MEANING:
The recent years have seen the growth of marketing from simple
sales department to a complex group of activities. The main
contributing factors for this growth are the concepts of Reengineering, Globalizing, Outsourcing etc. All these require a
change in the administration of marketing departments.
Marketing organization deals with strategic and tactical
organization, implementation, evaluation and control of the
marketing activities.
BASIC PRINCIPLES OF ORGANIZATION DESIGN:
Traditionally, marketers played the role of middlemen,
involved in realizing the customer needs and transmitting the
voice of the customer to various functional areas in the
organization. Today, marketing has evolved into full-fledged
departments with functions depending upon the nature of the
company. Marketing departments are of the following designs:
1. Simple sales department:

Small companies with a sales

vice-president who manages the sales force and also

performs some selling, have a simple sales department

configuration.
2. Sales departments with Ancillary marketing functions:
Larger companies require conducting marketing research to
learn about customer needs and market potential. It also
has to advertise its products and services. An Advertising
Manager may be hired to handle these activities.

3. Separate Marketing Department:

As the company grows

further, it makes additional investments in marketing

research, new product development, advertising and sales
promotion. The CEO recognises the advantages of
establishing a separate marketing department headed by a
Marketing Vice President or Executive Vice-President. This
recognizes sales and marketing as separate functions that
work closely together.
4. Modern MarketingDepartment:

The modern marketing

department has a Marketing and Sales Executive VicePresident with managers of all marketing
functions(including sales management) reporting to them.
This is to reduce friction between sales and marketing
departments as all the conflicts are settled between the
Executive Vice-Presidents.

5. Effective Marketing Company:

For a company to do

marketing effectively, all the departments of the company

should take up responsibilities of marketing. Only when all
the employees realize that their jobs are created by
customers, the company becomes an effective marketer.
6. Process and outcome based company:

Many companies

are shifting their structure from departmental organization

to process and outcome based organization. This ensures

that the marketing and sales people are consequently

spending more time within a team as process team members.
This team is also responsible for training its marketing
personnel, assigning them to new teams, and evaluating
their overall performance.
Though all the departments of the company are expected to
interact harmoniously to pursue the firms overall objectives,
there usually exists deep rivalries and distrust amongst
them. This conflict starts from differences in opinion as to
what is in the companys best interest.
-----------------------------------------------------------------------

QUESTION: 4
DESCRIBE THE TECHNIQUES AND METHOHS FOR DESIGNING
ORGANISATION STRUCTURE ?

ANSWER:

TECHNIQUES AND METHODS FOR DESIGING ORGANIZATION

STRUCTURE:

The modern marketing department can be of the following

structures based on function, geographic area, products of
customer markets.
FUNCTIONAL ORGANIZATION:
It is the most common form of marketing organization structure
and consists of functional specialists reporting to a marketing
vice-president, who coordinates their activities.
GEOGRAPHIC ORGANIZATION:
This kind of organization structure is followed by companies
selling in a national market. The functions like sales force and
marketing are organized along geographic lines.Geographic
organization is of the following structure.

National Sales Manager

Regional Sales Managers

Zonal Sales Managers

District Sales Managers

Sales People

Product-Or Brand Management Organization:

This kind of organization is seen in companies dealing with
a wide variety of products (or brands). In this kind of structure, a
Product Manager supervises product category managers, who in
turn supervise specific product and brand managers. The
following are the main functions performed by product and
brand managers:

Developing a long range and competitive strategy for the

product.

Preparation of annual marketing plans and sales forecast.

Dealing with advertising and merchandising agencies.

Encouraging the sales force and the distributors.

Performing regular studies on products performance,

customer and changing dealer attitudes, and new problems
and opportunities.

The

interactions of

the

Product

Manager :

Advertising
Agencies

RESEARCH &

MEDIA

DEVELOPME
NT

MARKET
PRODUCT

PURCHASIN
G

RESEARCH

MANAGER

PUBLICITY
PACKAGING
SALES
FORCE

Market-Management Organization:
This kind of organization is common in companies which sell
their products to a diverse set of markets. When customer falls into
different

user

groups

with

distinct

buying

preferences

and

practices, a market management organization is desirable. In

this kind of organization, the following structure is preferred

Market- Management organization Structure

Market Manager

Market Development

Market

Industry

Managers

Specialists

Specialists

Many companies have recognized the significance of having a

market entered organization and are finding a substantial
positive effect of market orientation on both commodity and noncommodity business.

Corporate Divisional Organization:

This

kind

of

organization

structure

is

very

popular

with

companies that grow very rapidly. They often convert their larger
product or market groups into separate divisions. The divisions
have

their

own

departments

and

services.

The

potential

contribution of a corporate marketing staff varies in different

stages of the companys evolution. At the beginning stages
companies have weak marketing skills and require a corporate
staff to guide them but in the later stages corporate marketing
has much less to offer.
___________________________________________________________________________

Question : 6
What are

the

basic principles

Explain the techniques

of Organisation

and methods

for

Design ?

designing

Organisation ?
ANSWER:
A business organization must have a separate marketing
department to focus on customer needs and expectations.
Objective of this chapter is to make the reader aware about
the meaning of marketing organization, basic principles of
organization design, techniques and methods for designing
organization structure, functional organization in marketing
and strategy for building a companywide marketing
orientation.
MARKETING ORGANIZATION-MEANING:
The recent years have seen the growth of marketing from simple
sales department to a complex group of activities. The main
contributing factors for this growth are the concepts of Reengineering, Globalizing, Outsourcing etc. All these require a
change in the administration of marketing departments.
Marketing organization deals with strategic and tactical
organization, implementation, evaluation and control of the
marketing activities.
BASIC PRINCIPLES OF ORGANIZATION DESIGN:
Traditionally, marketers played the role of middlemen,
involved in realizing the customer needs and transmitting the
voice of the customer to various functional areas in the
organization. Today, marketing has evolved into full-fledged
departments with functions depending upon the nature of the
company. Marketing departments are of the following designs:
1. Simple sales department:

Small companies with a sales

vice-president who manages the sales force and also

performs some selling, have a simple sales department

configuration.
2. Sales departments with Ancillary marketing functions:
Larger companies require conducting marketing research to
learn about customer needs and market potential. It also
has to advertise its products and services. An Advertising
Manager may be hired to handle these activities.

3. Separate Marketing Department:

As the company grows

further, it makes additional investments in marketing

research, new product development, advertising and sales
promotion. The CEO recognises the advantages of
establishing a separate marketing department headed by a
Marketing Vice President or Executive Vice-President. This
recognizes sales and marketing as separate functions that
work closely together.
4. Modern MarketingDepartment:

The modern marketing

department has a Marketing and Sales Executive VicePresident with managers of all marketing
functions(including sales management) reporting to them.
This is to reduce friction between sales and marketing
departments as all the conflicts are settled between the
Executive Vice-Presidents.

5. Effective Marketing Company:

For a company to do

marketing effectively, all the departments of the company

should take up responsibilities of marketing. Only when all
the employees realize that their jobs are created by
customers, the company becomes an effective marketer.
6. Process and outcome based company:

Many companies

are shifting their structure from departmental organization

to process and outcome based organization. This ensures

that the marketing and sales people are consequently

spending more time within a team as process team members.
This team is also responsible for training its marketing
personnel, assigning them to new teams, and evaluating
their overall performance.
Though all the departments of the company are expected to
interact harmoniously to pursue the firms overall objectives,
there usually exists deep rivalries and distrust amongst
them. This conflict starts from differences in opinion as to
what is in the companys best interest.

TECHNIQUES AND METHODS FOR DESIGING ORGANIZATION

STRUCTURE:

The modern marketing department can be of the following

structures based on function, geographic area, products of
customer markets.
FUNCTIONAL ORGANIZATION:
It is the most common form of marketing organization structure
and consists of functional specialists reporting to a marketing
vice-president, who coordinates their activities.
GEOGRAPHIC ORGANIZATION:
This kind of organization structure is followed by companies
selling in a national market. The functions like sales force and
marketing are organized along geographic lines.Geographic
organization is of the following structure.

National Sales Manager

Regional Sales Managers

Zonal Sales Managers

District Sales Managers

Sales People

Product-Or Brand Management Organization:

This kind of organization is seen in companies dealing with
a wide variety of products (or brands). In this kind of structure, a
Product Manager supervises product category managers, who in
turn supervise specific product and brand managers. The
following are the main functions performed by product and
brand managers:

Developing a long range and competitive strategy for the

product.

Preparation of annual marketing plans and sales forecast.

Dealing with advertising and merchandising agencies.

Encouraging the sales force and the distributors.

Performing regular studies on products performance,

customer and changing dealer attitudes, and new problems
and opportunities.

The

interactions of

the

Product

Manager :

Advertising
Agencies

RESEARCH &

MEDIA

DEVELOPME
NT

MARKET
PRODUCT

PURCHASIN
G

RESEARCH

MANAGER

PUBLICITY
PACKAGING
SALES
FORCE

Market-Management Organization:
This kind of organization is common in companies which sell
their products to a diverse set of markets. When customer falls into
different

user

groups

with

distinct

buying

preferences

and

practices, a market management organization is desirable. In

this kind of organization, the following structure is preferred

Market- Management organization Structure

Market Manager

Market Development

Market

Industry

Managers

Specialists

Specialists

Many companies have recognized the significance of having a

market entered organization and are finding a substantial
positive effect of market orientation on both commodity and noncommodity business.

Corporate Divisional Organization:

This

kind

of

organization

structure

is

very

popular

with

companies that grow very rapidly. They often convert their larger
product or market groups into separate divisions. The divisions
have

their

own

departments

and

services.

The

potential

contribution of a corporate marketing staff varies in different

stages of the companys evolution. At the beginning stages
companies have weak marketing skills and require a corporate
staff to guide them but in the later stages corporate marketing
has much less to offer.

-------- THE

END --------