Some of the differences between consumer marketing and industrial marketing, along with why this

is a problem that needs a solution:

• Product complexity. First and foremost, most industrial products are usually more
complicated than consumer products and, as a result, require significant technical knowledge to
sell. Industrial and technical products range from off-the-shelf bearings to custom-engineered
machines of incredible complexity. The more custom the product, the more custom the
marketing strategy.

• Industrial buyers. Consumer marketing presupposes powerful sellers and passive, inexpert
buyers who can be influenced to purchase by a variety of advertising techniques. In contrast,
industrial markets consist of very knowledgeable buyers (and often buyer teams) who analyze
products and purchases in terms of user benefits often measured in dollars or as return on
investment. In the case of capital equipment, the sales people do not get to talk to the final
decision makers—the board of directors.

• Bids and quotations. Consumers either buy or don’t buy from listed prices. On the other
hand, industrial products are often sold by request for quotes (RFQs) that may require a
quotation with elaborate specifications to define the product. Specifications can be hundreds of
pages long and can specify a machine right down to the type of fasteners and wire colors.

• Advertising and promotion. It is relatively straightforward to develop a newspaper ad for

impulsive shoe buyers, but it is very difficult to even identify the buying influences of dragline
machines or material-handling robots. Inquiries produced by industrial advertising are only the
beginning of a long, expensive selling process, sometimes lasting years before the sale occurs.

• Market information. There is a lot of database information available on consumer products

and an enormous amount of consumer demographic information that can identify the customer
profile and market segment. However, information on industrial market niches is very difficult
to acquire, is generally qualitative, and requires considerable industrial experience to gather.
 • Industrial Market Research. Consumer market research methods generally do not work
for industrial products, because the industrial samples are small and the buyers are not a
homogeneous group that can be considered a valid sample. Because of these two problems,
statistical techniques for projecting the sample cannot be used as representative of a larger
market. Answers to questions on market share and market size must be found using
qualitative techniques that requires field research and personal interviewing. Suffice it to
say, this can only be done by an interviewer who has a strong background in technical and
industrial products and knows how to do an unstructured interview.

• Product range. Perhaps the most important factor that separates consumer from
industrial marketing is the product range. The selling, promotion, and pricing strategies that
are used to sell low price products, say standard hydraulic motors, to known accounts, are
fairly straightforward, and consumer marketing techniques might work.
As the industrial products become more complex with higher prices and longer sales cycles,
the selling, sales channel, advertising, pricing, and product development strategies become more
complex and more specific to the situation. Capital equipment used on production lines is usually
very large, designed to the customer’s specs, very complex, has high unit prices must be justified
in terms of ROI and approved by the board of directors.
Structure of Marketing Organisation:

The organization structure of any firm depends mainly on its market needs and management philosophy.
As such there are two important ways in which organizations can be classified:
i. Classical classification based on classical school of thought, which divides organization as Line
organization, Line and Staff organization, Functional organization and Matrix organization.
ii. Modern classification based on modern school of thought, which divides the organization on the basis
of functions, products, customers, geography or a combination of uses.
Accordingly on the basis of modern school of thought, various types of organization structure are:

Functional Organisation:
This is the simplest form of organization structure, which is very commonly used. It is suitable for those
organizations which deal in few lines of product. A functional organization divide the marketing
department on the basis of specialised marketing research, selling, distribution, product
planning, pricing, advertising etc. each function assigned to a separate marketing manager.
Functional organization has the merit that it helps in developing managerial and technical skills in
different marketing functions. However, the demerit is that the decision making authority and co-
ordination are highly centralized. At the same time the marketing manager has to face the problem of
improper control and co-ordination, particularly when the organization expands.

Product Based Organization:

Product based organization is one which divides the organization into units based on different types of
products. Under these types of arrangement different products are identified and organization is
classified on the basis of different product.
Here closely related products are grouped together and that group is assigned to a particular product
manager. Thus, the product manager of a particular product is responsible for the marketing of the
product of his group, as well as building the brand image, brand building, new product development etc.
This method has the advantage that the product manager of a particular group develops in depth
knowledge about the product, which may result in more effective marketing of all the products of the
firm. However, the main demerit is that too much emphasis can be placed on the product ignoring other
aspects, such as customer orientation.
Customer Based Organization:
This type of organization structure, is used when firm focuses greater attention on different
types of customers it serve. As the business units are increasingly becoming customer centric,
the firms are trying to organise themselves on the basis of different consumer group.

This helps them in deciding specialised products, pricing, and distribution and promotion
policy for different group of customers. Each customer group is under separate marketing
manager who is responsible for all the marketing activities of that particular group.

This type of organization is justified when different customer group are sufficiently different
and business is done on a large scale. Under this structure organization is divided in different
parts according to different characteristics like – social class, religion etc. The chief merit of
this organizational structure is that it focuses on the needs and wants of each class of
customers hence, specialisation can be achieved. However, the main demerit is that
duplication of functions may be there.
Geographic Organization:
Geographic organization is used when the companies operate in large geographical areas
which are significantly different. Different areas of the total market may have different
characteristics, different needs, languages, culture etc. which require different marketing
strategy and special attention by the company.

In this case the company have to organize themselves on the basis of different geographical
areas like region or division etc. Each geographical area is under the control of regional sales
manager. A commonly used method, geographical organization, is similar to the customer
based organization. This is because both focus on the different customer used in different
regions. However, flow of information may be disturbed between different regions.

Apart from the above mentioned organizational structure, a very commonly used
organization is a combination on different types of organizational structure like product
based, functional based, customer based or geographical based.
Essentials of Good Marketing Organisation Structure:

1. Clarity of Relationship between Line and Staff People:

While developing a marketing organization, clarity should be ensured in defining the

relationship between line function and staff function. In absence of this, conflicts may be there
which will disturb the smooth functioning of the organization. To avoid friction and inefficiency,
therefore, it is necessary that proper and meaningful integration of the line and staff function is
there. Cooperative relationship between various departments and functions signifies a good
marketing organizational structure.

2. Levels and Span of Control:

Another important factor which should be seriously considered is the level in the organization
and span of control. Span of control refer to the number of subordinates being controlled by a
superior. Each executive position must be clear as to its span of control. Efforts should be made
to avoid too many levels in the organization.
More levels in the organization lead to ineffective communication and thereby delay in flow of
information. Greater span of control also leads to poor control. A good marketing organization
should therefore avoid too many levels.

3. Role Clarity:
A good marketing organization structure should try to maintain clarity in the job
requirement of an executive. Job requirements include factors like basic function/role of
the executive, his authority and responsibility, his financial powers, to whom he will report
etc. If the executive is clear regarding his role, smooth functioning will be there in the
organization. Otherwise, ambiguity will be there, resulting in friction and inefficiency in the
organization.
4. Effective Co-Ordination:
Effective coordination among various functions and departments of the organization should be
ensured. The marketing department should have effective coordination with various other
departments of the organization like finance, personnel, production, corporate planning etc.
Coordination should be an essential part or a built mechanism of the organization.

5. Marketing Oriented:
A marketing organization should represent the interest of the customer within the company,
which helps in long term growth of the firm. The requirement of the consumer and the market
should be taken care of. Organization should be structured around the products and the markets.

6. Recognizing Informal Relations:

An organisational structure in general defines the horizontal and vertical relationship between the
people. However, apart from formal relationship, it is the informal relationship also which decides
the success of the organisation.

Popularly known as “Grapevine” in management literature, informal relations are the invisible
alliances between the people in the organisation. These relations help in building the goodwill and
team spirit, and therefore its significance cannot be underestimated. A good marketing
organisation should thus recognise both the formal and informal relations in the organisation.

7. Flexible Structure:
A good marketing organisation should be flexible and not static or immovable. Markets are highly
dynamic and therefore the organisation should also be dynamic, adjusting to the changing needs
of the markets and environment. An organisation structure should not be rigid or watertight but
flexible so that it can be easily understood and can adapt to the changes. This will help in better
response to the competitors and the customers.
8. Maintaining Balance:

The overall effectiveness in the marketing organisation calls for the balance in the activities.
Whether the organisation is big or small, attempt should be made to avoid extremes and excesses
and maintain balance. In other words, nothing should be over-emphasised in the organisation.
Line and staff relationship, centralisation and decentralisation, short and long span of control,
different levels in the organisation, etc. should be balanced. This ensures smoothness in opera
tions.

9. Perpetual Existence:

It is important for the organisation to stand the test of time and changes in the environment. It
should not be such which can be easily destroyed. Building an organisation is a complex task
involving substantial investment, therefore it should be so developed, so as to easily meet the
changes in the market and adapt accordingly. This is reflected in the increasing number of people
in the organisation and their growing experience.

10. Cost Effectiveness:

Organisation should be so structured that it is cost effective. A balance between the cost and
benefit should be maintained. For this purpose all types of excesses should be avoided. Undue
duplication of efforts and overstaffing should not be there.

11. Flow of Information:

A two-way flow of information should be there in the organisation, i.e. from bottom to top and
top to back. Smooth flow of information both ways ensures better functioning in the
organisation. At the same time this information should be authentic and timely. In general, when
information flow upwards it turns from specific to general and when it moves downwards, it
turns from general to specific.
Societal Marketing

Societal Marketing is based on the principle of societal welfare. It emphasizes that an organization
must make strategic marketing decisions keeping in mind the consumer wants, the organizational
needs and most important the long term interests of the society.

Societal Marketing is nothing but an outgrowth of the principles of Corporate Social Responsibility
and Sustainable development. It underlines that an organization should not ignore the society’s long
term welfare so as to achieve it’s mission and vision. An organization should have moral and
environmentally friendly strategies and should ensure that proper acts and laws are implemented.
In today’s world of increasing environmental destruction, scarcity of resources, rapidly increasing
population, and abandoned social services. the societal concept of marketing is doubted. It is
questioned that “Are organizations doing an outstanding task of customer satisfaction in line with
meeting long run societal welfare ?”.

Societal marketing should take into account the following things:

▪ The consumer’s needs are of utmost significance.

▪ Genuine, modern and continuous developments in the products should be executed so as to

increase the product’s life and value.

▪ Emphasize on building long term customer relationship and not on doing business. Do societal
good. In short, an organization should market the product keeping in mind the consumer,
organizational and long term societal needs and welfare.
The Societal marketing concept is significant because of the following advantages it has:

▪ It ensures that all the economic resources are channelized in the right direction.

▪ It develops enterpreneurs as well as managers in a specified society.

▪ It raises the living standard of the people.

▪ It increases the speed of economic development of society.

▪ It makes economic planning more significant and more fruitful to people’s life.
The closer the organizations move towards their customers, the more evidently they realize the fact that
the objective of any organizational business lies outside the business, i.e. in the society. Thus, this
drives the organizations to make a remarkable contribution for the society’s welfare and upliftment.

The preserving of environment is a great challenge in a developing country like India, which has a
fragile environment that is faced with high levels of land degradation (e.g., erosion, aridity,
desertification, drought, flooding, and alkalinity and salinity of ground). The rapid urbanization
alongside associated problems like pollution of air and pressure on existing infrastructure with regard
to waste management, pose a race against time.

Project clients need to insist on better environmental performance of construction companies.

Experience from other construction firms adopting or benefiting from good environmental practices
need to be disseminated to all.
"Marketing Organisation: Meaning, Need, Factors, Structure and Essentials." Essays, Research Papers and Articles on Business
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meaning-need-factors-structure-and-essentials/17982.

Collins, Michael. "Industrial Marketing Is Not Consumer Marketing." IndustryWeek. April 05, 2017. Accessed June 24, 2019. https://
www.industryweek.com/growth-strategies/industrial-marketing-not-consumer-marketing.

"MSG Management Study Guide." Societal Marketing Concept. Accessed June 24, 2019. https://www.managementstudyguide.com/
societal-marketing.htm.