Page 73 - Foundations of Marketing

40 Part 1 | Strategic Marketing and Its Environment

is based on a shared set of beliefs that places the customer’s needs at the center of decisions
about strategy and operations. Technology can help companies adopt the marketing concept.
For example, firms increasingly use online Web tracking to improve information flows and
their understanding of customers’ needs and wants. While some feel that this technology is
a violation of privacy, tracking companies have helped marketers create very detailed pro-
files for their target markets, which helps all members of the marketing unit more effectively
15
address the needs of the target market.
Firms must decide whether operations should be centralized or decentralized, a choice
that directly affects marketing decision making and strategy. In a centralized organization ,
top-level managers delegate little authority to lower levels. In a decentralized organization ,
decision-making authority is delegated as far down the chain of command as possible. In cen-
tralized organizations, marketing decisions are made at the top levels. However, centralized
decision making may prove ineffective in firms that must respond quickly to fluctuations in
customer demand. In these organizations, decentralized authority allows the company to adapt
more rapidly to customer needs.
How effectively a company’s marketing management can implement marketing strategies
also depends on how the marketing unit is organized. Organizing marketing activities to align
with the overall strategic marketing approach enhances organizational efficiency and perfor-
mance. A marketing department should clearly outline the hierarchical relationships between
personnel and who is responsible for performing certain activities and making decisions.

Motivating Marketing Personnel
People work to satisfy physical, psychological, and social needs. To motivate marketing per-
centralized organization
A structure in which top- sonnel, managers must address their employees’ needs to maintain a high level of workplace
level managers delegate little satisfaction. It is crucial that the plan to motivate employees be fair, ethical, and well under-
authority to lower levels stood by members of the organization. Employee rewards should also be tied to organizational
goals. A firm can motivate its workers through a variety of methods, including by linking
decentralized organization
A structure in which decision- pay with performance, informing workers how their performance affects department and cor-
making authority is delegated porate results and how it affects their own compensation, providing appropriate and com-
as far down the chain of petitive compensation, implementing a flexible benefits program, and adopting a participative
command as possible management approach.

Recognition
Recognizing outstanding Jon Feingersh/Jupiter Images
performance is one approach
to motivating marketing
personnel.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.