TrinityP3 Positioning and Structuring Marketing Within Organisations
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The document discusses the importance of marketing structure and strategy within organizations, emphasizing the need to define the strategic role marketing plays based on the organization's goals and requirements. It outlines four basic marketing models: decentralized supplier, centralized supplier, marketing partner, and marketing leadership, evaluating their strengths and weaknesses. The document also outlines steps for organizations to determine the ideal marketing model suited to their strategic objectives.
TrinityP3 Positioning and Structuring Marketing Within Organisations
- 1. Strategic Positions for Marketing within an Organisation Discussion Paper on Marketing Structure and Function TrinityP3 March 31, 2011 COMMERCIAL IN CONFIDENCE marketing management consultants
- 2. Overview • The structure and function of marketing is an essential consideration for organisations with a communication focus either internally, externally or both. • The general discussions regarding marketing structure and positioning within the organisation appear to focus on either choosing a centralised or decentralised model. However, this approach is too simplistic in the consideration of the best marketing structure and functional model for any organisation. • A more significant consideration is defining the strategic role marketing is to play within the organisation. This will be dependent on the strategy and positioning of the organisation, the marketing and communication requirements and the size and growth potential. • This document outlines the four basic marketing structural and functional models for consideration and explores the drivers, with an evaluation of the strengths and weaknesses of each model. • Discussions of each of these models with the relevant senior and marketing management within the organisation can assist in selecting the best fit model for any organisation. marketing management consultants
- 3. The Strategy Pyramid Who is responsible for Determines business participation, business setting and developing structure Corporate Strategy corporate strategy? Level of marketing investment Who is responsible for Determines business strategy setting and driving Customer strategy Business Strategy business strategy to deliver the corporate Growth targets, retention and acquisition strategy? objectives Who is responsible for Brand strategy and brand positioning setting the marketing Corporate sponsorship Marketing Strategy strategy to drive the business strategy and Manages budget allocation Design deliver the corporate Implements and manages protocols for budget strategy? allocation and calendar management Who designs and Develops recommendations for marketing executes optimal solutions covering research, marketing mix, Communications delivery of the above? creative execution Advertising Delivery Manages external suppliers and end to end execution of agreed solution marketing management consultants
- 4. Four Basic Models • There are innumerable organisational models and structures, but in our experience there are four basic models which strategically position marketing role and function within the organisation. They are: • Decentralised Supplier • Centralised Supplier • Marketing Partner • Marketing Leadership • Many of the variations of these models are usually driven by either: • Trying to overcome weaknesses in the particular model chosen • Designed to address unique strategic or cultural aspects of the organisation • The first step is to strategically consider which marketing model is ideal for the organisation. To do this, key stakeholders need to consider the role and responsibility of marketing to the organisation and the individual parts. • Once a model is chosen, the next stage is then to compare this to the current model and determine the changes required to achieve the future state. marketing management consultants
- 5. Decentralised Supplier • Marketing functions as a separate, dedicated unit directly reporting to the Business Unit, (BU). • Common structure where BU owns PL and budget and therefore exerts direct control over marketing. • Usually this model is business focused Business Unit Business Unit Business Unit Business Unit rather than customer focused. STRENGTHS • Direct accountability to the BU. • Primary focus on delivering BU results. WEAKNESSES • Results may be at expense of overall marketing / business performance. • No overall brand co-ordination. Marketing • Difficult to ensure executional excellence across all marketing teams. • Difficult to implement organisational synergies. marketing management consultants
- 6. Decentralised Supplier Variant • The most common variant to this model is the Group Marketing role. • Varying levels of responsibility depending on the needs of the organisation, from brand management to supplier synergies. STRENGTHS Business Unit Business Unit Business Unit Business Unit • Attempts to address the short comings of the standard decentralised model. • Has some co-ordination role. WEAKNESSES • Invariably has huge responsibilities and accountability but no influence over the actions of the other marketing teams. • As a supplier to the Marketing Suppliers in the BUs, the Group Marketing role is usually funded by the BUs who hold the Marketing PL and Budget and are therefore in control. marketing management consultants
- 7. Centralised Supplier • Realising the loss of synergies across marketing within the organisation, some choose a centralised Marketing Supplier model. • Marketing resources are centralised, with dedicated resources aligned to the requirements of the BUs. Business Unit Business Unit Business Unit Business Unit • Requires clear definition of roles and responsibilities and objectives and expectations. STRENGTH • Allows consistent brand management. • Dedicated teams delivering executional excellence. • Opportunity to deliver organisational synergies. Marketing WEAKNESS • Marketing performance limited. marketing management consultants
- 8. Marketing Partner • Rather than Marketing supplying marketing communications services to BUs, Marketing is positioned as a partner to achieving the marketing objectives of the BUs and the Corporate objectives. • This is the most common structure for Business Unit Business Unit Business Unit Business Unit professional marketing organisations such as FMCGs. Marketing STRENGTHS • All of the strengths of centralised marketing, plus allows marketing to operate as a high performance team. WEAKNESSES • Requires balancing role and objectives of marketing, with role and objectives of BUs. marketing management consultants
- 9. Marketing Leadership • This model recognises the importance of marketing in focusing the organisation and driving the business and corporate strategy with a customer focus. Marketing • Organisations with this model include strong, consumer focused companies such as Nike, but the ideal structure for service industry organisations. • Requires marketing to be expressed in the full sense of the discipline and not simply • usiness Unit • usiness Unit • usiness Unit • usiness Unit marketing communications. STRENGTH • Marketing and the business is aligned to B B B B the consumer / customer. WEAKNESS • Requires the organisation and marketing to have detailed and comprehensive understanding of the consumer / customer. marketing management consultants
- 10. Next Steps • The steps for determining the strategic positioning of marketing and developing a appropriate model for marketing within the organisation are: • Review the strategic requirements of the organisation and determine who is responsible for developing the strategy and who has the role of implementing this strategy within the organisation. • Review the role of marketing, determining who is responsible for developing the marketing and the communications strategy and who has the role of implementing the strategy within the organisation. • Key management stakeholders should discuss the strategic role and function of marketing and specifically marketing communications and agree a strategic model for the organisation. • Determine and map the current structure and function (current or “As Is” state) of the marketing and / or marketing communications with the organisation. • Get agreement from all stakeholders on the current state. • Compare the current state against the strategic model for marketing to determine gaps in the current structure and function. • Develop alternative future state models for marketing and marketing communications and compare these against their delivery of the strategic agreed model for marketing. • Review the models with key stakeholders to get agreement on the preferred model. marketing management consultants
- 11. For further information regarding this process contact… TrinityP3 Pty Ltd Sydney +612 8399 0922 Melbourne +613 9682 6800 Hong Kong +852 3589 3095 Singapore +65 6884 9149 people@trinityp3.com www.trinityp3.com TrinityP3’s liability is limited as per our standard terms and condition as approved by the client prior to the project commencing marketing management consultants