5 Types of Marketing Organization Structures That Will Fuel Your Growth

It is often the case that a company will have multiple roles. This article provides examples of how different types of organizations can be structured to help each other grow and support one another’s goals.

The “marketing organization structure 2022” is a type of marketing structure that will help fuel your growth. This article will discuss 5 types of marketing organizations, and what they are.

5 Types of Marketing Organization Structures That Will Fuel Your Growth

To pull it all together, you’ll need a laser-focused approach and an exceptional staff. Introducing an efficient marketing organization structure, on the other hand, may propel your company to new heights.

Your workers will know precisely what is expected of them if you have a robust marketing framework in place. Everything runs more efficiently and your team can work in sync when everyone understands their duties and responsibilities in the company’s success.

However, not every business plan is appropriate for every company. If you want to establish the correct marketing organization structure for your company, you must first determine which style is ideal for you.

What criteria do you use to make your decision? Let’s go through the five most prevalent structures, how they function, and the advantages and disadvantages of each.

What is the structure of a marketing organization?

The arrangement of a company’s marketing department is referred to as a marketing organizational structure. It establishes the leadership chain and the objectives of your company. It also provides staff structure, specifies employee duties, and organizes teams.

Marketing organizational structures exist in a variety of forms and sizes, but they all have the same goal: to build a system that allows the marketing department to perform efficiently and fulfill its objectives.

Marketers are continue to seek to develop “more effective and responsive organizations” while reducing disruption, according to Gartner’s Marketing Organization Survey 2020.

According to their study, functional marketing organization structures are used by 27% of marketers.

Marketing Organization Structure - Gartner survey

Why Is It Important to Have a Marketing Organizational Structure?

Setting up a structure helps your firm in a variety of ways, including empowering managers, improving concentration, and increasing adaptability. Let’s take a closer look at this.

Enhances Agility

Today’s enterprises must be adaptable. In fast-changing industries, agility is critical because it allows your team to improve productivity, prioritize workloads, generate relevant products, and manage funds more efficiently. It also makes it easy to make changes when technology, trends, or Google’s algorithms evolve.

Agile marketing is becoming more popular in sectors such as content development and creative services, with 77 percent of companies using it.

Your Employees Are Empowered

You need the best individuals for the job if you want your company to prosper. A functional marketing organization structure divides your team into skill groups, ensuring that you have the correct person for the task and that they have the resources they need.

Employees are empowered to succeed when they are placed in roles that match their abilities and provide the support they need, which boosts loyalty and your bottom line.

Improve Employee Concentration

Employees are more likely to focus on their jobs when they have clear objectives. When every member of the marketing team is focused on the same goal, the process is streamlined and cooperation is possible.

Additionally, team members are more engaged when they are focused. This is important because, according to Gallup, employee engagement boosts productivity by 18%. It also boosts profitability by 23 percent while lowering absenteeism by 81 percent.

There are five different types of marketing organizational structures.

Marketing organizational structures come in a variety of shapes and sizes. Each model has its own set of benefits and drawbacks, which we go through in this section. Keep in mind that what works well for you may not work for someone else.

The structure of a corporation is determined by its size, goods, consumers, and kind. We’ll go through the most prevalent systems and who should use them in the sections below.

1. Organizational Structure of Functional Marketing

A functional marketing organizational structure outlines the architecture of a corporation and is based on the marketing functions it must execute. According to Gartner study, 27 percent of marketers employ this paradigm, as stated in the introduction.

The functional organization facilitates straightforward communication and collaboration across departments. It also simplifies the process of identifying and assigning particular assignments to certain personnel.

It appears as follows:

Types of Marketing Organizational Structures - Functional Marketing Organizational Structure

This structure provides for more specialization and experience inside the marketing department, resulting in increased marketing efficiency and effectiveness.

Because it is well-suited to the industry, Amazon adopts this structure for its e-commerce operation. Furthermore, bigger enterprises choose the functional marketing organization structure, which is suitable for companies with a stable environment.

Despite the benefits, this structure may lead to failures in communication, less innovation, and inflexibility. Furthermore, moving personnel around within a functional frame may be challenging, limiting the company’s capacity to adapt swiftly to market developments.

Finally, when a company develops too big, functional structures might be difficult to manage.

2. Organizational Structure for Segmented Marketing

Firms may adjust their marketing efforts to particular client categories thanks to segmented marketing organizational structures. A distinct team is in charge of analyzing the demands of each target category and developing customized marketing plans for them.

Companies with a broad client base and a complicated sales process frequently benefit from this arrangement. Businesses can guarantee that clients are always engaged, and communication between departments may be streamlined.

Additionally, based on their goals and the generated consumer insights, firms utilizing this approach may determine how best to segment.

Types of Marketing Organizational Structures - Segmented Marketing Organizational Structure

The following are some of the benefits of this model:

  1. Increased attention improved customer engagement.
  2. Because of the smaller, more focused teams, communication and cooperation have improved.
  3. Specialization has resulted in increased efficiency.
  4. The capacity to recognize emerging trends more quickly.
  5. Customer trust is earned via the development of long-term relationships.

However, since it requires many teams with varying abilities and experience, this structure may be expensive.

3. Organizational Structure of Product Marketing

Target audience research, content marketing, and analytics are just a few of the responsibilities of product marketing teams. There are also co-branding agreements to explore, with data indicating that 71% of customers like various companies working together to create a unique product.

What’s the best approach to coordinate with so much going on? By establishing a system for product promotion.

Each group has its own marketing team under this model, which is in charge of formulating and implementing the marketing plan for their unique product line. A product marketing organizational structure, which looks like this, is the optimal approach for firms with several product/service lines:

Types of Marketing Organizational Structures - Product Marketing Organizational Structure

This strategy enables businesses to adjust to shifting trends and satisfy client demands while focusing on specific market segments.

Due to a lack of central supervision and duplicate tasks in several divisions, it might be difficult to monitor and assess the efficacy of marketing initiatives. Businesses may explore putting comparable items together to overcome this problem.

4. Organizational Structure of Digital Marketing

Any firm that wants to have an online presence has to have a digital marketing organizational structure. You may create and execute a coherent plan to reach your target audience if your company has a specialized staff to handle all digital marketing chores.

A digital marketing department’s structure varies depending on the size of the firm, but it usually consists of a mix of professionals with varied experiences and skillsets.

The corporation may have specialized teams that concentrate on various parts of digital marketing, such as search engine optimization (SEO), paid search engine advertising (PPC), graphic design, and content marketing, using a digital marketing organization structure.

This specialization enables each team to become an expert in their area of emphasis, resulting in improved corporate performance.

Your structure may look like this, depending on whatever model you use:

Types of Marketing Organizational Structures - Digital Marketing Organizational Structure

You may also set up separate departments for paid vs organic, social versus content, and so on.

5. Organizational Structure of Hybrid Marketing

Companies must adapt to the ever-changing market in today’s economic environment. A hybrid or matrix marketing organizational structure is one approach to do this. By integrating the benefits of both functional and divisional systems, this structure enables businesses to enjoy the best of both worlds.

Each of these arrangements has its own set of benefits. A functional structure, for example, operates on a centralized model, with each department reporting to a single boss. This enables for improved departmental communication and cooperation.

A divisional system, on the other hand, is centralized, with each department reporting to a distinct supervisor. This allows for greater local decision-making, but it may also lead to duplication of efforts and departmental coordination issues.

Your hybrid/matrix marketing organizational structure may look like this in practice:

Types of Marketing Organizational Structures - Hybrid Marketing Organizational Structure

With 72 percent of people working in matrixed teams, the hybrid model is very popular among organizations due to its flexibility.

A major benefit of a hybrid marketing organization is that it is more sensitive to market developments. It can swiftly adjust to changing situations due to its flexibility.

A hybrid structure, on the other hand, might lead to friction across departments or divisions, and it can be difficult for departments to collaborate. Gallup’s study also found that the hybrid model causes a lot of stress, with 45 percent of employees reporting that they spend the majority of their time reacting to requests from colleagues.

In dynamic situations where projects change often, companies frequently employ the hybrid approach.

Additional Suggestions for Choosing an Organizational Structure

The market organizational structures described above are some of the most common, but there are more to consider.

A linear organization structure, for example, is a management style in which all workers and supervisors report to a single boss.

Marketing Organization Structure - Linear organization structure chart

Small enterprises and marketing groups often use this structure. When the firm is tiny and everyone reports to the same individual, the linear organization structure is simple to grasp and successful.

The linear form may be used in a marketing organization to regulate the flow of information from the top down. This, however, may be restrictive since it prevents horizontal communication among staff.

Finally, projectized organizational structures are those in which departments are assigned particular, transitory tasks and report directly to senior management. This sort of organization allows firms with substantial workload fluctuations to swiftly form and dissolve project-specific teams as required.

The following is an example of a projectized organizational structure:

Marketing Organizational Structure - projectized organization

Consider both your present and future demands when designing an organizational structure. If you’re planning to introduce numerous goods in the next year, for example, it’s a good idea to start with a product-based marketing strategy.

Organizational Structures in Marketing Most Commonly Asked Questions

What is the optimum small-business marketing organizational structure?

Because every company is different, a method that works well for one may not work for another. The most frequent form is a linear structure with a single leader. There are various categories to pick from, including functional, matrix, and divisional.

What is the most effective B2B marketing organizational structure?

The Pedowitz Group, a consulting business, offers a basic structure for a B2B marketing organization that focuses on duties like content and digital services, digital demand creation, and reporting to a CMO to keep things simple. There is no “one-size-fits-all” corporate structure: you must first consider your company’s overall goals and present strategy. The Edward Lowe Foundation provides some excellent advice to help you.

What is the most basic organizational structure for marketing?

The most fundamental model is the linear structure, whereas the functional structure is the most popular and also the easiest to apply.

How long does it take to put up an organizational structure for marketing?

It depends on the size of your company, the structure you choose, your objectives, and your present strategy. It might take weeks or months to get it perfect, and then you must examine it on a regular basis to ensure that it meets your objectives.

Should I think about hiring freelancers and contractors as part of my marketing team?

Yes, while forming your team, think about all of your possibilities. This comprises both independent contractors and freelancers. For short-term tasks or to address skill shortages in your organization, freelancers might be a great alternative. For long-term projects, contractors might be a suitable alternative.

Conclusion: Organizational Structures in Marketing That Promote Growth

The marketing department’s structure has a substantial influence on an organization’s overall success.

The optimum structure for your company will be determined by the goods or services you provide, the size of your organization, and its location.

Companies should weigh their alternatives carefully and choose the model that is most likely to succeed.

The basic structure, product-based, and divisional models are all popular options. Alternatively, to appeal to today’s hybrid customers, you may use a hybrid model.

Do you have a marketing framework in place? Which model is the most effective for you?

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The “marketing organization structure pdf” is a document that provides an overview of the 5 types of marketing organizations that are used in today’s market. The five types include: 1) Independent 2) Subsidiary 3) Joint Venture 4) Partnership 5) Franchisor.

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