Marketing Essay Example | Topics and Well Written Essays - 1000 words - 11

Marketing - Essay Example 2003, 504). Marketing structures that play roles in the strategic planning process include formalization, specialization and centralization (Kellar, A. 2009, 389). These structures are, particularly, important in shaping the performance of an organization (Laforet, S. 2012, 163). Formalization is the degree to which working relationships and decisions are governed by standard policies, procedures and formal rules. Centralization is the locus of the authority and control of a decision within an organizational entity. In organizations that are highly centralized, only one or a few top managers hold most decision-making authorities. In decentralized firms, middle or lower level managers possess autonomy and participate in a wide range of decisions. Specialization is division of tasks and activities across positions within the system. High levels of centralization and formalization, together with low specialization levels, are likely to be associated with relatively efficient performance within marketing departments. In such departments, the top marketing managers use centralized decision-making authorities in setting a common direction for other departments while keeping overt conflicts minimal. The formal rules and procedures play a role in reutilizing activities and hold down risks and administrative costs. Therefore, higher formalization and centralization levels in the market department should positively relate to the ROI performance of low cost defender business units. Centralization, non-specialized and formalized organizations tend to be more efficient but less innovative and adaptive compared to those with the opposite structural characteristics. Despite business strategy being a general statement about how the unit chooses to compete in an industry, that unit encompasses a large number of different products, each facing a different competitive situation in different markets. There is the likelihood of existence of a considerable variation in marketing pro grams across products within similar business units (Freeman, B & Shaw L. 2009, 118). Since a business strategy fails to set a general direction of how the unit will compete, it should have an impact on the broad marketing policies cutting across products and product lines. The likelihood of a strategy being effective relies on the consistency of the marketing policies with the overall strategy, and how successful the unit is in adhering to the policies. One set of marketing policies broadly defines the nature of the products that the business offers to the market (Suder, G. 2007, 118). The policies cover a diversity of the product line, the general level of technical sophistication of the products and the target level of product quality in relation to the competitors. The prospector businesses heavily depend on the continuing development of new and unique products and the penetration of new markets as a primary competitive strategy. Hence, the adherence and policies of the prospect ive businesses which encourage the broad and technically advanced trade lines should relate