Marketing Organization: Meaning, Principles & Importance

An organization refers to any system, body or group of people working together to achieve common goals and objectives of the business. It is a mechanism through which a managerial philosophy is translated into action.

Marketing Organization

The Marketing organization is the vehicle for making decisions on all marketing areas viz. products, marketing channels, prices, physical distributions and promotions. It establishes the authority relationships among marketing personals and specialists who are responsible for making marketing decisions and planning that are essential for the success of any business firm.

Hence, we can say that marketing organization is an organizational structure which implements the policies of the enterprise, helps in taking decisions regarding production, packing, price, advertisement, sales promotion, brand, trade mark and channels of distribution etc. and helps in making marketing activities of the enterprise suitable to the needs and specifications of the marketing and helps in implementing the decisions so that predetermined objectives of the enterprise may be achieved.

Need for Marketing Organization

In the technological arena, modern marketing activities are consumer oriented. Thus, to sustain in the competitive market, the business enterprise requires a marketing organization that can take decision on the marketing factors viz. product, price, promotions, etc. to satisfy the needs and desires of customers and maximize profit of the enterprise.

Therefore, a sound marketing organization is the pillar for success for any business enterprise and provides a framework to establish an authority among the sub ordinates, locate responsibility, establish sales routines, enforces proper supervision of sales force, avoid repetitive duties and enable the top executives to devote more time for planning policy matters.

Principles of Organization

Following are the important principles of organization which are mentioned here:

Unity of Objectivity

The attainment of objectives is the main purpose of the organizing.  An organization and every part of it should be directed towards the accomplishment of objectives. Every member of the organization should be familiar with the common objectives or goals. Thus, the organizational goals, departmental goals and individual goals must be clearly defined.


An organization is efficient if it is able to accomplish pre-determined objectives at minimum possible cost. An organization must also provide maximum possible satisfaction to its employees and should also contribute to the welfare of the community.

Division of work

For the sound and effective organization, the total task should be divided in such a manner that the work of every individual in the organization is limited and the work should be assigned to the right person according to his physical, mental and psychological capacities.

Span of control

Due to limitation of time and ability, no executive can effectively supervise more than a particular number of subordinates. Therefore, every executive should be asked to supervise a reasonable number of executives depending upon his ability, his job, the complexities of duties of his sub-ordinates, the nature and importance of work to be supervised, etc.

Scalar Principle

It is sometimes also known as the chain command. According to the principle, the authority and responsibility should be in a clear line from the top to the bottom of the organization. The more clear the line of authority in an enterprise, the more effective will be communication and responsible decision making.


The authority delegated to an individual manager should be adequate to enable him to accomplish results expected of him.

Functional Definition

The duties, responsibilities, authorities and organizational relationships of an individual working on a particular position should be clearly defined so that there is no confusion. The clearly defined duties and authorities of an individual will contribute towards the accomplishment of objectives more effectively.

Authority and responsibility

It is the tool by which a manager is able to create an environment for individual performance. Thus, the authority and responsibility of each manager and supervisor should be clearly defined. Every manager should be held responsible for the acts of his subordinates as well as his own acts.

Unity of command

The subordinates should receive orders from only one supervisor and no one should be accountable to more than one boss at a time. This will avoid confusion, disorder and indiscipline. Thus, this principle creates the feeling of personal responsibility and avoids the problems of conflicts.

Unity of direction

For the sound and effective organization, there must be one head and one plan for group of activities directed towards the same objectives.


There must be an orderly arrangement of group effort and unity of action and co-ordination of activities at various levels.


The organization structure should be flexible so that it can be easily adjusted to changing conditions. The organization structure should permit expansions, mergers and replacements, etc. without disturbing the basic design.


The organization should be so structured as to have continuity of operations.


For the sound and effective organization, the effective communication is necessary. It is the process of transformation of information from one person to another of different levels. It involves the systematic and continuous process of telling, listening and understanding opinions ideas, feelings, information, views, etc. of employees of the organization.


For the better communication and co-ordinations, the levels of the organization should be kept as minimum as possible. This principle focuses on the simplicity of an organizational structure.

Importance of Organization

The sound organization can contribute to the success of an enterprise in the following ways:-

Facilitates administration

Organization provides the framework within which the functions of co-ordination and control can be performed effectively. It increases managerial efficiency, avoid delay and duplication of work, motivates employees, etc. It provides a system of authority and a network for effective communication.

Optimum use of resources and new technology

In the business enterprise, an optimum use of technological improvements can be made through a sound structure. In addition, a sound organization permits optimum use of human resources and ensures that every individual is placed on the job for which it is best suited.

Helps in the growth of enterprise

The sound organization enables an enterprise to grow. The systematic division of work and delegation of authority facilitate to take up new activities and meet public demands of the market.

Facilitates co-ordination

The sound organization assigns right job to right person, improves job satisfaction and interpersonal relations. The well-defined job and clear line of authority and responsibility helps to establish cordial relations between the different departments or divisions of an enterprise. The division of labor, better utilization of technology and human talent, etc. helps to improve the efficiency and quality of work.

Stimulates creativity and innovation

A well-designed organization stimulates creative thinking and initiative on the part of employees. It provides for effective management of change and responds favorably to changes in the environment.

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  • Josephine,W,Wachiuri

    Thank you very much for such elaborate notes on Organization. How can l apply it to financial institutions.lam a trainer in entrepreneurship