Organization of

management structure in
marketing
Laman Guliyeva
Source: https://blog.hubspot.com/marketing/team-structure-
diagrams
Types of Marketing Organization Structures

 Marketing organization structures are a fundamental part of every business

because they clearly define operations and responsibilities for employees.
Choosing a marketing structure that is a good fit for your business can have a
positive impact on your team's ability to meet business goals. In this article,
we explore what a marketing organization structure is, why it is essential for a
business to use a marketing organization structure, what you should consider
while creating one and list seven of the most common marketing
organization structures.
What is a marketing organization structure?

 Marketing organization structures distribute and oversee marketing

operations, procedures and strategies within a business. These structures
define and organize employee job roles, including who they report to, and
outline the processes a business can use to achieve success. An effective
marketing organization structure can support business objectives and give
employees a clear understanding of the objectives they are working to
achieve.
Why should a business use a marketing
organization structure?

 Marketing organization structures help employees understand their role

within the company they work for. These structures can also act as a guide for
employees to know what resources are available to them and which team
members handle which responsibilities. Marketing organization structures
also can provide a visual workflow that explains how the business operates,
the job tasks within the business and how they contribute to its success and
where or who makes business decisions. Before constructing a marketing
organization structure, a business should consider:
• Chain of command: Chain of command refers to the hierarchy of
relationships within a business. This means defining who answers to who
within departments while making business-related decisions, and it maps out
who holds authority and who is accountable for the overseeing, executing
and approving of tasks.
• Span of control: Span of control clearly defines who manages each
department or division and what responsibilities those departments or
divisions handle.
• Centralization or decentralization: A centralized business allows one or two
individuals to make final decisions, whereas a decentralized business has a
team or department in charge of making final decisions.
7 types of marketing organization structures

 1. Functional structure - Functional structures organize employees into groups based on

their job positions and skillsets. A specialized team or function group is an assortment of
employees with similar job aspects. Team leaders may manage function groups and report to
senior executives when necessary. Specialized functional groups can promote consistent work
and speed up work performance since they don't involve employees outside of their function.
This structure is easier to manage on a larger scale because it can easily adjust to changes in
the business as it grows.
 2. Product-based structure - A product-based structure is mostly ideal for a business selling
multiple products or services. This structure separates employees into groups or divisions that
focus on each individual product line. Each division can have employees from every specialized
function, whereas a functional structure has employees divided into separate groups that
focus on one specialized function. A product-based structure can give each division
independence from one another, which allows employees to focus on their own division-
related tasks since they do not have to communicate with outside groups or departments.
7 types of marketing organization
structures

 3. Matrix structure - A matrix structure is a combination of a product-based structure and a

functional structure. This is best for arranging employee departments or teams based on
their job roles and the products they are working with because each department handles one
specific product. A marketing organization structure like this can provide more information at
a faster rate since multiple specialty teams oversee one project. Having a variety of specialty
teams responsible for one project can help employees openly communicate and provide
more resources for other employees to use while working toward their goals.
 4. Geographical structure - International companies usually are on a much larger scale since
they work in multiple countries and languages. Using a geographical marketing structure can
be helpful for these companies because it divides employees into teams based on
geographical regions or districts. Having teams dedicated to certain geographical regions can
assist employees in designing local marketing strategies based on their target audience. This
structure also could allow employees in each division to become familiar with their regions,
giving them the ability to connect with their audience on a deeper level.
7 types of marketing organization
structures
 5. Market-based structure - Some businesses focus on certain industries, markets or types
of consumers while creating a marketing organization structure. Industries, markets and
consumer types are division segments that outline an organizational structure. Focusing on
individual segments gives employees the opportunity to create marketing strategies that
appeal to different consumers. These structures are best for a business that aims to provide
services to particular parts of a market or industry.
 6. Network structure - A business that intends to work with another, separate business to
share resources may use a network structure, which is helpful for organizations that want to
maintain control and expedite their internal operations. A business that provides one or two
specified goods or services might want to outsource tasks that are not performed internally,
since the business is most familiar with its internal tasks. For example, a restaurant might
want to sell custom merchandise, but outsourcing the job to a graphic designer could allow
the restaurant to focus on its core operations while expanding its network with new
partnerships.
 7. Linear structure - This type of structure refers to the chain of command hierarchy as its
organizational structure. The top employee in the chain of command oversees the entire
business, and the other employees in the chain of command only oversee one part of the
business and refer directly to the employee above them in the hierarchy. This structure can
Four Basic Elements of Organizational
Structure

 Chain of Command - Your chain of command is how tasks are delegated and work is
approved. An org structure allows you to define how many "rungs of the ladder" a
particular department or business line should have. In other words, who tells whom to do
what? And how are issues, requests, and proposals communicated up and down that
ladder?
 Departmentation - Departmentation is one of the most important elements of your
organizational structure. It clusters your teams by similar roles and responsibilities and
allows you to understand how each department connects to one another.
 Span of Control - Your span of control can represent two things: who falls under a
manager's, well, management ... and which tasks fall under a department's responsibility.
Having a defined span of control not only avoids double-work from your different teams,
but helps you identify gaps in your structure.
 Centralization - Centralization describes where decisions are ultimately made. Once
you've established your chain of command, you'll need to consider which people and
departments have a say in each decision. A business can lean toward centralized, where
final decisions are made by just one or two entities; or decentralized, where final
decisions are made within the team or department in charge of carrying out that decision.
Mechanistic vs. Organic Organizational
Structures

 Organizational structures fall on a spectrum, with "mechanistic" at one

end and
"organic" at the other. Take a look at the diagram below. As you'll
probably be able to tell, the mechanistic structure represents the
traditional, top-down approach to organizational structure, whereas the
organic structure represents a more collaborative, flexible approach.
Mechanistic Structure
Organic Structure
Company Organizational
Structure Example: Matrix Type
Nonprofit Organizational
Structure Example: Flat Type
Marketing Organizational
Structure Example: Functional
Type
Sales Organizational Structure
Example: Functional Type
IT Organizational Structure
Example: Functional Type
Product Organizational Structure
Example: Divisional Type
HR Organizational Structure
Example: Matrix Type
"What are the four basic forms of
organizational structure?"
The four basic forms of organizational structure are functional, divisional, matrix, and flat
structures.
 Functional organizational structures divide your company teams based on job functions and
responsibilities.
 Divisional organizational structures groups your teams based on products, markets, or
regions, with smaller organizational structures for each division of your business.
 Matrix organizational structures divide your company teams in a grid-based fashion, where
every team has dual reporting relationships with the C-Suite and another team.
 A flat organizational structure keeps hierarchy to a minimum by eliminating middle
management and keeping individual contributors as close as possible to leadership.

 How do businesses determine organizational structure?

Businesses determine organizational structure by taking stock of their current workforce and
teams, then carefully aligning their company strategy, employee feedback, and leadership
goals with a specific structure. Some companies may have naturally fallen into a functional org
structure, in which case it’s only a matter of creating an org diagram. Others may be in the
process of creating one. Here are the steps to determine an org structure from scratch:
 "Audit your organization’s teams and roles. First, it’s essential to understand which
teams and roles already exist within your business. If your business is new, create a list of
planned teams and hires.
 Draft a company strategy. Your org structure should support your strategy, not detract
from it. If your strategy is to launch X new products in the market, then a product-based
divisional structure might work well for you.
 Gather feedback from existing employees. Your existing employees are a gold mine
of information when creating an organizational structure. Some employees might want to
be closer to leadership; others might want advancement opportunities. For the first, a flat
structure would fit, and for the second, a functional structure would be best.
 Gather feedback from other leaders. Just as employees’ voices matter, so, too, do
leaders’ voices matter. Understand their key goals and the support they need to do their
best work at your firm.
 Align your company strategy, employee feedback, and leadership feedback with
an org structure. Take a look at organizational structure types and try to align them with
the data and observations you’ve collected. Sometimes, the decision will be clear; other
times, you’ll need to continue interviewing and gathering data to find the best structure
for you.
 Create an org chart. Now that you’ve chosen the right org structure, it’s time to create
a visual chart that shows your company’s chain of command, departmentation, span of
control, and centralization at a minimum. Share this chart over email and be sure to keep
it in an easy place for all employees to access.
Navigating Organizational
Structures

 Organizational structures are central to a successful team. Employees

can move comfortably, confidently, and efficiently when given a clear
definition of their role within an organization. Structure types will vary
from business to business, so it’s important to remember that these
structures are not one size fits all. Every type may not suit your
organization, but chances are, one of them will. Use this post to
determine which organizational structure works for you, and then it’s
time for the real work to begin.