Evaluating Organizational Structures: Pros and Cons PPT

This PPT slide, part of the 21-slide Marketing Organization 2.0 PowerPoint presentation, presents a comparative analysis of different organizational structures, specifically focusing on when to use segment-centric, product-centric, channel-centric, geography-centric, and function-centric approaches. Each structure is evaluated based on its applicability, advantages, and disadvantages.

For the segment-centric approach, it is recommended when customer segments exhibit distinct needs. The pros include a holistic view of customer requirements and an enhanced omnichannel experience. However, a potential downside is the risk of functional duplication, which can complicate operations.

The product-centric model is ideal for organizations that prioritize product focus. This structure offers deep expertise in product marketing and facilitates effective feedback loops. Yet, it may hinder cross-selling and upselling opportunities, which could limit revenue potential.

The channel-centric approach is suitable when businesses are organized by purchasing channels. It allows for specialized expertise in specific channels, but can impede the overall omnichannel experience, potentially frustrating customers who expect seamless interactions.

Geography-centric structures are beneficial when local responsiveness is critical. They provide nuanced understanding of regional markets, but can lead to inconsistencies among global brands, which may confuse customers.

Lastly, the function-centric model is appropriate for companies with a singular brand or those requiring deep functional expertise. While it leverages scale effectively, it can pose integration challenges across channels.

The concluding statement emphasizes the necessity for the marketing organization to align closely with the overall business structure, highlighting the importance of coherence in organizational strategy. This slide serves as a strategic guide for executives considering how to structure their organizations for optimal effectiveness.

This slide is part of the Marketing Organization 2.0 PowerPoint presentation.

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