What Marketing Org Charts Tell You About The Business

August 10, 2014

Organizational charts are an interesting thing. Every company has an official one and also a few “unofficial” charts. Look at how people are structured and what the reporting structure looks like and it will tell how the company is run, what is important to them, and how they think about their product and services and the market in general.

Although it seems that for certain departments the org chart doesn’t vary much (take finance, sales, even engineering), for Marketing departments the org chart can be all over the place. Marketing is probably an area that changes more frequently based on the stage the company is in than any other, at least from what I have seen. A small startup will have a head marketing person with a few helpers below, but as it grows more people are added to handle the other facets of promoting the business. 

A marketing org chart can give you clues about how a company goes to market. How quickly they can react and if they are product-centric or sales-oriented. 

Organizational Chart

Sending a Message Through the Marketing Org Chart

Some companies change the marketing organization or rename functions as a way to signal the market and employees of a new strategic direction. Take for example P&G who recently announced that marketing directors and associate marketing directors are now called brand directors and associate brand directors. This is supposedly to emphasize the role of creativity and to inspire bolder, better ideas into their marketing.

A recent article in Harvard Business Review magazine argues that the marketing function hasn’t changed much in the past 40 years and makes the case for marketing reorganization.

“In the past decade, what marketers do to engage customers has changed almost beyond recognition …. Yet in most companies the organization structure of the marketing function hasn’t changed since the practice of brand management emerged, more than 40 years ago.” – HBR

It makes sense as brands evolve, technology now permeates every aspect of marketing, and consumers have taken control of the buying process. At least that’s the excuse for Electrolux to have restructured its marketing team and have moved marketers from the corporate HQ into consumer teams focused on fully understanding the consumer experience and sharing the knowledge among various groups so that the whole organization is aligned to better serve the consumer.

Sometimes the reasons are related to inefficient and costly marketing structures that have grown so big that they become an impediment to successfully conducting business and start damaging the brand. Behemoths such as HP changed from a decentralized marketing to a centralized marketing organization in order to save money and respond faster to market demands.

“Ensuring we have the right organizational structure in place is a critical first step in driving improved execution, and increasing effectiveness and efficiency” – Meg Whitman, HP.

A while ago Microsoft went through a big marketing reorganization as well because, as then-CEO Steve Ballmer said, the company wasn’t getting enough ROM (return on marketing spend). 

The Right Marketing Structure

The question of how to best structure your marketing department shouldn’t be the thing that keeps you up at night. The needs of a company change depending on where it is in its life cycle, how much money it has to allocate to marketing, and how critical the marketing role is seen for the success of the company.

According to a Forbes article titled “The Central Question for CMOs“, the debate of centralized vs decentralized is mute. 

But let’s say you do want to put in place a marketing org chart that makes sense and resists the test of time, even if it’s just for 12 months. Well, there isn’t a better starting place than the SlideShare presentation put together by HubSpot on this very subject. The CMO’s Guide to Marketing Org Structures shows how seven different companies have structure their marketing departments and why they have chosen to do it this way, at least for now.

So while there isn’t such thing as the “right marketing org structure” or the “best way to organize the marketing department”, the presentation is a good starting point to have a discussion at your company about the role of marketing and what the department should look like 12 months or 2 years ahead.


When Leads Go Cold

June 9, 2011

Rusty Funnel by TMWeddle @ FlickrIt seems with all the systems we have today to generate, score, and nurture leads, it all comes down to sales. The amount of time it takes for a sales person to follow up with a lead can determine whether the deal is closed or not. At least, that’s what the recent HBR article “The Short Life of Online Sales Leads” states, saying that 24% of companies take more than 24 hours to respond to a lead, and 23% of companies never responded at all.

According to their research, the average response time, among companies that responded within 30 days, was 42 hours.

These results are especially shocking given how quickly online leads go cold – HBR

The article doesn’t go into much detail about whether the leads being followed up had been nurtured by a Marketing Automation system, or even a break down of industries but it does point a good possible flaw in the sales process of most companies.

What good is implementing a complex nurturing system if when the marketing qualified lead is sent to sales, the rep doesn’t follow up? Plugging this hole in the funnel takes more than software.


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