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Selecting An Org Structure For Marketing

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SELECTING AN

ORG STRUCTURE
FOR MARKETING

HOW-TO GUIDE
Selecting an Org Structure for Marketing
HOW-TO GUIDE

Does your marketing department have a solid infrastructure? Do all of your company’s marketing
professionals understand their role/function in the organization? Is the chain of command easily
understood or only loosely communicated to marketing staff?

Organizational (org) structures provide a framework within a company that ensures all employees
are aware of their role and how they fit into the ecosystem of the business. Org structures present
themselves on a spectrum anywhere from a traditional, top-down approach to more collaborative,
flexible approaches.

Org structures vary by company size, industry, and business needs. Ideally, each company will
create its structure based on their specific requirements, and continue to update the org structure
as changes occur, both internally and externally.

As marketing departments become more complex, with new technologies and initiatives appearing
all the time, it is important that Marketing builds and maintains an org structure that will enhance
their current and future plans.

This How-To Guide was designed to help you understand what the common org charts look like,
the pros and cons of each structure, and how to select the best org structure for your company.

2 SELECTING AN ORG STRUCTURE FOR MARKETING HOW-TO GUIDE


Common Organizational Structures
The most common org structures for a marketing department are Centralized, Marketing Services,
Center of Excellence, Decentralized, and Circular.

The five figures reviewed in this section do not show the entirety of each structure; however, they
do provide a glance at how each structure is arranged.

Here are graphics of five common marketing org charts:

FIGURE 1
Centralized Org Structure

CMO

VP, VP, Strategic VP, Customer VP, Marketing Ops


Demand Generation Communications Success and Finance

Director, Content Director, Customer


Marketing Engagement

Director, Event
Marketing

FIGURE 2
Marketing Services Org Structure

CEO

President, Business President, Business President, Business


Unit A Unit B Unit C Marketing
Services

Budget Budget Budget

3 SELECTING AN ORG STRUCTURE FOR MARKETING HOW-TO GUIDE


FIGURE 3
Center Of Excellence Org Structure

Head of Corporate VP, Strategy and


Comm and Marketing Branding

President, Business VP, Marketing


Unit A Programs - BU A
CEO
President, Business VP, Marketing
Unit B Programs - BU B

President, Business VP, Marketing


Unit C Programs - BU C

FIGURE 4
Decentralized Org Structure

CEO

Business Unit Business Unit Business Unit


Head A Head B Head C

VP, Marketing Strat. and VP, Marketing Strat. and VP, Marketing Strat. and
Programs - BU A Programs - BU B Programs - BU C

Content Marketing Content Marketing Event Marketing


Manager Manager Manager

Event Marketing
Manager

Creative Services
Manager

4 SELECTING AN ORG STRUCTURE FOR MARKETING HOW-TO GUIDE


FIGURE 5
Circular Org Structure

Event Marketing Manager

VP, Demand Gen

Marketing VP, VP, Strategic


CMO PR Manager
Ops Manager Marketing Ops Comm
and Finance

VP, Customer Success

Customer Success Manager

5 SELECTING AN ORG STRUCTURE FOR MARKETING HOW-TO GUIDE


Organizational Structure Descriptions
Each org chart in the previous section has its own unique attributes. While each org structure has
its pros, there are also cons that should be considered before implementation or restructuring. The
following table details the key attributes, pros, and cons of each chart:

Org.
Description Pros Cons
Structure

Provides an easily
Is the top-down
deciphered chain Can create
approach traditionally
of command; challenges with
used by mid-sized to
Enables highly communication
large organizations.
Figure 1 Centralized specialized job and adjustments
It relies on a singular,
functions; Allows to market changes
centralized marketing
for continued if all departments
department that reports
growth as a are silo'ed.
directly to the CMO/CEO.
company expands.

Marketing Services acts


as an internal agency for
All marketing
all marketing activities
activities are
and programs. This
executed and
group obtains budget
managed in the Marketing Services
requirements from each
same "command group does
Business Unit (BU), and
center"; Can be not control the
Marketing provides the Marketing
Figure 2 easily scaled budget; May be
Services function based on the
for growing issues maintaining
requirements for each
companies; consistency across
individual BU. This could
Remains cost BUs.
be considered "internal
effective with one
outsourcing," BUs can
main source of
be based on product,
marketing activity.
market segment, or
geographic location.

6 SELECTING AN ORG STRUCTURE FOR MARKETING HOW-TO GUIDE


Org.
Description Pros Cons
Structure

Provides a
Is similar to the Trad-
"command center"
itional model; however,
for Marketing
the origanization is Can cause serious
strategy that is
structured by Business communication
filtered down
Unit (BU). Business Units loss and transfer
to each BU,
can be based on product of knowledge;
which maintains
division, market segment, Can provide
some level of
Center of or geographic location. In each BU with too
Figure 3 consistency
Excellence this model, the corpora- much autonomy
across the
tion (as a whole) main- and a chance
entire company;
tains the strategy portion to stray from
Empowers each
of Marketing, but the the company's
BU to market its
individual BU manages overarching
product or its
and monitors the unique strategic goals.
segment on their
programs and budget of
own with their
Marketing.
unique knowledge.

Allows each BU
to utilize their Creates a great
knowledge of the deal of autonomy
Each Business Unit
specific division, for each BU; Can
(BU) is responsible for
market segment, cause an overlap
Marketing in its entirety.
Figure 4 Decentralized or location to in work if similar
Marketing strategy and
drive collateral job roles are
programs are run by
and marketing implemented to
each BU.
programs that each BU to do
increase sales similar programs.
opps and closes.

Is a more organic
organizational structure.
It still provides a loose
chain of command with
the executive/leader at
the center; however, the Allows a free flow Employees may
ideology is that the exec/ of knowledge and have a hard time
leader will "radiate" their ideas throughout deciphering
vision and knowledge the organization; their place in the
Figure 5 Circular
throughout the Encourages organization;
department. There are constant immediate chain of
bands for each job level communication command can be
that indicate different and collaboration. difficult to maintain.
levels of knowledge
transfer and functionality.
This model is typically
seen in SMBs or start-up
companies.

7 SELECTING AN ORG STRUCTURE FOR MARKETING HOW-TO GUIDE


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