Page 95 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes Organisational objectives can be classified as commercial, governmental, non-profit and
cooperative. The general nature of organisational activities is described as routine, complex, or
technical.

Example: Two governmental organisations, Indian Railways and Indian Navy would
operate differently in procuring railway engines and submarines.
Similarly, the activities and objectives of non-profit and cooperative organisations will influence
their style and behaviour.

Commercial organisations, whether publicly held or privately held, operate in a manner that
will maximise the economic gains and are expected to make economically sound decisions.
Location of an organisation is also an important factor. Regional subcultures not only influence
the lifestyles of individuals but also influence organisational cultures. Even the culture in two
branch offices of the same firm might differ.

Example: The subculture of West Bengal and Gujarat will most likely influence the
culture of firm’s branch offices.
Location-related cultural differences acquire more importance as one enters foreign cultures.
Firms that open branches outside their home countries often experience difficulties in managing
the local workforce. Selling to a firm located outside a firm’s home culture poses even greater
challenges than selling to consumers in that culture.
Organisation composition refers to the types of individuals who work in a particular organisation.
Organisational culture influences the behaviours and values of its members and in turn, the
people who work in that organisation heavily influence its culture. An organisation composed
of primarily young, highly educated, technical people will have a very different culture from an
organisation employing older, highly educated but non-technical people. People in organisations
are interdependent and interact with each other to influence members’ buying behaviour.
Generally, the firm’s culture is most strongly influenced by the characteristics of its founder and
top management personnel; the overall composition of employees is also an important factor.
Reference groups, such as organisations considered as innovative also influence purchasing
behaviour. These innovators in the industrial markets are lead users that derive a great deal of
their success from leading change. Other organisations carefully watch their adoption of new
product, technology, service, or manufacturing process and often emulate them. Other reference
groups that influence an organisation’s decision to purchase or not purchase a particular product,
or buy from a specific supplier include trade associations, financial analysts and dealer
organisations.
Technology may influence both what is bought and the buying process itself. Some organisations
use sophisticated management science techniques in the buying process such as models for
inventory control and price forecasting, purchase scheduling charts and computer applications
for determining optimum order quantities. In fact, computer applications are rapidly spreading
for directing and controlling the buying process.

4.4.3 Internal Influences on Culture

There are certain factors internal to organisations that influence organisational culture and
include values, perception, learning, motives and emotions.

Did u know? Organisational values differ among organisations though they operate in
the same industry.

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