Question

Which organizational design is useful when the various customer groups targeted by a firm are so diverse as to require totally distinct marketing​ approaches?

a) Functional Structure
b) Divisional Structure
c) Matrix Structure
d) Network Structure

Answer 1

The Divisional Structure is suitable for firms targeting diverse customer groups with distinct marketing needs, as it provides autonomy to divisions to tailor their strategies effectively.

Step-by-step explanation:

When the various customer groups targeted by a firm are so diverse as to require totally distinct marketing approaches, the Divisional Structure is useful. In a divisional structure, the organization is divided into semi-autonomous units or divisions, each with its own resources and objectives. This type of structure allows each division to tailor their marketing strategies to the specific needs of the customer groups they serve, leading to greater efficiency and effectiveness in addressing diverse market segments.

Market structure influences how competitive an industry is and depends on the production and cost conditions facing each firm, as well as the amount of market power each firm possesses. Consequently, a divisional structure empowers entities within an organization to respond adeptly to the unique characteristics of their designated markets.