Marketing strategies and organizational structures for service firms pdf

Significance of Organizational Structure

By definition, professional service firms can include health care practices, law firms, marketing agencies, consulting partnerships and any other type of business where experts sell access to intangible services instead of fixed products. Unlike companies that market merchandise, professional service firms must manage teams for effective results while cultivating a brand image using tools often outside their areas of expertise. The right combination of organizational structure and marketing strategy can unite otherwise competing agendas into a coherent brand. Before mass media advertising became commonplace, firms often organized around areas of expertise or around family ties. Fortunate firms boasted boards with the ability to run their businesses while attracting new clients. Clever marketing, however, rousted accounts from decades-old relationships when less skilled managers failed to deliver results. For professional service firms, effective marketing strategies convince prospective clients that new ideas can solve their needs.

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