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Managing a Holistic Marketing Organization

for the Long Run

22

Marketing ManagementA South Asian Perspective, 13th ed

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-2

Chapter Questions

• What are important trends in marketing practices?

• What are the keys to effective internal marketing?• How can companies be responsible social

marketers?• How can a company improve its marketing skills?• What tools are available to help companies

monitor and improve their marketing activities?


GCMMF practices holistic marketing while empowering

people


Trends in Marketing Practices

• Reengineering• Outsourcing• Benchmarking• Supplier partnering• Customer partnering• Merging

• Globalizing• Flattening• Focusing• Accelerating• Empowering


Organizing the Marketing Department

• Functional Organization• Geographic Organization• Product- or Brand-Management Organization• Market-Management Organization• Matrix-Management Organization


Figure 22.1 Functional Organization


Tasks Performed by Brand Managers

• Develop long-range and competitive strategy for each product

• Prepare annual marketing plan and sales forecast

• Work with advertising and merchandising agencies to develop campaigns

• Increase support of the product among channel members

• Gather continuous intelligence on product performance, customer attitudes

• Initiate product improvements


Figure 22.2 The Product Manager’s Interactions


Figure 22.3 Vertical Product Team

• PM = Product Manager• APM = Associate PM• PA = Product Assistant


Figure 22.3 Triangular Product Team

• PM = Product Manager• R = Market Researcher• C = Communication Specialist


Figure 22.3 Horizontal Product Team

• PM = Product Manager• R = Market Researcher• C = Communication Specialist• S = Sales Manager• D = Distribution Specialist• F = Finance Specialist• E = Engineer


Figure 22.4 Product/Marketing-Management Matrix System


Building a Creative Marketing Organization

• Developing a company-wide passion for customers

• Organizing around customer segments instead of products

• Understanding customers through qualitative and quantitative research


How Can CEOs Create a Marketing-Focused Company?

• Convince senior management of the need to become customer focused

• Appoint a senior marketing officer and marketing task force

• Get outside guidance• Change the company’s reward measurement

and system• Hire strong marketing talent


How Can CEOs Create a Marketing-Focused Company?

• Develop strong in-house marketing training programs

• Install a modern marketing planning system• Establish an annual marketing excellence

recognition program• Shift from a department focus to a process-

outcome focus• Empower the employees


Corporate Social Responsibility

Legal behavior

Ethical behavior

Socially responsible

behavior


Top-Rated Companies for Social Responsibility

• Microsoft• Johnson & Johnson• 3M• Google• Coca-Cola• General Mills• UPS

• Sony• Toyota• Procter & Gamble• Amazon.com• Whole Foods• Walt Disney• Honda Motor• Fed Ex


Levi’s Eco Jeans Promotes Sustainability


What is Cause-Related Marketing?

Cause-related marketing is marketing that links the firm’s contributions to a

designated cause to customers engaging directly or indirectly in

revenue-producing transactions with the firm.


Cause-Related Marketing


Branding a Cause Marketing Program

• Self-branded: Create Own Cause Program

• Co-branded: Link to Existing Cause Program

• Jointly branded: Link to Existing Cause Program


Possible Objectives for Social Marketing Campaigns

Cognitive

Value

Action

Behavioral


Key Success Factors for Social Marketing Programs

• Study the literature and previous campaigns• Chose target markets that are ready to

respond• Promote a single, doable behavior in clear,

simple terms• Explain the benefits in compelling terms• Make it easy to adopt the behavior• Develop attention-grabbing messages• Consider an education-entertainment

approach


Table 22.4 Social Marketing Planning Process

Where are we?

Where do we want to go?

How will we get there?

How will we stay on course?


Figure 22.5 The Control Process

What do we want to achieve?

What is happening?

Why is it happening?

What should we do about it?


Types of Marketing Control

Annual plan control

Profitability control

Efficiency control

Strategic control


Approaches to Annual Plan Control

• Sales analysis• Market share analysis• Sales-to-expense ratios• Financial analysis• Market-based scorecard analysis


Figure 22.6 The Control-Chart Model


Figure 22.7 Financial Model of Return on Net Worth


Table 22.8 Simplified Profit-and-Loss Statement


Marketing Profitability Analysis

• Step 1: Identify functional expenses• Step 2: Assign functional expenses to

marketing entities• Step 3: Prepare a profit-and-loss

statement for each marketing entity


Table 22.9 Mapping Natural Expenses into Functional Expenses


Table 22.10 Bases for Allocating Functional Expenses to Channels


Table 22.11 Profit-and-Loss Statements for Channels


Types of Costs

Direct costs

Traceable common costs

Nontraceable common costs


Measures Tracked for Efficiency Control

• Logistics costs as a percentage of sales

• Percentage of orders filled correctly• Percentage of on-time deliveries• Number of billing errors


What is a Marketing Audit?

A marketing audit is a comprehensive, systematic, independent, periodic

examination of a company’s or business unit’s marketing environment, objectives,

strategies, and activities with a view to determining problem areas and opportunities,

and recommending a plan of action to improve the company’s marketing

performance.


Characteristics of Marketing Audits

Comprehensive

Systematic

Independent

Periodic


Marketing Debate Is marketing management an art or ascience?

Take a position:1. Marketing management is largely anartistic exercise and therefore highly subjective.or2. Marketing management is largely ascientific exercise with well-establishedguidelines and criteria.


Marketing Discussion

How does cause or corporate social marketing affect your personal consumer behavior?

Do you ever buy or not buy any products because of a company’s environmental policies or programs?

Why or why not?

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