22Managing a

Holistic Marketing

Organization for the Long Run

1

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?

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Trends in Marketing Practices

Reengineering Outsourcing Benchmarking Supplier partnering Customer partnering Merging

Globalizing Flattening Focusing Accelerating Empowering

Internal Marketing

R&D Purchasing Manufacturing Marketing Sales

Logistics Accounting Finance Public Relations Other Customer-

Contact Personnel

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Organizing the Marketing Department

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

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Figure 22.1 Functional Organization

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Figure 22.2 The Product-Management Organization

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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

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Figure 22.3 Types of Product Teams

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Category Management

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Market-Management Organization

Market managers supervise several market-development managers, market specialists, or industry specialists

Market managers are staff people with duties like those of product managers. They develop long-range and annual plans for their markets.

Companies organized this way are called market-centered organizations.

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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

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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

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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

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Corporate Social Responsibility

Socially responsible behavior Ethical behavior Legal behavior

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Cause-Related Marketing

Cause-Marketing Benefits

Build brand awareness Enhance brand image Establish brand credibility Evoke brand feelings Create a sense of brand community Elicit brand engagement

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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

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Social Marketing Campaigns

Cognitive

Action

Behavioral

Value

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Key Success Factors for Social Marketing Programs

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

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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 22.4 The Control Process

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Types of Marketing Control

Annual Plan Control

Profitability Control

Efficiency Control

Strategic Control

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Approaches to Annual Plan Control

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

Approaches to Profitability Control Product Territory Customer

Segment Trade channel Order size

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Efficiency Control Approaches

Sales force Advertising Sales promotion Distribution

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Strategic Control Approaches

Marketing effectiveness rating instrument Marketing audit Marketing excellence review Company ethical and social responsibility

review

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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.

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Characteristics of Marketing Audits

Comprehensive

Systematic

Independent

Periodic

For Review

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?

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