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22 Managing a Holistic Marketing Organization for the Long Run 1

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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?

Copyright © 2012 Pearson Education 22-2

Copyright © 2012 Pearson Education 22-3

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

Copyright © 2012 Pearson Education 22-4

Organizing the Marketing Department

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

Copyright © 2012 Pearson Education 22-5

Figure 22.1 Functional Organization

Copyright © 2012 Pearson Education 22-6

Figure 22.2 The Product-Management Organization

Copyright © 2012 Pearson Education 22-7

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

Copyright © 2012 Pearson Education 22-8

Figure 22.3 Types of Product Teams

Copyright © 2012 Pearson Education 22-9

Category Management

Copyright © 2012 Pearson Education 22-10

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.

Copyright © 2012 Pearson Education 22-11

Copyright © 2012 Pearson Education 22-12

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

Copyright © 2012 Pearson Education 22-13

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

Copyright © 2012 Pearson Education 22-14

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

Copyright © 2012 Pearson Education 22-15

Corporate Social Responsibility

Socially responsible behavior Ethical behavior Legal behavior

Copyright © 2012 Pearson Education 22-16

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

Copyright © 2012 Pearson Education 22-17

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

Copyright © 2012 Pearson Education 22-18

Copyright © 2012 Pearson Education 22-19

Social Marketing Campaigns

Cognitive

Action

Behavioral

Value

Copyright © 2012 Pearson Education 22-20

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

Copyright © 2012 Pearson Education 22-21

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

Copyright © 2012 Pearson Education 22-22

Copyright © 2012 Pearson Education 22-23

Types of Marketing Control

Annual Plan Control

Profitability Control

Efficiency Control

Strategic Control

Copyright © 2012 Pearson Education 22-24

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

Copyright © 2012 Pearson Education 22-25

Efficiency Control Approaches

Sales force Advertising Sales promotion Distribution

Copyright © 2012 Pearson Education 22-26

Strategic Control Approaches

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

review

Copyright © 2012 Pearson Education 22-27

Copyright © 2012 Pearson Education 22-28

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.

Copyright © 2012 Pearson Education 22-29

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?

Copyright © 2012 Pearson Education 22-30