managing a holistic marketing organization marketing management, 13 th ed 22

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Managing a Holistic Marketing Organization

Marketing Management, 13th ed

22

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 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?

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-3

Stonyfield Farms Embraced Corporate Enlightenment

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Trends in Marketing Practices

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

• Globalizing• Flattening• Focusing• Accelerating• Empowering

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-5

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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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 22.2 The Product Manager’s Interactions

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Figure 22.3 Vertical Product Team

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

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Figure 22.3 Triangular Product Team

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

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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

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Figure 22.4 Product/Marketing-Management Matrix System

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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

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-15

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

Legal behavior

Ethical behavior

Socially responsible

behavior

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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

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Life is Good Promotes Sustainability

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Levi’s Eco Jeans Promotes Sustainability

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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.

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Cause-Related Marketing

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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

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-23

Possible Objectives for Social Marketing Campaigns

Cognitive

Value

Action

Behavioral

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-24

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

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-25

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?

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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?

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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

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-29

Figure 22.6 The Control-Chart Model

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Figure 22.7 Financial Model of Return on Net Worth

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Table 22.8 Simplified Profit-and-Loss Statement

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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

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-33

Table 22.9 Mapping Natural Expenses into Functional Expenses

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Table 22.10 Bases for Allocating Functional Expenses to Channels

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Table 22.11 Profit-and-Loss Statements for Channels

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Types of Costs

Direct costs

Traceable common costs

Nontraceable common costs

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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

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-38

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

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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.

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-41

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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