Managing a Holistic Marketing Organization

for the Long Run

LECTURE-31

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?

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

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.

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

Socially responsible behavior

Ethical behavior

Legal 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

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.

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 Explain the nutritional value of different foods or

importance of conservations.

Action Motivate people to donate blood or vote “Yes” on a

certain issue.

Behavioral De-motivate cigarette smoking.

Value `Alter idea about a negative belief.

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.

Social Marketing Planning Process

Where are we?

Where do we want to go?

How will we get there?

How will we stay on course?

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

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.

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 Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.

Advertising Principles & Practice by Wells, Moriarty & Burnett Published by Pearson Education, Inc.

Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin.

Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall

Bibliography

The End:

“Never underestimate the power of a kind word or deed”