MARKETING MANAGEMENT12th edition

22 Managing a Holistic

Marketing Organization

Kotler Keller

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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

implementation 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

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Organizing the Marketing Department

• Functionally

• Geographically

• By product

• By brand

• By market

• Matrix

• By corporate/division

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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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Dow Corning uses a horizontal product team

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Figure 22.4 Product/Marketing-Management Matrix System

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Role of Marketing at the Corporate Level• To promote a culture of customer

orientation

• To be an advocate for the customer

• To assess market attractiveness

• To develop firm’s overall value proposition, the vision, and articulation of how it proposes to deliver superior value to customers

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Corporate Social Responsibility

Legal behavior

Ethical behavior

Socially responsible

Behavior

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Top-Rated Companies for Social Responsibility

• Johnson & Johnson• Coca-Cola• Wal-Mart• Anheuser-Busch• Hewlett-Packard• Walt Disney• Microsoft

• IBM• McDonald’s• 3M• UPS• FedEx• Target• Home Depot

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Fetzer emphasizes a commitment to social responsibility

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Cause-Related Marketing

Marketing that links the firm’s contributionsto a designated cause to customers

engaging directly or indirectly inrevenue-producing transactions

with the firm.

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Corporate Social Marketing

Marketing efforts that have at leastone non-economic objective relatedto the social welfare and uses the

resources of the company and/or its partners.

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Cause-Related Marketing

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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

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Co-Branded Cause

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Social Marketing Campaigns

Cognitive

Value

Action

Behavioral

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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?

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Necessary Skills for Implementing Marketing Programs

• Diagnostic skills

• Identification of company level

• Implementation skills

• Evaluation skills

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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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Marketing Audit

Comprehensive, systematic, independentperiodic examination of a company’s

or business unit’s marketingenvironment, objectives, strategies, and

activities with a view to determiningproblem areas and opportunities,

and recommendinga plan of action to improve

the company’s marketing performance.

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Characteristics of Marketing Audits (See Table 22.5)

• Comprehensive• Systematic• Independent• Periodic

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Marketing Debate

Is marketing management an art or a science?

Take a position:1. Marketing management is largely anartistic exercise and therefore highly subjective.2. Marketing management is largely ascientific exercise with well-establishedguidelines and criteria.

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Marketing Discussion

How does cause or corporate socialmarketing affect your personal

consumer behavior? Do you everbuy or not buy any products becauseof a company’ environmental policies

or programs? Why or why not?