22 Managing a Holistic Marketing Organization for the Long Run 1 22 Managing a Holistic Marketing Organization for the Long Run

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-2

Trends in Marketing Practices Reengineering Outsourcing Benchmarking Supplier partnering Customer partnering Merging Globalizing Flattening Focusing Accelerating Empowering Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-3

Internal Marketing R&D Purchasing Manufacturing Marketing Sales Logistics Accounting Finance Public Relations Other Customer-Contact Personnel Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-4

Organizing the Marketing Department Functional Organization Geographic Organization Product- or Brand-Management Organization Market-Management Organization Matrix-Management Organization Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-5

Figure 22.1 Functional Organization Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-6

Figure 22.2 The Product-Management Organization Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-8

Figure 22.3 Types of Product Teams Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-9

Category Management Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-11

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-12

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-13

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-14

Corporate Social Responsibility Socially responsible behavior Ethical behavior Legal behavior Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-15

Cause-Related Marketing Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-16

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-18

Social Marketing Campaigns Cognitive Action Behavioral Value Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-19

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-20

Social Marketing Planning Process Where are we? Where do we want to go? How will we get there? How will we stay on course? Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-21

Figure 22.4 The Control Process Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-22

Types of Marketing Control Annual Plan Control Profitability Control Efficiency Control Strategic Control Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-23

Approaches to Annual Plan Control Sales analysis Market share analysis Sales-to-expense ratios Financial analysis Market-based scorecard analysis Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-24

Approaches to Profitability Control Product Territory Customer Segment Trade channel Order size Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-25

Efficiency Control Approaches Sales force Advertising Sales promotion Distribution Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-26

Strategic Control Approaches Marketing effectiveness rating instrument Marketing audit Marketing excellence review Company ethical and social responsibility review Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-27

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-28

Characteristics of Marketing Audits Comprehensive Systematic Independent Periodic Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-29

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 © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 22-30