Managing a Holistic Marketing Organization Marketing Management, 13 th 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 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 22-4 Organizing the Marketing Department Functional Organization Geographic Organization Product- or Brand-Management Organization Market-Management Organization Matrix-Management Organization

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-5 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-6 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-7 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 22-8 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-9 Corporate Social Responsibility Socially responsible behavior Ethical behavior Legal behavior

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

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

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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 Possible Objectives for Social Marketing Campaigns Cognitive Action Behavioral Value

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall The Control Process What do we want to achieve? What is happening? Why is it happening? What should we do about it?

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Types of Marketing Control Annual plan control Profitability control Efficiency control Strategic control

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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 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 Types of Costs Direct costs Traceable common costs Nontraceable common costs

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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 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 © 2009 Pearson Education, Inc. Publishing as Prentice Hall Characteristics of Marketing Audits Comprehensive Systematic Independent Periodic