MARKETING MANAGEMENT 12 th edition 22 Managing a Holistic Marketing Organization KotlerKeller

22-2 Chapter Questions  What are important trends in marketing practices?  How are marketing organizations structured for effectiveness  How can a company improve its marketing implementation skills?  What tools are available to help companies monitor and improve their marketing activities?

22-3 Trends in Marketing Practices Trends ReengineeringOutsourcingBenchmarking Supplier Partnering Customer Partnering MergingGlobalizingFlatteningFocusingAcceleratingEmpowering Teams to build value Source functions and products from outside Best practices standards Strategic sources Customer value delivery Joining of complementary players Global vs restricted strategies Ownership and accountability Enhanced proactive and reactive capacities Segmentation and targeting Reducing layers of bureaucracy Evolving Corporate and Marketing Practices

22-4 –Simple Sales Department –Sales Department With Ancillary Marketing Functions –Separate Marketing Department –Modern Marketing Department / Effective Marketing Company –Process-And Outcome-Based Company Marketing Organization Evolution Stage Five Organizations Most Common Today Corporate - Customer Culture - Customer Advocate - Market Attractiveness - Vision & Value Proposition VP Sales & Distribution VP Marketing - Outbound Direct Sales - Market Research & Analysis > General Territory > Specialists (overlay): - Strategy Development application, industry, product, new business - Product Planning > Strategic Accounts and Management - Inbound Telemarketing - Advertising - Channels & Distribution - Programs & Promotions - Service & Tech Support - Measurements & Operations Consumer Commodity Enterprises Industrial Enterprises Organizing the Marketing Department

22-5 Organizing the Marketing Department

22-6  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 PM = Product Manager APM = Associate PM PA = Product Assistant PM = Product Manager R = Market Researcher C = Communication Specialist PM = Product Manager R = Market Researcher C = Communication Specialist S = Sales Manager D = Distribution Specialist F = Finance Specialist E = Engineer Product or Brand Management Organization Triangular Product Team Horizontal Product Team Product and Brand Managers Have These Tasks Marketing Maximized Through Relations with Other Departments with Other Departments ■R&D, Manufacturing and Procurement ■Finance, Accounting and Operations ■Sales Integrated Planning with Other Departments Integrated Planning with Other Departments  PDT (Product Development Team)  IPMT (Integrated Product Management Team)  BAMT (Brand Asset Management Team)  Structured Roles, Formal Action Plans, Group Executive Reviews and Performance Measurements Executive Reviews and Performance Measurements

22-7 Evaluation and Control Annual-Plan Control  Sales Analysis Sales variance analysisSales variance analysis Microsales analysisMicrosales analysis  Market-Share Analysis  Overall market share  Served market share  Relative market share  Marketing Expense-To-Sales Analysis  Financial Analysis  Market-Based Scorecard Analysis  Customer-performance scorecard  Stakeholder-performance scorecard Profitability Control Profitability Control  Marketing-Profitability Analysis  Determine Corrective Action  Direct Versus Full Costing  Direct costs  Traceable common costs  Nontraceable common cost  Activity-based Cost Accounting (ABC) Efficiency Control Efficiency Control  Marketing Controller  Sales-Force Efficiency  Advertising Efficiency  Sales-Promotion Efficiency Efficiency  Distribution Efficiency Strategic Control Strategic Control  The Marketing Effectiveness Review  The Marketing Audit  Marketing audit’s four characteristics:  Comprehensive  Systematic  Independent  Periodic Top & Middle Management Validate Results Relative to Plan Marketing Controller Determine Where Money Is lost & Made Marketing Controller, Line & Staff Management Measure and Improve Effectiveness Of Marketing Expenditures Top Management & Marketing Auditor Validate Pursuit of Best Market, Product, and Channel Opportunities The Control Process TYPES OF MARKETING CONTROL AUDITS: Comprehensive Systematic Independent Periodic

22-8 Marketing Organization To Create a Market and Customer Focused Enterprise:  Create an organizational infrastructure that supports the enterprise’s market strategy through integrated functional planning  Implement structured planning processes that focus on target markets, product management and strategic customer needs  Base group executive compensation on achievement of enterprise marketing objectives  Require customer contact by all enterprise function executives  Implement process control and performance measurements for all marketing functions, programs and integrated function activities  Provide recognition and bonus offerings for integrated marketing team successes