MARKETING MANAGEMENT 12th edition 22 Managing a Holistic Marketing Organization Kotler Keller

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?

Trends in Marketing Practices Reengineering Outsourcing Benchmarking Supplier partnering Customer partnering Merging Globalizing Flattening Focusing Accelerating Empowering

Organizing the Marketing Department Functionally Geographically By product By brand By market Matrix By corporate/division

Figure 22.1 Functional 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

Figure 22.2 The Product Manager’s Interactions

Figure 22.3 Vertical Product Team PM = Product Manager APM = Associate PM PA = Product Assistant

Figure 22.3 Triangular Product Team PM = Product Manager R = Market Researcher C = Communication Specialist

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

Dow Corning uses a horizontal product team

Figure 22.4 Product/Marketing-Management Matrix System

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

Corporate Social Responsibility Socially responsible Behavior Ethical behavior Legal behavior

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

Fetzer emphasizes a commitment to social responsibility

Cause-Related Marketing Marketing that links the firm’s contributions to a designated cause to customers engaging directly or indirectly in revenue-producing transactions with the firm.

Corporate Social Marketing Marketing efforts that have at least one non-economic objective related to the social welfare and uses the resources of the company and/or its partners.

Cause-Related Marketing

Cause-Related Marketing

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 Click the video icon to launch a video snippet about the NFL’s philosophy toward cause-related marketing.

Co-Branded Cause

Social Marketing Campaigns Cognitive Action Behavioral Value

Social Marketing Planning Process Where are we? Where do we want to go? How will we get there? How will we stay on course?

Necessary Skills for Implementing Marketing Programs Diagnostic skills Identification of company level Implementation skills Evaluation skills

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?

Types of Marketing Control Annual plan control Profitability control Efficiency control Strategic control

Marketing Audit 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 (See Table 22.5) Comprehensive Systematic Independent Periodic

Marketing Debate Is marketing management an art or a science? Take a position: Marketing management is largely an artistic exercise and therefore highly subjective. 2. Marketing management is largely a scientific exercise with well-established guidelines and criteria.

Marketing Discussion How does cause or corporate social marketing affect your personal consumer behavior? Do you ever buy or not buy any products because of a company’ environmental policies or programs? Why or why not?