Managing a Holistic Marketing Organization for the Long Run LECTURE-31

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?

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

Organizing the Marketing Department  Functional Organization  Geographic Organization  Product- or Brand-Management Organization  Market-Management Organization  Matrix-Management 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.

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.

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.

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.

Corporate Social Responsibility  Socially responsible behavior  Ethical behavior  Legal behavior

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

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.

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

Possible Objectives for Social Marketing Campaigns  Cognitive  Explain the nutritional value of different foods or importance of conservations.  Action  Motivate people to donate blood or vote “Yes” on a certain issue.  Behavioral  De-motivate cigarette smoking.  Value  `Alter idea about a negative belief.

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.

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

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

Approaches to Annual Plan Control  Sales analysis  Market share analysis  Sales-to-expense ratios  Financial analysis  Market-based scorecard analysis

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.

Types of Costs  Direct costs  Traceable common costs  Nontraceable common costs

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

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.

Characteristics of Marketing Audits  Comprehensive  Systematic  Independent  Periodic

 Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.  Advertising Principles & Practice by Wells, Moriarty & Burnett Published by Pearson Education, Inc.  Principles of Advertising & IMC by Tom Duncan 2 nd Edition, Published by McGraw-Hill Irwin.  Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall Bibliography

The End: “Never underestimate the power of a kind word or deed”