1. Comprehensive Marketing Programs Chapter 10

2. 10-2 In this chapter, you will learn about… 1.Marketing Program Fit 2.Marketing-Mix Sensitivities and Interactions 3.Marketing Implementation 4.Marketing Organization

3. 10-3 ◆ Comprehensive Marketing Program Choice of Markets to Pursue Choice of Marketing Mix to Reach Target Markets Create Value for Customers

4. 10-4 ◆ Major Marketing Decisions Where to Compete How to Compete When to Compete

5. 10-5 ◆ Characteristics of a Successful Marketing Program Must effectively stimulate target markets to buy Must be consistent with organizational capabilities Must outmaneuver competition Equal attention must be paid to strategy implementation and formulation

6. 10-6 ◆ Implementation of the Marketing Program Central Issues Fit with the market, organization, and competition Target market’s sensitivities and interactions with the marketing mix Implementation Organizational issues

7. 10-7 10.1 Marketing Program Fit Determined by the extent to which the marketing mix satisfies the unique needs and buyer requirements of a chosen target market (DuPont’s Kevlar) Depends on the match between an organization’s marketing skills and financial position with the marketing mix (Continental Airlines/Building on your strengths and distinctive competencies and avoid stressing weaknesses ) Fit with the competition depends on the strengths, weaknesses, and marketing mixes of competitors (long- distance telephone companies/Import & Export Companies)

8. 10-8 10.2 Marketing-Mix Sensitivities and Interactions John Murray, marketing manager for DuPont’s Sontara, a polyester fabric used for hospital surgical gowns and drapes, was evaluating a marketing program to: 1.Maintain market share 2.Gain the confidence of garment makers 3.Numerous options were possible-- Interaction between two or more marketing elements must be considered. Example of DuPont’s Dilemma

9. Marketing-Mix Sensitivities and Interactions Example of DuPont’s Dilemma 1.If sales force/missionary expenses were raised from 0 to $200,000, market share would increase to 33%. 2.If trade support/maintenance expenses were increased to $100,000, a 33% market share would result. 3.If trade support/missionary expenses were increased to $100,000, a 33% market share would result. 4.If advertising to intermediate users were increased to $50,000, the effect would be a 1% increase in market share. 5.An increase to $300,000 in advertising to end users would also result in a 1% share gain. 6.Raising all expenditures to their maximum reasonable levels would increase market share to 39% in the short run.

10. Marketing-Mix Sensitivities and Interactions Example of DuPont’s Dilemma 1.Reducing sales force/maintenance expenditures to 0 would reduce market share to 22% during the next 12 months. 2.Reducing trade support/maintenance expenditures to 0 would reduce market share to 27%. 3.Reducing trade support/missionary expenditures to 0 would reduce market share to 32%. 4.Reducing advertising to intermediaries to 0 would reduce market share to 31%.

11. 10-11 Marketing-Mix Sensitivities and Interactions Example of DuPont’s Dilemma 5. Reducing advertising to end users to 0 would reduce market share to 28%. 6. Reducing all above expenditures to 0 would reduce market share to 22%. ▲ This example demonstrating the complex relationships that exist among marketing-mix elements, and illustrates the role of assumptions and judgment in considering marketing-mix sensitivities and interactions. Increasingly, Marketing managers are turning to carefully designed market tests designed to measure marketing-mix sensitivities and interactions.

12. 10-12 10.3 Marketing Implementation Hampering Factors Poor timing Not considering the logistical aspects of a marketing program Failure to synchronize marketing mix activities Failing to monitor the price-cost plan

13. 10-13 10.3 Marketing Implementation cont. ▲ formulating a comprehensive marketing program is a formidable task that demands rigorous analysis and judgment, often without the benefit of complete information. Meanwhile, program planning and design cannot be separated from implementation issues. By assigning equal attention to program formulation and program implementation, marketing managers increase the likelihood that their comprehensive marketing programs will succeed.

14. 10-14 10.4 Marketing Organization Emphasis on marketing implementation focuses attention on organizational structure. It is often said that Strategy determines organizational structure, which in turn determines whether a marketing strategy is effective and efficiently designed and implemented.

15. 10-15 Region-specific marketing (e.g., Frito-Lay) : prompted increased decentralization of strategic marketing decisions and practices. 10.4 Marketing Organization A central issue in creating an effective and efficient marketing organization is finding the proper balance between centralization and decentralization of marketing activities

16. 10-16 Global marketing: created elastic organizational structures that simultaneously strive for efficiencies through scale economies in product development and manufacturing, and for effectiveness through customization of advertising, promotion, pricing and distribution in separate countries. 10.4 Marketing Organization

17. 10-17 ▲ Global marketing example: Coca-Cola concentrated formula and ads theme are standard worldwide, but the artificial sweetener and packaging differ across countries as do sales and distribution programs)  “Glocalization” is an attempt to balance standardization with local market requirements 10.4 Marketing Organization

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