2. Arab World Edition Kotler, Keller, Hassan, Baalbaki and Shamma
Marketing Management
Arab World Edition
Kotler, Keller, Hassan, Baalbaki and Shamma
Chapter 22
Managing a Holistic Marketing Organization for the Long Run

3. 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?
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4. Trends in Marketing Practices
Chapter Question 1:
What are important trends in marketing practices?
Trends in Marketing Practices
To respond to the changing environment, companies can restructure their business and marketing practices by:
Reengineering
Outsourcing
Benchmarking
Supplier partnering
Customer partnering
Merging
Globalizing
Flattening
Focusing
Accelerating
Empowering
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5. What are the keys to effective internal marketing?
Chapter Question 2:
What are the keys to effective internal marketing?
Internal Marketing
Internal marketing requires that everyone in the organization buys into the concepts and goals of marketing.
Companies can succeed at marketing only when all employees see their own job is to create, serve and satisfy customers.
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6. Organizing the Marketing Department
Chapter Question 2:
What are the keys to effective internal marketing?
Organizing the Marketing Department
Marketing departments can be organized in different ways:
Functional organization
2. Geographic organization
Organizes sales force on geographic lines
May include area marketing specialists to support sales
Fig. 22.1: Functional Organization
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7. Organizing the Marketing Department
Chapter Question 2:
What are the keys to effective internal marketing?
Organizing the Marketing Department
(list cont’d)
Product- or brand-management organization
Kraft has category managers for its different cereals: nutritional, presweetened, family, and so on.
Fig. 22.2: The Product Manager’s Interactions
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8. Organizing the Marketing Department
Chapter Question 2:
What are the keys to effective internal marketing?
Organizing the Marketing Department
(list cont’d)
Product- or brand-management organization
Tasks performed by product or brand managers:
Develop long-range and competitive strategy for the 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
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9. Organizing the Marketing Department
Chapter Question 2:
What are the keys to effective internal marketing?
Organizing the Marketing Department
(list cont’d)
Market-management organization
Activities can be organized according to different markets or customer segments.
Matrix-management organization
Companies producing many products for many markets may adopt matrix organization
Fig. 22.4: Product-Market-Management Matrix System
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10. Building a Creative Marketing Organization
Chapter Question 2:
What are the keys to effective internal marketing?
Building a Creative Marketing Organization
Becoming market- and customer-driven requires:
Developing a company-wide passion for customers.
Organizing around customer segments instead of products.
Understanding customers through qualitative and quantitative research.
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11. Building a Creative Marketing Organization
Chapter Question 2:
What are the keys to effective internal marketing?
Building a Creative Marketing Organization
What steps can a CEO take to create a customer-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.
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.
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12. Building a Creative Marketing Organization
Chapter Question 2:
What are the keys to effective internal marketing?
Building a Creative Marketing Organization
Being customer-oriented isn’t enough on its own.
The company must also be creative.
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13. Socially Responsible Marketing
Chapter Question 3:
How can companies be responsible social marketers?
Socially Responsible Marketing
Corporate Social Responsibility
Socially responsible marketing relies on proper:
Legal behavior
Ethical behavior
Social responsibility behavior
Sustainability
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14. How can companies be responsible social marketers?
Chapter Question 3:
How can companies be responsible social marketers?
Cause-Related Marketing
Cause-related marketing links the firm’s contributions to a designated cause to customers engaging directly or indirectly in revenue-producing transactions with the firm.
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15. How can companies be responsible social marketers?
Chapter Question 3:
How can companies be responsible social marketers?
Cause-Related Marketing
Cause-Marketing Benefits and Costs
Consumers may develop a strong, unique bond with the firm that transcends normal marketplace transactions.
Cause marketing can
build brand awareness,
enhance brand image,
establish brand credibility,
evoke brand feelings,
create a sense of brand community,
elicit brand engagement.
(RED) was a highly publicized effort to raise money for AIDS relief in Africa through partnerships with iconic brands.
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16. How can companies be responsible social marketers?
Chapter Question 3:
How can companies be responsible social marketers?
Social Marketing
What is social marketing?
Cause-related marketing supports a cause.
Social marketing by nonprofit or government organizations furthers a cause, such as ‘exercise more and eat better.’
Social marketing campaigns may have objectives related to changing people’s cognition, values, actions or behaviors.
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17. How can companies be responsible social marketers?
Chapter Question 3:
How can companies be responsible social marketers?
Social Marketing
Key success factors in developing a social marketing program:
Study the literature and previous campaigns.
Choose target markets that are ready to respond.
Promote a single, do-able behavior in clear, simple terms.
Explain the benefits in compelling terms.
Make it easy to adopt the behavior.
Develop attention-grabbing messages and media.
Consider an education-entertainment approach.
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18. Box 22.4: Social Marketing Planning Process
Chapter Question 3:
How can companies be responsible social marketers?
Social Marketing
Box 22.4: Social Marketing Planning Process
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19. Marketing Implementation
Chapter Question 4:
How can a company improve its marketing skills?
Marketing Implementation
Marketing implementation is the process that turns marketing plans into action assignments and ensures they accomplish the plan’s stated objectives.
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20. Marketing Implementation
Chapter Question 4:
How can a company improve its marketing skills?
Marketing Implementation
Box 22.5: Characteristics of a Great Marketing Company
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21. Evaluation and Control
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Evaluation and Control
Four types of marketing control:
Annual-plan control
Profitability control
Efficiency control
Strategic control
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22. Evaluation and Control
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Evaluation and Control
Table 22.1: Types of Marketing Control
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23. Fig. 22.5: The Control Process
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Annual-Plan Control
What do we want to achieve?
What is happening?
Why is it happening?
What should we do about it?
Fig. 22.5: The Control Process
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24. Annual-Plan Control To check on plan performance, marketers use:
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Annual-Plan Control
To check on plan performance, marketers use:
Sales analysis
Market share analysis
Marketing expense-to-sales analysis
Financial analysis
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25. Box 22.5: Marketing Metrics
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Annual-Plan Control
Box 22.5: Marketing Metrics
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26. Fig. 22.6: The Control-Chart Model
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Annual-Plan Control
Marketing Expense-to-Sales Analysis
Fig. 22.6: The Control-Chart Model
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27. Fig. 22.7: Financial Model of Return on Net Worth
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Annual-Plan Control
Financial Analysis
Fig. 22.7: Financial Model of Return on Net Worth
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28. Profitability Control
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Profitability Control
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
From this analysis, the company can form further questions to determine corrective action.
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29. Profitability Control
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Profitability Control
Direct Versus Full Costing
When using profitability analysis, managers need to decide what types of costs to include, to give an accurate picture of performance:
Direct costs
Traceable common costs
Nontraceable common costs
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30. Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Efficiency Control
Some companies have a marketing controller role, to specialize in improving marketing efficiency.
Should track measures such as:
Logistics costs as a percentage of sales
Percentage of orders filled correctly
Percentage of on-time deliveries
Number of billing errors
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31. Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Strategic Control
Each company should periodically reassess its strategic approach to the marketplace with a good marketing audit.
The audit examines the company’s marketing environment, objectives, strategies and activities.
The marketing audit should be:
Comprehensive
Systematic
Independent
Periodic
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32. Box 22.8: The Marketing Excellence Review: Best Practices
Chapter Question 5:
What tools are available to help companies monitor and improve their marketing activities?
Strategic Control
Box 22.8: The Marketing Excellence Review: Best Practices
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33. The Future of Marketing
Future trends are likely to result in:
The demise of the marketing department and the rise of holistic marketing.
The demise of free-spending marketing and the rise of ROI marketing.
The demise of marketing intuition and the rise of marketing science.
The demise of manual marketing and the rise of automated marketing.
The demise of mass marketing and the rise of precision marketing.
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34. The Future of Marketing
Marketers need skills and competencies in areas such as:
Customer relationship management (CRM).
Partner relationship management (PRM).
Database marketing and datamining.
Contact center management and telemarketing.
Public relations marketing (including event and sponsorship marketing).
Brand-building and brand-asset management.
Experiential marketing.
Integrated marketing communications.
Profitability analysis by segment, customer, and channel.
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35. Credits Slide 1 Alamy Images: Antony Nettle
Slide 6 Rex Features: Richard Jones
Slide 14 Press Association Images: M. Spencer Green / AP