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Managing a Holistic Marketing Organization
22 Managing a Holistic Marketing Organization Marketing Management, 13th ed
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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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Stonyfield Farms Embraced Corporate Enlightenment
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Trends in Marketing Practices
Reengineering Outsourcing Benchmarking Supplier partnering Customer partnering Merging Globalizing Flattening Focusing Accelerating Empowering Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Organizing the Marketing Department
Functional Organization Geographic Organization Product- or Brand-Management Organization Market-Management Organization Matrix-Management Organization Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 22.1 Functional Organization
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 22.2 The Product Manager’s Interactions
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Figure 22.3 Vertical Product Team
PM = Product Manager APM = Associate PM PA = Product Assistant Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 22.3 Triangular Product Team
PM = Product Manager R = Market Researcher C = Communication Specialist Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 22.4 Product/Marketing-Management Matrix System
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Corporate Social Responsibility
Socially responsible behavior Video links to an Honest Tea segment on social responsibility. Ethical behavior Legal behavior Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Life is Good Promotes Sustainability
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Levi’s Eco Jeans Promotes Sustainability
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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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Cause-Related Marketing
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Possible Objectives for Social Marketing Campaigns
Cognitive Action Behavioral Value Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Table 22.4 Social Marketing Planning Process
Where are we? Where do we want to go? How will we get there? How will we stay on course? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Types of Marketing Control
Annual plan control Profitability control Efficiency control Strategic control Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Approaches to Annual Plan Control
Sales analysis Market share analysis Sales-to-expense ratios Financial analysis Market-based scorecard analysis Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Figure 22.6 The Control-Chart Model
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Figure 22.7 Financial Model of Return on Net Worth
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Table 22.8 Simplified Profit-and-Loss Statement
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Table 22.9 Mapping Natural Expenses into Functional Expenses
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Table 22.10 Bases for Allocating Functional Expenses to Channels
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Table 22.11 Profit-and-Loss Statements for Channels
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Types of Costs Direct costs Traceable common costs
Nontraceable common costs Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Characteristics of Marketing Audits
Comprehensive Systematic Independent Periodic Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Marketing Debate Is marketing management an art or a science?
Take a position: Marketing management is largely an artistic exercise and therefore highly subjective. or 2. Marketing management is largely a scientific exercise with well-established guidelines and criteria. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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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’s environmental policies or programs? Why or why not? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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