22

Managing a Holistic
Marketing Organization

Marketing Management, 13th ed

 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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 Stonyfield Farms Embraced
Corporate Enlightenment

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 Trends in Marketing Practices

Reengineering Globalizing
Outsourcing Flattening
Benchmarking Focusing
Supplier partnering Accelerating
Customer partnering Empowering
Merging

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

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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
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 Figure 22.2 The Product
Managers Interactions

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 Figure 22.3 Vertical Product Team

PM = Product Manager
APM = Associate PM
PA = Product Assistant

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 Figure 22.3 Triangular Product Team

PM = Product Manager
R = Market Researcher
C = Communication Specialist

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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

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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

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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 companys reward measurement
and system
Hire strong marketing talent

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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

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 Corporate Social Responsibility

Socially
responsible
behavior

Ethical behavior

Legal behavior

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 Top-Rated Companies for
Social Responsibility
Microsoft Sony
Johnson & Johnson Toyota
3M Procter & Gamble
Google Amazon.com
Coca-Cola Whole Foods
General Mills Walt Disney
UPS Honda Motor
Fed Ex

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 Life is Good
Promotes Sustainability

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 Levis Eco Jeans Promotes
Sustainability

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 What is Cause-Related Marketing?

Cause-related marketing is marketing

that links the firms contributions to a
designated cause to customers
engaging directly or indirectly in
revenue-producing transactions with
the firm.

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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

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 Possible Objectives for
Social Marketing Campaigns

Cognitive Action

Behavioral Value

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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
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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?

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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?

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 Types of Marketing Control

Annual plan control

Profitability control

Efficiency control

Strategic control

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 Approaches to Annual Plan Control

Sales analysis
Market share analysis
Sales-to-expense ratios
Financial analysis
Market-based scorecard analysis

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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

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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

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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

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 What is a Marketing Audit?

A marketing audit is a comprehensive,

systematic, independent, periodic
examination of a companys or business
units marketing environment, objectives,
strategies, and activities with a view to
determining problem areas and
opportunities, and recommending a plan of
action to improve the companys marketing
performance.

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 Characteristics of
Marketing Audits

Comprehensive

Systematic

Independent

Periodic

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 Marketing Debate
Is marketing management an art or a
science?

Take a position:
1. 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 22-40
 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 companys environmental
policies or programs?
Why or why not?

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-41