Managing a Holistic Marketing Organization for the Long Run

Marketing Management, 13th ed22

Chapter QuestionsWhat 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 PracticesReengineeringOutsourcingBenchmarkingSupplier partneringCustomer partneringMerging

GlobalizingFlatteningFocusingAcceleratingEmpowering

Organizing the Marketing DepartmentFunctional OrganizationGeographic OrganizationProduct- or Brand-Management OrganizationMarket-Management OrganizationMatrix-Management Organization

Tasks Performed by Brand ManagersDevelop long-range and competitive strategy for each productPrepare annual marketing plan and sales forecastWork with advertising and merchandising agencies to develop campaignsIncrease support of the product among channel membersGather continuous intelligence on product performance, customer attitudesInitiate product improvements

Building a Creative Marketing OrganizationDeveloping a company-wide passion for customersOrganizing around customer segments instead of productsUnderstanding customers through qualitative and quantitative research

How Can CEOs Create a Marketing-Focused Company?Convince senior management of the need to become customer focusedAppoint a senior marketing officer and marketing task forceGet outside guidanceChange the companys reward measurement and systemHire strong marketing talent

How Can CEOs Create a Marketing-Focused Company?Develop strong in-house marketing training programsInstall a modern marketing planning systemEstablish an annual marketing excellence recognition programShift from a department focus to a process-outcome focusEmpower the employees

Corporate Social ResponsibilitySocially responsible behaviorEthical behaviorLegal behavior

Top-Rated Companies for Social ResponsibilityMicrosoftJohnson & Johnson3MGoogleCoca-ColaGeneral MillsUPS

SonyToyotaProcter & GambleAmazon.comWhole FoodsWalt DisneyHonda MotorFed Ex

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.

Branding a Cause Marketing ProgramSelf-branded: Create Own Cause ProgramCo-branded: Link to Existing Cause ProgramJointly branded: Link to Existing Cause Program

Possible Objectives for Social Marketing CampaignsCognitiveActionBehavioralValue

Key Success Factors for Social Marketing ProgramsStudy the literature and previous campaignsChose target markets that are ready to respondPromote a single, doable behavior in clear, simple termsExplain the benefits in compelling termsMake it easy to adopt the behaviorDevelop attention-grabbing messagesConsider an education-entertainment approach

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

The Control ProcessWhat do we want to achieve?What is happening?Why is it happening?What should we do about it?

Types of Marketing ControlAnnual plan controlProfitability controlEfficiency controlStrategic control

Approaches to Annual Plan ControlSales analysisMarket share analysisSales-to-expense ratiosFinancial analysisMarket-based scorecard analysis

Marketing Profitability AnalysisStep 1: Identify functional expensesStep 2: Assign functional expenses to marketing entitiesStep 3: Prepare a profit-and-loss statement for each marketing entity

Types of CostsDirect costsTraceable common costsNontraceable common costs

Measures Tracked for Efficiency ControlLogistics costs as a percentage of salesPercentage of orders filled correctlyPercentage of on-time deliveriesNumber of billing errors

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.

Characteristics of Marketing AuditsComprehensiveSystematicIndependentPeriodic