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Managing a Holistic
Marketing Organization
for the
Long Run
Chapter Questions
What are the 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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-2
the United States edition of Marketing Management, 14e.
Trends in Marketing Practices
Reengineering Globalizing
Outsourcing Flattening
Benchmarking Focusing
Supplier partnering Accelerating
Customer partnering Empowering
Merging
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-3
the United States edition of Marketing Management, 14e.
Internal Marketing
R&D Logistics
Purchasing Accounting
Manufacturing Finance
Marketing Public Relations
Sales Other Customer-
Contact Personnel
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-4
the United States edition of Marketing Management, 14e.
Organizing the
Marketing Department
Functional Organization
Geographic Organization
Product- or Brand-Management Organization
Market-Management Organization
Matrix-Management Organization
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-5
the United States edition of Marketing Management, 14e.
Figure 21.1 Functional
Organization
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-6
the United States edition of Marketing Management, 14e.
Figure 21.2 The Product-
Management Organization
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-7
the United States edition of Marketing Management, 14e.
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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-8
the United States edition of Marketing Management, 14e.
Figure 21.3 Types of
Product Teams
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-9
the United States edition of Marketing Management, 14e.
Market-Management Organization
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-10
the United States edition of Marketing Management, 14e.
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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-11
the United States edition of Marketing Management, 14e.
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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-12
the United States edition of Marketing Management, 14e.
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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-13
the United States edition of Marketing Management, 14e.
Corporate Social Responsibility
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-14
the United States edition of Marketing Management, 14e.
Cause-Related Marketing
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-15
the United States edition of Marketing Management, 14e.
Cause-Marketing Benefits
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-16
the United States edition of Marketing Management, 14e.
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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-17
the United States edition of Marketing Management, 14e.
Social Marketing Campaigns
Cognitive
Action
Behavioral
Value
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-18
the United States edition of Marketing Management, 14e.
Key Success Factors for
Social Marketing Programs
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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-19
the United States edition of Marketing Management, 14e.
Social Marketing Planning Process
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-20
the United States edition of Marketing Management, 14e.
Figure 21.4 The Control Process
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-21
the United States edition of Marketing Management, 14e.
Types of Marketing Control
Profitability Control
Efficiency Control
Strategic Control
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-22
the United States edition of Marketing Management, 14e.
Approaches to Annual Plan Control
Sales analysis
Market share analysis
Sales-to-expense ratios
Financial analysis
Market-based scorecard analysis
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-23
the United States edition of Marketing Management, 14e.
Approaches to
Profitability Control
Product Segment
Territory Trade channel
Customer Order size
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-24
the United States edition of Marketing Management, 14e.
Efficiency Control Approaches
Sales force
Advertising
Sales promotion
Distribution
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-25
the United States edition of Marketing Management, 14e.
Strategic Control Approaches
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-26
the United States edition of Marketing Management, 14e.
What is a Marketing Audit?
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-27
the United States edition of Marketing Management, 14e.
Characteristics of
Marketing Audits
Comprehensive
Systematic
Independent
Periodic
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-28
the United States edition of Marketing Management, 14e.
For Review
What are the 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 © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 21-29
the United States edition of Marketing Management, 14e.