21 Managing A Holistic Marketing Organization For The Long Run

21
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
Internal Marketing
 R&D  Logistics
 Purchasing  Accounting
 Manufacturing  Finance
 Marketing  Public Relations
 Sales  Other Customer-
Contact Personnel
Organizing the
Marketing Department
 Functional Organization
 Geographic Organization
 Product- or Brand-Management Organization
 Market-Management Organization
 Matrix-Management Organization
Figure 21.1 Functional
Organization
Figure 21.2 The Product-
Management Organization
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
Figure 21.3 Types of
Product Teams
Market-Management Organization
 Market managers supervise several market-

development managers, market specialists,
or industry specialists
 Market managers are staff people with duties
like those of product managers. They develop
long-range and annual plans for their
markets.
 Companies organized this way are called
market-centered organizations.
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
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
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
Corporate Social Responsibility
 Socially responsible behavior

 Ethical behavior
 Legal behavior
Cause-Related Marketing
Cause-Marketing Benefits
 Build brand awareness

 Enhance brand image
 Establish brand credibility
 Evoke brand feelings
 Create a sense of brand
community
 Elicit brand engagement
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
Social Marketing Campaigns
Cognitive
Action
Behavioral
Value
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
Social Marketing Planning Process
 Where are we?

 Where do we want to
go?
 How will we get there?
 How will we stay on
course?
Figure 21.4 The Control Process
Types of Marketing Control
Annual Plan Control
Profitability Control
Efficiency Control
Strategic Control
Approaches to Annual Plan Control
 Sales analysis
 Market share analysis
 Sales-to-expense ratios
 Financial analysis
 Market-based scorecard analysis
Approaches to
Profitability Control
 Product  Segment
 Territory  Trade channel
 Customer  Order size
Efficiency Control Approaches
 Sales force
 Advertising
 Sales promotion
 Distribution
Strategic Control Approaches
 Marketing effectiveness rating instrument

 Marketing audit
 Marketing excellence review
 Company ethical and social responsibility
review
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.
Characteristics of
Marketing Audits
Comprehensive
Systematic
Independent
Periodic
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?

21 Managing A Holistic Marketing Organization For The Long Run

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 Market managers supervise several market-

 Socially responsible behavior

 Build brand awareness

 Where are we?

Annual Plan Control

 Marketing effectiveness rating instrument

A marketing audit is a comprehensive,

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