Managing the total

Marketing effort

Chapter 6
The goal of this chapter is to
examine how firms organize,
implement, evaluate, and control
marketing activities.
 Organizing the Marketing
Department

 If a company can have an excellent marketing

department, and even then fails in marketing, why?
 It depends how other departments of the company
views customers. If they are pointing to the marketing
department and say “ they do the marketing”. Its mean
the company has not implemented effective marketing.
 Effecting marketing can only be possible when all
employees realize their job is to create, serve, and satisfy
customer.
Organizing the Marketing
Department

Modern marketing departments can be

organized in a number of different ways:
Functional Organization
Geographic Organization
Product or Brand management
Organization
Market Management Organization.
Organizing the Marketing
Department

 Functional Organization: The most common form of

marketing organization consists of functional specialist
reporting to a marketing vice president, who coordinates
their activities.

 You must have the appropriate organization to effectively

execute the four Ps of the marketing mix. When a company
is small, multiple functions are often assigned to one person
(i.e., PR and Advertising, etc.). Later, as the company
grows there becomes too much work for one person and
the company must attain a team of specialist to manage
the greater efficiency. At this point the organization must
either train existing staff or hire externally.
 Functional Organization

Marketing Vice
President

Marketing Advertising and Marketing

New-Products
Administration sales promotion Sales manager Research
Manager
Manager manager Manager
 Functional Organization

 Marketing Administration Managers:

 Updates the status of sales orders and coordinates deliveries from the
point of production and distribution. Directs preparation of accounting
records. Recommends budgets to management. May confer (talk) with
customers and customer representatives to evaluate and promote
possibilities for improved and expanded marketing.

 Advertising and Sales Promotion Manager:

 Plan and prepare advertising and promotional material to increase
sales of products or services, working with customers, company officials,
sales departments and advertising agencies.
Inspect layouts (out come) and advertising copy and edit scripts, audio
and video tapes, and other promotional material.
Functional Organization

 Sales Manager: sales managers direct a company's sales

program. They assign sales territories, set goals, and
establish training programs for their sales representatives.
Sales managers may also advise their sales representatives
on ways to improve their sales performance, achieve goals
and obtain expected quotas (targets).

 Marketing Research Manager: Market researchers

collect and analyze information. They analyze consumer
opinions and collect data from a variety of sources to
enable organizations to make informed decisions.
 Functional Organization

 Selecting the most appropriate research methodology and

techniques
 Designing qualitative and quantitative research plans for products
in all stages of the Product Life Cycle
 Designing research questionnaires.
 Interpreting data, writing reports, and making actionable
recommendations

 Quantitative research focuses on gathering and analyzing

information using techniques such as questionnaires and electronic
data collection. Qualitative research focuses on people's attitudes
and motivation, using methods such as focus groups and in-depth
interviews.
Functional Organization

 New products Manager

 The Product Manager is responsible for the product
planning and execution throughout the product
lifecycle, including: gathering and prioritizing product
and customer requirements, defining the product vision,
and working closely with engineering, sales, and support
to ensure revenue and customer satisfaction goals are
met. The Product Manager's job also includes ensuring
that the product supports the company's overall strategy
and goals.
 Organizing the Marketing
Department

 Geographic Organization:
 A company selling in the national market often organize
its sales force on geographic lines. Such as the national
sales manager may supervise regional sales manager,
who each supervise a few zonal/branch managers,
supported by sales officers, sales supervisors and sales
persons.
 Geographic Organization:

National Sales
Manager
Kabul

Regional Sales
Manager Regional Sales
Manager
Nangrahar
Laghman

Zonal/Branch Zonal/Branch
Zonal/Branch Zonal/Branch
Manager
Manager Manager Manager
Mehterlam
Jalalabad Sumerkhel Charbagh
Baba
 Organizing the Marketing
Department

Product Management Organization:

 Companies producing a variety of products often
establish a product management organization. The
product-management organization does not replace
the functional management organization, but serves
as another layer of management.
 A product manager supervises product category
managers, who in turn supervise specific product
managers.
Organizing the Marketing
Department

 Market- Management Organization: Many companies

sell their product to many different markets.
 Canon sells its fax machines to consumers, business, and
government markets.
 When customers fall into different user groups with
distinct buying preferences and practices, a market
management organization is desirable.
 Customer-management Organization: Companies can
organize themselves to understand and deal with
individual customers rather than with mass-market.
 Marketing Implementation,
Evaluation and control

 Marketing implementation: is the process of turning plans into action

describing who does what, when, and how. Effective implementation
requires skills in allocating, monitoring, organizing, and interacting at
all levels of the marketing effort.
 A brilliant strategic marketing plan counts for little if not implemented
properly.
 Strategy addresses the what, and why of marketing activities,
implementation addresses the who, where, when and how.

 Evaluation and control: Markets have the altering behavior , its

means the needs and wants of target customers changes rapidly.
 After successfully implementation of companies marketing plans, it
must be evaluated and controlled.
Marketing Implementation,
Evaluation and control

The proper control procedures calls for

Annual plan control
Profitability control
Efficiency control
Strategic control
 Marketing Implementation,
Evaluation and control

Annual-Plan Control: Annual plan control ensures

the company achieves the sales analysis, market share
analysis, sales to expense ratios, financial analysis.

 Sales analysis: planned sale against the actual sale.

 For example, if you planned the first quarter sale and
that is 4000 units each price RS 1. but at the end of that
quarter the actual sale is like 3000 units sold / each
price 0.80 Rs
 The company should look closely at why it failed to
achieve expected sales volume.
 Marketing Implementation,
Evaluation and control

 Market share analysis: indicates how well a firm is

doing in the marketplace compared to its
competitors.
 Market share is the percentage or proportion of the
total available market or market segment that is
being serviced by a company.
 It can be expressed as a company's sales revenue
(from that market) divided by the total sales revenue
available in that market.
 It can also be expressed as a company's unit sales
volume (in a market) divided by the total volume of
units sold in that market.
Marketing Implementation,
Evaluation and control
 Marketing expense-to-sales analysis
 Annual plan control requires making sure the company isn’t
overspending to achieve goals. The key ratio to watch is
marketing expense-to-sales.

 Financial Analysis:
 It is performed by professionals who prepare reports using ratios
that make use of information taken from Financial statements
and other reports. These reports are usually presented to top
management as one of their bases in making business decisions.
Based on these reports, management may:
 Continue or discontinue its main operation or part of its business;
 Make or purchase certain materials in the manufacture of its
product;
 Acquire or rent/lease certain machineries and equipment in the
production of its goods;
 Marketing Implementation,
Evaluation and control
 For example: we have gross profit (GP)=10,000,
Net profit = 1000 Sales=100,000
 Gross profit margin=gross
profit/sales=10000/100000=0.10=10%
 Net Profit margin= net profit/sales=1000/100000=0.01=1%
 The company gross margin is 10 % and net profit margin is
only 1%, which shows that the remaining 9% are expenses
(salaries, advertising, packaging). In annual-plan control
the company can control the un necessary expenses in
order to increase the net profit margin.
 Marketing Implementation,
Evaluation and control

 Profitability control: Companies can benefit from

deeper financial analysis and should measure the
profitability of their product, territories, customer
groups, and segments.
 This information can help the management determine
whether to expand, reduce, or eliminate any product
or marketing activities.
 Efficiency Control: Suppose a profitability analysis
reveals the company is earning poor profits in certain
products, territories, or markets. The company will
search for efficient ways to manage the sales force,
advertising, sales promotion and distribution.
 Marketing Implementation,
Evaluation and control

 Strategic Control: Each company should periodically (regular time

intervals) reassess its strategic approach to the marketplace with a
good marketing audit.

 Marketing audit is a fundamental part of the marketing planning

process. It is conducted not only at the beginning of the process, but
also at a series of points during the implementation of the plan. The
marketing audit considers both internal and external influences on
marketing planning, as well as a review of the plan itself.

 There are a number of tools and audits that can be used, for
example SWOT analyses for the internal environment, as well as the
external environment. Other examples include PEST and Five Forces
Analyses, which focus solely on the external environment