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Objectives

Company Organization Trends The Marketing & Sales Organization The Marketing Departments Relation to Other Departments Building a Customer-Focused Culture Improving Marketing Implementation The Marketing Audit

2000 Prentice Hall

(a) Stage 1: Simple Sales Department


President

Sales VP

Sales force
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Other marketing functions (hired from outside)

(a) Stage 2: Sales Department w/ Ancillary Marketing Functions


President Sales VP

Sales force

Marketing Director Other marketing functions (internal staff and external support)

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(a) Stage 3: Separate Marketing Department


President

Sales VP

Sales VP

Sales force
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Other marketing functions

(a) Stage 4 and 5: Modern/Effective Marketing Company


President
Executive VP of Marketing & Sales

Sales VP Sales force


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Sales VP

Other marketing functions

(a) Stage 6: Process & Outcome Based Company


Cross-disciplinary team with process leader

Marketing department Marketing personnel


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Organizing the Marketing Department


Functional Organization Geographic Organization Product- or Brand-Management Organization

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Manufacturing and distribution R&D

Advertising agency

Media

Promotion services
Product Managers Interactions

Legal

Packaging
Purchasing Publicity

Fiscal Market research


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Sales force

Three Types of Product Teams


(a) Vertical product team PM APM PA R

(b) Triangular product team

(c) Horizontal product team PM

PM C

R C S D F E

PM = product manager APM = associate product manager PA = product assistant R = market researcher C = communication specialist

S = sales manager D = distribution specialist F = finance/accounting specialist E = engineer

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Product/Market-Management Matrix Systems


Market Managers
Mens wear Womens Home wear furnishings Industrial markets

Product Managers

Rayon Acetate Nylon Orlon Dacron

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The Control Process


Goal setting What do we want to achieve?
Performance measurement Performance diagnosis

Corrective action What should we do about it?

What is happening?

Why is it happening?

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The Control-Chart Model


Advertising expense/Sales ratio 14 12 10 8 6 | | | | | | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Upper control limit Desired level Lower control limit

Time period

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Efficiency Control
Sales Force Efficiency Advertising Efficiency Sales Promotion Efficiency Distribution Efficiency

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The Marketing Audit


I. Marketing Environment Audit II. Marketing Strategy Audit III. Marketing Organization Audit IV. Marketing Systems Audit V. Marketing Productivity Audit VI. Marketing Function Audit
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Review
Company Organization Trends The Marketing & Sales Organization The Marketing Departments Relation to Other Departments Building a Customer-Focused Culture Improving Marketing Implementation The Marketing Audit

2000 Prentice Hall