22 Managing a Holistic Marketing Organization Marketing Management,

22 Managing a Holistic Marketing Organization Marketing Management, 13th ed

Chapter Questions What 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? Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-2

Stonyfield Farms Embraced Corporate Enlightenment Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-3

Trends in Marketing Practices Reengineering Outsourcing Benchmarking Supplier partnering Customer partnering Merging Globalizing Flattening Focusing Accelerating Empowering Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-4

Organizing the Marketing Department Functional Organization Geographic Organization Product- or Brand-Management Organization Market-Management Organization Matrix-Management Organization Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-5

Figure 22.1 Functional Organization Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-6

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 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-7

Figure 22.2 The Product Manager’s Interactions Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-8

Figure 22.3 Vertical Product Team PM Product Manager APM Associate PM PA Product Assistant Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-9

Figure 22.3 Triangular Product Team PM Product Manager R Market Researcher C Communication Specialist Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-10

Figure 22.3 Horizontal Product Team PM Product Manager R Market Researcher C Communication Specialist S Sales Manager D Distribution Specialist F Finance Specialist E Engineer Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-11

Figure 22.4 Product/MarketingManagement Matrix System Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-12

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 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-13

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 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-14

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 processoutcome focus Empower the employees Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-15

Corporate Social Responsibility Socially responsible behavior Ethical behavior Legal behavior Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-16

Top-Rated Companies for Social Responsibility Microsoft Johnson & Johnson 3M Google Coca-Cola General Mills UPS Sony Toyota Procter & Gamble Amazon.com Whole Foods Walt Disney Honda Motor Fed Ex Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-17

Life is Good Promotes Sustainability Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-18

Levi’s Eco Jeans Promotes Sustainability Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-19

What is Cause-Related Marketing? Cause-related marketing is marketing that links the firm’s contributions to a designated cause to customers engaging directly or indirectly in revenue-producing transactions with the firm. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-20

Cause-Related Marketing Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-21

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 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-22

Possible Objectives for Social Marketing Campaigns Cognitive Action Behavioral Value Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-23

Key Success Factors for Social Marketing Programs Study the literature and previous campaigns 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 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-24

Table 22.4 Social Marketing Planning Process Where are we? Where do we want to go? How will we get there? How will we stay on course? Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-25

Figure 22.5 The Control Process What do we want to achieve? What is happening? Why is it happening? What should we do about it? Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-26

Types of Marketing Control Annual plan control Profitability control Efficiency control Strategic control Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-27

Approaches to Annual Plan Control Sales analysis Market share analysis Sales-to-expense ratios Financial analysis Market-based scorecard analysis Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-28

Figure 22.6 The Control-Chart Model Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-29

Figure 22.7 Financial Model of Return on Net Worth Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-30

Table 22.8 Simplified Profit-and-Loss Statement Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-31

Marketing Profitability Analysis Step 1: Identify functional expenses Step 2: Assign functional expenses to marketing entities Step 3: Prepare a profit-and-loss statement for each marketing entity Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-32

Table 22.9 Mapping Natural Expenses into Functional Expenses Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-33

Table 22.10 Bases for Allocating Functional Expenses to Channels Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-34

Table 22.11 Profit-and-Loss Statements for Channels Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-35

Types of Costs Direct costs Traceable common costs Nontraceable common costs Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-36

Measures Tracked for Efficiency Control Logistics costs as a percentage of sales Percentage of orders filled correctly Percentage of on-time deliveries Number of billing errors Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-37

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. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-38

Characteristics of Marketing Audits Comprehensive Systematic Independent Periodic Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-39

Marketing Debate Is marketing management an art or a science? Take a position: 1. Marketing management is largely an artistic exercise and therefore highly subjective. or 2. Marketing management is largely a scientific exercise with well-established guidelines and criteria. Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-40

Marketing Discussion How does cause or corporate social marketing affect your personal consumer behavior? Do you ever buy or not buy any products because of a company’s environmental policies or programs? Why or why not? Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-41