Chapter 22 Managing the Total Marketing Effort Marketing Management

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Presentation transcript:

Chapter 22 Managing the Total Marketing Effort Marketing Management Tenth Edition Philip Kotler

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

(a) Stage 1: Simple Sales Department President Sales VP Sales force 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)

(a) Stage 3: Separate Marketing Department President Sales VP Sales force Other marketing functions

(a) Stage 4 and 5: Modern/Effective Marketing Company President Executive VP of Marketing & Sales Sales VP Sales VP Sales force Other marketing functions

(a) Stage 6: Process & Outcome Based Company Cross-disciplinary team with process leader Marketing personnel Marketing department

Organizing the Marketing Department Functional Organization Geographic Organization Product- or Brand-Management Organization

Advertising agency Manufacturing and distribution Media Promotion services R & D Product Manager’s Interactions Legal Packaging Purchasing Fiscal Publicity Market research Sales force

Three Types of Product Teams (b) Triangular product team PM R C R = market researcher C = communication specialist (c) Horizontal product team PM R C S D F E S = sales manager D = distribution specialist F = finance/accounting specialist E = engineer (a) Vertical product team PM APM PA PM = product manager APM = associate product manager PA = product assistant

Product/Market-Management Matrix Systems Market Managers Men’s wear Women’s Industrial markets Home furnishings Orlon Rayon Product Managers Acetate Nylon Dacron

The Control Process What do we want to achieve? Goal setting What is happening? Performance measurement What should we do about it? Corrective action Why is it happening? Performance diagnosis

The Control-Chart Model Upper control limit Desired level Lower control 14 12 10 8 6 Advertising expense/Sales ratio | | | | | | | | | | | | | | | 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Time period

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

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

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