Managing a Holistic Marketing Organization for the Long Run 22 Managing a Holistic Marketing Organization for the Long Run 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

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 22-3

Figure 22.1 Functional Organization Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-4

Figure 22.2 The Product Manager’s Interactions Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-5

Figure 22.3 Vertical Product Team PM = Product Manager APM = Associate PM PA = Product Assistant Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-6

Figure 22.3 Triangular Product Team PM = Product Manager R = Market Researcher C = Communication Specialist Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-7

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 22-8

Figure 22.4 Product/Marketing-Management Matrix System Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-9

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 22-10

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 22-11

Types of Marketing Control Annual plan control Profitability control Efficiency control Strategic control Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-12

Figure 22.6 The Control-Chart Model Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-13

Figure 22.7 Financial Model of Return on Net Worth Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-14

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 22-15

Table 22.9 Mapping Natural Expenses into Functional Expenses Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-16

Table 22.10 Bases for Allocating Functional Expenses to Channels Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-17

Table 22.11 Profit-and-Loss Statements for Channels Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-18

Types of Costs Direct costs Traceable common costs Nontraceable common costs Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-19

Characteristics of Marketing Audits Comprehensive Systematic Independent Periodic Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 22-20