1. Managing a Holistic Marketing Organization22
Managing a Holistic Marketing Organization
Marketing Management, 13th ed

2. 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

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

4. 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

5. 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

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

7. 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

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

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

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

11. 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

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

13. 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

14. 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

15. 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 process-outcome focus
Empower the employees
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

16. Corporate Social Responsibility
Socially responsible behavior
Video links to an Honest Tea segment on social responsibility.
Ethical behavior
Legal behavior
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

17. 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

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

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

20. 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

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

22. 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

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

24. 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

25. 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

26. 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

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

28. 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

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

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

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

32. 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

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

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

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

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

37. 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

38. 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

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

40. Marketing Debate Is marketing management an art or a science?
Take a position:
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

41. 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