MARKETING MANAGEMENT

12th edition

22
Managing a Holistic
Marketing Organization

Kotler Keller
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
implementation skills?
• What tools are available to help companies
monitor and improve their marketing activities?

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Trends in Marketing Practices

• Reengineering • Globalizing
• Outsourcing • Flattening
• Benchmarking • Focusing
• Supplier partnering • Accelerating
• Customer partnering • Empowering
• Merging

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Organizing the Marketing Department

• Functionally
• Geographically
• By product
• By brand
• By market
• Matrix
• By corporate/division

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Figure 22.1 Functional Organization

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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

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Figure 22.2 The Product Manager’s
Interactions

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Figure 22.3 Vertical Product Team

• PM = Product Manager
• APM = Associate PM
• PA = Product Assistant

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Figure 22.3 Triangular Product
Team

• PM = Product Manager
• R = Market Researcher
• C = Communication Specialist

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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

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Dow Corning uses a
horizontal product team

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Figure 22.4 Product/Marketing-
Management Matrix System

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Role of Marketing at the
Corporate Level
• To promote a culture of customer
orientation
• To be an advocate for the customer
• To assess market attractiveness
• To develop firm’s overall value proposition,
the vision, and articulation of how it
proposes to deliver superior value to
customers

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Corporate Social Responsibility

Socially
responsible
Behavior

Ethical behavior

Legal behavior

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Top-Rated Companies for
Social Responsibility

• Johnson & Johnson • IBM

• Coca-Cola • McDonald’s
• Wal-Mart • 3M
• Anheuser-Busch • UPS
• Hewlett-Packard • FedEx
• Walt Disney • Target
• Microsoft • Home Depot

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Fetzer
emphasizes a
commitment
to social
responsibility

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Cause-Related Marketing

Marketing that links the firm’s contributions

to a designated cause to customers
engaging directly or indirectly in
revenue-producing transactions
with the firm.

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Corporate Social Marketing

Marketing efforts that have at least

one non-economic objective related
to the social welfare and uses the
resources of the company
and/or its partners.

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Cause-Related Marketing

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Cause-Related Marketing

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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

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Co-Branded Cause

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Social Marketing Campaigns

Cognitive Action

Behavioral Value

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Social Marketing Planning Process

Where are we?

Where do we want to go?

How will we get there?

How will we stay on course?

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Necessary Skills for Implementing
Marketing Programs

• Diagnostic skills
• Identification of
company level
• Implementation
skills
• Evaluation skills

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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?

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Types of Marketing Control

Annual plan control

Profitability control
Efficiency control
Strategic control

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Marketing Audit

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.

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Characteristics of Marketing Audits
(See Table 22.5)
• Comprehensive
• Systematic
• Independent
• Periodic

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Marketing Debate

 Is marketing management an art

or a science?

Take a position:
5. Marketing management is largely an
artistic exercise and therefore highly
subjective.
2. Marketing management is largely a
scientific exercise with well-established
guidelines and criteria.
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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’ environmental policies
or programs? Why or why not?

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