Managing a Holistic Marketing

Organization for the Long Run

 Group 9

Dhara Nathwani
Prachiti Bhandari
Falak Trivedi
Ankita Poddar
Shweta Vetal
Vrushank Shah
Ankit Grover
Varun Khimani
 Characteristics of a good Marketing company:

1. Selection of proper target markets

2. Customer and market minded employees and
departments
3. Good relationship between marketing, R&D and
manufacturing
4. Good working relationship between marketing,
sales and customer service
5. Installed incentives to lead to the right behaviors.
6. Continuous building and tracking customer loyalty
and satisfaction.
7. A value delivery system in partnership with the
distributors.
8. Skill in building brand name and image.
9. Flexible in meeting customers’ varying
requirements.
 Marketing Implementation

The process that turns marketing plans into action

assignments and ensures they accomplish the plan’s
stated objections.
Counts for little if not implemented properly.
Strategy: What and Why of marketing activities.
Implementation: Who, Where, When and How.
Marketing costs consists of 20 to 40 % of a company’s
total operating budget.
Marketers need better templates for marketing
processes, better management of marketing assets, and
better allocation of marketing resources.
MRM software provides a set of Web-based
applications that automate and integrate such activities
as project management, campaign management, budget
management, asset management, brand management,
customer relationship management and knowledge
management.
 Types of Marketing Control

Annual Plan Control

Profitability Control
Efficiency Control
Strategic Control
 Approaches to Annual Plan Control

Annual Plan Control

 Sales Analysis
 Market Share Analysis
 Marketing expense-to-sales Analysis
 Financial Analysis
 Sales Analysis:

Measures and evaluates actual sales in relationship

to goals.
It has two specific tools:
 Sales-variance Analysis- measures the relative
contribution of different factors to a gap in sales
performance.
 Microsales Analysis- looks at specific products,
territories and so forth that failed to produce
expected sales.
 Market Share Analysis:

Company sales don’t reveal how well the company is

performing relative to competitors.
Overall market share- company’s sales as a % of total
market sales.
Served market share- a % of the total sales to the
market.
Relative market share- market share in relationship
to the largest competitor.
 Conclusions from market share analysis:

The assumption that outside forces affect all

companies in the same way is often not true.
The assumption that a company’s performance
should be judged against the average performance of
all companies is not always valid.
If a new firm enters the industry, every existing
firm’s market share might fall.
Sometimes a market share decline is deliberately
engineered to improve profits.
Market share can fluctuate for many minor reasons.
Overall market share= Customer
Penetration*Customer loyalty*Customer
selectivity*Price selectivity
 Marketing expense-to-sales Analysis

To ensure that the company is not overspending to

achieve sales goals.
Includes components like sales force to sales,
advertising to sales, sales promotion to sales,
marketing research to sales, sales administration to
sales etc.
Need to monitor period to period fluctuations in each
ratio on control charts.
Control charts explains whether the company has good
expense control or it has lost control over its expenses.
 Financial Analysis

To identify the factors that affect the company’s rate

of return on net worth.
These factors include profit margin, asset turnover
which is the product of return on assets and financial
leverage.
To improve its return on net worth, the company
must increase its ratio of net profits to assets or the
ratio of assets to net worth.
The company should also analyze the components of
its assets and make the needed improvements.
 Profitability Control

Marketing Profitability Analysis

Determining Corrective Action
Direct versus Full Costing
Marketing Profitability Analysis-
Step 1- Identifying functional Expenses
Step 2- Assigning Functional Expenses to Marketing
Entities
Step 3- Preparing a Profit & Loss statement for each
Marketing Entity
Determining Corrective Action
Direct versus Full Costing
 Strategic Control

The Marketing Audit- A comprehensive, systematic,

independent and 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.
 Characteristics of marketing audit:

Comprehensive
Systematic
Independent
Periodic
 Major Marketing Weaknesses

 Insufficient market focus and customer drive.

 Inadequate understanding of its target customers.
 Improperly defined and monitored competitors.
 No properly managed relationships with
stakeholders.
 No proper R&D, lack of innovative opportunities.
 Deficient marketing planning process.
 Loosened product and service policies.
 Weakened brand-building and communication skills.
 Improperly organized efficient and effective
marketing.
 No optimum use of technology.
 The Future of Marketing

The demise of the marketing department and rise of

holistic marketing
The demise of free-spending marketing and the rise
of ROI marketing
The demise of marketing intuition and the rise of
marketing science
The demise of manual marketing and the rise of
automated marketing
The demise of mass marketing and the rise of
precision marketing
 Skills required to accomplish the changes:

Customer Relationship Management

Partner Relationship Management
Database marketing and data mining
Contact center management and telemarketing
Public relations marketing
Brand building and brand-asset management
Experiential marketing
Integrated marketing communications
Profitability analysis by segment, customer and
channel
THANK YOU