Chapter

23
Managing a Holistic
Marketing
Organization for the
Long Run

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Learning Objectives
1. What are important trends in marketing practices?
2. What are the keys to effective internal marketing?
3. How can companies be socially responsible marketers?
4. What tools are available to help companies monitor and
improve their marketing activities?
5. What do marketers need to do to succeed in the future?

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 Trends in
Marketing Practices
• Reengineering • Focusing
• Outsourcing • Justifying
• Benchmarking • Accelerating
• Supplier partnering • Empowering
• Customer partnering • Broadening
• Merging • Monitoring
• Globalizing • Uncovering
• Flattening

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 Internal Marketing
• Internal marketing requires that everyone in
the organization accept the concepts and goals
of marketing and engage in identifying,
providing, and communicating customer value

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 Organizing the Marketing
Department
• Functional organization
• Geographic organization
• Product- or brand-management
organization
• Market-management
Organization
• Matrix-management
Organization
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 MCQ
As a business practice, broadening involves ________.
• A) acquiring or merging with firms in the same or complementary industries to gain
economies of scale and scope
• B) factoring the interests of customers, employees, shareholders, and other stakeholders into
the activities of the enterprise
• C) buying more goods and services from outside domestic or foreign vendors
• D) appointing teams to manage customer-value-building processes and break down walls
between departments
• E) becoming more accountable by measuring, analyzing, and documenting the effects of
marketing actions

Q List and define some of the important shifts that have taken place in business and marketing
practices.

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Functional Organization

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HUB-AND-SPOKE SYSTEM

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 Brand/Product
Manager Tasks
 Develop long-range/competitive
strategy
 Prepare marketing plan/sales forecast
 Work with agencies
 Increase support among sales force
 Gather intelligence
 Initiate product improvements

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 Product-/Brand-Management
Organization
• Product-Management organization disadvantages
– Managers may lack authority to carry out
responsibilities
– Managers rarely achieve functional expertise
– The system often proves costly
– Managers normally manage brand for a short time
– Market fragmentation makes it harder to develop
national strategy
– Managers focus company away from customer
relationships

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 Product-/Brand-Management
Organization
• Product teams
– Brand-asset management
team (BAMT)
• Eliminate product manager
positions for minor products
• Category management

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Market-Management Organization
• Market-centered organizations
• Customer-management organization

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 A Creative
Marketing Organization
• Shift to customer-focus
• Appoint marketing
officer & task force
• Get outside help
• Change reward system
• Hire marketing talent
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• Develop in-house
marketing training
• Install marketing
planning system
• Establish annual
recognition program
• Shift to a process-
outcome focus
• Empower employees
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 QUESTION?
• Many companies are beginning to realize that they are not
really market and customer driven, they are product and sales
driven. In the attempt to transform themselves into true
market-driven companies, many firms must change. Describe
and explain what changes are necessary.

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Socially Responsible Marketing

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Corporate Social Responsibility

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 Corporate Social Responsibility
• Legal behavior
• Ethical behavior
• Social responsibility behavior
& socially responsible
business models
• Sustainability & greenwashing

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 Cause-Related Marketing
• Links the firm’s contributions toward a designated
cause to customers’ engaging directly or indirectly in
revenue-producing transactions with the firm
– Is part of corporate societal marketing (CSM)

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 QUESTION?
Q Cadbury's "Sports for Schools" promotion offered sports and fitness equipment for schools in
exchange for vouchers. The problem was that the public and media saw a perverse incentive
for children to eat more chocolate, a product associated with obesity. Which of the following
best summarizes Cadbury's problem?
• A) Customers felt that the cause was not in sync with the company's brand image.
• B) Consumers did not value the cause Cadbury was promoting.
• C) Customers questioned the link between the product and the cause and saw the firm as self-
serving and exploitive.
• D) Consumers resented being sold an inferior product on the back of a cause-marketing
program.
• E) Consumers felt that the campaign did not make a sufficient attempt to change the target
audience's behavior.

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 Cause-Related Marketing

Builds brand Enhances

awareness brand image

Establishes
Elicits brand brand
engagement credibility

Creates brand Evokes brand

community feelings

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 Cause-Related Marketing
• Align focus area with • Develop cross-functional
your mission strategy team
• Evaluate institutional • Leverage your assets with
“will” and resources partner(s)
• Analyze competitors’ • Communicate through
cause positioning every channel
• Choose partners • Go local
carefully • Innovate
• Don’t underestimate
program name
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 Social Marketing
• Social marketing by nonprofits or government
organizations furthers a cause

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Social Marketing

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 Social Marketing

 Choose target markets ready to respond

 Promote doable behavior in simple terms
 Explain the benefits in compelling terms
 Make it easy to adopt the behavior
 Develop attention-grabbing messages
 Use education-entertainment approach

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Marketing Implementation/Control

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 Marketing Implementation/Control
• Marketing implementation
– The process that turns
marketing plans into action
assignments and ensures
they accomplish the plan’s
stated objectives
– Marketing resource
management (MRM) software

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 Marketing Implementation/Control
• Marketing control
– The process by which firms assess the effects
of their marketing activities and programs and
make necessary changes and adjustments

Annual Plan Control Efficiency Control

Profitability Control Strategic Control

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 Annual plan control
• Marketing metrics
– Sales metrics
– Customer readiness to buy
metrics
– Customer metrics
– Distribution metrics
– Communication metrics

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 Strategic Control
• 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

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 Strategic Control
• Marketing audit’s characteristics

Comprehensive

Systematic

Independent

Periodic
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Marketing Audit Components

Marketing Marketing
environment strategy

Marketing Marketing
function organization

Marketing Marketing
productivity systems

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 MCQ
Q IBM lets frontline employees spend up to $5,000 to solve a customer problem on
the spot, which is an example of which of the following steps that a marketing CEO
can take to create a market- and customer-focused company?
• A) Empower the employees.
• B) Hire strong marketing talent.
• C) Get outside help and guidance.
• D) Install a modern marketing planning system.
• E) Develop strong in-house marketing training programs.

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The Marketing Excellence Review

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 The Future of Marketing
• The coming years will see:
– The demise of the marketing department and the 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 both
automated and creative marketing
– The demise of mass marketing and the rise of
precision marketing

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 Holistic Marketing
• CRM • PR marketing
• PRM • Brand-building & brand-
• Database marketing & asset management
data mining • Experiential marketing
• Contact center • Integrated marketing
management & communications
telemarketing • Profitability analysis
• Digital marketing &
social media

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