22

Managing a Holistic
Marketing Organization
for the Long Run

Marketing Management
A South Asian Perspective, 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?

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 GCMMF practices holistic
marketing while empowering
people

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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
• Functional Organization
• Geographic Organization
• Product- or Brand-Management Organization
• Market-Management Organization
• Matrix-Management Organization

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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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 Figure 22.4 Product/Marketing-
Management Matrix System

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 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

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 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

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 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

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 Corporate Social Responsibility

Socially
responsible
behavior

Ethical behavior

Legal behavior

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 Top-Rated Companies for
Social Responsibility
• Microsoft • Sony
• Johnson & Johnson • Toyota
• 3M • Procter & Gamble
• Google • Amazon.com
• Coca-Cola • Whole Foods
• General Mills • Walt Disney
• UPS • Honda Motor
• Fed Ex

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 Levi’s Eco Jeans Promotes
Sustainability

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 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.

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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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 Possible Objectives for
Social Marketing Campaigns

Cognitive Action

Behavioral Value

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 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
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 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?

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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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 Approaches to Annual Plan Control

• Sales analysis
• Market share analysis
• Sales-to-expense ratios
• Financial analysis
• Market-based scorecard analysis

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 Figure 22.6 The Control-Chart Model

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 Figure 22.7 Financial Model of
Return on Net Worth

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 Table 22.8 Simplified
Profit-and-Loss Statement

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 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

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 Table 22.9 Mapping Natural Expenses
into Functional Expenses

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 Table 22.10 Bases for Allocating
Functional Expenses to Channels

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 Table 22.11 Profit-and-Loss
Statements for Channels

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 Types of Costs

Direct costs

Traceable common costs

Nontraceable common costs

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 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

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 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.

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 Characteristics of
Marketing Audits

Comprehensive

Systematic

Independent

Periodic

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 Marketing Debate
 Is marketing management an art or a
science?

Take a position:
1. 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.
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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’s environmental
policies or programs?
 Why or why not?

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