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Managing a Holistic Marketing Organization
for the Long Run
22
Marketing ManagementA South Asian Perspective, 13th ed
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-2
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 Dorling Kindersley (India) Pvt. Ltd. 22-3
GCMMF practices holistic marketing while empowering
people
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-4
Trends in Marketing Practices
• Reengineering• Outsourcing• Benchmarking• Supplier partnering• Customer partnering• Merging
• Globalizing• Flattening• Focusing• Accelerating• Empowering
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-5
Organizing the Marketing Department
• Functional Organization• Geographic Organization• Product- or Brand-Management Organization• Market-Management Organization• Matrix-Management Organization
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-6
Figure 22.1 Functional Organization
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-7
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 Dorling Kindersley (India) Pvt. Ltd. 22-8
Figure 22.2 The Product Manager’s Interactions
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-9
Figure 22.3 Vertical Product Team
• PM = Product Manager• APM = Associate PM• PA = Product Assistant
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-10
Figure 22.3 Triangular Product Team
• PM = Product Manager• R = Market Researcher• C = Communication Specialist
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-11
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 Dorling Kindersley (India) Pvt. Ltd. 22-12
Figure 22.4 Product/Marketing-Management Matrix System
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-13
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 Dorling Kindersley (India) Pvt. Ltd. 22-14
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 Dorling Kindersley (India) Pvt. Ltd. 22-15
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 Dorling Kindersley (India) Pvt. Ltd. 22-16
Corporate Social Responsibility
Legal behavior
Ethical behavior
Socially responsible
behavior
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-17
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 Dorling Kindersley (India) Pvt. Ltd. 22-18
Levi’s Eco Jeans Promotes Sustainability
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-19
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 Dorling Kindersley (India) Pvt. Ltd. 22-20
Cause-Related Marketing
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-21
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 Dorling Kindersley (India) Pvt. Ltd. 22-22
Possible Objectives for Social Marketing Campaigns
Cognitive
Value
Action
Behavioral
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-23
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 Dorling Kindersley (India) Pvt. Ltd. 22-24
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 Dorling Kindersley (India) Pvt. Ltd. 22-25
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 Dorling Kindersley (India) Pvt. Ltd. 22-26
Types of Marketing Control
Annual plan control
Profitability control
Efficiency control
Strategic control
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-27
Approaches to Annual Plan Control
• Sales analysis• Market share analysis• Sales-to-expense ratios• Financial analysis• Market-based scorecard analysis
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-28
Figure 22.6 The Control-Chart Model
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-29
Figure 22.7 Financial Model of Return on Net Worth
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-30
Table 22.8 Simplified Profit-and-Loss Statement
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-31
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 Dorling Kindersley (India) Pvt. Ltd. 22-32
Table 22.9 Mapping Natural Expenses into Functional Expenses
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-33
Table 22.10 Bases for Allocating Functional Expenses to Channels
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-34
Table 22.11 Profit-and-Loss Statements for Channels
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-35
Types of Costs
Direct costs
Traceable common costs
Nontraceable common costs
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-36
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 Dorling Kindersley (India) Pvt. Ltd. 22-37
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 Dorling Kindersley (India) Pvt. Ltd. 22-38
Characteristics of Marketing Audits
Comprehensive
Systematic
Independent
Periodic
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-39
Marketing Debate Is marketing management an art or ascience?
Take a position:1. Marketing management is largely anartistic exercise and therefore highly subjective.or2. Marketing management is largely ascientific exercise with well-establishedguidelines and criteria.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 22-40
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?