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Managing a Holistic
Marketing Organization

Marketing Management, 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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Stonyfield Farms Embraced

Corporate Enlightenment

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Trends in Marketing Practices

Reengineering
Outsourcing
Benchmarking
Supplier partnering
Customer partnering
Merging

Globalizing
Flattening
Focusing
Accelerating
Empowering

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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

Managers 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/MarketingManagement 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 companys 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 processoutcome 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
Johnson & Johnson
3M
Google
Coca-Cola
General Mills
UPS

Sony
Toyota
Procter & Gamble
Amazon.com
Whole Foods
Walt Disney
Honda Motor
Fed Ex

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Life is Good
Promotes Sustainability

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Levis Eco Jeans Promotes

Sustainability

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What is Cause-Related Marketing?

Cause-related marketing is marketing
that links the firms 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 companys or business
units marketing environment, objectives,
strategies, and activities with a view to
determining problem areas and
opportunities, and recommending a plan of
action to improve the companys 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 companys environmental
policies or programs?
Why or why not?

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