Chapter 22: Managing a Holistic Marketing Organization for the Long

Run

1. What are important trends in marketing practices?

• Reengineering: Break down walls between departments
• Outsourcing
• Benchmarking: Studying best company practices to improve performance
• Supplier partnering
• Customer partnering
• Merging
• Globalizing
• Flattening: Reducing number of organizational levels to get closer to customer
• Focusing: Focusing on most profitable divisions
• Accelerating: Setting up processes to respond more quickly to changing environment
• Empowering: Encouraging personnel to take more initiative

2. What are the keys to effective internal marketing?

Organizing the Marketing Department

• Functional Organization: Divisions according to function

• Geographic Organization
• Product- or Brand-Management Organization: Divisions according to product managed
• Market-Management Organization: According to market managed
• Matrix-Management Organization: Combination, when there are many products & markets

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
The Product Manager’s Interactions
 Vertical product team Triangular Horizontal

PM: Product Manager and below him various assistants

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

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
• 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
 3. How can companies be responsible social marketers?

Sociall
y
respon
sible
behavi
or
Sustainability, the importance of meeting humanity’s needs without harming future generations,
has risen to the top of many corporate agendas.

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.

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

Possible Objectives for Social Marketing Campaigns

Cognitive: Give information, Action: Inspire people to good action, Behavioral: Inspire people to give
up bad habits or attitudes, Value: Alter bad ideas and attitudes

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
Social Marketing Planning Process: Where are we, where do we want to go, how will we get there,
how will we stay on course

4. How can a company improve its marketing skills? What tools are
available to help companies monitor and improve their marketing
activities?
Marketing implementation is the process that turns marketing plans into action assignments and
ensures they accomplish the plan’s stated objectives.

The Control Process: What do we want to achieve?, What is happening?, Why is it happening?,
What should we do about it?

Types of Marketing Control

1. Annual plan control

Annual plan control ensures the company achieves the sales, profits and other goals established in
its annual plan. Approaches:

• Sales analysis
• Market share analysis
• Sales-to-expense ratios
• Financial analysis: Analyse sales to expense ratios in an overall financial framework
• Market-based scorecard analysis

2. Profitability control
 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
Types of Costs: direct, traceable, nontraceable

3. Efficiency control

 Logistics costs as a percentage of sales

 Percentage of orders filled correctly
 Percentage of on-time deliveries
 Number of billing errors

4. Strategic control

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.

Independent: Self audit, audit from across, audit from above, company auditing office, company task
force audit and outsider audit.