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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 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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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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