Ch22 Managing A Holistic Marketing Organization

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Marketing Management

Notes on Chapter 22 | MANAGING A HOLISTIC MARKETING ORGANIZATION [Kotler/Keller]


Table 22.1 Important Shifts in Marketing and Business Practices
Reengineering - Appointing teams to manage customer-value-building processes
and break down walls between departments
Outsourcing - Buying more goods and services from outside domestic or foreign
vendors
Benchmarking - Studying best practice companies to improve performance
Supplier partnering - Partnering with fewer but better value-adding suppliers
Customer partnering - Working more closely with customers to add value to their
operations
Merging - Acquiring or merging with firms in the same or complementary industries to
gain economies of scale and scope
Globalizing - Increasing efforts to think global and act local
Flattening - Reducing the number of organizational levels to get closer to the
customer
Focusing - Determining the most profitable businesses and customers and focusing
on them
Justifying - Becoming more accountable by measuring, analyzing, and documenting
the effects of marketing actions
Accelerating - Designing the organization and setting up processes to respond more
quickly to changes in the environment
Empowering - Encouraging and empowering personnel to produce more ideas and
take more initiative
Broadening - Factoring the interests of customers, employees, shareholders, and
other stakeholders into the activities of the enterprise
Monitoring - Tracking what is said online and elsewhere and studying customers,
competitors, and others to improve business practices

INTERNAL MARKETING - It requires that everyone in the organization accept the


concepts and goals of marketing and engage in choosing, providing, and
communicating customer value.

Organizing the Marketing Department

Functionally Marketing VP with five specialists; advantage is administrative


simplicity.

Functional Organization Figure 22.1

Geographically Company selling in national market organizes its sales force


along geographic lines.
By product Established in companies producing a variety of products
By brand Established in companies producing a variety of brands.
By market Desirable when customers fall into different user groups with
distinct buying preferences and practices.
Matrix Adopted by companies that are producing many products for many
markets
By corporate/division

Tasks Performed by Brand Managers


1. Develop long-range and competitive strategy for each product.
2. Prepare annual marketing plan and sales forecast.
3. Work with advertising and merchandising agencies to develop campaigns.
4. Increase support of the product among channel members.
5. Gather continuous intelligence on product performance, customer attitudes.
6. Initiate product improvements.
Roles of Marketing at a Corporate Level

To promote a culture of customer orientation

To be an advocate for the customer

To assess market attractiveness

To develop firms overall value proposition, the vision, and articulation of how it
proposes to deliver superior value to customers
Corporate Social Responsibility

Legal behavior awareness and observation on relevant laws

Ethical behavior adopt and disseminate written code of ethics, build


tradition for ethical behavior and observe ethical guidelines

Socially responsible behavior exercise social conscience in dealing with


customers and stakeholders

CAUSE-RELATED MARKETING - Marketing that links the firms contributions to


a designated cause to customers engaging directly or indirectly in revenueproducing transactions with the firm.

CORPORATE SOCIAL MARKETING - Marketing efforts that have at least one


noneconomic objective related to the social welfare and uses the resources of
the company and/or its partners.

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

Social Marketing Campaigns


Cognitive: Ex. Nutritional value of
foods, Importance of
conservation

Action: Ex. Motivate people


to vote yes to an issue, inspire to
donate blood

Behavioral: Ex. Demotivate


cigarette smoking or use of
hard drugs

Value: Ex. Alter ideas about


abortion

Table 22.6
The Social Marketing Planning
Process
Where Are We?
Determine program focus.
Identify campaign purpose.
Conduct an analysis of strengths, weaknesses, opportunities, and threats (SWOT).
Review past and similar efforts.
Where Do We Want to Go?
Select target audiences.
Set objectives and goals.
Analyze target audiences and the competition.
How Will We Get There?
Product: Design the market offering.
Price: Manage costs of behavior change.
Distribution: Make the product available.
Communications: Create messages and choose media.
How Will We Stay on Course?
Develop a plan for evaluation and monitoring.
Establish budgets and find funding sources.
Complete an implementation plan.
Necessary Skills for Implementing Marketing Programs
Diagnostic skills
Identification of company level
Implementation skills
Evaluation skills

Types of Marketing Control


1. Annual plan control To examine whether the planned results are being
achieved
2. Profitability control To examine where the company is making and losing
money
3. Efficiency control To evaluate and improve the spending efficiency and
impact of marketing expenditures
4. Strategic control To examine whether the company is pursuing its best
opportunities with respect to markets, products, and channels

MARKETING AUDIT - 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.

Characteristics of Marketing Audit

Comprehensive It considers all factors affecting marketing performance, not


just obvious trouble spots.

Systematic It follows a logical, predetermined frameworkan orderly


sequence of diagnostic steps.

Independent To ensure objectivity, outside consultants may prepare the


marketing audit

Periodic Many organizations schedule regular marketing audits because


marketing operates in a dynamic environment.

Figure 22.4 The Control Process

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