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22
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
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Reengineering
Outsourcing
Benchmarking
Supplier partnering
Customer partnering
Merging
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Globalizing
Flattening
Focusing
Accelerating
Empowering
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Organizing the
Marketing Department
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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
Manager’s 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
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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 company’s 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
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Microsoft
Johnson & Johnson
3M
Google
Coca-Cola
General Mills
UPS
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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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Levi’s Eco Jeans Promotes
Sustainability
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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.
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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
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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 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.
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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 company’s environmental
policies or programs?
 Why or why not?
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