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MARKETING MANAGEMENT 12th edition 22 Managing a Holistic Marketing Organization Kotler Keller 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 implementation skills? • What tools are available to help companies monitor and improve their marketing activities? 22-2 Trends in Marketing Practices • • • • • • Reengineering Outsourcing Benchmarking Supplier partnering Customer partnering Merging • • • • • Globalizing Flattening Focusing Accelerating Empowering 22-3 Organizing the Marketing Department • • • • • • • Functionally Geographically By product By brand By market Matrix By corporate/division 22-4 Figure 22.1 Functional Organization 22-5 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 22-6 Figure 22.2 The Product Manager’s Interactions 22-7 Figure 22.3 Vertical Product Team • PM = Product Manager • APM = Associate PM • PA = Product Assistant 22-8 Figure 22.3 Triangular Product Team • PM = Product Manager • R = Market Researcher • C = Communication Specialist 22-9 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 22-10 Dow Corning uses a horizontal product team 22-11 Figure 22.4 Product/MarketingManagement Matrix System 22-12 Role of Marketing at the Corporate Level • To promote a culture of customer orientation • To be an advocate for the customer • To assess market attractiveness • To develop firm’s overall value proposition, the vision, and articulation of how it proposes to deliver superior value to customers 22-13 Corporate Social Responsibility Socially responsible Behavior Ethical behavior Legal behavior 22-14 Top-Rated Companies for Social Responsibility • • • • • • • Johnson & Johnson Coca-Cola Wal-Mart Anheuser-Busch Hewlett-Packard Walt Disney Microsoft • • • • • • • IBM McDonald’s 3M UPS FedEx Target Home Depot 22-15 Fetzer emphasizes a commitment to social responsibility 22-16 Cause-Related Marketing Marketing that links the firm’s contributions to a designated cause to customers engaging directly or indirectly in revenue-producing transactions with the firm. 22-17 Corporate Social Marketing Marketing efforts that have at least one non-economic objective related to the social welfare and uses the resources of the company and/or its partners. 22-18 Cause-Related Marketing 22-19 Cause-Related Marketing 22-20 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 22-21 Co-Branded Cause 22-22 Social Marketing Campaigns Cognitive Action Behavioral Value 22-23 Social Marketing Planning Process Where are we? Where do we want to go? How will we get there? How will we stay on course? 22-24 Necessary Skills for Implementing Marketing Programs • Diagnostic skills • Identification of company level • Implementation skills • Evaluation skills 22-25 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? 22-26 Types of Marketing Control Annual plan control Profitability control Efficiency control Strategic control 22-27 Marketing Audit 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. 22-28 Characteristics of Marketing Audits (See Table 22.5) • • • • Comprehensive Systematic Independent Periodic 22-29 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. 2. Marketing management is largely a scientific exercise with well-established guidelines and criteria. 22-30 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’ environmental policies or programs? Why or why not? 22-31