1. Managing a Holistic
Marketing Organization
Marketing Management, 13th ed
22

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-2
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?

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-3
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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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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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

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-8
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 process-
outcome 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

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-11
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.

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-12
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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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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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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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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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.

23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 22-23
Characteristics of
Marketing Audits
• Comprehensive
• Systematic
• Independent
• Periodic