1. © 2001 Mohan Sawhney Kellogg School of Management Northwestern University The Future of Marketing and the Marketing Organization

2. The new marketing Session 1 Rethinking the marketing process Rethinking marketing activities Rethinking the marketing organization Rethinking the role of marketers

10. The evolving information power balance Customer information power Marketer information power High Low High Low 2 1 4 3 Information famine Personal marketing Information Democracy Relationship marketing Information Asymmetry Mass marketing Information Integration Collaborative marketing

13. Collaborative segmentation - GM’s AutoChoiceAdvisor tool

14. The functional view of marketing Segmentation, Targeting, Positioning Product Strategy Pricing Strategy Promotion Strategy Place Strategy Opportunity assessment Implementation, Monitoring, and Control

16. Traditional Marketing Transitional Marketing Collaborative Marketing Sense value Define value Realize value Deliver value Capture value Sustain Value Products Services Experiences Physical Hybrid Integrated Channels Channels Channels Persuasion, Permission, Contextual, Broadcast dialogue facilitation Vertical Horizontal Integrated Alliances Partnerships Value Network Communicate value Episodic Batch Active CRM CRM CRM Evolution of marketing activities Augment value Listen Observe Co-create Segmentation Customization Customerization Transactional Value-based Relationship Pricing Pricing Pricing

17. Towards the decoupled organization Human Resources Purchasing Marketing Finance & Administration Research & Development Product Manufacturing Information Technology Partner management Customer Customer Customer Customer organization (segment 2) Customer Customer Customer Customer organization (front-end) Product organization (back-end) Shared services (back-end) Product development Technical Sales Corporate Core

18. Citibank’s decoupled organization CEO Automotive Oil & Gas Retailing Cash Management Telecom Foreign Exchange Derivatives Mergers & Acquisitions Legal HR Controller Risk Mgmt. Operations IT Marketing Ford GM BMW Global Product Organization (Back-end) Global Customer Organization (Front-end) Local account managers Corporate Core Source: Designing the Global Corporation, Galbraith (2000)

22. Managing linkages at Kraft Foods Process teams (category-specific) Category teams (category-specific) Customer teams (key accounts) Source: Reinventing the Marketing Organization, McKinsey Quarterly Finance Operations Materials manager Plant manager Engineering Quality Process Team Leader Marketing information Finance Brand manager Consumer promotion Category Sales director R&D Category Business Director Category planners Retail Sales manager Sales information specialist Space management specialis Supply chain specialist Customer Category managers Customer Business Manager