Transcript Basic Marketing, 17e

Chapter 19
Managing
Marketing’s
Link with Other
Functional
Areas
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved
19-2
1.
2.
3.
4.
Understand why turning a marketing plan into
a profitable business requires money,
information, people, and a way to get or
produce goods and services.
Understand the ways that marketing strategy
decisions may need to be adjusted in light of
available financing.
Understand how a firm can implement and
expand a marketing plan using internally
generated cash flow.
Understand how different aspects of
production, capacity, and flexibility should be
coordinated with marketing strategy planning.
19-3
Describe how marketing managers and
accountants work together to analyze the
costs and profitability of specific products
and customers.
6. Understand how information systems
enable marketing strategy.
7. Know some of the human resource issues
that a marketer should consider when
planning a strategy and implementing a
plan.
8. Understand important new terms
5.
19-4
Resource Requirements for
Marketing Strategies and Plans
Finance
Production &
Accounting
Operations
Information
Systems
Human
Resources
19-5
19-6
19-7
19-8
Investor’s Time
Horizon Is
Important
Investors
Expect a
Return
What Is
Capital?
Key
Financial
Issues
Capital Comes
From Internal
and External
Sources
The CFO
Handles Money
Matters
Opportunities
Compete for
Capital/Budgets
Working
Capital Pays
for Short-Term
Expenses
19-9
19-10
Debt Financing
Has Interest
Cost
Interest
Expense May
Impact Prices
Expanding
Profits May Mean
Expanded Plan
Winning
Strategies
Generate Capital
19-11
Cash Flow – When
Money Is Available
Improve Return of
Investment
Marketing Mix Affects
Capital Needed
19-12
19-13
Slow Production
Quantity
Adjustments
Stock-Outs
Source Supply
Wasted Marketing
Effort
Difficulty in New
Product Coverage
May Require
Staged
Distribution
Need to
Produce Many
Product Lines
May Require
Outsourcing or a
Virtual Corporation
19-14
Moving
Production to
Low-Cost
Countries
Task Transfer
Overseas
Production
Has Critics
19-15
Mass
Customization
Serves
Individual
Needs
Producing to
Order
Requires
Flexibility
Mass
Customization
Is Not Mass
Marketing
Sometimes Batched Production Is Still Necessary!
19-16
Wizard Parts Company, an auto parts
manufacturer, provides its customers with
production flexibility. This could help Wizard
support its customers with:
A. Computerized reorder capabilities.
B. Electronic data interchange (EDI).
C. Just-in-time deliver (JIT).
D. Any of the above.
E. None of the above.
19-17
Functional Accounts
Natural Accounts
•
•
Formal Financial
Accounting
Examples:
Salaries
Wages
Supplies
Raw Materials
•
vs.
•
Purposes for Which
Expenditures Are
Made
Examples:
Milling
Grinding
Maintenance
• Reclassify Natural to Functional
• Reallocate Functional Accounts
• Evaluate Profitability of Profit Centers
19-18
19-19
19-20
19-21
19-22
19-23
Bill Thomas, marketing manager at ATI Service, conducts
marketing cost analysis. He is correct when he says
which of the following about marketing cost analysis:
A. “Traditional accounting analysis fails to analyze the
purpose of marketing costs.”
B. “Marketing costs should be allocated to general
overhead.”
C. “Functional and natural accounts should usually
have the same names.”
D. “Functional accounts are the categories (like salaries
and raw materials) to which costs are charged in the
normal accounting cycle.”
E. All of these statements are true.
19-24
Sharon Gage, marketing manager at Yellow Hat Supply,
wants to calculate the cost of marketing some of Yellow
Hat’s products to different target markets. Which of the
following will she probably have to do:
A. Reorganize some of the company’s functional cost
accounts into natural cost accounts.
B. Allocate personal selling expenses into general
overhead.
C. Reclassify all natural accounts into functional
accounts.
D. None of the above because it is impossible to link the
costs of marketing to specific target markets.
19-25
Aids
Strategy
Security
Information
Technology
Ties Firm
Together
Align with
Strategy
19-26
People – Important
Resources
New Strategies Mean
People Changes
Communication
Promotes Change
Growth Strains
Human Resources
Allow Time
for Training
19-27
One Change
May Mean
Several
Plan Time for
Changes
Key
Issues
Marketing
Enlivens the
Firm
Cutbacks Mean
Planning
19-28
19-29
1.
2.
3.
4.
Understand why turning a marketing plan into
a profitable business requires money,
information, people, and a way to get or
produce goods and services.
Understand the ways that marketing strategy
decisions may need to be adjusted in light of
available financing.
Understand how a firm can implement and
expand a marketing plan using internally
generated cash flow.
Understand how different aspects of
production, capacity, and flexibility should be
coordinated with marketing strategy planning.
19-30
Describe how marketing managers and
accountants work together to analyze the
costs and profitability of specific products
and customers.
6. Understand how information systems
enable marketing strategy.
7. Know some of the human resource issues
that a marketer should consider when
planning a strategy and implementing a
plan.
8. Understand important new terms
5.
19-31
1.
2.
3.
4.
5.
6.
7.
8.
9.
capital
working capital
stock
debt financing
cash flow statement
production capacity
virtual corporation
task transfer
mass customization
10.
11.
12.
natural accounts
functional accounts
enterprise resource
planning (ERP)
systems