Transcript Kotler Keller 22

MARKETING MANAGEMENT
13th edition
Ch 22
Managing a Holistic
Marketing Organization
for the Long Run
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?
Stonyfield Farms Embraced
Corporate Enlightenment
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
Figure 22.1 Functional Organization
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
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
Figure 22.3 Triangular Product Team
• PM = Product Manager
• R = Market Researcher
• C = Communication Specialist
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
Figure 22.4 Product/MarketingManagement Matrix System
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
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
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
Corporate Social Responsibility
Socially
responsible
behavior
Ethical behavior
Legal behavior
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
Life is Good
Promotes Sustainability
Levi’s Eco Jeans Promotes
Sustainability
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 revenueproducing 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
Possible Objectives for
Social Marketing Campaigns
Cognitive
Action
Behavioral
Value
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
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?
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?
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
Figure 22.6 The Control-Chart Model
Figure 22.7 Financial Model of
Return on Net Worth
Table 22.8 Simplified
Profit-and-Loss Statement
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
A Roadmap to Brand Research
Brand Portrait
BRAND
RESEARCH
Brand
Modeling
ATTITUDINAL
Awareness
Attitude
Purchase intention
Purchase Intention
BEHAVIORAL
Actual Purchase
Product adoption, trial,
and referral
BUSINESS VALUE
Shareholder Value:
Cash Flows
Share Price
Factors controlled,
such as competitive
set & income
Factors controlled, such as
economic condition &
market sentiments
Managing Brand
Experience:
Nike+ Experience
The Importance of After-Sales Support in
Consumer Decision Journey
Welcome to Apple Genius Bar.
The Genius Bar is a tech
support station located inside
every Apple Retail Store, the
purpose of which is to offer help
and support for Apple products.
Ron Johnson, the Senior Vice
President for Retail, has often
referred to the Genius Bar as
the "heart and soul of our
stores". Employees are specially
trained and certified at the
Genius Bar. Their role is to help
customers with Apple hardware
and software. All in-store repairs
of Apple products are carried out
by "Geniuses", formerly known
as Mac Geniuses.
Brand Social
Leadership: Brands
that Change the
World
Coca-Cola supported
GIs by assuring the
price of Coke of 5
cents wherever they
were assigned to.
Brands that Change the World
MTV logo and Staying Alive program (started in 1998) which
has inspired and formed new attitudes towards HIV-AIDS
(http://www.staying-alive.org/)
Brands that Change the World
Table 22.9 Mapping Natural Expenses
into Functional Expenses
Table 22.10 Bases for Allocating
Functional Expenses to Channels
Table 22.11 Profit-and-Loss
Statements for Channels
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
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.
Characteristics of
Marketing Audits
Comprehensive
Systematic
Independent
Periodic
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.
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?