Transcript Comprehensive Marketing Programs

Chapter 10
Comprehensive Marketing
Programs
In this chapter, you will
learn about…
1. Marketing Program Fit
2. Marketing-Mix Sensitivities and
Interactions
3. Marketing Implementation
4. Marketing Organization
10-2
Comprehensive
Marketing Program
Choice of Markets to Pursue
Choice of Marketing Mix to Reach
Target Markets
Create Value for Customers
10-3
Major
Marketing Decisions
Where to Compete
How to Compete
When to Compete
10-4
Characteristics of a Successful
Marketing Program
Must effectively stimulate target markets
to buy
Must be consistent with organizational
capabilities
Must outmaneuver competition
Equal attention must be paid to strategy
implementation and formulation
10-5
Implementation of the
Marketing Program
Central Issues
Fit with the market, organization,
and competition
Target market’s sensitivities and
interactions with the marketing mix
Implementation
Organizational issues
10-6
Marketing Program Fit
Determined by the extent to which the
marketing mix satisfies the unique needs and
buyer requirements of a chosen target market
(DuPont’s Kevlar)
Depends on the match between an
organization’s marketing skills and financial
position with the marketing mix (Continental
Airlines)
Fit with the competition depends on the
strengths, weaknesses, and marketing mixes
of competitors (long-distance telephone
companies)
10-7
Marketing-Mix Sensitivities
and Interactions
Example of DuPont’s Dilemma
John Murray, marketing manager for
DuPont’s Sontara, a polyester fabric used for
hospital surgical gowns and drapes, was
evaluating a marketing program to:
1. Maintain market share
2. Gain the confidence of garment
makers
Numerous options were possible…
10-8
Marketing-Mix Sensitivities and Interactions
Example of DuPont’s Dilemma
1. If sales force/missionary expenses were raised from 0 to
$200,000, market share would increase to 33%.
2. If trade support/maintenance expenses were increased to
$100,000, a 33% market share would result.
3. If trade support/missionary expenses were increased to
$100,000, a 33% market share would result.
4. If advertising to intermediate users were increased to
$50,000, the effect would be a 1% increase in market share.
5. An increase to $300,000 in advertising to end users would
also result in a 1% share gain.
6. Raising all expenditures to their maximum reasonable levels
would increase market share to 39% in the short run.
Marketing-Mix Sensitivities and Interactions
Example of DuPont’s Dilemma
1. Reducing sales force/maintenance expenditures to 0 would
reduce market share to 32%.
2. Reducing trade support/maintenance expenditures to 0
would reduce market share to 27%.
3. Reducing trade support/missionary expenditures to 0 would
reduce market share to 32%.
4. Reducing advertising to intermediaries to 0 would reduce
market share to 31%.
5. Reducing advertising to end users to 0 would reduce market
share to 28%.
6. Reducing all above expenditures to 0 would reduce market
share to 22%.
Marketing Implementation
Hampering Factors
Poor timing
Not considering the logistical
aspects of a marketing program
Failure to synchronize marketing
mix activities
Failing to monitor the price-cost plan
10-11
Marketing Organization
Strategy determines organizational
structure, which in turn determines
the effectiveness of a marketing
program.
10-12
Marketing Organization
A central issue is finding the proper
balance between centralization and
decentralization of marketing activities
Region-specific marketing (e.g., FritoLay)
Global marketing (e.g., Coca-Cola)
“Glocalization” is an attempt to
balance standardization with local
market requirements
10-13