Transcript Managing the total Marketing effort

Managing the total Marketing effort
Chapter 6
The goal of this chapter is to examine how
firms organize, implement, evaluate, and
control marketing activities.
Organizing the Marketing Department
• If a company can have an excellent marketing department,
and even then fails in marketing, why?
• It depends how other departments of the company views
customers. If they are pointing to the marketing department
and say “ they do the marketing”. Its mean the company has
not implemented effective marketing.
• Effecting marketing can only be possible when all employees
realize their job is to create, serve, and satisfy customer.
Organizing the Marketing Department
• Modern marketing departments can be
organized in a number of different ways:
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Functional Organization
Geographic Organization
Product or Brand management Organization
Market Management Organization.
Organizing the Marketing
Department
• Functional Organization: The most common form of marketing
organization consists of functional specialist reporting to a marketing vice
president, who coordinates their activities.
• You must have the appropriate organization to effectively execute the four
Ps of the marketing mix. When a company is small, multiple functions are
often assigned to one person (i.e., PR and Advertising, etc.). Later, as the
company grows there becomes too much work for one person and the
company must attain a team of specialist to manage the greater
efficiency. At this point the organization must either train existing staff or
hire externally.
Functional Organization
Marketing Vice
President
Marketing
Administration
Manager
Advertising and
sales promotion
manager
Sales manager
Marketing
Research
Manager
New-Products
Manager
Functional Organization
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Marketing Administration Managers:
Updates the status of sales orders and coordinates deliveries from the point of
production and distribution. Directs preparation of accounting records.
Recommends budgets to management. May confer (talk) with customers and
customer representatives to evaluate and promote possibilities for improved and
expanded marketing.
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Advertising and Sales Promotion Manager:
Plan and prepare advertising and promotional material to increase sales of
products or services, working with customers, company officials, sales
departments and advertising agencies.
Inspect layouts (out come) and advertising copy and edit scripts, audio and video
tapes, and other promotional material.
Functional Organization
• Sales Manager: sales managers direct a company's sales program. They
assign sales territories, set goals, and establish training programs for their
sales representatives. Sales managers may also advise their sales
representatives on ways to improve their sales performance, achieve goals
and obtain expected quotas (targets).
• Marketing Research Manager: Market researchers collect and
analyze information. They analyze consumer opinions and collect data
from a variety of sources to enable organizations to make informed
decisions.
Functional Organization
• Selecting the most appropriate research methodology and techniques
• Designing qualitative and quantitative research plans for products in all
stages of the Product Life Cycle
• Designing research questionnaires.
• Interpreting data, writing reports, and making actionable
recommendations
• Quantitative research focuses on gathering and analyzing information
using techniques such as questionnaires and electronic data collection.
Qualitative research focuses on people's attitudes and motivation, using
methods such as focus groups and in-depth interviews.
Functional Organization
• New products Manager
• The Product Manager is responsible for the product planning and
execution throughout the product lifecycle, including: gathering and
prioritizing product and customer requirements, defining the product
vision, and working closely with engineering, sales, and support to ensure
revenue and customer satisfaction goals are met. The Product Manager's
job also includes ensuring that the product supports the company's overall
strategy and goals.
Organizing the Marketing Department
• Geographic Organization:
• A company selling in the national market often organize its
sales force on geographic lines. Such as the national sales
manager may supervise regional sales manager, who each
supervise a few zonal/branch managers, supported by sales
officers, sales supervisors and sales persons.
Geographic Organization:
National Sales
Manager
Kabul
Regional Sales Manager
Nangrahar
Regional Sales Manager
Laghman
Zonal/Branch
Manager
Zonal/Branch
Manager
Zonal/Branch
Manager
Zonal/Branch
Manager
Jalalabad
Sumerkhel
Mehterlam Baba
Charbagh
Organizing the Marketing Department
• Product Management Organization:
• Companies producing a variety of products often establish a product
management organization. The product-management organization does
not replace the functional management organization, but serves as
another layer of management.
• A product manager supervises product category managers, who in turn
supervise specific product managers.
Organizing the Marketing Department
• Market- Management Organization: Many companies sell their product to
many different markets.
• Canon sells its fax machines to consumers, business, and government
markets.
• When customers fall into different user groups with distinct buying
preferences and practices, a market management organization is
desirable.
• Customer-management Organization: Companies can organize
themselves to understand and deal with individual customers rather than
with mass-market.
Marketing Implementation, Evaluation and
control
• Marketing implementation: is the process of turning plans into action
describing who does what, when, and how. Effective implementation
requires skills in allocating, monitoring, organizing, and interacting at all
levels of the marketing effort.
• A brilliant strategic marketing plan counts for little if not implemented
properly.
• Strategy addresses the what, and why of marketing activities,
implementation addresses the who, where, when and how.
• Evaluation and control: Markets have the altering behavior , its means
the needs and wants of target customers changes rapidly.
• After successfully implementation of companies marketing plans, it must
be evaluated and controlled.
Marketing Implementation, Evaluation
and control
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The proper control procedures calls for
Annual plan control
Profitability control
Efficiency control
Strategic control
Marketing Implementation, Evaluation
and control
• Annual-Plan Control: Annual plan control ensures the
company achieves the sales analysis, market share analysis,
sales to expense ratios, financial analysis.
• Sales analysis: planned sale against the actual sale.
• For example, if you planned the first quarter sale and that is
4000 units each price RS 1. but at the end of that quarter the
actual sale is like 3000 units sold / each price 0.80 Rs
• The company should look closely at why it failed to achieve
expected sales volume.
Marketing Implementation, Evaluation
and control
• Market share analysis: indicates how well a firm is doing in
the marketplace compared to its competitors.
• Market share is the percentage or proportion of the total
available market or market segment that is being serviced by
a company.
• It can be expressed as a company's sales revenue (from that
market) divided by the total sales revenue available in that
market.
• It can also be expressed as a company's unit sales volume (in
a market) divided by the total volume of units sold in that
market.
Marketing Implementation, Evaluation and
control
• Marketing expense-to-sales analysis
• Annual plan control requires making sure the company isn’t overspending
to achieve goals. The key ratio to watch is marketing expense-to-sales.
• Financial Analysis:
• It is performed by professionals who prepare reports using ratios that
make use of information taken from Financial statements and other
reports. These reports are usually presented to top management as one of
their bases in making business decisions. Based on these reports,
management may:
• Continue or discontinue its main operation or part of its business;
• Make or purchase certain materials in the manufacture of its product;
• Acquire or rent/lease certain machineries and equipment in the
production of its goods;
Marketing Implementation, Evaluation and
control
• For example: we have gross profit (GP)=10,000,
Net profit = 1000 Sales=100,000
• Gross profit margin=gross profit/sales=10000/100000=0.10=10%
• Net Profit margin= net profit/sales=1000/100000=0.01=1%
• The company gross margin is 10 % and net profit margin is only
1%, which shows that the remaining 9% are expenses (salaries,
advertising, packaging). In annual-plan control the company can
control the un necessary expenses in order to increase the net
profit margin.
Marketing Implementation, Evaluation and
control
• Profitability control: Companies can benefit from deeper
financial analysis and should measure the profitability of their
product, territories, customer groups, and segments.
• This information can help the management determine
whether to expand, reduce, or eliminate any product or
marketing activities.
• Efficiency Control: Suppose a profitability analysis reveals the
company is earning poor profits in certain products,
territories, or markets. The company will search for efficient
ways to manage the sales force, advertising, sales promotion
and distribution.
Marketing Implementation, Evaluation and
control
• Strategic Control: Each company should periodically (regular time
intervals) reassess its strategic approach to the marketplace with a good
marketing audit.
• Marketing audit is a fundamental part of the marketing planning process.
It is conducted not only at the beginning of the process, but also at a
series of points during the implementation of the plan. The marketing
audit considers both internal and external influences on marketing
planning, as well as a review of the plan itself.
• There are a number of tools and audits that can be used, for example
SWOT analyses for the internal environment, as well as the external
environment. Other examples include PEST and Five Forces Analyses,
which focus solely on the external environment