Marketing Management
Notes on Chapter 22 | MANAGING A HOLISTIC MARKETING ORGANIZATION [Kotler/Keller]
Table 22.1 Important Shifts in Marketing and Business Practices
•Reengineering - Appointing teams to manage customer-value-building processes
and break down walls between departments
•Outsourcing - Buying more goods and services from outside domestic or foreign
vendors
•Benchmarking - Studying “best practice companies” to improve performance
•Supplier partnering - Partnering with fewer but better value-adding suppliers
•Customer partnering - Working more closely with customers to add value to their
operations
•Merging - Acquiring or merging with firms in the same or complementary industries to
gain economies of scale and scope
•Globalizing - Increasing efforts to “think global” and “act local”
•Flattening - Reducing the number of organizational levels to get closer to the
customer
•Focusing - Determining the most profitable businesses and customers and focusing
on them
•Justifying - Becoming more accountable by measuring, analyzing, and documenting
the effects of marketing actions
•Accelerating - Designing the organization and setting up processes to respond more
quickly to changes in the environment
•Empowering - Encouraging and empowering personnel to produce more ideas and
take more initiative
•Broadening - Factoring the interests of customers, employees, shareholders, and
other stakeholders into the activities of the enterprise
•Monitoring - Tracking what is said online and elsewhere and studying customers,
competitors, and others to improve business practices
 INTERNAL MARKETING - It requires that everyone in the organization accept the
concepts and goals of marketing and engage in choosing, providing, and
communicating customer value.
Organizing the Marketing Department
 Functionally – Marketing VP with five specialists; advantage is administrative
simplicity.
Functional Organization Figure 22.1
1 2
 Geographically – Company selling in national market organizes its sales force
along geographic lines.
 By product – Established in companies producing a variety of products
 By brand – Established in companies producing a variety of brands.
 By market – Desirable when customers fall into different user groups with
distinct buying preferences and practices.
 Matrix – Adopted by companies that are producing many products for many
markets
 By corporate/division
Tasks Performed by Brand Managers
1. Develop long-range and competitive strategy for each product.
2. Prepare annual marketing plan and sales forecast.
3. Work with advertising and merchandising agencies to develop campaigns.
4. Increase support of the product among channel members.
5. Gather continuous intelligence on product performance, customer attitudes.
6. Initiate product improvements.
Roles of Marketing at a Corporate Level
 To promote a culture of customer orientation
 To be an advocate for the customer
 To assess market attractiveness
 To develop firm’s overall value proposition, the vision, and articulation of how it
proposes to deliver superior value to customers
Corporate Social Responsibility
 Legal behavior – awareness and observation on relevant laws
 Ethical behavior – adopt and disseminate written code of ethics, build
tradition for ethical behavior and observe ethical guidelines
 Socially responsible behavior – exercise social conscience in dealing with
customers and stakeholders
 CAUSE-RELATED MARKETING - Marketing that links the firm’s contributions to
a designated cause to customers engaging directly or indirectly in revenue-
producing transactions with the firm.
 CORPORATE SOCIAL MARKETING - Marketing efforts that have at least one
noneconomic objective related to the social welfare and uses the resources of
the company and/or its partners.
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
Social Marketing Campaigns Types of Marketing Control
 Cognitive: Ex. Nutritional value of foods, Importance of conservation 1. Annual plan control – To examine whether the planned results are being
 Action: Ex. Motivate people to vote “yes” to an issue, inspire to donate blood achieved
 Behavioral: Ex. Demotivate cigarette smoking or use of hard drugs 2. Profitability control – To examine where the company is making and losing
 Value: Ex. Alter ideas about abortion money
3. Efficiency control – To evaluate and improve the spending efficiency and
Table 22.6 The Social Marketing Planning Process impact of marketing expenditures
Where Are We? 4. Strategic control – To examine whether the company is pursuing its best
• Determine program focus. opportunities with respect to markets, products, and channels
• Identify campaign purpose.
• Conduct an analysis of strengths, weaknesses, opportunities, and threats (SWOT).  MARKETING AUDIT - Comprehensive, systematic, independent periodic
• Review past and similar efforts. examination of a company’s or business unit’s marketing environment,
objectives, strategies, and activities with a view to determining problem areas
Where Do We Want to Go? and opportunities, and recommending a plan of action to improve the
• Select target audiences. company’s marketing performance.
• Set objectives and goals.
• Analyze target audiences and the competition. Characteristics of Marketing Audit
 Comprehensive – It considers all factors affecting marketing performance, not
How Will We Get There? just obvious trouble spots.
• Product: Design the market offering.  Systematic – It follows a logical, predetermined framework—an orderly
• Price: Manage costs of behavior change. sequence of diagnostic steps.
• Distribution: Make the product available.  Independent – To ensure objectivity, outside consultants may prepare the
• Communications: Create messages and choose media. marketing audit
 Periodic – Many organizations schedule regular marketing audits because
How Will We Stay on Course? marketing operates in a dynamic environment.
• Develop a plan for evaluation and monitoring.
• Establish budgets and find funding sources.
• Complete an implementation plan.

Necessary Skills for Implementing Marketing Programs

 Diagnostic skills
 Identification of company level
 Implementation skills /rmfb 11.28.15
 Evaluation skills

Figure 22.4 The Control Process

34