Marketing Managememnt 13Ed. Chapter 22

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Phil Kotler, Kevin Keller

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  • Video links to an Honest Tea segment on social responsibility.
  • Marketing Managememnt 13Ed. Chapter 22

    1. 1. Managing a Holistic Marketing Organization for the Long Run 22 Marketing Management A South Asian Perspective, 13th ed
    2. 2. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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?
    3. 3. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. GCMMF practices holistic marketing while empowering people
    4. 4. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Trends in Marketing Practices • Reengineering • Outsourcing • Benchmarking • Supplier partnering • Customer partnering • Merging • Globalizing • Flattening • Focusing • Accelerating • Empowering
    5. 5. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Organizing the Marketing Department • Functional Organization • Geographic Organization • Product- or Brand-Management Organization • Market-Management Organization • Matrix-Management Organization
    6. 6. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.1 Functional Organization
    7. 7. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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
    8. 8. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.2 The Product Manager’s Interactions
    9. 9. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.3 Vertical Product Team • PM = Product Manager • APM = Associate PM • PA = Product Assistant
    10. 10. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.3 Triangular Product Team • PM = Product Manager • R = Market Researcher • C = Communication Specialist
    11. 11. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.3 Horizontal Product Team • PM = Product Manager • R = Market Researcher • C = Communication Specialist • S = Sales Manager • D = Distribution Specialist • F = Finance Specialist • E = Engineer
    12. 12. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.4 Product/Marketing- Management Matrix System
    13. 13. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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
    14. 14. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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
    15. 15. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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 process- outcome focus • Empower the employees
    16. 16. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Corporate Social Responsibility Legal behavior Ethical behavior Socially responsible behavior
    17. 17. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Top-Rated Companies for Social Responsibility • Microsoft • Johnson & Johnson • 3M • Google • Coca-Cola • General Mills • UPS • Sony • Toyota • Procter & Gamble • Amazon.com • Whole Foods • Walt Disney • Honda Motor • Fed Ex
    18. 18. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Levi’s Eco Jeans Promotes Sustainability
    19. 19. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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 revenue-producing transactions with the firm.
    20. 20. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Cause-Related Marketing
    21. 21. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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
    22. 22. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Possible Objectives for Social Marketing Campaigns Cognitive Value Action Behavioral
    23. 23. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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
    24. 24. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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?
    25. 25. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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?
    26. 26. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Types of Marketing Control Annual plan control Profitability control Efficiency control Strategic control
    27. 27. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Approaches to Annual Plan Control • Sales analysis • Market share analysis • Sales-to-expense ratios • Financial analysis • Market-based scorecard analysis
    28. 28. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.6 The Control-Chart Model
    29. 29. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Figure 22.7 Financial Model of Return on Net Worth
    30. 30. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Table 22.8 Simplified Profit-and-Loss Statement
    31. 31. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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
    32. 32. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Table 22.9 Mapping Natural Expenses into Functional Expenses
    33. 33. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Table 22.10 Bases for Allocating Functional Expenses to Channels
    34. 34. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Table 22.11 Profit-and-Loss Statements for Channels
    35. 35. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Types of Costs Direct costs Traceable common costs Nontraceable common costs
    36. 36. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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
    37. 37. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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.
    38. 38. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. Characteristics of Marketing Audits Comprehensive Systematic Independent Periodic
    39. 39. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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.
    40. 40. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 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?

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