IntroductionFacebook wishes to introduce a new type of ser.docx

Introduction
Facebook wishes to introduce a new type of service in the
market that centers on the company’s data collecting abilities
and its large-scale database of active users. The new service
predicts the consumers’ food demands in real time and responds
to them by letting consumers order food directly from the
Facebook website. The new service to edge out competitors and
branding is important. Facebook needs a communication plan to
highlight details of how Facebook will advertise the new
product to consumers and types of media to use. History shows
us doing an excellent service is just one part of ensuring
success, proper marketing ensures users are aware of the value
the product adds to their lives and that they can get the service
whenever they demand it (Aaker & Biel, 2013).
Situational analysis
The vision behind a new product Facebook plans to roll out is to
use its analytical capabilities and database to introduce a
service that predicts the demand of consumers and reacts to
them. The mission of the new product is to serve the needs of
all users using the data provided to Facebook. Facebook
analyses this data and uses it to predict what a consumer may
require in the future. The strategic objectives behind the new
product are too perfect Facebook’s analytics system to perfectly
predict consumer demand. Another strategic goal is to diversity
Facebook’s income stream in a market nearing capacity. The
values of the new services are quality, convenience, and price.

Graph 1: Facebook is overly dependent on advertising and needs
to diversify its revenue stream
Facebook already has an iconic brand image all over the world
compared to other food delivery companies; this gives Facebook
an advantage, as customers are more likely to order from a
recognized company.
Despite the strengths, a weakness Facebook has is that it lacks
experience in the food delivery business; Facebook has to invest
large sums of money to create a delivery system that can meet
customer demand efficiently.
Facebook’s competitors have strengths and weaknesses; one
strength of Facebook’s competitors is they have vastly more
experience in the food delivery. Companies such as Dominoes’
Pizza have perfected the delivery system which delivers Pizza
within minutes of ordering; it took plenty of trial and error to
reach this level of efficiency (Reisinger & Grohs, 2014).
Facebook will work harder than its competitors do to achieve
the same degree of efficiency. One weakness of the competitors
is they do not have Facebook’s unique insight into the market.
Facebook can see shifting consumer demand in real time and
capitalize on it.
Product promotion and price strategies
The success of the new product depends on how Facebook can
brand and market to the consumer. Facebook has to build a
brand identity. Ideally, Facebook would like consumers to
associate the new service with convenience and quality; this
takes careful advertising and delivery of service. In creating its
brand image, Facebook should set clear goals for the branding
campaign; the company should then use these goals as
guideposts when advertising the new product (Aaker & Biel,

2013). A goal of the branding campaign is to make consumer’s
associate the new product with convenience; the company will
advertise the service as one that makes it convenient to order
food from within the Facebook application. Advertising tells the
consumer the features of the new product, for the branding
campaign to stick; the company has to deliver on its promises.
A few objectives are:
· Users aware of new product
· Inform consumers how the product adds value to their lives.
· Meet company goals and outlines for its brand
· by the end of the advertising campaign, customers should
associate the new service with quality and convenience
· Proper marketing etiquette
According to University of Phoenix Chapter 21 Publisher
Presentation (2017),
· Copy should be only 50% of screen
· Brands should limit ads to phrase pair
· Put brand logo in the corner of ad frame
· Use only one of two bright colors
· Calls to action should be in a bright color
Facebook needs to achieve these objective by highlighting
the convenience and quality this marks success. It will be
necessary for the mobile marketing to be on point with bite-size
software programs that can be downloaded to smartphones and
to be concise. (University of Phoenix, 2017).
References
Aaker, & Biel. (2013). Brand Equity & Advertising:
Advertising’s role in building strong brands. Psychology Press.
Anselmsson, & Bondesson. (2014). Brand image and customers’
willingness to pay a price for food brands. Journal of Product &
Brand Management, 23(2), 90-102.
Reisinger, & Grohs. (2014). Sponsorship effects on brand

image: The role of exposure and activity involvement. Journal
of Business Research, 67(5), 1018-1025
University of Phoenix. (2017). Chapter 21 Publisher
Presentation. Retrieved from University of Phoenix, Mkt 571
website.
Individual Assignment: Marketing Communication and Brand
Strategy
Purpose of Assignment
This assignment is designed to help students understand the
interrelationships between brand strategy and the
communication message to the target audience. It is a
continuation of the marketing plan and students should review
the Week 3 Learning Team Assignment for assistance in product
brand strategies the team has developed.
Assignment Steps
Develop a minimum 700-word branding strategy and marketing
communication plan in Microsoft® Word. This document should
address at least 5 elements of the Situational Analysis and the
Product, Place/Distribution, Promotion, and Price Strategies
(modified below) sections of the marketing plan (from the
Situational Analysis and the Product, Place/Distribution,
Promotion, and Price Strategies lists below). The five elements
you select should only come from the options provided below.
You must include a measurement of customer loyalty and
retention in your strategy document. You may include more than
the minimum to provide clarity and coherence to your
document.
Situational Analysis:
Vision , Mission, Strategic objectives, Values
Strengths/Weaknesses
Competitor's Strengths/Weaknesses
Market Segments
Product, Place/Distribution, Promotion, and Price Strategies:

Creating a Brand Image
Maintaining Brand Image
Branding Concerns
Promotion/Integrated Marketing Communication
Advertising Strategy/Objectives
Push and Pull
Media Strategy
Advertising Execution
Public Relations/Strategies
Note: Charts/graphs/tables do not count toward the word count.
The plan will be a continuation of your global or multi-regional
business you chose in Week 1. This will be incorporated into
your overall marketing plan for Week 6.
Cite a minimum of three peer-reviewed references.
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Grading Guide
Content Met Partially Met Not Met Comments:
Student develops a branding strategy and marketing
communication plan that addresses at least 5 elements of the
Situational Analysis and the Product, Place/Distribution,
Promotion, and Price Strategies (modified below) sections of
the marketing plan. Choose 5 elements from the lists below:
Situational Analysis: Vision , Mission, Strategic
objectives, Values Strengths/Weaknesses Competitor’s
Strengths/Weaknesses Market Segments Product,
Place/Distribution, Promotion, and Price Strategies:
Creating a Brand Image Maintaining Brand Image
Branding Concerns Promotion/Integrated Marketing
Communication Advertising Strategy/Objectives Push
and Pull Media Strategy Advertising Execution Public
Relations/Strategies Points 4 3 Did identify
5 elements listed on the left side. Not clear on the theory and
application for each from a domestic and international
perspective. Should utilize the eight steps in developing

effective communications plan. Based on the following tasks:
identifying the target audience, setting the communication
objectives, designing the communications, selecting the
communication channels, and establishing the total marketing
communications budget. Should mention that branding is
associated with product or company name, term, sign, symbol,
design or combination used to identify and differentiate a
company’s products from competitors. Options for developing
strategies described below from Page 320 Media
planning includes applying these steps. Step 1: Decide on
reach, frequency, and impact Step 2: Choose among media types
Step 3: Select specific media vehicles Step 4: Decide on media
timing Step 5: Decide on geographical media allocation
Student must include a measurement of customer loyalty and
retention in your strategy document. Points 3 0
Loyalty not mentioned and not measured which can be
done but tracking revenue or units sold along with repeat
purchases are a few methods of measuring customer loyalty
along with Retention is influenced and measured by the rate of
spending by consumers. There was no clear method identified
and no insight about retention of customers. See below for
additional insight.
The branding strategy and marketing communication plan is a
minimum of 700 words in length. Note: Charts/graphs/tables
do not count toward the word count. Points 1 1
Did have 709 words which is above the 10% range. Use
more images, illustrations along with tables to manage word
count.
Total Available Total Earned
8 4/8
Writing Guidelines Met Partially Met Not Met Comments:
The paper—including tables and graphs, headings, title page,
and reference page—is consistent with APA formatting

guidelines and meets course-level requirements. Introduction
and conclusion are to be included. .25 The paper
was in APA format and lacking any illustrations or images to
support the response to the various topics such as an image of
an example brand. Introduction not based on the description in
the syllabus as missing loytalty and retention tasks. There is no
summary concluding key points.
Intellectual property is recognized with in-text citations and a
reference page. .25 Only one citation included from
the chapter readings to support the responses to the various
topics. The assignment requested Cite a minimum of three peer-
reviewed references which was not included.
Paragraph and sentence transitions are present, logical, and
maintain the flow throughout the paper. Sentences are complete,
clear, and concise. .5 Sentences are structured
well and paragraphs are focused.
Rules of grammar and usage are followed including spelling and
punctuation. Both turn it in and grammar reports submitted. .5
Did include both reports. Seemed to reduce the
number of grammar issues based on the feedback within report
of grammar.
2 1.5/2
Assignment Total # 10 5.5/10
Additional comments: Some good responses to various
sections overall. See additional comments, insight and feedback
below.
Steps for a marketing communication plan.

A brand is an offering from a known source. A brand name such
as Apple carries many different kinds of associations in
people’s minds that make up its image: creative, innovative,
easy-to-use, fun, cool, iPod, iPhone, and iPad to name just a
few. All companies strive to build a brand image with as many
strong, favorable, and unique brand associations as possible.
How do you “brand” a product? Although firms provide the
impetus to brand creation through marketing programs and other
activities, ultimately a brand resides in the minds and hearts of
consumers. It is a perceptual entity rooted in reality but
reflecting the perceptions and idiosyncrasies of consumers.
Branding is the process of endowing products and services with
the power of a brand. It’s all about creating differences between
products. Marketers need to teach consumers “who” the product
is—by giving it a name and other brand elements to identify
it—as well as what the product does and why consumers should
care. Branding creates mental structures that help consumers
organize their knowledge about products and services in a way
that clarifies their decision making and, in the process, provides
value to the firm.
How do you “brand” a product? Although firms provide the
impetus to brand creation through marketing programs and other
activities, ultimately a brand resides in the minds and hearts of
consumers. It is a perceptual entity rooted in reality but
reflecting the perceptions and idiosyncrasies of consumers.

value to the firm.
A firm’s branding strategy—often called its brand
architecture—reflects the number and nature of both common
and distinctive brand elements. Deciding how to brand new
products is especially critical. A firm has three main choices:
1. It can develop new brand elements for the new product.
2. It can apply some of its existing brand elements.
3. It can use a combination of new and existing brand elements.
Page 315
Measuring Brand Equity
How do we measure brand equity? An indirect approach
assesses potential sources of brand equity by identifying and
tracking consumer brand knowledge
structures.59 A direct approach assesses the actual impact of
brand knowledge on consumer response to different aspects of
the marketing. “Marketing Insight: The Brand Value Chain”
shows how to link the two approaches.
Page 328
s Chapter 5 reviewed, customer lifetime value is affected by
revenue and by the costs of customer acquisition, retention, and
cross-selling.108
• Acquisition depends on the number of prospects, the
acquisition probability of a prospect, and acquisition spending
per prospect.
• Retention is influenced by the retention rate and retention
spending level.
• Add-on spending is a function of the efficiency of add-on
selling, the number of add-on selling offers given to existing
customers, and the response rate to new offers.
Media Strategy
This is based on justifying which types of media will be used,
how it will be used and what impact it has with designing the

communication process.
Designing the communication requires answering three
questions: what to say (message strategy), how to say it
(creative strategy), and who should say it (message source).
Communications channels can be personal (advocate, expert,
and social channels) or nonpersonal (media, atmospheres, and
events).
Market segements
Markets are made up of various segments of buyers by
identifying demographic, psychographic, and behavioral
differences between them. They then decide which segment(s)
present the greatest opportunities. For each of these target
markets, the firm develops a market offering that it positions in
target buyers’ minds as delivering some key benefit(s).
Creating a Brand Image
A brand is an offering from a known source. A brand name such
as Apple carries many different kinds of associations in
people’s minds that make up its image: creative, innovative,
easy-to-use, fun, cool, iPod, iPhone, and iPad to name just a
few. All companies strive to build a brand image with as many
strong, favorable, and unique brand associations as possible.
value to the firm.
For branding strategies to be successful and brand value to be
created, consumers must be convinced there are meaningful
differences among brands in the product or service category.
Brand differences often relate to attributes or benefits of the
product itself. Gillette, Merck, and 3M have led their product
categories for decades, due in part to continual innovation.

Other brands create competitive advantages through
nonproduct-related means. Gucci, Chanel, and Louis Vuitton
have become category leaders by understanding consumer
motivations and desires and creating relevant and appealing
images around their stylish products.
Promotional campaigns that reinforce the value of the brand,
even if targeted to the already loyal, may be more likely to
attract higher-value new customers.
As described in Chapter 1, marketers distinguish paid and
owned media from earned (or free) media. Paid media includes
company-generated advertising, publicity, and other
promotional efforts. Earned media is all the PR and word-of-
mouth benefits a firm receives without having directly paid for
anything—all the news stories, blogs, and social network
conversations that deal with a brand.2 Social media play a key
role in earned media. A large part of owned media consists of
online marketing communications, which we review next.
Integrated marketing communication is a process whereby all
brand contact with a customer is consistent and should take into
account the six C’s of IMC listed below (Kotler & Keller,
2016). An all-encompassing and seamless marketing plan
includes the eight common communications platforms listed
below (Kotler & Keller, 2016, p. 561).
Should utilize the eight steps in developing effective
communications plan. Based on the following tasks: identifying
the target audience, setting the communication objectives,
designing the communications, selecting the communication
channels, and establishing the total marketing communications
budget. Also, the platforms to consider are:

push strategy
when the manufacturer uses its sales force and trade promotion
money to induce intermediaries to carry, promote, and sell the
product to end users.
pull strategy
when the manufacturer uses advertising and promotion to
persuade consumers to ask intermediaries for the product, thus
inducing the intermediaries to order it.
Sales promotion consists of mostly short-term incentive tools,
designed to stimulate quicker or greater purchase of particular
products or services by consumers or the trade.
4. In using sales promotion, a company must establish its
objectives, select the tools, develop the program, implement and
control it, and evaluate the results.
5. Events and experiences are a means to become part of special
and more personally relevant moments in consumers’ lives.
Events can broaden and deepen the sponsor’s relationship with
its target market, but only if managed properly.
6. Public relations (PR) includes a variety of programs designed
to promote or protect a company’s image or its individual
products. Marketing public relations (MPR), to support the
marketing department in corporate or product promotion and
image making, can affect public awareness at a fraction of the
cost of advertising and is often much more credible. The main
tools of PR are publications, events, news, community affairs,
identification media, lobbying, and social responsibility.
A push strategy incorporates their “sales force, trade promotion
money, or other means to induce intermediaries to carry,
promote, and sell the product to end users” (Kotler & Keller,
2016, p. 494). “Advertising, promotion, and other forms of

communication to persuade consumers to demand the product
from intermediaries, thus inducing the intermediaries to order
it” (Kotler & Keller, 2016, p. 494).
.
Concerns
Brand equity is the added value endowed to products and
services with consumers. It may be reflected in the way
consumers think, feel, and act with respect to the brand, as well
as in the prices, market share, and profitability it commands.
Marketers and researchers use various perspectives to study
brand equity.24 Customer-based approaches view it from the
perspective of the consumer—either an individual or an
organization—and recognize that the power of a brand lies in
what customers have seen, read, heard, learned, thought, and
felt about the brand over time.25
Customer-based brand equity is thus the differential effect
brand knowledge has on consumer response to the marketing of
that brand.26 A brand has positive customer-based brand equity
when consumers react more favorably to a product and the way
it is marketed when the brand is identified than when it is not
identified. A brand has negative customer-based brand equity if
consumers react less favorably to marketing activity for the
brand under the same circumstances. There are three key
ingredients of customer-based brand equity.
With an ideal ad campaign:
The right consumer is exposed to the message at the right place
and time
The ad causes the consumer to pay attention

The ad reflects consumer’s level of understanding of brand
The ad positions points-of-difference and points-of-parity
The ad motivates consumers to consider purchase
The ad creates strong brand associations
value to the firm.
Page 298&299 Branding Concerns
Perhaps the most distinctive skill of professional marketers is
their ability to create, maintain, enhance, and protect brands,
whether established brands such as Mercedes, Sony, and Nike or
new ones like Pure Leaf Teas, Taste Nirvana Coconut Waters,
and Alexia All Natural Foods. Some of the hottest brands in
recent years have emerged online. Consider the runaway success
of Tumblr and Instagram.3
One of the most valuable intangible assets of a firm is its
brands, and it is incumbent on marketing to properly manage
their value. Building a strong brand is both an art and a science.
It requires careful planning, a deep long-term commitment, and
creatively designed and executed marketing. A strong brand
commands intense consumer loyalty—and at its heart is a great
product or service. Building a strong brand is a never-ending
process, as the marketers of Gatorade have found out. 1
. "Name and symbol of awareness: People tend to buy brands
that are familiar because they are comfortable with what is

known ,and confident of its quality. Thus a recognized brand
will always get selected over an unknown one..Alsoone. Also if
one has to choose from a number of options ,theoptions, the
awareness about a brand will result in that brand being the first
choice. An unknown brand is not likely to have a chance.
Though perception of quality may be different for different
products, yet its significance is very important for consumers to
select a particular brand."3
3 Raj, V. R. (2012). Perception About Creating A Brand Called
Community Tourism. International Journal of Management
Research and Reviews, 2(5), 847-857
In order to maintain your brand, you must service your
customers and meet their needs in regards to the product. You
must complete an accurate review of business practices and
make changes where needed, sustaining the good qualities of the
business and product, which in turn projects a positive light on
the corporation. "An empirical study with leading US/UK
companies by Fombrun and Kindova found that those companies
with a more positive reputation appeared to project their core
mission and identity in a more systematic and consistent fashion
than companies with lower reputation rankings."4
4 Omar, M., & Williams,Robert L.,,Jr. (2006). Managing and
maintaining corporate reputation and brand identity: Haier
group logo. Journal of Brand Management, 13(4), 268-275
This was a message posted this past week that should be a
baseline from which to utilize one or more options as a resource
when responding to issue:
You must include a measurement of customer loyalty and
retention in your strategy document.
Today, we have better marketing metrics for measuring the

performance for companies marketing plans. "Marketing metrics
provide frameworks that public relations specialists, brand
managers and marketing directors can use to evaluate marketing
performance, as well as back their marketing plans
and strategies" (Boundless, 2017).
Sales Metrics:
Sales growth
Market share
Sales from new products
Customer Readiness to Buy Metrics:
Awareness
Preference
Purchase intention
Trial rate
Repurchase rate
Customer Metric:
Customer complaints
Customer satisfaction
Ratio of promoters to detractors
Customer acquisition costs
Customer's gains
Customer losses
Customer churn
Retention rate
Customer lifetime value
Customer equity
Customer profitability
Return on customer
Distribution Metrics:
Number of outlets
Share in shops handling
Weighted distribution
Distribution gains
Average stock volume (value)
Stock cover in days

Bluestocking's frequency
Share of shelf
Average sales per point of sale
Communication Metrics:
Spontaneous (unaided) brand awareness
Top-of-mind brand awareness
Prompted (aided) brand awareness
Spontaneous (unaided) advertising awareness
Prompted (aided) advertising awareness
Effective reach
Effective frequency
Gross rating points (GRP)
Response rate (Kotler, P.T. & Keller, K.L., 2016,
p.677)
Boundless. "Marketing Performance Metrics." Boundless
Marketing Boundless, 28 Mar. 2017. Retrieved 19 Apr.
2017 from https://www.boundless.com/marketing/textbooks/bou
ndless-marketing-textbook/introduction-to-marketing-
1/evaluating-marketing-performance-23/marketing-
performance-metrics-134-7590/
Strengths/Weaknesses - A SWOT analysis includes the
“strengths, weaknesses, opportunities, and threats” (Kotler &
Keller, 2016, p. 49). In this class, we include internal and
external trends defined over period of time.
Market Segments
Geographic segmentation divides “the market into geographical
units such as nations, states, regions, counties, cities, or
neighborhoods” (Kotler & Keller, 2016, p. 246).
Demographic segmentation consists of “age, family size, family
life cycle, gender, income, occupation, education, religion, race,
generation, nationality, and social class” (Kotler & Keller,

2016, p. 249). Psychographic segmentation is the “science of
using psychology and demographics to better understand
consumers” (Kotler & Keller, 2016, p. 258).
Behavioral segmentation divides people into “groups on the
basis of their knowledge of, attitude toward, use of, or response
to a product” (Kotler & Keller, 2016, p. 259). Behavioral
segmentation takes into accounts the needs and benefits,
decision roles, and the users and usage-related variables (Kotler
& Keller, 2016, p. 259). The decision roles are the people
involved in making the decisions from the “initiator, influencer,
decider, buyer, and user” (Kotler & Keller, 2016, p. 259).
The printed and non-printed media gives “marketers a host of
new ways to interact with consumers and customers” (Kotler &
Keller, 2016, p. 10).
Customer Loyalty In the past, companies considered the
customer at the bottom of the pyramid instead of the top. Now
companies must make think of the customers at the top of the
pyramid since without the customer there would not be a
company.
(Kotler & Keller, 2016, p. 127)
Kotler, P.T. & Keller, K.L. (2016). Marketing
management (15th ed). Upper Saddle River, NJ:
Pearson/Prentice

Copyright © 2016 Pearson Education, Inc.
23-*
Chapter
23
Managing a Holistic Marketing Organization for the Long Run
23-*
Learning Objectives
What are important trends in marketing practices?
What are the keys to effective internal marketing?
How can companies be socially responsible marketers?
What tools are available to help companies monitor and improve
their marketing activities?
What do marketers need to do to succeed in the future?
23-*

Trends in
Marketing
PracticesReengineeringOutsourcingBenchmarkingSupplier
partneringCustomer
partneringMergingGlobalizingFlatteningFocusingJustifyingAcce
leratingEmpoweringBroadeningMonitoringUncovering
With globalization, deregulation, market fragmentation,
consumer empowerment, environmental concerns, and all the
remarkable developments in communication technology, the
world has unquestionably become a very different place for
marketers. Table 23.1 summarizes some important shifts in
marketing realities.
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.
Uncovering. Using data mining and other analytical methods to
develop deep insights into customers and how they behave.
*
23-*
Internal MarketingInternal marketing requires that everyone in
the organization accept the concepts and goals of marketing and
engage in identifying, providing, and communicating customer
value

in a networked enterprise, every functional area can interact
directly with customers. Marketing no longer has sole
ownership of customer interactions; it now must integrate all
the customer-facing processes so customers see a single face
and hear a single voice when they interact with the firm.
*
23-*
Organizing the Marketing DepartmentFunctional
organizationGeographic organizationProduct- or brand-
management organizationMarket-management
OrganizationMatrix-management Organization
Modern marketing departments can be organized in a number of
different, sometimes overlapping ways: functionally,
geographically, by product or brand, by market, or in a matrix.
Functional Organization In the most common form of marketing
organization, functional specialists report to a marketing vice
president who coordinates their activities.
Geographic Organization A company selling in a national
market often organizes its sales force (and sometimes its
marketing) along geographic lines. The national sales manager
may supervise four regional sales managers, who each supervise
six zone managers, who in turn supervise eight district sales
managers, who each supervise 10 salespeople. Some companies
are adding area market specialists (regional or local marketing
managers) to support sales efforts in high-volume markets.
Product- or Brand-Management Organization Companies
producing a variety of products and brands often establish a

product- (or brand-) management organization. This does not
replace the functional organization but serves as another layer
of management. A group product manager supervises product
category managers, who in turn supervise specific product and
brand managers.
Market-Management Organization When customers fall into
different user groups with distinct buying preferences and
practices, a market-management organization is desirable.
Market managers supervise several market-development
managers, market specialists, or industry specialists and draw
on functional services as needed. Market managers of important
markets might even have functional specialists reporting to
them.
Matrix-Management Organization Companies that produce many
products for many markets may adopt a matrix organization
employing both product and market managers.
*
23-*
Functional Organization
Figure 23.1 shows five specialists. Others might include a
customer service manager, a marketing planning manager, a
market logistics manager, a direct marketing manager, and a
digital marketing manager.
*
23-*

hub-and-spoke system
A product-management organization makes sense if the
company’s products are quite different or there are more than a
functional organization can handle. This form is sometimes
characterized as a hub-and-spoke system. The brand or product
manager is figuratively at the center, with spokes leading to
various departments representing working relationships (see
Figure 23.2).
*
23-*
Brand/Product
Manager Tasks
Develop long-range/competitive
strategy
Prepare marketing plan/sales forecast
Work with agencies
Increase support among sales force
Gather intelligence
Initiate product improvements
The product-management organization lets the product manager
concentrate on developing a cost-effective marketing program
and react more quickly to new products in the marketplace; it
also gives the company’s smaller brands a product advocate.
*
23-*

Product-/Brand-Management OrganizationProduct-Management
organization disadvantages
Managers may lack authority to carry out responsibilities
Managers rarely achieve functional expertise
The system often proves costly
Managers normally manage brand for a short time
Market fragmentation makes it harder to develop national
strategy
Managers focus company away from customer relationships
23-*
Product-/Brand-Management OrganizationProduct teams
Brand-asset management team (BAMT)Eliminate product
manager positions for minor productsCategory management
A second alternative in a product-management organization is
product teams. There are three types: vertical, triangular, and
horizontal (see Figure 23.3). The triangular and horizontal
product-team approaches let each major brand be run by a
brand-asset management team (BAMT) consisting of key
representatives from functions that affect the brand’s
performance. The company consists of several BAMTs that
periodically report to a BAMT directors committee, which itself
reports to a chief branding officer. This is quite different from
the way brands have traditionally been handled.
A third alternative is to eliminate product manager positions for
minor products and assign two or more products to each
remaining manager. This is feasible when two or more products
appeal to a similar set of needs. A cosmetics company doesn’t
need product managers for each product because cosmetics
serve one major need—beauty. A toiletries company needs
different managers for headache remedies, toothpaste, soap, and

shampoo because these products differ in use and appeal.
In a fourth alternative, category management, a company
focuses on product categories to manage its brands. Procter &
Gamble (P&G), a pioneer of the brand-management system, and
other top packaged- goods firms have made a major shift to
category management, as have firms outside the grocery
channel. Diageo’s shift to category management was seen as a
means to better manage the development of premium brands. It
also helped the firm address the plight of under-performing
brands.
*
23-*
Market-Management OrganizationMarket-centered
organizationsCustomer-management organization
Market managers are staff (not line) people, with duties like
those of product managers. They develop long-range and annual
plans for their markets and are judged by their market’s growth
and profitability. Because this system organizes marketing
activity to meet the needs of distinct customer groups, it shares
many advantages and disadvantages of product-management
systems. Many companies are reorganizing along market lines
and becoming market-centered organizations. Xerox converted
from geographic selling to selling
by industry, as did IBM and Hewlett-Packard.
When a close relationship is advantageous, such as when
customers have diverse and complex requirements and buy an
integrated bundle of products and services, a customer-
management organization, which deals with individual
customers rather than the mass market or even market segments,

should prevail.
*
23-*
A Creative
Marketing OrganizationShift to customer-focusAppoint
marketing officer & task forceGet outside helpChange reward
systemHire marketing talentDevelop in-house marketing
trainingInstall marketing planning systemEstablish annual
recognition programShift to a process-outcome focusEmpower
employees
Many companies realize they’re not yet really market and
customer driven—they are product and sales driven.
Transforming into a true market-driven company requires,
among other actions: (1) developing a company-wide passion
for customers; (2) organizing around customer segments instead
of products; and (3) understanding customers through
qualitative and quantitative research. The task is not easy, but
the payoffs can be considerable. See “Marketing Insight: The
Marketing CEO” for concrete actions a CEO can take to
improve marketing capabilities.
*
23-*
Socially Responsible Marketing
Effective internal marketing must be matched by a strong sense
of ethics, values, and social responsibility. Taking a more

active, strategic role in corporate social responsibility is
thought to benefit not just customers, employees, community,
and the environment but also shareholders. Firms feel they also
benefit in different ways, as Figure 23.4 illustrates.
*
23-*
Corporate Social Responsibility
Researchers Raj Sisodia, David Wolfe, and Jag Sheth believe
humanistic companies make great companies. They see “Firms
of Endearment” as those with a culture of caring that serve the
interests of their stakeholders, who are defined by the acronym
SPICE: Society, Partners, Investors, Customers, and Employees.
Sisodia and colleagues believe Firms of Endearment create a
love affair with stakeholders. The authors see the 21st-century
marketing paradigm as creating value for all stakeholders and
becoming a beloved firm. Table 23.2 lists firms receiving top
marks as Firms of Endearment from a sample of thousands of
customers, employees, and suppliers.
*
23-*
Corporate Social ResponsibilityLegal behaviorEthical
behaviorSocial responsibility behavior & socially responsible
business modelsSustainability & greenwashing
Legal Behavior Organizations must ensure every employee
knows and observes relevant laws. For example, it’s illegal for
salespeople to lie to consumers or mislead them about the

advantages of buying a product.
Ethical Behavior Business practices come under attack because
business situations routinely pose ethical dilemmas: It’s not
easy to draw a clear line between normal marketing practice and
unethical behavior. Some issues can generate controversy or
sharply divide critics, such as acceptable marketing to children.
Social Responsibility Behavior Marketers must exercise their
social conscience in specific dealings with customers and
stakeholders. Some top-rated companies for corporate social
responsibility are Whole Foods, Walt Disney, Coca- Cola,
Johnson & Johnson, and Google. Companies that innovate
solutions and values in a socially responsible way are most
likely to succeed. Companies such as The Body Shop, Working
Assets, and Smith & Hawken are also giving social
responsibility a more prominent role, as has Newman’s Own.
More firms are coming to believe corporate social responsibility
in the form of cause marketing and employee volunteerism
programs is not just the “right thing” but also the “smart thing
to do.
Sustainability Sustainability—the ability to meet humanity’s
needs without harming future generations—now tops many
corporate agendas. Major corporations outline in great detail
how they are trying to improve the long-term impact of their
actions on communities and the environment. Coca-Cola,
AT&T, and DuPont have even installed Chief Sustainability
Officers. Heightened interest in sustainability has also
unfortunately resulted in greenwashing, which gives products
the appearance of being environmentally friendly without living
up to that promise.
*

23-*
Cause-Related MarketingLinks the firm’s contributions toward a
designated cause to customers’ engaging directly or indirectly
in revenue-producing transactions with the firm
Is part of corporate societal marketing (CSM)
Many firms blend corporate social responsibility initiatives with
marketing activities. Minette Drumwright and Patrick Murphy
define CSM as marketing efforts “that have at least one
noneconomic objective related to social welfare and use the
resources of the company and/or of its partners.” Drumwright
and Murphy also include traditional and strategic philanthropy
and volunteerism in CSM.
*
23-*
Cause-Related Marketing
Builds brand awareness
Enhances brand image
Establishes brand credibility
Evokes brand feelings
Creates brand community
Elicits brand engagement
A successful cause-marketing program can improve social
welfare, create differentiated brand positioning, build strong
consumer bonds, enhance the company’s public image, create a
reservoir of goodwill, boost internal morale and galvanize
employees, drive sales, and increase the firm’s market value.
Consumers may develop a strong, unique bond with the firm
that transcends normal marketplace transactions.
*

23-*
Cause-Related MarketingAlign focus area with your
missionEvaluate institutional “will” and resourcesAnalyze
competitors’ cause positioningChoose partners carefullyDon’t
underestimate program nameDevelop cross-functional strategy
teamLeverage your assets with partner(s)Communicate through
every channelGo localInnovate
Designing a Cause Program Firms must make a number of
decisions in designing and implementing a cause-marketing
program, such as how many and which cause(s) to choose and
how to brand the cause program. “Marketing Memo: Making a
Difference: Top 10 Tips for Cause Branding” provides some
tips from a top cause-marketing firm.
*
23-*
Social MarketingSocial marketing by nonprofits or government
organizations furthers a cause
Cause-related marketing supports a cause. Social marketing by
nonprofit or government organizations furthers a cause, such as
“say no to drugs” or “exercise more and eat better.
*
23-*

Social Marketing
Choosing the right goal or objective for a social marketing
program is critical. Should a family-planning campaign focus on
abstinence or birth control? Should a campaign to fight air
pollution focus on ride sharing or mass transit? Table 23.3
illustrates the range of possible objectives.
*
23-*
Social Marketing
Choose target markets ready to respond
Promote doable behavior in simple terms
Explain the benefits in compelling terms
Make it easy to adopt the behavior
Develop attention-grabbing messages
Use education-entertainment approach
While social marketing uses a number of different tactics to
achieve its goals, the planning process follows many of the
same steps as for traditional products and services (see Table
23.4).
*
23-*
Marketing Implementation/Control
Table 23.5 summarizes the characteristics of a great marketing
company, great not for what it is but for what it does. Great
marketing companies know the best marketers thoughtfully and

creatively devise marketing plans and then bring them to life.
Marketing implementation and control are critical to making
sure marketing plans have their intended results year after year.
*
23-*
Marketing Implementation/ControlMarketing implementation
The process that turns marketing plans into action assignments
and ensures they accomplish the plan’s stated objectives
Marketing resource management (MRM) software
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. They are closely related: One layer of strategy
implies certain tactical implementation assignments at a lower
level. For example, top management’s strategic decision to
“harvest” a product must be translated into specific actions and
assignments.
Marketing resource management (MRM) software provides a set
of Web-based applications that automate and integrate project
management, campaign management, budget management, asset
management, brand management, customer relationship
management, and knowledge management. The knowledge
management component consists of process templates, how-to
wizards, and best practices. Software packages can provide what
some have called desktop marketing, giving marketers
information and decision structures on computer dashboards.
MRM software lets marketers improve spending and investment
decisions, bring new products to market more quickly, and
reduce decision time and costs.
*

23-*
Marketing Implementation/ControlMarketing control
The process by which firms assess the effects of their marketing
activities and programs and make necessary changes and
adjustments
Annual Plan Control
Profitability Control
Efficiency Control
Strategic Control
Table 23.6 lists four types of needed marketing control: annual-
plan control, profitability control, efficiency control, and
strategic control.
Annual-Plan Control Annual-plan control ensures the company
achieves the sales, profits, and other goals established in its
annual plan.
Profitability Control Companies should measure the
profitability of their products, territories, customer groups,
segments, trade channels, and order sizes to help determine
whether to expand, reduce, or eliminate any products or
marketing activities.
Efficiency Control. Some companies have established a
marketing controller position to work out of the controller’s
office but specialize in improving marketing efficiency. These
marketing controllers examine adherence to profit plans, help
prepare brand managers’ budgets, measure the efficiency of
promotions, analyze media production costs, evaluate customer
and geographic profitability, and educate marketing staff on the
financial implications of marketing decisions.

Strategic Control Each company should periodically reassess its
strategic approach to the marketplace with a good marketing
audit. Companies can also perform marketing excellence
reviews and ethical/social responsibility reviews.
*
23-*
Annual plan controlMarketing metrics
Sales metrics
Customer readiness to buy metrics
Customer metrics
Distribution metrics
Communication metrics
At its heart is management by objectives (see Figure 23.5).
First, management sets monthly or quarterly goals. Second, it
monitors performance in the marketplace. Third, management
determines the causes of serious performance deviations.
Fourth, it takes corrective action to close gaps between goals
and performance.
Marketers today have better marketing metrics for measuring
the performance of marketing plans (see Table 23.7 for some
samples).73 Four tools for the purpose are sales analysis,
market share analysis, marketing expense-to-sales analysis, and
financial analysis. The chapter appendix outlines them in detail.
*
23-*

Strategic ControlMarketing audit
A comprehensive, systematic, independent, and 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
23-*
Strategic ControlMarketing audit’s characteristics
Comprehensive
Systematic
Independent
Periodic
Let’s examine the marketing audit’s four characteristics:
1. Comprehensive—The marketing audit covers all the major
marketing activities of a business, not just a few trouble spots
as in a functional audit.
2. Systematic—The marketing audit is an orderly examination
of the organization’s macro- and micromarketing environments,
marketing objectives and strategies, marketing systems, and
specific activities.
3. Independent—Self-audits, in which managers rate their own
operations, lack objectivity and independence. Usually,
however, outside consultants bring the necessary objectivity,
broad experience in a number of industries, familiarity with the
industry being audited, and undivided time and attention.
4. Periodic—Firms typically initiate marketing audits only after
failing to review their marketing operations during good times,
with resulting problems. A periodic marketing audit can benefit
companies in good health as well as those in trouble.
*

23-*
Marketing Audit Components
Marketing environment
Marketing strategy
Marketing organization
Marketing systems
Marketing productivity
Marketing function
The marketing audit examines six major components of the
company’s marketing situation. Table 23.8 lists the major
questions.
*
23-*
The Marketing Excellence Review
The three columns in Table 23.9 distinguish among poor, good,
and excellent business and marketing practices. The profile
management creates from indicating where it thinks the business
stands on each line can highlight where changes could help the
firm become a truly outstanding player in the marketplace.
*
23-*
The Future of MarketingThe coming years will see:

The demise of the marketing department and the rise of holistic
marketing
The demise of free-spending marketing and the rise of ROI
marketing
The demise of marketing intuition and the rise of marketing
science
The demise of manual marketing and the rise of both automated
and creative marketing
The demise of mass marketing and the rise of precision
marketing
To succeed in the future, marketing must be more holistic and
less departmental. Marketers must achieve wider influence in
the company, continuously create new ideas, and strive for
customer insight by treating customers differently but
appropriately. They must build their brands more through
performance than promotion. They must go electronic and win
through building superior information and communication
systems.
*
23-*
Holistic MarketingCRMPRMDatabase marketing & data
miningContact center management & telemarketingDigital
marketing & social mediaPR marketingBrand-building & brand-
asset managementExperiential marketingIntegrated marketing
communicationsProfitability analysis
To accomplish these changes and become truly holistic,
marketers need a new set of skills and competencies listed on
this slide.
*

23-*
With globalization, deregulation, market fragmentation,
consumer empowerment, environmental concerns, and all the
remarkable developments in communication technology, the
world has unquestionably become a very different place for
marketers. Table 23.1 summarizes some important shifts in
marketing realities.
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.
Uncovering. Using data mining and other analytical methods to
develop deep insights into customers and how they behave.
*
in a networked enterprise, every functional area can interact
directly with customers. Marketing no longer has sole
ownership of customer interactions; it now must integrate all
the customer-facing processes so customers see a single face
and hear a single voice when they interact with the firm.
*
Modern marketing departments can be organized in a number of
different, sometimes overlapping ways: functionally,
geographically, by product or brand, by market, or in a matrix.
Functional Organization In the most common form of marketing
organization, functional specialists report to a marketing vice
president who coordinates their activities.

Geographic Organization A company selling in a national
market often organizes its sales force (and sometimes its
marketing) along geographic lines. The national sales manager
may supervise four regional sales managers, who each supervise
six zone managers, who in turn supervise eight district sales
managers, who each supervise 10 salespeople. Some companies
are adding area market specialists (regional or local marketing
managers) to support sales efforts in high-volume markets.
Product- or Brand-Management Organization Companies
producing a variety of products and brands often establish a
product- (or brand-) management organization. This does not
replace the functional organization but serves as another layer
of management. A group product manager supervises product
category managers, who in turn supervise specific product and
brand managers.
Market-Management Organization When customers fall into
different user groups with distinct buying preferences and
practices, a market-management organization is desirable.
Market managers supervise several market-development
managers, market specialists, or industry specialists and draw
on functional services as needed. Market managers of important
markets might even have functional specialists reporting to
them.
Matrix-Management Organization Companies that produce many
products for many markets may adopt a matrix organization
employing both product and market managers.
*
Figure 23.1 shows five specialists. Others might include a
customer service manager, a marketing planning manager, a
market logistics manager, a direct marketing manager, and a
digital marketing manager.
*

A product-management organization makes sense if the
company’s products are quite different or there are more than a
functional organization can handle. This form is sometimes
characterized as a hub-and-spoke system. The brand or product
manager is figuratively at the center, with spokes leading to
various departments representing working relationships (see
Figure 23.2).
*
The product-management organization lets the product manager
concentrate on developing a cost-effective marketing program
and react more quickly to new products in the marketplace; it
also gives the company’s smaller brands a product advocate.
*
A second alternative in a product-management organization is
product teams. There are three types: vertical, triangular, and
horizontal (see Figure 23.3). The triangular and horizontal
product-team approaches let each major brand be run by a
brand-asset management team (BAMT) consisting of key
representatives from functions that affect the brand’s
performance. The company consists of several BAMTs that
periodically report to a BAMT directors committee, which itself
reports to a chief branding officer. This is quite different from
the way brands have traditionally been handled.
A third alternative is to eliminate product manager positions for
minor products and assign two or more products to each
remaining manager. This is feasible when two or more products
appeal to a similar set of needs. A cosmetics company doesn’t
need product managers for each product because cosmetics
serve one major need—beauty. A toiletries company needs
different managers for headache remedies, toothpaste, soap, and
shampoo because these products differ in use and appeal.
In a fourth alternative, category management, a company
focuses on product categories to manage its brands. Procter &
Gamble (P&G), a pioneer of the brand-management system, and

other top packaged- goods firms have made a major shift to
category management, as have firms outside the grocery
channel. Diageo’s shift to category management was seen as a
means to better manage the development of premium brands. It
also helped the firm address the plight of under-performing
brands.
*
Market managers are staff (not line) people, with duties like
those of product managers. They develop long-range and annual
plans for their markets and are judged by their market’s growth
and profitability. Because this system organizes marketing
activity to meet the needs of distinct customer groups, it shares
many advantages and disadvantages of product-management
systems. Many companies are reorganizing along market lines
and becoming market-centered organizations. Xerox converted
from geographic selling to selling
by industry, as did IBM and Hewlett-Packard.
When a close relationship is advantageous, such as when
customers have diverse and complex requirements and buy an
integrated bundle of products and services, a customer-
management organization, which deals with individual
customers rather than the mass market or even market segments,
should prevail.
*
Many companies realize they’re not yet really market and
customer driven—they are product and sales driven.
Transforming into a true market-driven company requires,
among other actions: (1) developing a company-wide passion
for customers; (2) organizing around customer segments instead
of products; and (3) understanding customers through
qualitative and quantitative research. The task is not easy, but
the payoffs can be considerable. See “Marketing Insight: The
Marketing CEO” for concrete actions a CEO can take to
improve marketing capabilities.
*

Effective internal marketing must be matched by a strong sense
of ethics, values, and social responsibility. Taking a more
active, strategic role in corporate social responsibility is
thought to benefit not just customers, employees, community,
and the environment but also shareholders. Firms feel they also
benefit in different ways, as Figure 23.4 illustrates.
*
Researchers Raj Sisodia, David Wolfe, and Jag Sheth believe
humanistic companies make great companies. They see “Firms
of Endearment” as those with a culture of caring that serve the
interests of their stakeholders, who are defined by the acronym
SPICE: Society, Partners, Investors, Customers, and Employees.
Sisodia and colleagues believe Firms of Endearment create a
love affair with stakeholders. The authors see the 21st-century
marketing paradigm as creating value for all stakeholders and
becoming a beloved firm. Table 23.2 lists firms receiving top
marks as Firms of Endearment from a sample of thousands of
customers, employees, and suppliers.
*
Legal Behavior Organizations must ensure every employee
knows and observes relevant laws. For example, it’s illegal for
salespeople to lie to consumers or mislead them about the
advantages of buying a product.
Ethical Behavior Business practices come under attack because
business situations routinely pose ethical dilemmas: It’s not
easy to draw a clear line between normal marketing practice and
unethical behavior. Some issues can generate controversy or
sharply divide critics, such as acceptable marketing to children.
Social Responsibility Behavior Marketers must exercise their
social conscience in specific dealings with customers and
stakeholders. Some top-rated companies for corporate social
responsibility are Whole Foods, Walt Disney, Coca- Cola,
Johnson & Johnson, and Google. Companies that innovate
solutions and values in a socially responsible way are most

likely to succeed. Companies such as The Body Shop, Working
Assets, and Smith & Hawken are also giving social
responsibility a more prominent role, as has Newman’s Own.
More firms are coming to believe corporate social responsibility
in the form of cause marketing and employee volunteerism
programs is not just the “right thing” but also the “smart thing
to do.
Sustainability Sustainability—the ability to meet humanity’s
needs without harming future generations—now tops many
corporate agendas. Major corporations outline in great detail
how they are trying to improve the long-term impact of their
actions on communities and the environment. Coca-Cola,
AT&T, and DuPont have even installed Chief Sustainability
Officers. Heightened interest in sustainability has also
unfortunately resulted in greenwashing, which gives products
the appearance of being environmentally friendly without living
up to that promise.
*
Many firms blend corporate social responsibility initiatives with
marketing activities. Minette Drumwright and Patrick Murphy
define CSM as marketing efforts “that have at least one
noneconomic objective related to social welfare and use the
resources of the company and/or of its partners.” Drumwright
and Murphy also include traditional and strategic philanthropy
and volunteerism in CSM.
*
A successful cause-marketing program can improve social
welfare, create differentiated brand positioning, build strong
consumer bonds, enhance the company’s public image, create a
reservoir of goodwill, boost internal morale and galvanize
employees, drive sales, and increase the firm’s market value.
Consumers may develop a strong, unique bond with the firm
that transcends normal marketplace transactions.
*
Designing a Cause Program Firms must make a number of

decisions in designing and implementing a cause-marketing
program, such as how many and which cause(s) to choose and
how to brand the cause program. “Marketing Memo: Making a
Difference: Top 10 Tips for Cause Branding” provides some
tips from a top cause-marketing firm.
*
Cause-related marketing supports a cause. Social marketing by
nonprofit or government organizations furthers a cause, such as
“say no to drugs” or “exercise more and eat better.
*
Choosing the right goal or objective for a social marketing
program is critical. Should a family-planning campaign focus on
abstinence or birth control? Should a campaign to fight air
pollution focus on ride sharing or mass transit? Table 23.3
illustrates the range of possible objectives.
*
While social marketing uses a number of different tactics to
achieve its goals, the planning process follows many of the
same steps as for traditional products and services (see Table
23.4).
*
Table 23.5 summarizes the characteristics of a great marketing
company, great not for what it is but for what it does. Great
marketing companies know the best marketers thoughtfully and
creatively devise marketing plans and then bring them to life.
Marketing implementation and control are critical to making
sure marketing plans have their intended results year after year.
*
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. They are closely related: One layer of strategy
implies certain tactical implementation assignments at a lower
level. For example, top management’s strategic decision to
“harvest” a product must be translated into specific actions and
assignments.

Marketing resource management (MRM) software provides a set
of Web-based applications that automate and integrate project
management, campaign management, budget management, asset
management, brand management, customer relationship
management, and knowledge management. The knowledge
management component consists of process templates, how-to
wizards, and best practices. Software packages can provide what
some have called desktop marketing, giving marketers
information and decision structures on computer dashboards.
MRM software lets marketers improve spending and investment
decisions, bring new products to market more quickly, and
reduce decision time and costs.
*
Table 23.6 lists four types of needed marketing control: annual-
plan control, profitability control, efficiency control, and
strategic control.
Annual-Plan Control Annual-plan control ensures the company
achieves the sales, profits, and other goals established in its
annual plan.
Profitability Control Companies should measure the
profitability of their products, territories, customer groups,
segments, trade channels, and order sizes to help determine
whether to expand, reduce, or eliminate any products or
marketing activities.
Efficiency Control. Some companies have established a
marketing controller position to work out of the controller’s
office but specialize in improving marketing efficiency. These
marketing controllers examine adherence to profit plans, help
prepare brand managers’ budgets, measure the efficiency of
promotions, analyze media production costs, evaluate customer
and geographic profitability, and educate marketing staff on the
financial implications of marketing decisions.

Strategic Control Each company should periodically reassess its
strategic approach to the marketplace with a good marketing
audit. Companies can also perform marketing excellence
reviews and ethical/social responsibility reviews.
*
At its heart is management by objectives (see Figure 23.5).
First, management sets monthly or quarterly goals. Second, it
monitors performance in the marketplace. Third, management
determines the causes of serious performance deviations.
Fourth, it takes corrective action to close gaps between goals
and performance.
Marketers today have better marketing metrics for measuring
the performance of marketing plans (see Table 23.7 for some
samples).73 Four tools for the purpose are sales analysis,
market share analysis, marketing expense-to-sales analysis, and
financial analysis. The chapter appendix outlines them in detail.
*
Let’s examine the marketing audit’s four characteristics:
1. Comprehensive—The marketing audit covers all the major
marketing activities of a business, not just a few trouble spots
as in a functional audit.
2. Systematic—The marketing audit is an orderly examination
of the organization’s macro- and micromarketing environments,
marketing objectives and strategies, marketing systems, and
specific activities.
3. Independent—Self-audits, in which managers rate their own
operations, lack objectivity and independence. Usually,
however, outside consultants bring the necessary objectivity,
broad experience in a number of industries, familiarity with the
industry being audited, and undivided time and attention.
4. Periodic—Firms typically initiate marketing audits only after
failing to review their marketing operations during good times,
with resulting problems. A periodic marketing audit can benefit
companies in good health as well as those in trouble.

*
The marketing audit examines six major components of the
company’s marketing situation. Table 23.8 lists the major
questions.
*
The three columns in Table 23.9 distinguish among poor, good,
and excellent business and marketing practices. The profile
management creates from indicating where it thinks the business
stands on each line can highlight where changes could help the
firm become a truly outstanding player in the marketplace.
*
To succeed in the future, marketing must be more holistic and
less departmental. Marketers must achieve wider influence in
the company, continuously create new ideas, and strive for
customer insight by treating customers differently but
appropriately. They must build their brands more through
performance than promotion. They must go electronic and win
through building superior information and communication
systems.
*
To accomplish these changes and become truly holistic,
marketers need a new set of skills and competencies listed on
this slide.
*
1
Running Head: Hernandez, Week 4
9
Distribution
An interesting thought of the digital world has changed the
marketing world as well. “Traditionally, the price has operated
as a major determinant of buyer retailers to lower prices.
Internet has been changing the way buyers and sellers interact,”

(Kotler & Keller, 2016, p. 462) changing the way not only sales
occur online between the seller and the buyer but also has been
a game changer for businesses that have either gone bankrupt or
have had to close stores due to their major online sales demand.
Facebook wishes to leverage its database to introduce a product
which allows individuals to order food directly from their
website. Facebook hopes to introduce a food service like no
other, a service cues from real-time analysis of the data users
show interest. For example, Facebook’s algorithms note a spike
Pizza among people living in a particular city; it will offer
options for people to purchase Pizza from its website. The
success of the product depends on the distribution strategy
Facebook uses; distribution entails moving the product from the
producer to the consumers (Pang & Chen, 2014). The
distribution strategy utilized by Facebook is to be flexible
because the service anticipates and responds to demand in real
time.
An ideal distribution strategy for Facebook is direct
distribution. Direct distribution is a distribution strategy where
the company sells its products directly to the customer without
involving any intermediaries (Hanssens, Pauwels, & Srinivasan,
2014). Facebook’s food service, direct distribution is ideal: it
gives the company plenty of control and opportunity to refine
its distribution strategy to satisfy customer demand.
Direct distribution eschews the use of intermediaries, enabling
Facebook to market the cost of the food its sells through the
service. Facebook isn’t traditionally in the food industry;
therefore, it will take billions of investment in its distribution
channel; however, the company will have obstacles to
overcome. Successful fast food franchises like Domino’s spent
billions of dollars in research and years to obtain a distribution
channel; to where customers in America can order Pizza and
have delivered within minutes of placing the order, which is
Facebook’s future goal.
A significant amount of capital needed to get a direct
distribution channel up and running means Facebook has to find

a partner with expertise and fleet to meet the demands of
Facebook’s customers. Facebook can deal with its distribution
problems if they collaborate with food companies to establish
distribution channels, such as Domino’s Pizza.
Facebook’s real-time data analysis predicts demands allows
customers to order food directly from the website while the
food industry uses their established distribution channels to get
the food to the customers. Facebook will roll out the service in
particular cities with a large number of Facebook users, for
example, New York. The distribution channel used by Facebook
for its new service is a mix of direct and selective distribution;
the nature of the product only makes it viable in regions with a
large number of users due to volume.
Pricing strategy
Facebook new service is entering a space dominated by
hundreds of competitors; the pricing philosophy aimed is to
capture a significant market share portion as soon as possible.
Unlike its competitors, Facebook has deep pockets of cash that
can be used to subsidize its products until they have a dominant
market position and can achieve profitability. The low pricing
enables Facebook to attract customers who are unfamiliar with
the food service but find a reasonable price. The aggressive
entry into the fast food business can trigger a price war;
however, Facebook has the necessary funding to ensure it is
successful.
The pricing strategy used is promotional pricing; promotional
pricing is a strategy aiming to increase sales by lowering the
cost of a product or service (Solomon, 2014). The stable
company introduces a new product, promotional pricing to draw
attention to the new service and increase demand. Facebook
risks losing money in this market, but hoping to attain a
dominant market position in a promptly manner to minimize
loss by offering food delivery to customers at low average
costs; with promotional pricing strategy allowing Facebook to
assess the viability of its new business venture.

Graph 1.1 Illustrates low prices correlate with an increase in
demand. ("K--K Club", 2003-2017).
References
Hanssens, Pauwels, & Srinivasan. (2014). Consumer attitude
metrics for guiding marketing mix decisions. Marketing
Science, 33(4), 534-550.
K--K Club. (2003-2017). Retrieved from http://k--
k.club/?p=54579
Kotler, P.T. & Keller, K.L. (2016). Marketing Management
(15th ed). Upper Saddle River, NJ: Pearson/Prentice Hall
Pang, & Chen. (2014). Coordinating inventory control and
pricing strategies for perishable products. Operations Research,
284-300.
Solomon. (2014). Consumer Behavior: Buying, having, and
being (Vol. 10). Englewood Cliffs, NJ: Prentice-Hall.
Purpose of Assignment
This assignment is designed to help students analyze and
understand how price setting and go to market (distribution) are
interrelated and affects the profitability and growth of the
business. It has been designed to be a short overview on
purpose: the concepts of pricing and distribution are complex
and a general understanding is what should be absorbed in one
week of study.
Assignment Steps
Construct a minimum 700-word plan for setting price and a
distribution model (place/distribution) in Microsoft® Word.
This plan should address at least three elements (from the Price
and Place/Distribution list below) of the Price and
Place/Distribution section of the marketing plan.

Price and Place/Distribution:
Distribution Strategies
Channels, Mass, Selective, Exclusive
Positioning within channels
Dynamic/Static Pricing Strategies
Channel tactics (Pricing)
Daily pricing, promotion pricing, List pricing
Note: Charts/graphs/tables do not count toward the word count.
The plan will be a continuation of your global or multi-regional
business you chose in Week 1. This will be incorporated into
your overall marketing plan for Week 6.
Cite a minimum of three peer-reviewed references. As stated in
the course guidelines, all assignment should include insight
from the chapter readings.
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Grading Guide
Content Met Partially Met Not Met Comments:
Student’s plan for setting price and a distribution model
(place/distribution) addresses at least three elements from the
Price and Place/Distribution list provided here. Need to have at
least one from each type. Price and Place/Distribution:
Distribution Strategies Channels, Mass, Selective,
Exclusive Positioning within channels Dynamic/Static Pricing
Strategies Channel tactics (Pricing) Daily pricing, promotion
pricing, List pricing 6 Points (2 per element) 2 -
Did not select 3 of the elements, identified but not justified
based on impact to launch plan as reflected on the left side. -
Did include insight from various learning activities but not for
the objectives related to each element. - Did not include
application to product/service being launched in both US and
internationally. -See additional insight from various
sections of the readings below - Should consider using images
from various resources as shown below.

The plan is a minimum of 700 words in length. Note:
Charts/graphs/tables do not count toward the word count. 1
Point 1 Your word count met minimum with
704 words and within the 10% of this minimum per prior
feedback.
7 2.5/7
Writing Guidelines Met . Partially Met . Not Met
Comments:
The paper—including tables and graphs, headings, title page,
and reference page—is consistent with APA formatting
guidelines and meets course-level requirements. Included
introductory paragraph based on description of assignment and
conclusion summarizing key topics.. 5 points .25
Met most criteria. Did not have full introductory paragraph
based on the syllabus description and conclusion summarizing
key issues..
Intellectual property is recognized with in-text citations and a
reference page.1 points 1 There were 3 peer-
reviewed articles and insight and had some chapter readings
with “quoted” cited and referenced.
Paragraph and sentence transitions are present, logical, and
maintain the flow throughout the paper. Sentences are complete,
clear, and concise. 5 points .5 Met criteria.
Rules of grammar and usage are followed including spelling and
punctuation and included both reports within course guidelines.
1 points 1 Did include both reports and within
guidelines
3 2.75/3

Assignment Total # 10 4.75/10
Additional comments: Your response to this assignment did not
adhere to the description in the syllabus and did not respond
from a US and international perspective. The assignment
required that 3 elements be identified, described and applied
which they were not. See additional notes below for feedback
which includes insight from the various learning activities and
chapter readings. Also, each chosen element should have a
response applied to US and international location for the
product that you are launching for week 6.
Good introduction as it outlines what will be covered based on
the description in the syllabus.
Good start with the target audience profile and be sure this is
only mentioned once in the final assignments and covers all
elements such as demographic, psychographic and buyer
behavior along with more detailed based demographics.
Good information related to the steps used in defining the
pricing strategy outlined below my grading guide.
How are returns handled, is there a full refund?
Review details below related to the process in establishing the
pricing for the plan. Be sure recommendations are justified
including any changes in currency exchange rates for
international pricing.
This strategy can change pending the geographic location.
How are they compensated and does this impact the final

pricing of the product? What other role do they have throughout
the distribution strategy?
Be sure to define and give recommendations on all elements of
the Placement which may include intermediaries, distributors
along with suppliers and retailers. What issues and challenges
are you expecting with these various parts of the placement
strategy?
Consider using tables and other illustrations to describe
domestic and international placement strategies. See example
below for illustration ideas.
Below is information to review and consider using to update
each section for your final week 6 assignment.
Identify all pricing options and justify what your recommended
pricing strategy will be including various policies.
Below are some notes related to establishing a pricing strategy.
According to (Kotler,P. & Keller, K.L., 2007, p.230)
‘Companies usually do not set a single price but, rather, a
pricing structure that reflects variations in geographical demand
and costs, market-segment requirements, purchase timing, order
levels, delivery frequency, guarantees, service contracts, and
other factors.”
Also, I want to reiterate some points from the readings related
to pricing that may have already been cited but should be
considered for use within your team papers:
1. Kotler and Keller (2007) discuss that each price factor leads
to different levels of demand and thus varying impact on
marketing objectives (Kotler,P. & Keller, K.L., 2007, p.220).
As such, the most important factor in price setting typically is
selecting the pricing objective. Notice that I said typically, as
the answer can vary depending on the scenario or situation.
2. Whether the company’s objective is survival, maximizing

current profit, maximizing market share, maximizing market
skimming, or product-quality leadership, this factor will
determine the actions related to the remaining factors (Kotler,P.
& Keller, K.L., 2007, p.220).
3. Adapting of the price is also important because of differences
in the consumers geography, income, market segments, etc
(Kotler,P. & Keller, K.L., 2007, p.230).
4. For example, a company in Texas may charge local
consumers enough to just hit the profit margin; however, if the
same company sends it product to California, it may charge
enough not only to break even, but also additional to cover the
price of shipping/transporting the product (Kotler, & Keller,
2007, pg. 230).
5. Another important part of adapting pricing is the ability to
offer discounts for such things as quantity (pay less for buying
more), paying early (paying your bill quicker than the
negotiated due date), seasonal discounts (Kotler,P. & Keller,
K.L., 2007, p.231). This adaptation allows the company to
maximize profit potential.
6. How will the three C's related to setting a pricing method
seen in Figure 14.4 be used in establishing the pricing strategy?
“Pricing decisions are complex and must take into account many
factors—the company, the customers, the competition, and the
marketing environment. Holistic marketers know their pricing
decisions must also be consistent with the firm’s marketing
strategy and its target markets and brand positions.” (Kotler &
Keller 2016 p 461)
Also, when setting a price the following is a six step process
that should be adhered to based on
1) Selecting The Pricing Objective
2) Determining Demand
3) Estimating Cost
4) Analyzing Competitors’ Cost, Prices, and Offers
5) Selecting A Pricing Method

6) Selecting The Final Price
Within these steps, the five major objectives of pricing are
survival, maximum current profit, maximum market share,
maximum market skimming, or product-quality leadership
(Kotler, P. & Keller, K.L., 2007, p.220).
Finally, payment methods that are accepted and refund policies
should conclude this section.
Describe your placement strategy including both inbound and
outbound distribution channels.
This section should cover both placement and channel
distribution strategies. The focus of a placement strategy is
making goods and services available in the right quantities and
locations, when customers want them and most important where
they expect to find the product for purchase. The strategy may
differ when different target markets such as geographic location
have different needs, thus the number of place tactics maybe
required. The placement should also cover the various
distribution channel options which focus on when and how a
product goes from the manufacturer, to the supplier using
various intermediaries or vendors to reach the consumer. Thus
any series of firms or individuals who participate in the flow of
products from producer to final user or consumer is the focus of
this section.
Questions to consider for this section are:
1. What resources are used for both placement and distribution
strategies.
2. Describe any pertinent inbound, outbound, direct, indirect,
push and pull distribution and channels strategies.
3. What logistics are needed to support the various channel
strategies for both inbound and outbound?
4. How does geographical location affect your selection of

distribution channels and what is your placement strategy for
each location?
5. Identify any technology that maybe used to support the
logistics of your strategies such as CRM/MRP or ERP systems
and how does it play in managing distribution channels in your
company or for your team project?
6. How might these strategies be modified over the course of
the PLC?
Option 1 Distribution Strategies:
Describe inbound and outbound process
Identify resources
Develop terms, policies and procedures
Page 501
A one-level channel contains one selling intermediary, such as a
retailer. A two-level channel contains two intermediaries,
typically a wholesaler and a retailer, and a three-level
channel contains three. In the meatpacking industry,
wholesalers sell to jobbers essentially small-scale wholesalers,
who sell to small retailers.

Option 2 Channels, Mass, Selective, Exclusive
The three strategies are shown below with key issues too focus
your application on.
(Kotler & Keller, 2016, p. 506).
Page 494
In managing its intermediaries, the firm must decide how much
effort to devote to push and to pull marketing. A push
strategy uses the manufacturer’s sales force, trade promotion
money, or other means to induce intermediaries to carry,
promote, and sell the product to end users. This strategy is
particularly appropriate when there is low brand loyalty in a
category, brand choice is made in the store, the product is an
impulse item, and product benefits are well understood.
In a pull strategy the manufacturer uses advertising, promotion,
and other forms of communication to persuade consumers to
demand the product from intermediaries, thus inducing the
intermediaries to order it. This strategy is particularly
appropriate when there is high brand loyalty and high
involvement in the category, when consumers are able to
perceive differences between brands, and when they choose the
brand before they go to the store.

NUMBER OF INTERMEDIARIES
Three strategies based on the number of intermediaries are
exclusive, selective, and intensive distribution.
Page 506
TERMS AND RESPONSIBILITIES OF CHANNEL MEMBERS
Each channel member must be treated respectfully and be given
the opportunity to be profitable. The main elements in the
“trade relations mix” are price policies, conditions of sale,
territorial rights, and specific services to be performed by each
party.
• Price policy calls for the producer to establish a price list and
schedule of discounts and allowances that intermediaries see as
equitable and sufficient.
• Conditions of sale refers to payment terms and producer
guarantees. Most producers grant cash discounts to distributors
for early payment. They might also offer a guarantee against
defective merchandise or price declines, creating an incentive to
buy larger quantities.
• Distributors’ territorial rights define the distributors’
territories and the terms under which the producer will
enfranchise other distributors. Distributors normally expect to
receive full credit for all sales in their territory, whether or not
they did the selling.
• Mutual services and responsibilities must be carefully spelled
out, especially in franchised and exclusive-agency channels.
McDonald’s provides franchisees with a building, promotional
support, a record-keeping system, training, and general
administrative and technical assistance. In turn, franchisees are
expected to satisfy company standards for the physical
facilities, cooperate with new promotional programs, furnish
requested information, and buy supplies from specified vendors,
as well as pay monthly franchisee fees.
Option 3 Positioning within channels

Channel positioning refers to how the company views its
relationships with the reseller or customers. Narus and
Anderson said that for a company to gain “a strong, competitive
presence in the final-customer marketplace, manufacturers must
reward, cajole, and coax their distributor to take marketing
actions” (Narus & Anderson, 1988, para. 2). The steps required
for channel positioning are (Narus & Anderson, 1988, para. 12):
Determine performance expectation for distributors
Select and advantageous channel position
Construct a secure partnership advantage
Communicate and promote the channel position to distributors
Page 501
A zero-level channel, also called a direct marketing channel,
consists of a manufacturer selling directly to the final customer.
The major examples are mail order, online selling, TV selling,
telemarketing, door-to-door sales, home parties, and
manufacturer-owned stores. Traditionally, Franklin Mint sold
collectibles through mail order; Red Envelope sold gifts online;
Time-Life sold music and video collections through TV
commercials or longer “infomercials”; nonprofits and political
organizations and candidates use the telephone to raise funds;
Avon sales representatives sold cosmetics door to door;
Tupperware sold its containers via in-home parties; and Apple
sold computers and other consumer electronics through its own
stores. Many of these firms now sell directly to customers
online and via catalogs. Even traditional consumer-product
firms are considering adding direct-to-consumer e-commerce
sites to their channel mix. Kimberly-Clark launched an online
Kleenex Shop in the United Kingdom.27
A one-level channel contains one selling intermediary, such as a
retailer. A two-level channel contains two intermediaries,
typically a wholesaler and a retailer, and a three-level
channel contains three. In the meatpacking industry,
wholesalers sell to jobbers essentially small-scale wholesalers,

who sell to small retailers.
Option 4 Dynamic/Static Pricing Strategies
“Market leaders often face aggressive price cutting by smaller
firms trying to build market share” (Kotler & Keller, 2016, p.
487).
Dynamic pricing is the “adjustment of prices to charge
customers over time to maximize total revenues” (Gayon,
Talay-Degirmenci, Karaesmen, & Ormeci, 2009, para, 2). Many
companies vary their prices for both their on-line sales and in-
store sales depending on the location of the customers (Kotler &
Keller, 2016, p. 485). Static pricing is “one price is used at all
times” (Gayon, Talay-Degirmenci, Karaesmen, & Ormeci, 2009,
para, 1). Static pricing gives the consumers one price

regardless of their location.
The phenomenon of offering different pricing schedules to
different consumers and dynamically adjusting prices is
exploding. Merchants are adjusting process based on inventory
levels, item velocity or how fast it sells, competitor’s pricing,
and advertising. Even sports teams are adjusting ticket prices to
reflect the popularity of the competitor and the timing of the
game.
Page 484
DIFFERENTIATED PRICING
Companies often adjust their basic price to accommodate
differences among customers, products, locations, and so on.
Lands’ End creates men’s shirts in many different styles,
weights, and levels of quality. In March 2014, a men’s white
button-down shirt could cost as little as $19.99 or as much as
$70.00.73
Price discrimination occurs when a company sells a product or
service at two or more prices that do not reflect a proportional
difference in costs. In first-degree price discrimination, the
seller charges a separate price to each customer depending on
the intensity of his or her demand.
In second-degree price discrimination, the seller charges less to
buyers of larger volumes. With certain services such as cell
phone service, however, tiered pricing results in consumers
actually paying more with higher levels of usage. With the
iPhone, 3 percent of users accounted for 40 percent of the
traffic on AT&T’s network, resulting in costly network
upgrades to AT&T and causing the firm to set higher prices for
those users.74
In third-degree price discrimination, the seller charges different
amounts to different classes of buyers, as in the following
cases:75
Page 481 Fixed (Static) Pricing
Given that list prices stay fixed, they may understate the degree
of price inflation. They also make it harder for consumers to

compare competitive offerings. Although various citizens’
groups have tried to pressure companies to roll back some fees,
they don’t always get a sympathetic ear from state and local
governments, which use their own array of fees, fines, and
penalties to raise necessary revenue.
Companies justify the extra fees as the only fair and viable way
to cover expenses without losing customers. Many argue that it
makes sense to charge a premium for added services that cost
more to provide and that only some customers use. Thus, basic
costs can stay low. Companies also use fees to weed out
unprofitable customers or get them to change their behavior.
EDLP
A retailer using everyday low pricing (EDLP) charges a
constant low price with little or no price promotion or special
sales. Constant prices eliminate week-to-week price uncertainty
and the high-low pricing of promotion-oriented competitors.
In high-low pricing, the retailer charges higher prices on an
everyday basis but runs frequent promotions with prices
temporarily lower than the EDLP level.56
Option 5 Channel tactics (Pricing)
Page 483
Channel tactics (Pricing)
E-commerce uses a Web site to transact or facilitate the sale of
products and services online. Online retail sales have exploded,
and it is easy to see why. Online retailers can predictably
provide convenient, informative, and personalized experiences
for vastly different types of consumers and businesses. By
saving the cost of retail floor space, staff, and inventory, they
can also profitably sell low-volume products to niche markets.
(Kotler & Keller 2016 p 514)

In the United States, marketing channels account for between
30% and 50% of the selling price (Kotler & Keller, 2016).
Option 6 Daily pricing, promotion pricing, List pricing
“Market leaders often face aggressive price cutting by smaller
firms trying to build market share” (Kotler & Keller, 2016, p.
487).
. “A retailer using everyday low pricing (EDLP) charges a
sales. Regular prices eliminate week-to-week price uncertainty
and the high-low pricing of promotion-oriented competitors”
(Kotler & Keller, 2016, p. 478).
Page 482
PRICE DISCOUNTS AND ALLOWANCES
Most companies will adjust their list price and give discounts
and allowances for early payment, volume purchases, and off-
season buying (see Table 16.4).70 Companies must do this
carefully or find their profits much lower than planned.71
EDLP
A retailer using everyday low pricing (EDLP) charges a
sales. Constant prices eliminate week-to-week price uncertainty
and the high-low pricing of promotion-oriented competitors.
In high-low pricing, the retailer charges higher prices on an
everyday basis but runs frequent promotions with prices
temporarily lower than the EDLP level.56
References
Gayon, J., Talay-Degirmenci, I., Karaesmen, F., & Ormeci, E.
L. (2009). Optimal pricing and production policies of a make-
to-stock system with fluctuating demand. Engineering and
Informational Sciences, 23(2), 205-230. Retrieved from
http://search.proquest.com.contentproxy.phoenix.edu/docview/2

13039908?pq-origsite=summon&accountid=458
Kotler, P. T., & Keller, K. L. (2016). Marketing Management
(15th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.
Narus, J. A., & Anderson, J. C. (1988). Strengthen distributor
performance through channel positioning. Sloan Management
Review, 29(2), 31. Retrieved from
http://search.proquest.com.contentproxy.phoenix.edu/docview/2
24965853?pq-origsite=summon&accountid=458
1
2
The product
The company selected in the previous assignment is Facebook;
Facebook is the largest social media company in the world with
a database of over one billion people who actively share their
life including their tastes. Given the amount of data that billions
of users submit to Facebook, the company is in an excellent
position to introduce a new kind of on-demand food service that
leverages user information into a product that forecasts food
demand in different locations and allows consumers to purchase
on-demand food from the website. For instance, if Facebook
notices a trend whereby users from New York are constantly

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