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What are the keys to effective internal marketing

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Assignment submission: summer internship

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What are the keys to effective internal marketing

  1. 1. Managing a Holistic Marketing Organization for the Long Run Part 2
  2. 2. What are the keys to internal effective marketing?
  3. 3. Traditionally marketers played the role of middlemen. That is they facilitated conversation between the firm and its customers.
  4. 4. Now, each functional area of the firm interacts with the buyers directly. Marketers are now required to integrate all the customer facing processes so that customers see and hear a single voice when interacting with the firm.
  5. 5. Internal marketing Requires everyone in the organization to accept the concepts and goals of marketing and place the customers at the centre. This requires co-ordination between the units of a firm.
  6. 6. The organization of the marketing department is an important aspect. There are a number of ways of organizing.
  7. 7. Functional Organization Advantages and Disadvantages
  8. 8. Administrative simplicity Difficulty in coordination
  9. 9. Geographic organization Applicable for companies selling in national and international markets
  10. 10. Product or Brand Management Organization Can be found in firms specializing in products which are quite different from each other. Note: This does not replace functional organization but serves as an additional layer of management Different systems under this organization
  11. 11. Hub and Spoke System Advantages and Disadvantages
  12. 12. Focus on building market share rather than customer relationships Fragmentation makes it harder to build a national strategy System is costly Give the firm’s smaller brands a product advocate React more quickly to new products in the market place Let s the product manager develop cost effective marketing programme Brand managers manage a brand only for a short time. Short term planning fails to build long term strengths Managers may lack the authority to carry out responsibilities They become experts in their product area but rarely achieve functional expertise
  13. 13. Product teams: Three types Vertical Triangular Horizontal
  14. 14. Product Manager R C F D S E M= Market researcher C= Communication specialist S= Sales Manager D= Distribution specialist F= Finance specialist E= Engineer
  15. 15. Product Manager M C M= Market researcher C= Communication specialist
  16. 16. Category Management Focuses on product categories to manage its brands Adopted by Proctor and Gamble Advantages cited by P&G
  17. 17. Ensure adequate resources for all categories Retail trade success after thinking of profitability in terms of product categories. So, P&G thought it would make sense to follow their path.
  18. 18. Market Management Organization Desirable when customers fall into different user groups with distinct buying preferences. Long range plans and profitability drawn for each individual customer group (Market).
  19. 19. Matrix Management Organization Desirable when firms produce many products for many markets. Employs both product and market managers
  20. 20. Relationships with other departments Departments define company goals from their view points. This often leads to conflicts. Co ordination required. Often facilitated through the CMO or Vice-president. Many firms now focus on key processes rather than departments to ensure smooth functioning.
  21. 21. To be a true market driven company Focus on Customers Customers Customers!
  22. 22. Being customer driven is necessary But not enough. A firm must also be creative to be successful.
  23. 23. Recap Internal Marketing Organizing the Marketing department (Functional, Geographic, Brand based, Market based, Matrix) Relationships with other departments
  24. 24. Thank you!

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