Week XVIII

Managing a Holistic Marketing Organization for

the Long Run
Trends in Marketing Practices

Internal Marketing

Socially Responsible Marketing

Marketing Implementation

Evaluation & Control

The Future of Marketing

Trends in Marketing Practices

Important changes in marketing macroenvironment:
(1) Globalization
(2) Deregulation
(3) Technological advances
(4) Customer empowerment
(5) Market fragmentation

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How companies restructured their business & marketing

practices in response to rapidly changing environment:
1) Reengineering appointing teams to manage customervalue-building processes & breakdown walls between
departments
2) Outsourcing buying goods & services from outside
domestic & foreign markets
3) Benchmarking studying best practice companies to
improve performance
4) Supplier Partnering partnering with fewer but valueadding suppliers
5) Customer Partnering working more closely with
customers to add value to their operations
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6) Merging acquiring firms in the same or complimentary

industries to gain economies of scale or scope
7) Globalizing increasing effort to think global & act local
8) Flattening reducing the number of organizational level to
get closer to the customer
9) Focusing determining the most profitable businesses &
customers & focusing on them
10) Accelerating designing the organization & setting up
processes to respond more quickly to changes in the
environment
11) Empowering encouraging & empowering personnel to
produce more ideas & take more initiative
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Internal Marketing
Everyone in the organization buy into the concepts
& goals of marketing & engage in choosing,
providing & communicating customer value.
How marketing departments can be organized:
I.

Functionally

II.

Geographically

III. By product or brand

IV. By market
V. In a matrix

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I. Functional Organization
VP Marketing

Marketing
Administratio
n
Manager

Advertising &
Sales Promotion
Manager

Sales
Manager

Marketing
Research
Manager

New
Products
Manager

The main advantage is administrative simplicity.

II. Geographical Organization

National
Sales
Manager

RSM Metro Manila

RSM - Luzon

District
Manager
South Luzon

RSM Visayas

RSM-Mindanao

District
Manager
North Luzon

They usually add an area market specialist to

support sales efforts in high volume markets.

III. Product or Brand Management Organization

They do not replace the functional organization

but they serve as another layer of management.
Product manager supervises product category
managers, who in turn surpevises specific
product & brand management.
They are a hub-and-spoke system.

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Some task of brand manager include:

(1) Develop long-range & competitive strategy for the
product
(2) Prepare an annual marketing plan & sales forecast
(3) Work w/ advertising & merchandising agencies to
develop copy, programs & campaigns
(4) Increasing support of the product among the sales
force & distributors
(5) Gathering continuous intelligence on the products
performance, customer & dealer attitudes & new
problems & opportunities
(6) Initiating product improvements to meet changing
market needs

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Disadvantage of Product Management

Organization include:
(1) They lack ebough authority to carry out
responsibility
(2) They become expert in product areas but rarely
achieve functional expertise
(3) This systems is costly
(4) They only manage a product/brand for a short time
(5) Fragmentation of markets makes it harder to
develop a national strategy
(6) They focus the company on building market share
rather than the customer relationship

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3 Types of Product Teams

Triangular Product Team
Product Manager

Product
Manager

Associate Product
Manager

Product Assistant

Vertical Product Team

Product Manager

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Horizontal Product Team

IV. Market-Management Organization

Market-management organization when customers
fall into different user groups w/ distinct buying
preferences & practices
Customer-management organization companies
organize themselves to understand & deal w/
individual customers rather than w/ mass market or
even market segments
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V. Matrix-Management Organization
Companies that produce many products for many
markets

Relations w/ Other Deparments

2 task of CMO or VP-Marketing:
(1) To coordinate companies internal marketing activities
(2) To coordinate marketing w/ finance, operations &
other company functions to serve the customer

Requirement to Build a Creative Marketing Org.

(1) Developing company-wide passion for customers
(2) Organizaing around customer segments instead of
products
(3) Understanding customers through qualitative &
quantitative research

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Socially Responsible Marketing

Corporate Social Responsibility
3 pronged attack:
(1) Legal behavior
(2) Ethical behavior
(3) Social responsibility behavior

Sustainability the importance of meeting humanity's

needs without harming future generations
Cause-Related Marketing links the firms
contributions to a designated cause to customers
engaging directly or indirectly in revenue-producing
transactions with the firm
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A successful Cause Marketing Program can:

(1) Improve social welfare
(2) Create differentiated brand positioning
(3) Build strong consumer bonds
(4) Enhance the company's public image w/
government officials & other decision makers
(5) Create a reservoir of goodwill
(6) Boost internal morale & galvanizing employees
(7) Drive sales
(8) Increase market value of firms

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Advantages of Cause Marketing:

(1) Build brand awareness
(2) Enhance brand image
(3) Establish brand credibility
(4) Evoke brand feelings
(5) Create a sense of brand community
(6) Elicit brand engagement

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Social Marketing programs possible objectives:

1) Cognitive Campaigns
(1) Expalin the nutritional value of different foods
(2) Explain the improtance of conservation

2) Action Campaigns
(1) Attract people for mass immunization
(2) Motivate people to vote yes on certain issues
(3) Motivate people to donate blood
(4) Motivate women to take the pap test

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3) Behavioral Campaigns
(1) Demotivate cigarette smoking
(2) Demotivate usage of hard drugs
(3) Demotivate excessive consumption of alcohol

4) Value Campaigns
(1) Alter ideas about abortion
(2) Change attitudes of bigoted people

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Marketing Implementation
Is the process that turns marketing planinto
action assignments & ensure that they
accomplish the plans stated objectives
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Characrteistics of a Good Marketing Company:

(1) Selects target markets in which it enjoys superioirs
advantages & exits/avoid markets where it is intrinsically
weak
(2) Employees & departments are customer & market minded
(3) Good working relationship between marketing, R&D &
manufacturing
(4) Good working relationship between marketing, sales &
customer service
(5) Have incentives to lead to the right behaviors
(6) Builds & tracks customers satisfaction & loyalty
(7) Skilled in building brand names & image
(8) Flexible in meeting customers varying requirements
(9) Manages value delivery system

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Evaluation & Control

Types of Control

Prime Responsibility

Purpose of Control

Annual Plan Control

Top Mangement
Middle Management

Examine whether
planned results are
being achieved

Profitability Control

Marketing controller

Examine whether the

company is making &
losing money

Efficiency Control

Line & staff

management
Marketing controller

Evaluate & improve

the spending
efficiency & impact
marketing
expenditures

Strategic control

Top management
Marketing Auditor

Examine whether the

company is pursuing
its best opportunities
w/ respect to
markets, products &
channels

Approaches

Sales analysis
Market share
analysis
Sales-to-expense
ratios

Types of
Control
Annual Plan
Control

Profitability
Control

Prime
Responsibility

Purpose of Control

Approaches
Sales analysis
Market share analysis
Sales to expense ratios
Financial analysis
Market based scorecard
analysis

Top
Mangement
Middle
Management

Examine whether planned results

are being achieved

Marketing
controller

Examine whether the company is Profitability by:

Product
making & losing money

Territory
Customer
Segment
Trade channel
Order size

Efficiency
Control

Strategic
control

Line & staff

management
Marketing
controller

Evaluate & improve the spending Efficiency by:

Sales force
efficiency & impact marketing
Advertising
expenditures

Top
management
Marketing
Auditor

Mktg effectiveness rating

Examine whether the company is
pursuing its best opportunities w/ instrument
Mktg audit
respect to markets, products &
Mktg excellence review
channels
Company ethical & social

Sales promotion
Distribution

responsibility review

The Future of Marketing

1) The demise of marketing department & the rise of
holistic marketing
2) The demise of free spending marketing & the rise
of ROI marketing
3) The demise of marketing intuition & the rise of
marketing science
4) The demise of manual marketing & the rise of
automated marketing
5) The demise of mass marketing & the rise of
precision marketing
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New set of skills & competencies:

1) Customer Relationship Management
2) Partner Relationship Management
3) Database marketing & datamining
4) Contact center management & telemarketing
5) Public relations marketing (including event &
sponsorship marketing)
6) Brand building & brand asset management
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