Holistic marketing ppt

Copyright © 2016 Pearson Education, Inc. 23-*

Chapter
23

Managing a Holistic Marketing Organization for the Long Run

Copyright © 2016 Pearson Education, Inc. 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?

Copyright © 2016 Pearson Education, Inc. 23-*

Trends in
Marketing Practices

Reengineering
Outsourcing
Benchmarking
Supplier partnering
Customer partnering
Merging
Globalizing
Flattening
Focusing
Justifying
Accelerating
Empowering
Broadening
Monitoring
Uncovering
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.

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Internal Marketing

Internal 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.

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Organizing the Marketing Department

Functional organization
Geographic organization
Product- or brand-management organization
Market-management Organization
Matrix-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.

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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.

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Copyright © 2016 Pearson Education, Inc. 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).

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Copyright © 2016 Pearson Education, Inc. 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