Managing a Holistic Marketing Organization for Long Run

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CHAPTER 22
Managing a Holistic Marketing organization for Long Run

Trends in Marketing Practices
Reengineering: Appointing teams to manage customer-value-building processes and break down walls between departments. Outsourcing: Greater willingness to buy more goods and services from outside domestic or foreign vendors. Benchmarking: Studying "best practice companies" to improve performance. Supplier partnering: Increased 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: Increased effort 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. 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.

Internal Marketing
Organizing the Marketing Department
Functional Organization
Geographic Organization
Product or Brand management organization
Some of the tasks that product or brand managers may perform include: ▪ Developing a long-range and competitive strategy for the product. ▪ Preparing an annual marketing plan and sales forecast. ▪ Working with advertising and merchandising agencies to develop copy, programs, and campaigns. ▪ Increasing support of the product among the sales force and distributors. ▪ Gathering continuous intelligence on the product's performance, customer and dealer attitudes, and new problems and opportunities. ▪ Initiating product improvements to meet changing market needs.

This organization has some disadvantages too:
▪ Product managers and specifically brand managers are not given enough authority to carry out their responsibilities. They have to rely on persuasion to get the cooperation of other departments. ▪ Product and brand managers become experts in their product area but rarely achieve functional expertise. They vacillate between acting as experts and having to defer to real experts. ▪ The product management system often turns out to be costly. One person is appointed to manage each major product or brand and soon managers are appointed to manage even minor products and brands. ▪ Brand managers normally manage a brand for only a short time. Short-term involvement leads to short-term planning and plays havoc with building long-term strengths. ▪ The fragmentation of markets makes it harder to develop a national strategy from headquarters. ▪ Brand managers must increasingly please regional and local sales groups, resulting in a transfer of power from marketing to sales. ▪ Product and brand managers cause the company to focus on building market share rather than building the customer relationship. Yet the customer relationship, not the brand, may be the primary lever for value creation. MARKET-MANAGEMENT ORGANIZATION

▪ When customers fall into different user groups with distinct buying preferences and practices, a market-management organization is desirable. ▪ A market manager supervises several market managers (also called market-development managers, market specialists, or industry specialists). ▪ The market managers draw on functional services as needed. MATRIX-MANAGEMENT ORGANIZATION

▪ A matrix organization would seem desirable in a multiproduct, multimarket company. ▪ This system is costly and often creates conflicts.
▪ There is the cost of supporting all the managers.
▪ There are also questions about where authority and responsibility should reside.

Relation with other departments
Building a Creative Marketing Organization
▪ Developing a company-wide passion for customers.
▪ Organizing...
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