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Managing The Total Marketing Effort: Serial No. 9

The document discusses how companies organize their marketing departments and implement marketing activities. It describes four common ways to organize a marketing department: functional, geographic, product/brand management, and market management. Effective implementation requires allocating resources properly and regular evaluation of marketing plans through annual plan control, profitability analysis, efficiency control, and strategic control. This allows companies to assess their strategies and make adjustments to continuously improve marketing performance.

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94 views17 pages

Managing The Total Marketing Effort: Serial No. 9

The document discusses how companies organize their marketing departments and implement marketing activities. It describes four common ways to organize a marketing department: functional, geographic, product/brand management, and market management. Effective implementation requires allocating resources properly and regular evaluation of marketing plans through annual plan control, profitability analysis, efficiency control, and strategic control. This allows companies to assess their strategies and make adjustments to continuously improve marketing performance.

Uploaded by

PhD Scholar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Managing the total Marketing effort

Serial No. 9
Chapter 22
The goal of this chapter is to examine how
firms organize, implement, evaluate, and
control marketing activities.
Organizing the Marketing Department

• If a company can have an excellent marketing department,


and even then fails in marketing, why?
• It depends how other departments of the company views
customers. If they are pointing to the marketing department
and say “ they do the marketing”. Its mean the company has
not implemented effective marketing.
• Effecting marketing can only be possible when all employees
realize their job is to create, serve, and satisfy customer.
Organizing the Marketing Department
• Modern marketing departments can be
organized in a number of different ways:

• Functional Organization
• Geographic Organization
• Product or Brand management Organization
• Market Management Organization.
Organizing the Marketing
Department
• Functional Organization: The most common form of marketing
organization consists of functional specialist reporting to a marketing vice
president, who coordinates their activities.

• You must have the appropriate organization to effectively execute the


four Ps of the marketing mix. When a company is small, multiple functions
are often assigned to one person (i.e., PR and Advertising, etc.).  Later, as
the company grows there becomes too much work for one person and
the company must attain a team of specialist to manage the greater
efficiency.  At this point the organization must either train existing staff or
hire externally. 
Functional Organization
Geographic Organization:
Organizing the Marketing Department
• Product Management Organization:
• Companies producing a variety of products often establish a product
management organization. The product-management organization does
not replace the functional management organization, but serves as
another layer of management.
• A product manager supervises product category managers, who in turn
supervise specific product managers.
Organizing the Marketing Department
• Market- Management Organization: Many companies sell their product
to many different markets.
• Canon sells its fax machines to consumers, business, and government
markets.
• When customers fall into different user groups with distinct buying
preferences and practices, a market management organization is
desirable.
• Customer-management Organization: Companies can organize
themselves to understand and deal with individual customers rather than
with mass-market.
Marketing Implementation, Evaluation and
control
• Marketing implementation: is the process of turning plans into action
describing who does what, when, and how. Effective implementation
requires skills in allocating, monitoring, organizing, and interacting at all
levels of the marketing effort.
• 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.

• Evaluation and control: Markets have the altering behavior , it means the
needs and wants of target segment changes rapidly.
• After successfully implementation of companies marketing plans, it must
be evaluated and controlled.
Marketing Implementation, Evaluation
and control
• The proper control procedures calls for
• Annual plan control
• Profitability control
• Efficiency control
• Strategic control
Marketing Implementation, Evaluation
and control
• Annual-Plan Control: Annual plan control ensures the
company achieves the sales analysis, market share analysis,
sales to expense ratios, financial analysis.

• Sales analysis: planned sale against the actual sale.


• For example, if you planned the first quarter sale and that is
4000 units each price Afs 1. but at the end of that quarter the
actual sale is like 3000 units sold / each price 0.80 Afs
• The company should look closely at why it failed to achieve
expected sales volume.
Marketing Implementation, Evaluation
and control
• Market share analysis: indicates how well a firm is doing in
the marketplace compared to its competitors.
• Market share is the percentage or proportion of the total
available market or market segment that is being serviced by
a company.
• It can be expressed as a company's sales revenue (from that
market) divided by the total sales revenue available in that
market.
• It can also be expressed as a company's unit sales volume (in
a market) divided by the total volume of units sold in that
market.
Marketing Implementation, Evaluation and
control
• Marketing expense-to-sales analysis
• Annual plan control requires making sure the company isn’t overspending
to achieve goals. The key ratio to watch is marketing expense-to-sales.

• Financial Analysis:
• It is performed by professionals who prepare reports using ratios that
make use of information taken from Financial statements and other
reports. These reports are usually presented to top management as one
of their bases in making business decisions. Based on these reports,
management may:
• Continue or discontinue its main operation or part of its business;
• Make or purchase certain materials in the manufacture of its product;
• Acquire or rent/lease certain machineries and equipment in the
production of its goods;
Marketing Implementation, Evaluation and
control
• For example: we have gross profit (GP)=10,000,
Net profit = 1000 Sales=100,000
• Gross profit margin=gross profit/sales=10000/100000=0.10=10%
• Net Profit margin= net profit/sales=1000/100000=0.01=1%
• The company gross margin is 10 % and net profit margin is only
1%, which shows that the remaining 9% are expenses (salaries,
advertising, packaging). In annual-plan control the company can
control the un necessary expenses in order to increase the net
profit margin.
Marketing Implementation, Evaluation and
control
• Profitability control: Companies can benefit from deeper
financial analysis and should measure the profitability of their
product, territories, customer groups, and segments.
• This information can help the management determine
whether to expand, reduce, or eliminate any product or
marketing activities.
• Efficiency Control: Suppose a profitability analysis reveals the
company is earning poor profits in certain products,
territories, or markets. The company will search for efficient
ways to manage the sales force, advertising, sales promotion
and distribution.
Marketing Implementation, Evaluation and
control
• Strategic Control: Each company should periodically (regular time intervals)
reassess its strategic approach to the marketplace with a good marketing
audit.

• Marketing audit is a fundamental part of the marketing planning process. It


is conducted not only at the beginning of the process, but also at a series of
points during the implementation of the plan. The marketing audit
considers both internal and external influences on marketing planning, as
well as a review of the plan itself.

• There are a number of tools and audits that can be used, for example SWOT
analyses for the internal environment, as well as the external environment.
Other examples include PEST and Five Forces Analyses, which focus solely
on the external environment

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