MARKETING MANAGEMENT

Dr. Prasanna Kumar Y N

BBM, MBA(HR&FINANCE), (PhD-MANAGEMENT),
D.LITT
 MODULE SIX:
SUSTAINING GROWTH AND CUSTOMER VALUE
MODULE SIX:
SUSTAINING GROWTH AND CUSTOMER VALUE
• New product development strategy
• Steps in new product development
• Managing holistic marketing organization: Internal marketing, CSR,
Cause related and socially responsible marketing, Marketing control
New product development strategy
Steps in new product development
Managing Holistic Marketing Organization: Internal Marketing
Internal Marketing

• Traditionally, marketers played the role of middleman, charged with

understanding customers’ needs and transmitting their voice to various
functional areas.

• But in a networked enterprise, every functional area can interact directly

with customers.

• Marketing no longer has sole ownership of customer interactions; rather, 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.
Let’s look at how marketing departments are being organized, how
they can work effectively with other departments, and how firms can
foster a creative marketing.

Organizing the Marketing Department culture across the

organization.
 FUNCTIONAL ORGANIZATION
 GEOGRAPHIC ORGANIZATION
 PRODUCT- OR BRAND-MANAGEMENT ORGANIZATION
 MARKET-MANAGEMENT ORGANIZATION
 MATRIX-MANAGEMENT ORGANIZATION
FUNCTIONAL ORGANIZATION

 In the most common form of marketing organization, functional specialists

report to a marketing vice president who coordinates their activities. Figure
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
GEOGRAPHIC ORGANIZATION

• A company selling in a national market often organizes its sales force

(and sometimes marketing) along geographic lines.
• The national sales manager may supervise 4 regional sales
managers, who each supervise 6 zone managers, who in turn
supervise 8 district sales managers, who each supervise 10
salespeople
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
 A product-management organization makes sense if the company’s
products are quite different or there are more than a functional
organization can handle.
The Product Manager’s Interactions
MARKET-MANAGEMENT ORGANIZATION
• Canon sells fax machines to consumer, business, and government
markets. Nippon Steel sells to the railroad, construction, and public
utility industries.
• 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.
MATRIX-MANAGEMENT ORGANIZATION
Companies that produce many products for many markets may adopt a
matrix organization employing both product and market managers.
Cause Related And Socially Responsible
Marketing
Cause-Related Marketing
• Many firms blend corporate social responsibility initiatives with
marketing activities “cause to customers” engaging directly or
indirectly in revenue-producing transactions with the firm.

• Cause marketing is part of corporate societal marketing (CSM), which

Minette Drumwright and Patrick Murphy define as marketing efforts
“that have at least one noneconomic objective related to social
welfare and use the resources of the company and/or of its partners.”
Socially Responsible Marketing
• Effective internal marketing must be matched by a strong sense of ethics, values,
and social responsibility.
• A number of forces are driving companies to practice a higher level of
corporate social responsibility, such as rising customer expectations, evolving
employee goals and ambitions, tighter government legislation and pressure,
investor interest in social criteria, media scrutiny, and changing business
procurement practices.
• Virtually all firms have decided to take a more active, strategic role in
corporate social responsibility, carefully scrutinizing what they believe in and
how they should treat their customers, employees, competitors, community,
and the environment. Taking this broader stakeholder view is believed to also
benefit another important constituency—shareholders
 The most admired—and most successful—companies in the world abide by a code
of serving people’s interests, not only their own.

 Procter & Gamble’s new CEO Bob McDonald has made “brand purpose” a key
component of the company’s marketing strategies, noting: “Consumers have a
higher expectation of brands and want to know what they are doing for the world.

 Consumers have a higher expectation of brands and want to know what they are
doing for the world. But it has to be authentic with a genuine desire to do it.”

 Downy fabric softener’s “Touch of Comfort” cause program, for example,

donates 5 cents from purchases to Quilts for Kids, an organization that works with
volunteer quilters to make and distribute custom-sewn quilts to children in
hospitals.
Marketing control
Marketing Implementation
• Marketing implementation is the process that turns marketing plans
into action assignments and ensures they accomplish the plan’s
stated objectives.

• 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
Marketing Control
Marketing control is the process by which firms assess the effects of
their marketing activities and programs and make necessary changes
and adjustments.
There are four types of marketing control: Annual-plan Control,
Profitability Control, Efficiency Control, And Strategic Control
What We Covered In This Unit
• New product development strategy
• Steps in new product development
• Managing holistic marketing organization: Internal marketing, CSR,
Cause related and socially responsible marketing, Marketing control