Managing a Holistic Marketing Organization for the Long Run

1. Managing a Holistic Marketing Organization for the Long Run

2. Corporate Social Responsibility • Socially responsible behavior Individual marketers must practice a "social conscience" in specific dealings with customers and stakeholders. (Increasingly, people say that they want information about a company's record on social and environmental responsibility to help decide which companies to buy from, invest in, and work for). • Ethical behavior Companies must adopt and disseminate a written code of ethics, build a company tradition of ethical behavior, and hold its people fully responsible for observing ethical and legal guidelines. .Legal behavior Society must use the law to define, as clearly as possible, those practices that are illegal, antisocial, or anticompetitive. Organizations must ensure that every employee knows and observes any relevant laws.

3. Corporate Social Responsibility 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. Palm oil was hailed as a renewable fuel for food companies looking to find a solution to a trans-fat ban, until its use was linked to the destruction of tropical rain forests and the extinction of the orangutan and the sun bear. When Greenpeace released a report criticizing Nestlé for purchasing palm oil for its KitKat candy bars from an Indonesian firm linked to rain forest destruction there, a social media war ensued. Protestors posted a negative video on YouTube, bombarded Twitter and Nestlé’s Facebook page, and took to the streets outside Nestlé’s Jakarta offices.

4. Cause-Related Marketing 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. Cause-related marketing is marketing that links the firm’s contributions to a designated cause to customers engaging directly or indirectly in revenue-producing transactions with the firm.

5. Cause-Marketing Benefits • Build brand awareness • Enhance brand image • Establish brand credibility • Evoke brand feelings • Create a sense of brand community • Elicit brand engagement

6. Branding a Cause Marketing Program • Self-branded: Create Own Cause Program • Co-branded: Link to Existing Cause Program • Jointly branded: Link to Existing Cause Program

7. Social Marketing Campaigns Cognitive Explain the nutritional values of different foods. Action Motivate people to vote “yes” on a certain issue

8. Social Marketing Campaigns Behavioral Demotivate cigarette smoking. Value Alter ideas about abortion.

9. Key Success Factors for Social Marketing Programs • Chose target markets that are ready to respond • Promote a single, doable behavior in clear, simple terms • Explain the benefits in compelling terms • Make it easy to adopt the behavior • Develop attention-grabbing messages • Consider an education-entertainment approach

10. Social Marketing Planning Process • Where are we? • Where do we want to go? • How will we get there? • How will we stay on course?

11. The Control Process

12. Strategic Marketing 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 is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments.

13. Types of Marketing Control Annual Plan Control Profitability Control Efficiency Control Strategic Control

14. Approaches to Annual Plan Control • Sales analysis • Market share analysis • Sales-to-expense ratios • Financial analysis • Market-based scorecard analysis

15. Approaches to Profitability Control • Product • Territory • Customer • Segment • Trade channel • Order size

16. Efficiency Control Approaches • Sales force • Advertising • Sales promotion • Distribution

17. Strategic Control Approaches • Marketing effectiveness rating instrument • Marketing audit • Marketing excellence review • Company ethical and social responsibility review

18. What is a Marketing Audit? A marketing audit is a comprehensive, systematic, independent, periodic examination of a company’s or business unit’s marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities, and recommending a plan of action to improve the company’s marketing performance.

19. Characteristics of Marketing Audits • Marketing audits have four characteristics: • Comprehensive—The marketing audit covers all the major marketing activities of a business, not just a few trouble spots as in a functional audit. • Systematic—The marketing audit is an orderly examination of the organization’s macro- and micromarketing environments, marketing objectives and strategies, marketing systems, and specific activities. • Independent— Self-audits, in which managers rate their own operations, lack objectivity and independence. • Periodic—Firms typically initiate marketing audits only after failing to review their marketing operations during good times, with resulting problems. A periodic marketing audit can benefit companies in good health as well as those in trouble.

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