Assignment submission: summer internship

1. Managing a
Holistic
Marketing
Organization for
the Long Run
Part 2

2. What are the keys to
internal effective marketing?

3. Traditionally marketers played the role of middlemen. That is they facilitated
conversation between the firm and its customers.

4. Now, each functional area of the firm interacts with the
buyers directly. Marketers are now required to integrate
all the customer facing processes so that customers see
and hear a single voice when interacting with the firm.

5. Internal marketing
Requires everyone in the organization to accept the
concepts and goals of marketing and place the
customers at the centre.
This requires co-ordination between the units of a
firm.

6. The organization of the
marketing department is an
important aspect.
There are a number of ways of
organizing.

7. Functional Organization
Advantages and
Disadvantages

8. Administrative simplicity Difficulty in coordination

9. Geographic organization
Applicable for companies
selling in national and
international markets

10. Product or Brand Management Organization
Can be found in
firms specializing in
products which are
quite different from
each other.
Note: This does not
replace functional
organization but serves as
an additional layer of
management
Different systems
under this
organization

11. Hub and Spoke System
Advantages and Disadvantages

12. Focus on building market
share rather than
customer relationships
Fragmentation makes it
harder to build a national
strategy
System is costly
Give the firm’s smaller brands
a product advocate
React more quickly to new
products in the market place
Let s the product manager
develop cost effective
marketing programme
Brand managers manage a brand only
for a short time. Short term planning
fails to build long term strengths
Managers may lack the
authority to carry out
responsibilities
They become experts in their
product area but rarely achieve
functional expertise

13. Product teams:
Three types
Vertical
Triangular
Horizontal

15. Product Manager
R C F D S E
M= Market researcher
C= Communication
specialist
S= Sales Manager
D= Distribution
specialist
F= Finance specialist
E= Engineer

16. Product
Manager
M C
M= Market researcher
C= Communication
specialist

17. Category Management
Focuses on product
categories to manage its
brands
Adopted by
Proctor and Gamble
Advantages cited by P&G

18. Ensure adequate resources
for all categories
Retail trade success after
thinking of profitability in
terms of product categories.
So, P&G thought it would
make sense to follow their
path.

19. Market Management Organization
Desirable when customers fall into different user groups with distinct
buying preferences.
Long range plans and profitability drawn for each individual customer
group (Market).

20. Matrix Management Organization
Desirable when firms produce many
products for many markets.
Employs both product and market
managers

21. Relationships with other departments
Departments define company goals from their view
points. This often leads to conflicts.
Co ordination required. Often facilitated through
the CMO or Vice-president.
Many firms now focus on key
processes rather than departments
to ensure smooth functioning.

22. To be a true market driven company
Focus on
Customers
Customers
Customers!

23. Being customer driven is necessary
But not enough.
A firm must also be creative to be successful.

24. Recap
Internal Marketing
Organizing the Marketing department
(Functional, Geographic, Brand based,
Market based, Matrix)
Relationships with other departments

25. Thank you!