Managing a Holistic Marketing Organization for the Long Run

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LEARNING OBJECTIVES
In this chapter, we will address the following questions:
1. What are important trends in marketing practices?
2. What are the keys to effective internal marketing?
3. How can companies be responsible social marketers?
4. How can a company improve its marketing skills?
5. What tools are available to help companies monitor and improve their marketing
activities?
SUMMARY
1. The modern marketing department has evolved through the years from a simple
sales department to an organizational structure where marketers work mainly
on cross‐disciplinary teams.
2. Some companies are organized by functional specialization; others focus on
geography and regionalization, product and brand management, or marketsegment
management. Some companies establish a matrix organization
consisting of both product and market managers.
3. Effective modern marketing organizations are marked by customer focus within
and strong cooperation among marketing, R&D, engineering, purchasing,
manufacturing, operations, finance, accounting, and credit.
4. Companies must practice social responsibility through their legal, ethical, and
social words and actions. Cause marketing can be a means for companies to
productively link social responsibility to consumer marketing programs. Social
marketing is done by a nonprofit or government organization to directly address
a social problem or cause.
5. A brilliant strategic marketing plan counts for little unless implemented properly,
including recognizing and diagnosing a problem, assessing where the problem
exists, and evaluating results.
C H A P T E R 22 MANAGING A
HOLISTIC MARKETING
ORGANIZATION FOR THE
LONG RUN

6. The marketing department must monitor and control marketing activities
continuously. Marketing plan control ensures the company achieves the sales,
profits, and other goals in its annual plan. The main tools are sales analysis,
market share analysis, marketing expense‐to‐sales analysis, and financial
analysis of the marketing plan. Profitability control measures and controls the
profitability of products, territories, customer groups, trade channels, and order
sizes. Efficiency control finds ways to increase the efficiency of the sales force,
advertising, sales promotion, and distribution. Strategic control periodically
reassesses the company’s strategic approach to the marketplace using marketing
effectiveness and marketing excellence reviews, as well as marketing audits.
7. Achieving marketing excellence in the future will require a new set of skills and
competencies.
OPENING THOUGHT
This chapter sums up the concept of marketing in today’s environment. Marketing must be
involved in all elements of the company’s operations and work closely with its suppliers,
channel partners, with the understanding that each element or function provides an
opportunity to market the product to the ultimate consumer. In many ways, this chapter
focuses on the “management” of marketing in terms of the ability of the marketing personnel
to work with cooperation and to encourage customer focus by each discipline. Marketers
today must also be concerned for the welfare of society as a whole. Finally, marketers must
focus their attention to the implementation process of solving marketing opportunities.
Students engaged in disciplines outside of marketing may present differing opinions of the
value of their discipline to the overall health of the organization. The instructor’s challenge is
to demonstrate how a holistic approach is preferable or even necessary in today’s (and more
so for the future) competitive environment. Companies that do not/will not adopt such a view
are likely to find that they are not competitive in the future.
TEACHING STRATEGY AND CLASS ORGANIZATION
PROJECTS
1. At this point in the semester-long marketing plan project, this chapter is the second of two
parts of oral presentations of the student’s projects. Students should emphasize here how
specifically, their marketing plans contain a holistic view of the marketing process.
2. The concept of “internal marketing” is prevalent now in popular books and magazines.
Students should read and review at least four sources from the Web and comment on what
additional information, techniques, and formulas for success they have discovered. How
does this information compare, contrast, or add to the information contained in the
chapter. What is the future of “internal marketing” and why are companies so intent on
succeeding?
3. Sonic PDA Marketing Plan: The last step in completing a marketing plan is to provide for
organizing, implementing, evaluating, and controlling the total marketing effort. In

addition to measuring progress toward financial targets and other objectives, marketers
need to plan how to audit and improve their marketing activities.
Sonic has asked you to plan the management of the marketing effort for the PDA product.
Look back at the objectives, strategies, and programs you have developed. Then answer
these questions:
• What is the most appropriate organization for Sonic’s marketing and sales
departments?
• What control measures should Sonic incorporate into its marketing plan?
• What can Sonic do to evaluate its marketing?
• How can Sonic evaluate its level of ethically and socially responsible marketing?
Summarize your answers in a written marketing plan or enter the answers in the Marketing
Organization and Implementation sections of Marketing Plan Pro.
ASSIGNMENTS
Successful holistic marketers have integrated relationship marketing, internal marketing, and
social marketing into their organizations. Students should chose three companies that they
believe practice holistic marketing and then defend their choices by outlining the marketing
programs of the selected companies.
Some companies like the Newman’s Own Brand, have built a business model on social
responsibility. Students should find three other examples of such socially responsible firms
and comment on whether or not they see “social responsibility” as a need component for
marketing in the future. Specifically, knowing what we now know about consumer-buying
behavior, is “socially responsible” a determinant for future success—is it a mega-trend? Or
just a “trend”?
In the Marketing Memo entitled “Fueling Strategic Innovation,” Professor Steven Brown of
Ulster University claims that marketers are spending too much of their time in research and
not enough in marketing imagination and producing products with significant consumer
impact. Split the class into two sections: pros and cons and have them defend/attack Professor
Brown’s assumption.
Have the students read Michael F. Porter and Mark R. Kramer, “Strategy & Society,”
Harvard Business Review, December 2006, pp. 78-82; Clayton M. Christense, Heiner
Baumann, Rudy Ruggles, and Thomas M. Stadtler, “Disruption Innovation for Social Change,
Harvard Business Review, December 2006, pp. 94-101 and report on their findings. In
particular, ask the students to comment on the sustainability of these concepts into the 21st
Century.
Students should research and find two examples of a successful cause-marketing program
currently available in their area and evaluate whether or not they believe that this causemarketing
program is (a) building the firms brand awareness; (b) enhancing brand image; (c)
establishing brand credibility; (d) evoking brand feelings; (e) creating a sense of brand

community; and (f) eliciting brand engagement. Students should be able to defend their
opinions citing financial, market share, stock price growth, and other definitive measures.
Drawing a clear line between normal marketing practices and unethical behavior is not easy.
Identify two firms, in your area, that you feel are or have demonstrated unethical behavior
(although not per se illegal). Why do you believe that such practices will be not successful for
the firm in the future? Do the other students in the class agree with your assertion? On the
other hand, do they believe that the examples offered are just “creative” marketing?
END-OF-CHAPTER SUPPORT
MARKETING DEBATE—Is Marketing Management an Art or a Science?
Some marketing observers maintain that good marketing is something that is more than
anything an art and does not lend itself to rigorous analysis and deliberation. Others strongly
disagree and contend that marketing management is a highly disciplined enterprise that shares
much in common with other business disciplines.
Take a position: Marketing management is largely an artistic exercise and therefore highly
subjective versus marketing management is largely a scientific exercise with well-established
guidelines and criteria.
Pro: A well-crafted corporate mission statement reflects the values of the firm as they relate to
the community at large, its stakeholders, its employees, and its customers. Once the firm’s
positions are delineated in the mission statement, marketing can begin the process of setting its
priorities, goals, and objectives derived from the stated priorities of the firm. With the advent
of holistic marketing, what the firm believes about the communities at large and the strategic
direction the firm wishes to take should be defined through its mission statement.
Con: Mission statements are written for public consumption and rarely if ever do they reflect
the actual goals, objectives, and mission of the firm. These statements are for public
consumption and are written to placate the corporate stakeholders, employees, and consumers.
Although most mission statements are written with good intentions, the real direction of the
firm must be found in the application of their business practices. Marketing should not make
the mistake of deriving its goals, objectives, and strategies from these platitudes.
MARKETING DISCUSSION
How does cause or corporate societal marketing affect your personal consumer behavior? Do
you ever buy or not buy any products or services from a company because of its
environmental policies or programs? Why or why not?
Suggested Response:
Student answers will vary according to their responses. Be prepared for some “heated”
discussions and opinions!

Marketing Excellence: STARBUCKS
Questions:
1) Starbucks has worked hard to act ethically and responsibly. Has it done a good job
communicating its efforts to consumers? Do consumers believe Starbucks is a
responsible company? Why or why not?
Suggested Answer: Student answers will vary and call for opinions and conjecture. Good
students, however, will note that Schultz also believed Starbucks’ operations should run
in a respectful, ethical manner, making decisions with a positive impact on communities
and the planet. Starbucks is also involved in community, the environment, and ethical
sourcing.
2) Where does a company like Starbucks draw the line on supporting socially
responsible programs? For example, how much of its annual budget should go towards
these programs? How much time should employees focus on them? Which programs
should it support? Discuss.
Suggested Answer: Student answers will vary.
3) How do you measure the results of Starbucks’ socially responsible programs?
Suggested Answer: Student answers will vary.
Marketing Excellence: VIRGIN GROUP
Questions:
1) How is Virgin unique in its quest to be a socially responsible and sustainable
company?
Suggested Answer: The nonprofit foundation Virgin Unite has started to tackle global,
social, and environmental problems with an entrepreneurial approach. A team of
scientists, entrepreneurs, and environmental enthusiasts consult with Virgin about what it
needs to do on a grassroots and global level. The goal is to change the way “businesses
and the social sector work together—driving business as a force for good.” That’s why he
recently made corporate responsibility and sustainable development (CR/SD) a key
priority for every one of his companies. Each must act socially responsible and lessen its
carbon footprint. Virgin categorizes its businesses into six socially responsible and
sustainable groups: Flying High, We’re all going on a summer holiday, Staying in touch,
Watching the Pennies, My body is a Temple, Out of this world, and Just get out and
relax. Each is to do exceptionally good things in its industry as well as help to alleviate
the bad things that come with the category. In 2006, he announced that all dividends from
Virgin’s rail and airline businesses “will be invested into renewable energy initiatives ...
to tackle emissions related to global warming.” That effort has evolved into the Virgin
Green Fund, which invests in renewable energy opportunities from solar energy to water
purification and is estimated to reach $3 billion in value by 2016.
2) Discuss the pros and cons of Virgin’s “green” message. How do you feel about the
company’s having such a negative environmental impact on the world (via air and rail)
and the message it communicates through efforts like the Earth Challenge.

Suggested Answer: Student answers will vary.
3) If you were Richard Branson, what would you do with Virgin’s holistic marketing
strategy?
Suggested Answer: Student answers will vary. Good students will, however, start off by
defining holistic marketing strategy as it relates to Virgin and Richard Branson.
DETAILED CHAPTER OUTLINE
Healthy long-term growth for a brand requires that the marketing organization be managed
properly. Holistic marketers must engage in a host of carefully planned, interconnected
marketing activities and satisfy an increasingly broader set of constituents. They must also
consider a wider range of effects of their actions. Corporate social responsibility and
sustainability have become a priority as organizations grapple with the short-term and longterm
effects of their marketing. Some firms have embraced this new vision of corporate
enlightenment and made it the very core of what they do.
Successful holistic marketing requires effective relationship marketing, integrated marketing,
internal marketing, and performance marketing.
TRENDS IN MARKETING PRACTICES
In response to the rapidly changing marketing environment, companies have restructured their
business and marketing practices in some of the following ways: (Table 22.1).
1. Reengineering
2. Outsourcing
3. Benchmarking
4. Supplier partnering
5. Customer partnering
6. Merging
7. Globalizing
8. Flattening
9. Focusing
10. Justifying
11. Accelerating
12. Empowering
13. Broadening
14. Monitoring
A) Recently, marketers have had to operate in a slow-growth economic environment
characterized by discriminating consumers, aggressive competition, and a turbulent
marketplace.

B) As consumers become more disciplined in their spending and adopt a “less is more”
attitude, it is incumbent on marketers to create and communicate the true value of their
products and services.
C) Emerging markets such as India and China offer enormous new sources of
demand—but often only for certain types of products and at certain price points.
D) Across all markets, marketing plans and programs will grow more localized and
culturally sensitive, while strong brands that are well differentiated and
continually improved will remain fundamental to marketing success.
E) Businesses will continue to use social media more and traditional media less. The
Web allows unprecedented depth and breadth in communications and distribution,
and its transparency requires companies to be honest and authentic.
F) Marketers also face ethical dilemmas and perplexing tradeoffs. Consumers may
value convenience, but how to justify disposable products or elaborate packaging
in a world trying to minimize waste? Increasing material aspirations can defy the
need for sustainability.
G) Given increasing consumer sensitivity and government regulation, smart
companies are creatively designing with energy efficiency, carbon footprints,
toxicity, and disposability in mind. Some are choosing local suppliers over distant
ones. Auto companies and airlines must be particularly conscious of releasing
CO2 in the atmosphere.
H) Now more than ever, marketers must think holistically and use creative win-win
solutions to balance conflicting demands. They must develop fully integrated
marketing programs and meaningful relationships with a range of constituents.
INTERNAL MARKETING
The role of marketing in the organization is changing.
A) Traditionally, marketers have played the role of middlemen.
B) In a networked enterprise every functional area can interact directly with customers.
C) Marketing in a networked enterprise must integrate all the customer-facing processes
so that the customer sees a single face and hears a single voice when they interact with
the firm.
Internal marketing requires that everyone in the organization buy into the concepts and goals
of marketing and engage in choosing, providing, and communicating customer value.
A) A company can have an excellent marketing department, yet fail at marketing.
B) Much depends upon how the other company departments view customers.
C) Only when all employees realize that their jobs are to create, serve, and satisfy
customers does the company become an effective marketer.
D) Many companies are now focusing on key processes rather than departments to serve
the customer.

E) To achieve customer-related outcomes, companies appoint process leaders who
manage cross-disciplinary teams.
Marketing Memo: Characteristics of company departments that are truly customerdriven
Lists the characteristics that make functional departments customer-driven and responsive.
Organizing the Marketing Department
Modern marketing departments may be organized in a number of different, sometimes
overlapping ways: functionally, geographically, by product or brand, by market, in a matrix,
and by corporate or division.
Functional Organization
In the most common form of marketing organization consists of functional specialists
reporting to a marketing vice president, who coordinates their activities.
A) Additional specialists might include:
1) Customer service manager
2) Marketing planning manager
3) Market logistic manager
4) Direct marketing manager
5) Internet marketing manager
B) The main advantage of a functional marketing organization is its administrative
simplicity.
C) A functional organization often leads to inadequate planning for specific products and
markets.
Geographic Organization
A company selling in a national market often organizes its sales force along geographic lines.
A) Some companies are now adding area-marketing specialists (regional or local
marketing managers) to support the sales efforts in high-volume markets.
B) Improved information and marketing research technologies have spurred
regionalization.
C) Some companies have to develop different marketing programs in different parts of
the country because geography alters their brand development so much.
Product or Brand Management Organization
Companies producing a variety of products and brands often establish a product (or brand)
management organization.
A) The product-management organization does not replace the functional organization
but serves as another layer of management.

B) A product-management organization makes sense if the company’s products are quite
different, or if the sheer number of products is beyond the ability of a functional
organization to handle.
C) Product and brand management is sometimes characterized as a hub-and-spoke
system.
The brand or product manager is figuratively at the center, with spokes leading to various
departments representing working relationships. The manager may:
1) Developing a long-range and competitive strategy for the product
2) Preparing an annual marketing plan and sales forecast
3) Working with advertising and merchandising agencies
4) Increasing support of the product among the sales force and distributors
5) Gathering continuous intelligence on the product’s performance, customer and
dealer attitudes, and new problems and opportunities
6) Initiating product improvements to meet changing market needs
D) The product management also has some disadvantages:
1) Product and brand managers may lack authority to carry out their responsibilities.
2) Product and brand managers become experts in their product area but rarely
achieve functional expertise
3) The product management system often turns out to be costly
4) Brand managers normally manage a brand for only a short time
5) The fragmentation of markets makes it harder to develop a national strategy from
headquarters
6) Product and brand managers cause the company to focus on building marketing
share rather than building the customer relationship
E) A second alternative in a product-management organization is product teams.
There are three types: vertical, triangular, and horizontal (see Figure 22.3).
F) The triangular and horizontal product-team approaches let each major brand be
run by a brand-asset management team (BAMT) consisting of key representatives
from functions that affect the brand’s performance.
G) The company consists of several BAMTs that periodically report to a BAMT
directors committee, which itself reports to a chief branding officer.
H) This is quite different from the way brands have traditionally been handled.
I) A third alternative for product management organization is to eliminate product
manger positions for minor products and assign two or more products to each
remaining manager.
J) A fourth alternative is to introduce category management in which a company focuses
on product categories to manage its brands.

1) A rationale for category management is the increasing power of the trade who
thinks in terms of category of products, not individual product lines.
2) Another rationale is the increasing power of the retail trade, which has tended to
think of profitability in terms of product categories.
3) In fact, in some packaged-goods firms, category management has evolved into
aisle management and encompasses multiple related categories typically found in
the same sections of supermarkets and grocery stores.
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).
B) Market managers are staff people and develop long-range and annual plans for their
markets.
C) Market managers are judged by their market’s growth and profitability.
D) Many companies are reorganizing along market lines and becoming market-centered
organizations.
E) When a close relationship is advantageous, such as when customers have diverse and
complex requirements and buy an integrated bundle of products and services, a
customer-management organization, which deals with individual customers rather …
Matrix-Management Organization
Companies that produce many products flowing into many markets adopt a matrix
organization employing both product and market managers.
A) The rub is that this system is costly and often creates conflicts, here are two examples:
A) How should the sales force be organized?
B) Who should set the prices for a particular product or market?
B) Some corporate marketing groups assist top management with overall opportunity
evaluation, provide divisions with consulting assistance on request, help divisions that
have little or no marketing, and promote the marketing concept throughout the
company.
Relations with Other Departments
Under the marketing concept, all departments need to “think customer” and work together to
satisfy customer needs and expectations. Yet departments define company problems and goals
from their viewpoint, so conflicts of interest and communications problems are unavoidable.
A) The marketing vice president, or CMO, has two tasks:
1) To coordinate the company’s internal marketing activities.

2) To coordinate marketing with finance, operations, and other company functions to
serve the customer.
B) Yet there is little agreement on how much influence and authority marketing should
have over other departments.
C) Typically, the marketing vice president must work through permission rather than
authority.
D) To help marketing and other functions jointly determine what is in the company’s best
interests, firms can provide joint seminars, joint committees and liaison employees,
employee exchange programs, and analytical methods to determine the most
profitable course of action.
E) Companies need to develop a balanced orientation in which marketing and other
functions jointly determine what is in the company’s best interests.
F) Many companies now focus on key processes rather than departments, because
departmental organizations can be a barrier to smooth performance.
G) They appoint process leaders, who manage cross-disciplinary teams that include
marketing and salespeople.
H) Marketers thus may have a solid-line responsibility to their teams and a dotted-line
responsibility to the marketing department.
Building a Creative Marketing Organization
A) Many companies realize they’re not yet really market and customer driven—they
are product and sales driven. Transforming into a true market-driven company
requires:
1. Developing a company-wide passion for customers
2. Organizing around customer segments instead of products
3. Understanding customers through qualitative and quantitative research
B) Although it’s necessary to be customer oriented, it’s not enough.
C) The organization must also be creative.
D) Companies today copy each others’ advantages and strategies with increasing
speed, making differentiation harder to achieve and lowering margins as firms
become more alike.
E) The only answer is to build a capability in strategic innovation and imagination.
F) This capability comes from assembling tools, processes, skills, and measures that
let the firm generate more and better new ideas than its competitors.
G) Companies must watch trends and be ready to capitalize on them.
Marketing Insight: The Marketing CEO

The 10 steps that are necessary to create a customer-focused company are outlined: convince,
appoint, get outside help, change rewards and measures, hire strong talent, develop training
programs, install MPS, annual excellence recognition, and process-outcome, empower.
Marketing Memo: Fueling strategic innovation
Marketers should reduce the amount of time spent in research and instead increase the time
spent with marketing imagination and significant consumer impact.
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:
1) Rising customer expectations
2) Changing employee expectations
3) Government legislation and pressure
4) Investor interest in social criteria
5) Changing business procurement practices
A) 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.
B) Many now believe that satisfying customers, employees, and other stakeholders
and achieving business success are closely tied to the adoption and
implementation of high standards of business and marketing conduct.
C) A further benefit of being seen as socially responsible is the ability to attract
employees, especially younger people who want to work for companies they feel
good about.
D) The most admired—and most successful—companies in the world abide by a code of
serving people’s interests, not only their own.
Corporate Social Responsibility
Raising the level of socially responsible marketing calls for a three-pronged attack that relies
on proper legal, ethical, and social responsibility behavior.
Legal Behavior
Organizations must ensure every employee knows and observes relevant laws.
Society must use the law to define those practices that are illegal, antisocial, or anticompetitive.
Ethical Behavior

A) Business practices come under attack because business situations routinely pose
ethical dilemmas: It’s not easy to draw a clear line between normal marketing practice
and unethical behavior.
B) Of course certain business practices are clearly unethical or illegal. These include
bribery, theft of trade secrets, false and deceptive advertising, exclusive dealing
and tying agreements, quality or safety defects, false warranties, inaccurate
labeling, price-fixing or undue discrimination, and barriers to entry and predatory
competition.
C) 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.
Social Responsibility Behavior
Individual marketers must exercise their social conscience in specific dealings with customers
and stakeholders.
A) 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.
B) Communicating corporate social responsibility can be a challenge. Once a firm touts
an environmental initiative, it can become a target for criticism. Many wellintentioned
product or marketing initiatives can have unforeseen or unavoidable
negative consequences.
C) Often, the more committed a company is to sustainability and environmental
protection, the more dilemmas that can arise.
D) Corporate philanthropy can also pose dilemmas.
Sustainability
A) Sustainability, the ability to meet humanity’s needs without harming future
generations, now tops many corporate agendas.
B) Major corporations outline in great detail how they are trying to improve the long-term
impact of their actions on communities and the environment.
C) Sustainability ratings exist, if not consistent agreement about what metrics are
appropriate.
D) Some feel companies that score well on sustainability typically exhibit high-quality
management in that “they tend to be more strategically nimble and better equipped to
compete in the complex, high-velocity, global environment.”
E) Heightened interest in sustainability has also unfortunately resulted in greenwashing,
which gives products the appearance of being environmentally friendly without living
up to that promise.
Marketing Insight: The Rise of Organic
Covers organic products and their presence in many food and beverage categories.

Socially Responsible Business Models
The future holds a wealth of opportunities, yet forces in the socioeconomic, cultural, and
natural environments will impose new limits on marketing and business practices. Companies
that innovate solutions and values in a socially responsible way are most likely to succeed.
Cause-Related Marketing
Many firms blend corporate social responsibility initiatives with their marketing activities.
A) 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.
B) Cause related marketing has also been called a part of corporate societal marketing
(CSM).
Cause Marketing Benefits and Costs
A successful cause-marketing program can improve social welfare; create differentiated
brand positioning; build strong consumer bonds; enhance the company’s public image;
create a reservoir of goodwill; boost internal morale and galvanize employees; drive
sales; and increase the firm’s market value.
Consumers may develop a strong, unique bond with the firm that transcends normal
marketplace transactions.
Specifically, from a branding point of view, cause marketing can:
1) Build brand awareness
2) Enhance brand image
3) Establish brand credibility
4) Evoke brand feelings
5) Creating a sense of brand community
6) Elicit brand engagement
A) Cause-related marketing programs could backfire if cynical consumers question the
link between the product and the cause and see the firm as being self-serving and
exploitative.
B) Problems can also arise if consumers do not think a company is consistent and
sufficiently responsible in all its behavior.
C) The knowledge, skills, and resources of a top firm may be even more important to a
nonprofit or community group than funding.
D) Nonprofits must be clear about what their goals are, communicate clearly what they
hope to accomplish, and devise an organizational structure to work with different
firms.
Designing a Cause Program

Some experts believe that the positive impact on a brand from cause-related marketing may be
lessened by sporadic involvement with numerous causes.
A) Many companies choose to focus on one or a few main causes to simplify execution
and maximize impact.
B) Limiting support to a single cause may limit the pool of consumers or other
stakeholders who could transfer positive feelings from the cause to the firm.
C) Opportunities may be greater with “orphan causes”—diseases that afflict fewer than
200,000 people.
D) Most firms tend to choose causes that fit their corporate or brand image and matter to
their employees and shareholders.
Marketing Memo: Making a Difference: Top 10 Tips for Cause Branding
Lists the 8 ways Boston’s Cone, Inc. feels that cause marketing should best be practiced:
define CSR for your company; build a diverse team; analyze your current CSR-related
activities and revamp them if necessary; forge and strengthen NGO relationships; develop a
cause-branding initiative; walk your talk; don’t be silent; beware …
Social Marketing
Cause-related marketing supports a cause.
A) Social marketing is done by a nonprofit or government organization to further a cause.
B) Social marketing is a global phenomenon that goes back many years.
C) Different types of organizations conduct social marketing in the United States.
D) Literally hundreds of nonprofit organizations are involved with social marketing.
E) Choosing the right goal or objective for a social marketing program is critical.
F) Social marketing campaigns may have objectives related to changing people’s
cognitions, values, actions, or behaviors.
1) Cognitive campaigns
2) Action campaigns
3) Behavioral campaigns
4) Value campaigns
G) The social marketing planning process follows many of the same steps as for
traditional products and services.
H) Social marketing programs are complex; they take time and may require phased
programs or actions.
I) Social marketing organizations should evaluate program success in terms of their
objectives:
1) High incidence of adoption
2) High speed of adoption

3) High continuance of adoption
4) Low cost per unit of adoption
5) No major counterproductive consequences
MARKETING IMPLEMENTATION AND CONTROL
Great marketing companies know the best marketers thoughtfully and creatively devise
marketing plans and then bring them to life. Marketing implementation and control are
critical to making sure marketing plans have their intended results year after year.
Marketing Implementation
A) Marketing implementation is the process that turns marketing plans into action
assignments and ensures that such assignments are executed in a manner that
accomplishes the plan’s stated objectives.
B) A brilliant strategic marketing plan counts for little if it is not implemented properly.
C) Strategy addresses the what and why of marketing activities.
D) Implementation addresses the who, where, when, and how.
E) Companies today are striving to make their marketing operations more efficient and
their return on marketing investment more measurable.
F) Marketing costs can amount to as much as a quarter of a company’s total
operating budget. Marketers need better templates for marketing processes, better
management of marketing assets, and better allocation of marketing resources.
G) Marketing resource management (MRM) software provides a set of Web-based
applications that automate and integrate project management, campaign
management, budget management, asset management, brand management,
customer relationship management, and knowledge management.
H) The knowledge management component consists of process templates, how-to
wizards, and best practices.
I) Software packages can provide what some have called desktop marketing, giving
marketers information and decision structures on computer dashboards.
J) MRM software lets marketers improve spending and investment decisions, bring
new products to market more quickly, and reduce decision time and costs.
Marketing Control
A) Marketing control is the process by which firms assess the effects of their marketing
activities and programs and make necessary changes and adjustments.
1. Annual-plan control
2. Profitability control
3. Efficiency control
4. Strategic control

Annual-Plan Control
A) Annual-plan control aims to ensure that the company achieves the sales, profits, and
other goals established in its annual plan.
1) The heart of annual-plan control is management by objectives.
2) Four steps are involved:
a. Management sets monthly or quarterly goals.
b. Management monitors its performance in the marketplace.
c. Management determines the causes of serious performance deviations.
d. Management takes corrective action to close the gaps between goals and
performance.
B) This control model applies to all levels of the organization.
Profitability Control
Companies should measure the profitability of their products, territories, customer groups,
segments, trade channels, and order sizes to help determine whether to expand, reduce, or
eliminate any products or marketing activities.
Efficiency Control
Some companies are establishing a position of marketing controller to specialize in improving
marketing efficiency.
Strategic Control
Each company should periodically reassess its strategic approach to the marketplace with
a good marketing audit. Companies can also perform marketing excellence reviews and
ethical/social responsibility reviews.
The Marketing Audit
The average U.S. corporation loses half of its customers in five years, half of its employees in
four years, and half of its investors in less than one year. Clearly, this points to some
weaknesses. Companies that discover weaknesses should undertake a thorough study known
as a marketing audit.
A marketing audit is a comprehensive, systematic, independent, and 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.
A) The marketing audit has four characteristics:
1) Comprehensive
2) Systematic
3) Independent
4) Periodic

A marketing audit starts out with a meeting between the company officer(s) and the marketing
auditor(s) to work out an agreement on the audits:
A) The marketing audit examines six major components of the company’s marketing
situation.
The Marketing Excellence Review
Management can place a checkmark to indicate its perception of where its business stands.
The profile management creates from indicating where it thinks the business stands on each
line can highlight where changes could help the firm become a truly outstanding player in the
marketplace.
THE FUTURE OF MARKETING
Top management recognizes that marketing requires more accountability than in the past.
Marketing Memo: Major marketing weaknesses
Lists the 10 “deadly sins” that signal that a marketing program is in trouble and offers some
solutions to help companies change their ways.
A) To succeed in the future, marketing must be more holistic and less departmental.
B) Marketers must achieve larger influence in the company, continuously create new
ideas, and strive for customer insight by treating customers differently but
appropriately.
C) They must build their brands more through performance than promotion.
D) They must go electronic and win through building superior information and
communication systems.
The coming years will see:
1) The demise of the marketing department and the rise of holistic marketing.
2) The demise of free-spending marketing and the rise of ROI marketing.
3) The demise of marketing intuition and the rise of marketing science.
4) The demise of manual marketing and the rise of both automated and
creative marketing.
5) The demise of mass marketing and the rise of precision marketing.
To accomplish these changes and become truly holistic, marketers need a new set of
skills and competencies in:
1) Customer relationship management (CRM)
2) Partner relationship management (PRM)
3) Database marketing and datamining
4) Contact center management and telemarketing
5) Public relations marketing (including event and sponsorship marketing)
6) Brand-building and brand-asset management

7) Experiential marketing
8) Integrated marketing communications
9) Profitability analysis by segment, customer, and channel