Marketing Total Effort
Marketing Total Effort
Marketing Total Effort
Chapter 6
The goal of this chapter is to examine how
firms organize, implement, evaluate, and
control marketing activities.
Organizing the Marketing Department
• 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.
• Evaluation and control: Markets have the altering behavior , its means
the needs and wants of target customers 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.
• 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.
• 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