Life and Health Marketing (LOMA) - Chapter 6 - ORGANIZING, IMPLEMENTING AND CONTROLLING MARKETING ACTIVITIES
Organizing Marketing Operations
- Essential Mktg Functions
- - Information Management
- - Marketing research
- - product development and pricing
- - sales and distribution
- - advertising, sales promotion and publicity (aka Mktg Communications)
- - customer relations
- - mktg personnel development
- - mktg mgmt and admin
- Four common mktg structures: function/product/geog region/customer type
- Organization by Function
- most common
- different areas of responsibility depending on work performed
- ex. Chief Mktg Officer/Mkt Research Mgr/Sales Mgr/etc
- Advantages
- - simplicity
- - focuses on developemnt of managerial and tech skills
- works best w/ small cos or cos w/ homogenous customers
- Organization by Product
- each SBU responsible for its mktg (most of)
- may be some shared services
- Organization by Geographic Region
- usually mktg manager for each region
- usually some shared services
- Organization by Customer Type
- mktg manager for each division
- ex: households/small business/big business
- Combination Structures
- flexible - meets both co's strategic implementation needs and customer needs
- Matrix Organizational Structure
- project manager directs individuals from different function areas
- two bosses during project
Implementing Marketing Strategies
- Mktg Implementation - process of translating mktg plans and strategies into action
- accomplished through day-to-day tactical and operational activities
Controlling Marketing Activities
- marketing control - process of examing results of mktg plans and company to plan and taking actoin to keep it on track
Performance Evaluation
- performance std - internal vs external std
- - usually incorporated into mktg plan
- management by exception - mgmt only gets involved if performance outside acceptable range
- - saves time and allows attention to be focused on problems/opportunities
- if a problem, read to identify toe cause and take actions to correct
- - change tactical/action programs
- - establish new implementation method
- - new strategies
- - modify how performance data collected/analyzed
- - re-evaluate performance standards
- control tools
- sales analysis vs
- - forcasted sales - prior years sales
- - expenses to generate sales - competitors' sales
- - estimated mkt potential - current industry sales
- measured - # products, 1st yr comm, face ,avg prem, etc
- expense analysis
- natuaral accounts - ledger accounts
- functional accounts - based on purpose
- expense ratios - ex. mktg expenses/$1m face sold
- profitability analysis
- compares sales to expense incurred to generate sales
- use several years data since for line ins, 1st yr expenses > 1st yr revenues
- valuable source of info since combines sales and expense info
- mktg audit
- systematic examination and appraisal of mktg environment, objectives, startegies, tactical/action prgms, organiztional structure and personnel
- key areas of mktg audit (chart p 135)
- mktg environment
- macro environment
- task environment
- mkts adn customers
- other factors in mktg system
- mktg strategy
- business mission and mktg objectives
- mktg strategy
- budgets
- mktg organization
- formal structure
- functional efficiency
- cross-functional efficiency
- mktg systems audit
- mktg info system
- mktg planning system
- mktg control system
- new product developemnt
- mktg productivity audit
- profitability analysis
- cost-effeciveness analysis
- mktg function audit
- products
- price
- distribution
- promotion
- Reporting Sytems
- - provide managers w/ detailed summary info as needed
- - provide accurate adn timely info
- - be flexible to adjust to co's changing info needs
- - be cost effective
- - easily understood by
- + those who evaluate performance
- + those whose performance is being measured
- detail s/b appropriate for level
- lower level needs more detail
- higher level mgmt needs just summary
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