Kotler MM 13e Overheads 22

22
Managing a Holistic
Marketing Organization
for the Long Run

Marketing Management, 13th ed

Chapter Questions
• What are important trends in marketing
practices?
• What are the keys to effective internal marketing?
• How can companies be responsible social
marketers?
• How can a company improve its marketing skills?
• What tools are available to help companies
monitor and improve their marketing activities?

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Organizing the
Marketing Department

•
•
•
•
•

Functional Organization
Geographic Organization
Product- or Brand-Management Organization
Market-Management Organization
Matrix-Management Organization

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Figure 22.1 Functional Organization

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Figure 22.2 The Product
Manager’s Interactions

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Figure 22.3 Vertical Product Team

• PM = Product Manager
• APM = Associate PM
• PA = Product Assistant

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Figure 22.3 Triangular Product Team
• PM = Product Manager
• R = Market Researcher
• C = Communication Specialist

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Figure 22.3 Horizontal Product Team

•
•
•
•
•
•
•

PM = Product Manager
R = Market Researcher
C = Communication Specialist
S = Sales Manager
D = Distribution Specialist
F = Finance Specialist
E = Engineer

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Figure 22.4 Product/MarketingManagement Matrix System

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Table 22.4
Social Marketing Planning Process
Where are we?
Where do we want to go?
How will we get there?
How will we stay on course?

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Figure 22.5 The Control Process
What do we want to achieve?
What is happening?
Why is it happening?
What should we do about it?
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Types of Marketing Control
Annual plan control

Profitability control
Efficiency control
Strategic control

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Figure 22.6 The Control-Chart Model

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Figure 22.7 Financial Model of
Return on Net Worth

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Marketing Profitability Analysis
• Step 1: Identify functional expenses
• Step 2: Assign functional expenses to
marketing entities
• Step 3: Prepare a profit-and-loss

statement for each marketing entity

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Table 22.9 Mapping Natural Expenses
into Functional Expenses

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Table 22.10 Bases for Allocating
Functional Expenses to Channels

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Table 22.11 Profit-and-Loss
Statements for Channels

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Types of Costs

Direct costs
Traceable common costs
Nontraceable common costs

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Characteristics of
Marketing Audits
Comprehensive
Systematic
Independent
Periodic
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