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 implementation skills? 5. What tools are available to help companies monitor and improve their marketing activities? CHAPTER 22 MANAGING A HOLISTIC MARKETING ORGANIZATION An ad for L'Oreal Paris. Healthy long-term growth for a brand requires that the marketing organization be managed properly. Holistic marketers must embrace the complexity of marketing by engaging in a host of care- fully planned, interconnected marketing activities. 1 Consider L'Oreal. •MB 695 'Oreal, the world's most successful cosmetic company, has experi- enced almost two decades of double-digit profit growth. The century-old $15.3 billion company has leveraged its cultural her- itage and Parisian origins to sell products that make its customers feel spe- cial. Higher-than-average R&D expenditures have led to numerous break- throughs and a strong technological reputation. Innovative products and sexy endorsers such as supermodel Claudia Schiffer, singer Beyonce Knowies, and actress Heather Locklear have enabled L'Oreal to sustain a premium pricing strategy and justify the enticing slogan, "Because You're Worth It." Although French actress Catherine Deneuve is one of the official company faces, L'Oreal does not offer just one type of beauty in its marketing. The company has skillfully acquired local cosmetics brands, such as Maybelline and Soft Sheen-Carson, and given them a facelift before exporting them around the world. CEO Lindsay Owen-Jones notes: "It's a very carefully crafted portfolio each brand is positioned on a very precise market segment which over- laps as little as possible with others." 2 696 PART 8 CREATING SUCCESSFUL LONG-TERM GROWTH Successful holistic marketing requires effective relationship marketing, inte- grated marketing, internal marketing, and socially responsible marketing. Previous chapters addressed the first two topics and the strategy and tactics of marketing. 3 In this chapter, we consider internal and socially responsible mar- keting and how marketing should be administered and conducted responsibly. In our discussion, we look at how firms organize, implement, evaluate, and con- trol marketing activities. We also discuss the increased importance of social responsibility. We begin by examining changes in how companies conduct mar- keting today. Trends in Marketing Practices Chapters 1 and 3 describe some important changes in the marketing macroenvironment, such as globalization, deregulation, technological advances, customer empowerment, and market fragmentation. In response to this rapidly changing environment, companies have restructured their business and marketing practices in some of the following ways: s Reengineering. Appointing teams to manage customer-value-building processes and break down walls between departments. u Outsourcing. Greater willingness to buy more goods and services from outside domestic or foreign vendors. m Benchmarking. Studying "best practice companies" to improve performance. a Supplier partnering. Increased partnering with fewer but better value-adding suppliers. B Customer partnering. Working more closely with customers to add value to their operations. a Merging. Acquiring or merging with firms in the same or complementary industries to gain economies of scale and scope. a Globalizing. Increased effort to "think global" and "act local." a Flattening. Reducing the number of organizational levels to get closer to the customer. a Focusing. Determining the most profitable businesses and customers and focusing on them. m Accelerating. Designing the organization and setting up processes to respond more quickly to changes in the environment. m Empowering. Encouraging and empowering personnel to produce more ideas and take more initiative. The role of marketing in the organization is also changing. 4 Traditionally, marketers have played the roles of middlemen, charged with understanding customer needs and transmit- ting the voice of the customer to various functional areas in the organization. In a networked enterprise, every functional area can interact directly with customers. Marketing no longer has sole ownership of customer interactions; rather, marketing needs to integrate all the customer-facing processes so that customers see a single face and hear a single voice when they interact with the firm. CISCO Founded in 1984 by two Stanford University computer scientists, Cisco initially built its business on routers and switches to provide end-to-end network solutions. Throughout the 1990s, Cisco fully embraced the Web in its business strategy, going so far as to include the company vision on all employee badges: "The Internet changes the way we work, live, play, and learn." By the end of the decade, however, the company found that placing all MANAGING A HOLISTIC MARKETING ORGANIZATION CHAPTER 22 697 its internal and external business operations online was unwieldy and counterproductive. To ensure harmony in its sprawling Web-based strategy, Cisco applied newly introduced Web technology to ensure a unified Internet, • intranet, and extranet. The company's goals: "One site many views into the company" 5 ::: Internal Marketing 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. Over the years, marketing has evolved as it has grown from work done by the sales depart- ment into a complex group of activities spread through the organization. 6 Because simple sales departments were unable to conduct important functions such as marketing research, new-product development, advertising, sales promotion, and customer service, firms began to create marketing departments. When conflict arose between marketing and sales depart- ments, many firms merged the two. A company can have an excellent marketing department, however, and yet fail at market- ing. Much depends on how other company departments view customers. If they point to the marketing department and say, "They do the marketing," the company has not implemented effective marketing. Only when all employees realize that their jobs are to create, serve, and satisfy customers does the company become an effective marketer. 7 "Marketing Memo: Characteristics of Company Departments That Are Truly Customer-Driven" presents a mea- surement tool that can be used to evaluate which company departments have fully embraced the importance of being customer-driven. 8 Many companies are now focusing on key processes rather than departments because departmental organization is viewed as a barrier to the smooth performance of fundamen- tal business processes. To achieve customer-related outcomes, companies appoint process leaders who manage cross-disciplinary teams. Marketing and sales people spend an increas- ing percentage of their time as process team members. As a result, marketing personnel may have a solid-line responsibility to their teams and a dotted-line responsibility to the market- ing department. The marketing department is also responsible for training marketing per- sonnel, assigning them to new teams, and evaluating their overall performance. Let's look at how marketing departments are being organized, how they can work effec- tively with other departments, and how firms can foster a creative marketing culture within the entire organization. Organizing the Marketing Department Modern marketing departments may be organized in a number of different, sometimes overlapping ways: 9 functionally, geographically, by product or brand, by market, in a matrix, by corporate/division. FUNCTIONAL ORGANIZATION The most common form of marketing organization con- sists of functional specialists reporting to a marketing vice president, who coordinates their activities. Figure 22.1 shows five specialists. Additional specialists might include a customer service manager, a marketing planning manager, a market logistics manager, a direct mar- keting manager, and an Internet marketing manager. The main advantage of a functional marketing organization is its administrative simplic- ity. It can be quite a challenge to develop smooth working relations, however, within the marketing department. 10 This form also can lose its effectiveness as products and markets increase. A functional organization often leads to inadequate planning for specific products FIG. 22.1 j Functional Organization Marketing administration manager Marketing vice president J Advertising and sales promotion manager Sales manager Marketing research manager New-products manager 698 PART 8 CREATING SUCCESSFUL LONG-TERM GROWTH and markets. Products that are not favored by anyone are neglected. Then, each functional group competes with others for budget and status. The marketing vice president constantly has to weigh the claims of competing functional specialists and faces a difficult coordination problem. GEOGRAPHIC ORGANIZATION A company selling in a national market often organizes its sales force (and sometimes other functions, including marketing) along geographic lines. The national sales manager may supervise four regional sales managers, who each supervise six zone managers, who in turn supervise eight district sales managers, who supervise ten salespeople. Several companies are now adding area market specialists (regional or local marketing managers) to support the sales efforts in high-volume markets. One such market might be MARKETING MEMO CHARACTERISTICS OF COMPANY DEPARTMENTS THAT ARE TRULY CUSTOMER-DRIVEN R&D Purchasing Manufacturing Marketing Sales Logistics Accounting Finance Public Relations Other Customer Contact Personnel They spend time meeting customers and listening to their problems. They welcome the involvement of marketing, manufacturing, and other departments on each new project. They benchmark competitors' products and seek "best of class" solutions. They solicit customer reactions and suggestions as the project progresses. They continuously improve and refine the product on the basis of market feedback. They proactively search for the best suppliers rather than choose only from those who solicit their business. They build long-term relations with fewer but more reliable high-quality suppliers. They do not compromise quality for price savings. They invite customers to visit and tour their plants. They visit customer factories to see how customers use the company's products. They willingly work overtime when it is important to meet promised delivery schedules. They continuously search for ways to produce goods faster and/or at lower costs. They continuously improve product quality, aiming for zero defects. They meet customer requirements for "customization" where this can be done profitably. They study customer needs and wants in well-defined market segments. They allocate marketing effort in relation to the long-run profit potential of the targeted segments. They develop winning offerings for each target segment. They measure company image and customer satisfaction on a continuous basis. They continuously gather and evaluate ideas for new products, product improvements, and services to meet customers' needs. They influence all company departments and employees to be customer-centered in their thinking and practice. They have specialized knowledge of the customer's industry. They strive to give the customer "the best solution." They make only promises that they can keep. They feed back customers' needs and ideas to those in charge of product development. They serve the same customers for a long period of time. They set a high standard for service delivery time and they meet this standard consistently. They operate a knowledgeable and friendly customer service department that can answer questions, handle complaints, and resolve problems in a satisfactory and timely manner. They prepare periodic "profitability" reports by product, market segment, geographic areas (regions, sales territories), order sizes, and individual customers. They prepare invoices tailored to customer needs and answer customer queries courteously and quickly. They understand and support marketing expenditures (e.g., image advertising) that represent marketing investments that produce long-term customer preference and loyalty. They tailor the financial package to the customers' financial requirements. They make quick decisions on customer creditworthiness. They disseminate favorable news about the company and they "damage control" unfavorable news. They act as an internal customer and public advocate for better company policies and practices. They are competent, courteous, cheerful, credible, reliable, and responsive. MANAGING A HOLISTIC MARKETING ORGANIZATION CHAPTER 22 699 Miami, Florida, where 46 percent of the households are Latino. The Miami specialist would know Miami's customer and trade makeup, help marketing managers at headquarters adjust their marketing mix for Miami, and prepare local annual and long-range plans for selling all the company's products in Miami. Improved information and marketing research technologies have spurred regionaliza- tion. Data from retail-store scanners allow instant tracking of product sales, helping compa- nies pinpoint local problems and opportunities. Retailers themselves strongly prefer local programs aimed at consumers in their cities and neighborhoods. To keep retailers happy, manufacturers now create more local marketing plans. Companies that have shifted to a greater regional marketing emphasis are McDonald's, which now spends about 50 percent of its total advertising budget regionally; American Airlines, which realized that the travel needs of Chicagoans and Southwesterners are very different in the winter months; and Anheuser-Busch, which has subdivided its regional mar- kets into ethnic and demographic segments, with different ad campaigns for each. Some companies have to develop different marketing programs in different parts of the country out of necessity because their brand development varies so much. PACE In 1947, a young Texan named David Pace had a passion for producing the freshest-tasting picante sauce. Experimenting with ingredients and bottling techniques, the final product he produced—a special blend of toma- toes, onions, and jalapenos and a unique production process—became Pace Picante Sauce. Over time, the com- pany launched Pace salsa before being acquired by the Campbell Soup Company in 1994. Pace's historical strength, however, is west of the Mississippi. The brand registers only single digits in market share in the Northeast. The vast disparity in regional strengths has led to tailored marketing programs in different parts of the country. Pace's trailgating tour, blending cowboy-style chuckwagon cooking and tailgate barbecuing, coincides with its rodeo event sponsorship and appeals to the core customer base; New England promotions are designed for trial and market penetration. 11 5RAND-MANAGEMENT ORGANIZATION Companies producing a variety of products and brands often establish a product- (or brand-) management organization. The product-management organization does not replace the functional organization, but serves as another layer of management. A product manager supervises product category managers, who in turn supervise specific product and brand managers. 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 organiza- tion to handle. Kraft has used a product-management organization in its Post division, with separate product category managers in charge of cereals, pet food, and beverages. Within the cereal-product group, Kraft has had separate subcategory managers for nutritional cere- als, children's presweetened cereals, family cereals, and miscellaneous cereals. Product and brand management is sometimes characterized as a hub-and-spoke sys- tem. The brand or product manager is figuratively at the center with spokes emanating out to various departments (see Figure 22.2). Some of the tasks that product or brand managers may perform include: • Developing a long-range and competitive strategy for the product. • Preparing an annual marketing plan and sales forecast. • Working with advertising and merchandising agencies to develop copy, programs, and campaigns. • Increasing support of the product among the sales force and distributors. E Gathering continuous intelligence on the product's performance, customer and dealer attitudes, and new problems and opportunities. a Initiating product improvements to meet changing market needs. The product-management organization has several advantages. The product manager can concentrate on developing a cost-effective marketing mix for the product; he or she can react more quickly to new products in the marketplace; the company's smaller brands have a product advocate. However, this organization has some disadvantages too: 700 PART 8 CREATING SUCCESSFUL LONG-TERM GROWTH I FIG. 22.2 The Product Manager's Interactions (a) Vertical Product Team (b) Triangular Product Team (c) Horizontal Product Team PM = product manager AP = associate product manager PA = product assistant R = market researcher C = communication specialist S = sales manager D = distribution specialist F = finance/accounting specialist E = engineer FIG. 22.3 I Three Types of Product Teams a Product managers and specifically brand managers are not given enough authority to carry out their responsibilities. They have to rely on persuasion to get the cooperation of other departments. m Product and brand managers become experts in their product area but rarely achieve func- tional expertise. They vacillate between acting as experts and having to defer to real experts. a The product management system often turns out to be costly. One person is appointed to manage each major product or brand and soon managers are appointed to manage even minor products and brands. a Brand managers normally manage a brand for only a short time. Short-term involvement leads to short-term planning and plays havoc with building long-term strengths. s The fragmentation of markets makes it harder to develop a national strategy from head- quarters. Brand managers must increasingly please regional and local sales groups, resulting in a transfer of power from marketing to sales. E Product and brand managers cause the company to focus on building market share rather than building the customer relationship. Yet the customer relationship, not the brand, may be the primary lever for value creation. A second alternative with a product-management organization is to switch from product managers to product teams. There are three types of potential product-team structures: verti- cal product team, triangular product team, and the horizontal product team (see Figure 22.3). The triangular and horizontal product-team approaches are favored by those who advo- cate brand-asset management. They believe that each major brand should be run by a brand-asset management team (BAMT) consisting of key representatives from major func- tions affecting the brand's performance. The company is comprised of several BAMTs which periodically report to a BAMT Directors Committee, which itself reports to a Chief Branding Officer. This is quite different from the way brands have traditionally been handled. A third alternative for product-management organization is to eliminate product man- ager positions for minor products and assign two or more products to each remaining man- ager. This is feasible where two or more products appeal to a similar set of needs. A cosmet- ics company does not need separate product managers for each product because cosmetics serve one major need—beauty. A toiletries company needs different managers for headache remedies, toothpaste, soap, and shampoo, because these products differ in use and appeal. A fourth alternative for product-management organization is to introduce category man- agement, in which a company focuses on product categories to manage its brands. Procter & Gamble, pioneers of the brand-management system, and several other top firms have made a significant shift in recent years to category management. 12,13,14 MANAGING A HOLISTIC MARKETING ORGANIZATION CHAPTER 22 701 A print ad spells out the services Dow Corning can provide for customers. Dow Corning uses a horizontal product team organization. Teams consist of from five to eight people, and each team manages a specific product, market, and process. P&G cites a number of advantages to a category-management structure. By fostering internal competition among brand managers, the traditional brand-management system created strong incentives to excel, but also much internal competition for resources and a lack of coordination. Whereas a smaller share category might have become relatively neglected before (e.g., in product categories such as "hard surface cleaners"), the new scheme was designed to ensure that all categories would be able to receive adequate resources. Another rationale for category management is the increasing power of the trade. Because the retail trade has tended to think in terms of product categories and the profitability derived from different departments and sections of their stores, P&G felt it only made sense for it to deal with the trade along similar lines. Retailers such as Wal-Mart and regional gro- cery chains such as Dominick's have embraced category management themselves as a means to define a particular product category's strategic role within the store and to address such operating issues as logistics, the role of private-label products, and the trade-offs between offering product variety and avoiding inefficient duplication. Category management is not a panacea. It is still a product-driven system. Colgate has moved from brand management (Colgate toothpaste) to category management (toothpaste category) to a new stage called "customer-need management" (mouth care). This last step finally focuses the organization on a basic customer need. 15 MARKET-MANAGEMENT ORGANIZATION Many companies sell their products to differ- ent markets. Canon sells its fax machines to consumer, business, and government markets. U.S. Steel sells its steel to the railroad, construction, and public utility industries. When cus- tomers fall into different user groups with distinct buying preferences and practices, a market-management organization is desirable. A market manager supervises several mar- ket managers (also called market-development managers, market specialists, or industry specialists). The market managers draw on functional services as needed. Market managers of important markets might even have functional specialists reporting to them. 702 PART 8 CREATING SUCCESSFUL LONG-TERM GROWTH « Market Managers Home Industrial Menswear Women's wear furnishings markets Rayon Acetate Product Managers N V lon Orion Dacron Market managers are staff (not line) people, with duties similar to those of product man- agers. Market managers develop long-range and annual plans for their markets. Their perfor- mance is judged by their market's growth and profitability. This system carries many of the same advantages and disadvantages of product-management systems. Its strongest advantage is that the marketing activity is organized to meet the needs of distinct customer groups rather than being focused on marketing functions, regions, or products. Many companies are reor- ganizing along market lines and becoming market-centered organizations. Xerox has con- verted from geographic selling to selling by industry, as have IBM and Hewlett-Packard. In a customer-management organization, companies can organize themselves to under- stand and deal with individual customers rather than with the mass market or even market segments. MATRIX-MANAGEMENT ORGANIZATION Companies that produce many products flow- ing into many markets may adopt a matrix organization. DuPont was a pioneer in develop- ing the matrix structure (see Figure 22.4). r~ DUPONT Before being spun off, DuPont's textile fibers department consisted of separate product managers for rayon, acetate, nylon, orlon, and dacron; and separate market managers for menswear, women's wear, home furnish- ings, and industrial markets. The product managers planned the sales and profits for their respective fibers. They asked market managers to estimate how much of their fiber they could sell in each market at a proposed price. Market managers, however, were generally more interested in meeting their market's needs than pushing a par- ticular fiber. In preparing their market plans, they asked each product manager about the fiber's planned prices and availabilities. The final sales forecast of the market managers and the product managers should have added • up to the same grand total. Companies like DuPont can go one step further and view the market managers as the main marketers, and their product managers as suppliers. The menswear market manager, for example, would be empowered to buy textile fibers from DuPont's product managers or, if DuPont's price is too high, from outside suppliers. This system would force Dupont prod- uct managers to become more efficient. If a DuPont product manager could not match the "arm's-length pricing" levels of competitive suppliers, then perhaps Dupont should not con- tinue to produce that fiber. A matrix organization would seem desirable in a multiproduct, multimarket company. The rub is that this system is costly and often creates conflicts. There is the cost of support- ing all the managers. There are also questions about where authority and responsibility should reside. Matrix management gained advocates because companies provide the context in which a matrix can thrive—flat, lean team organizations focused around business processes that cut horizontally across functions. 16 CORPORATE-DIVISIONAL ORGANIZATION As multiproduct, multimarket companies grow, they often convert their larger product or market groups into separate divisions. The divisions set up their own departments and services. This raises the question of what mar- FIG. 22.4 | Product- /Market-Management Matrix System MANAGING A HOLISTIC MARKETING ORGANIZATION CHAPTER 22 703 keting services and activities should be retained at company headquarters. Divisionalized companies have reached different answers to this question: s No Corporate Marketing. Some companies lack a corporate marketing staff. They do not see any useful function for marketing at the corporate level. Each division has its own mar- keting department. a Moderate Corporate Marketing. Some companies have a small corporate marketing staff that performs a few functions, primarily (1) assisting top management with overall opportu- nity evaluation, (2) providing divisions with consulting assistance on request, (3) helping divisions that have little or no marketing, and (4) promoting the marketing concept through- out the company. B Strong Corporate Marketing. Some companies have a corporate marketing staff that, in addition to the preceding activities, also provides various marketing services to the divi- sions, such as specialized advertising services, sales promotion services, marketing research services, and sales administration services. Regardless of how formalized corporate marketing is, certain activities must occur within the organization in a "top-down" fashion. Webster sees the role of marketing at the corporate level as: 17 1. To promote a culture of customer orientation and to be an advocate for the customer in the deliberations of top-management strategy formulators. 2. To assess market attractiveness by analyzing customer needs and wants and competitive offerings. 3. To develop the firm's overall value proposition, the vision and articulation of how it pro- poses to deliver superior value to customers. Relations with Other Departments In principle, all business functions should interact harmoniously to pursue the firm's overall objectives. In practice, however, interdepartmental relations are often characterized by deep rivalries and distrust. Some conflict stems from differences of opinion as to what is in the company's best interests, some from real trade-offs between departmental well-being and company well-being, and some from unfortunate stereotypes and prejudices. In the typical organization, each business function has a potential impact on customer satisfaction. Under the marketing concept, all departments need to "think customer" and work together to satisfy customer needs and expectations. The marketing department must drive this point home. The marketing vice president, or CMO, has two tasks: (1) to coordi- nate the company's internal marketing activities and (2) to coordinate marketing with finance, operations, and other company functions to serve the customer. Yet, there is little agreement on how much influence and authority marketing should have over other departments. Typically, the marketing vice president must work through persuasion rather than authority. Other departments often resist changing their ways of working to fulfill the customer's interests. Inevitably, departments define company prob- lems and goals from their viewpoint, so conflicts of interest are unavoidable. Breakdowns in communication further exacerbate the problem. Consider the following potential negative reactions that marketing can receive from different functional groups. B Engineering comes into conflict with marketing executives when the latter want several models produced, often with product features requiring custom components. Engineers often think of marketing people as inept technically, as continually changing priorities, and as not fully credible or trustworthy. a Purchasing Executives see marketing executives pushing for several models in a product line, which requires purchasing small quantities of many items rather than large quantities of few items. They think that marketing insists on too high a quality for materials and com- ponents. They also dislike marketing's forecasting inaccuracy, which causes them to place rush orders at unfavorable prices or to carry excessive inventories. a Financial Executives suspect that marketing forecasts are self-serving. They think mar- keters are too quick to slash prices to win orders, instead of pricing to make a profit. They claim that marketers "know the value of everything and cost of nothing." m Accountants see marketing people as lax in providing sales reports on time. They dislike the special deals salespeople make with customers because these require special accounting [...]... relationship management (PRM) Database marketing and data-mining Contact center management and telemarketing Public relations marketing (including event and sponsorship marketing) , Brand-building and brand-asset management Experiential marketing Integrated marketing communications Profitability analysis by segment, customer, channel It is an exciting time for marketing In the relentless pursuit of marketing. .. activities as project management, campaign management, budget management, asset management, brand management, customer relationship management, and knowledge management The knowledge management component consists of process templates, how-to wizards, and best practices The software packages are Web-hosted and available to users with passwords They add up to what some have called desktop marketing in that... Future of Marketing Top management has recognized that past marketing has been highly wasteful and is demanding more accountability from marketing "Marketing Memo: The Major Marketing Weaknesses" summarizes the major deficiencies that companies have in marketing, how to spot these deficiencies, and what to do about them Going forward, there are a number of imperatives to achieve marketing excellence Marketing. .. management of their marketing resources They need better templates for marketing processes, better management of marketing assets, and better allocation of marketing resources Certain repetitive processes can be automated This drive is going under such names as marketing resource management (MRM), enterprise marketing management (EMM), and marketing automation systems (MAS).57 Several software companies... contingency planning 2 Management formally identifies the most important contingencies and develops contingency plans MANAGING A HOLISTIC MARKETING ORGANIZATION CHAPTER 22 721 Operational Efficiency M How well is the marketing strategy communicated and implemented? 0 _ Poorly 1 _ Fairly 2 _ Successfully N Is management doing an effective job with its marketing resources? 0 No The marketing resources... to all levels of the organization Top management sets annual sales and profit goals that become specific goals for lower levels of management Each prod- MANAGING A HOLISTIC MARKETING ORGANIZATION CHAPTER 22 T A B L E 2 2 4 I Types of Marketing Control Type of Control Prime Responsibility Purpose of Control Approaches I Annual-plan control Top management Middle management To examine whether the planned... these ways, modern marketing will continue to evolve and confront new challenges and opportunities As a result, the coming years will see: H The demise of the marketing department and the rise of holistic marketing • The demise of free-spending marketing and the rise of ROI marketing  722 PART 8 TABLE 2 2 5 CREATING SUCCESSFUL LONG-TERM GROWTH Components of a Marketing Audit Part I Marketing Environment... of marketing intuition and the rise of marketing science, a The demise of manual marketing and the rise of automated marketing • The demise of mass marketing and the rise of precision marketing To accomplish these changes and become truly holistic with marketing, a new set of skills and competencies is needed Proficiency will be demanded in areas such as: E3 B ca • • s a a n Customer relationship management. .. measure and improve the cost-effectiveness of different marketing expenditures? 0 Little or no effort 1 Some effort 2 Substantial effort Strategic Orientation J What is the extent of formal marketing planning? 0 Management conducts little or no formal marketing planning 1 Management develops an annual marketing plan 2 Management develops a detailed annual marketing plan and a strategic long-range plan that... effectiveness reviews and marketing audits Companies can also perform marketing excellence reviews and ethical/social responsibility reviews THE MARKETING EFFECTIVENESS REVIEW A company's or division's marketing effectiveness is reflected in the degree to which it exhibits the five major attributes of a marketing orientation: customer philosophy, integrated marketing organization, adequate marketing information, . GROWTH Successful holistic marketing requires effective relationship marketing, inte- grated marketing, internal marketing, and socially responsible marketing. Previous chapters addressed the first. HOLISTIC MARKETING ORGANIZATION CHAPTER 22 705 MARKETING INSIGHT THE MARKETING CEO What steps can a CEO take to create a market- and customer- focused company? 1. Convince Senior Management. This raises the question of what mar- FIG. 22. 4 | Product- /Market -Management Matrix System MANAGING A HOLISTIC MARKETING ORGANIZATION CHAPTER 22 703 keting services and activities should