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Marketing:
Building
Blueprints
for Business
(Chapter 4)
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
 Services
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
 Services
 Retailers
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
HP “Maestro” - Goodby Silverstein
 Services
 Retailers
 High Tech
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H.264 decompressor
are needed to see this picture.
&
Marketers Advertisers
 Many different types of marketers
 Packaged goods
 Durable Goods
 Services
 Retailers
 High Tech
 And more
 But they all have similar methodologies
and organizations.
&
Marketers Advertisers
 Today we’ll cover…
The Marketing Function - 5 Ps
 The Marketing Department
 Organizational Structure
 Types of Jobs
 The Marketing Process
 Challenges for the Future
 Questions & Discussion
“Marketing is Everything”
 Marketing has become the dominant and often
most critical business function
 Manufacturing techniques and resources are
now less critical, often easy to obtain
 Brand equity and intellectual capital are now
more critical, harder to duplicate
 Business is evolving from manufacture of
goods to manufacture of “thinking”
“The Five P’s”





Five Critical Marketing Decisions
Product
Price
Place (physical distribution)
Promotion
 All types of promotional activities
 Advertising, Sales Promotion, PR, etc.
 “The Fifth P”
 People
1. Product
 Product may be “tangible”
 Packaged goods
 Durable goods
 Product may be a service
 Product may be a combination
 Products are “bundles of benefits”
2. Price
 Key part of “value equation”
 At the price, product must have some measure
of “functional superiority.”
 Price must also contain margin
 For funding of necessary activities...
 and profit
 Price can send additional signals
 Can be a strategy in itself, or, more likely,
part of a strategy
2. Price
 Here is an example of advertising that
supports a price strategy
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3. Place
 Similar products can make different
“place” decisions
 Example: Coffee
 Folgers (retail)
3. Place
 Similar products can make different
“place” decisions
 Example: Coffee
 Folgers
 Gevalia
3. Place
 Similar products can make different
“place” decisions
 Example: Coffee
 Folgers
 Gevalia
 Starbucks
 A Critical Decision
4. Promotion
 A range of marketing communications
(MarCom) techniques can be used:
 Advertising
 Sales Promotion
 Public Relations
 Publicity
 Internet/New Media
 Direct Sales
 Direct Marketing
 Event Marketing
 Trade Shows
 Promotional
Products
5. People
 Some controversy over the “Fifth P”
 Once, some said “packaging”
 One consultant says “personalization”
 We say it’s “People.”
 Your customers
 Your own people
 Work force & Sales force
 Other “stakeholders”
 Trade, Suppliers, Stockholders
The Marketing Mix
 The right combinations of . . .
 Demand
 Example: Price/Supply
 Marketing Variables
 Five P Variables
 Promotional Variables
 Marketing Strategy . . .
Unique Combinations
Unique Marketing Strategies
 Example:
Early auto industry
 Ford - Product/Price
 GM - Product/Value
 GM - Multiple Brands
 Chrysler - Competitive
Position
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Unique Combinations
Unique Marketing Strategies
 Example:
Early auto industry
 Ford - Product/Price
 GM - Product/Value
 GM - Multiple Brands
 Example: Bose
 Promotion + Place
Direct instead of stores
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TIFF (Uncompressed) decompressor
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Marketing Departments
2 Types of Organization
 Vertical Organization
 Traditional military “command” structure
 Clear lines of responsibility
 Seems to work best when there are
numerous similar products
 Horizontal Organization
 More fluid “ad hoc” structure
 Organize around needs and functions
Top Job Functions:
 For both types of organizations
 CEO, COO, CMO
 Chief Executive Officer
 Chief Operating Officer
 Chief Marketing Officer
 Top Marketing person
 “Heavy hitter” usually 35+
 CFO, CIO
 Chief Financial Officer
 Chief Information Officer
Vertical Organization
 Example: Oscar Mayer (KGF)
Consumer Products
V.P.
Marketing
Category Manager
Lunch Pak
Brand
Manager
Ham
Brand
Manager
Turkey
Assistant
Brand
Manager
Assistant
Brand
Manager
Category Manager
Hot Dogs
Brand
Manager
Assorted
Brand
Manager
Main Line
Assistant
Brand
Manager
Brand
Assistant
Brand
Manager
Smokies
Category Manager
Breakfast/New Products
Brand
Manager
New
Products
Brand
Manager
Bacon &
Sausage
Brand
Manager
New
Products
Assistant
Brand
Manager
Assistant
Brand
Manager
Brand
Assistant
Jobs in Vertical Organization
 Category Manager
 Veteran (in 30s)
 Major overall responsibility
 Nurture/grow brands and brand managers
 Brand Manager




Up from Assistant (mid-20s)
Responsible for one brand only
“It’s your baby”
Succeed or die
Horizontal Organization
 Example: McDonnell-Douglas (2 groups)
CEO
COO, Sr. VP
VP, F/A-18
VP, F-15
Marketing
Manager
Production
Manager
Finance
Manager
Advertising
Plant
Cost
Accounting
Trade Shows
Suppliers
Navy Customer
Customer
Foreign Customers
Customers
R&D
Manager
Marketing
Manager
Production
Manager
Finance
Manager
Advertising
Plant
Manager
Cost
Accounting
Trade Shows
Air Force
Customer
Jobs in Horizontal Organization
 VP of Program
 Must know the business
 Maturity/power/clout - 35+
 Marketing Manager
 Marketing experience, not necessarily advertising
 Responsible for all advertising, PR, sales
promotion, trade shows, etc.
 Advertising Manager
 May be “thrown into” role
 May have little ad experience
 Competition from other programs
Marketing Job Functions
 Director of Marketing
 Often, trained w. “feeder system”
 P&G, KGF, etc.
 Has become COO career path
 Must manage increasing variety of MarCom
programs and suppliers
 Advertising Director
 Importance depends on size of budget
 May also have significant responsibilities
monitoring media spending
Marketing Job Functions
 Category Manager
 Group Product Manager
 Brand Manager
 Brand Assistant
 Other Staff Functions:
 Sales Promotion
 Media
 Market Research
 Field Marketing…
Bridgette Heller - from
Brand Manager Gevalia
to Category Manager for
Coffee at KGF
Field Marketing
 Excellent entry level job opportunity
 There are many marketers that operate
Field Marketing Organizations

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
Beverage Industry (Beer, Soft Drink)
Fast Food Industry
Franchise Organizations
In many cases, ad agencies that service these
marketers also provide Field Marketing
 “Think Global. Act Local.”
The Marketing Process
 Simply put, it’s...
 Planning
 Implementation
 Evaluation
Planning
1. Setting overall marketing strategy
2. Developing annual marketing plan
3. Calculating annual marketing budget
4. Assigning marketing tasks (planning)
NOTE: All of this is covered in more detail
in Chapter 8 - Marketing & Planning
Implementation
4. Assigning marketing tasks (continued)
 After budgets approved, operations move from the
theoretical to the practical
 NOTE: Actual costs may vary from budget - plans
may need to be changed “on the fly”
5. Supervising internal functions
 NOTE: PR may be internal, external or both
6. Overseeing external services
 Advertising, sales promotion, etc.
 NOTE: Variety of MarCom program options is
growing
Evaluation:
7. Measuring and tracking efforts




Sales Results
Media Expenditures
Awareness and Usage
Ongoing Market Research programs (tracking)
8. Reporting performance to management
 NOTE: May be daily, weekly, or quarterly.Trend is
for more frequent reporting
9. Integrating results into planning
 The cycle continues - working for improvement
NOTE: Some of this is covered in more detail in
Chapter 11 Evaluation & Integration
Marketing Challenges:
 Increasing importance of marketing
 As mentioned, “Marketing is Everything” the
function is more important for everyone
 Hyper-Competition
 Too much capacity for size of market
 Happening on a global scale
 Examples: Automobiles, computers
 Fragmentation
 Consumers, Media, etc.
 Harder to do “mass” marketing
 And of course…
Marketing Challenges:
 The Media Revolution
 Changing Business Models
 Example: Newspapers/Network TV
 Chan ging Consumer Habits
 Example: Response to Economy
 Shift in Control of Media
Channels
 Example: Social Media
Marketing Challenges:
 The Media Revolution
 Changing Business Models
 Example: Newspapers/Network TV
 Changing Consumer Habits
 Example: Response to Economy
 Shift in Control of Media
Channels
 Example: Social Media
 New Communication Channels
 Example: “The Third Screen”
Marketing Challenges:
The future is sure to be
challenging.
But those challenges will be
met with Marketing!
Because today and tomorrow
Marketing is Everything!
Questions & Discussion