Marketing Management
Theocharis Katranis
Lecture 11
Today’s Lecture
1. We will analyze the important trends in marketing practices.
3. We will discuss how a company can build a creative marketing organisation.
5. We will explain what the marketing metrics are, what is the need, what are useful marketing metrics, what are the key marketing metrics, what metrics do companies use and what is a marketing dashboard.
2. We will identify the keys to effective internal marketing.
4. We will analyze the tools that are available to help companies monitor and improve their marketing activities.
Trends in Marketing Practises
Lecture 11
Due to the changes in the business environment, companies are :
1. Re-engineering: appointing teams to manage customer-value-building processes and break down walls between departments.
2. Outsourcing: buying more goods and services from outside domestic or foreign vendors
3. Benchmarking: studying ‘best practice companies’ to improve performance
4. Supplier partnering: partnering with fewer but better value-adding suppliers
Lecture 11 Trends in Marketing Practises
Due to the changes in the business environment, companies are :
5. Customer partnering: working more closely with customers to add value to their operations
6. Merging: acquiring or merging with firms in the same or complimentary industries to gain economies of scale and scope
7. Globalisation: increasing efforts to ‘think global’ 8. Flattering: reducing the number of organisational
Lecture 11 Trends in Marketing Practises
Due to the changes in the business environment, companies are :
9. Focusing: determining the most profitable business and customers and focusing on them
10. Accelerating: designing the organisation and
setting up processes to respond more quickly to changes in the environment
11. Empowering: encouraging and empowering
personnel to produce more ideas and take more initiative
Internal Marketing
Definition:
It emphasises the importance in buyers’ markets
for a company to adopt a holistic attitude towards the concepts and goals of marketing and engage in choosing, providing and communicating customer-perceived value.
Lecture 11
Organising the Marketing
Organising the Marketing
Department
Relations with other departments
Under the marketing concept, all departments need to ‘think customer’ and work together to satisfy customer needs and expectations.
Lecture 11
Building a creative
Marketing Organisation
True Market-driven companies focus on:
1. Developing a company-wide passion for customers
2. Organising around customer segments instead of products
3. Understanding customers through qualitative and quantitative research
Building Creativity
1. Taking the creative approach i.e (a) Do things faster than before (b) Do it better.
2. Build a creative culture within the organisation
3. Implement Marketing – It is the process that turns marketing plans into action assignments and ensures they accomplish the plan’s stated objectives.
Lecture 11
Socially Responsible
Marketing
1. Ethical i.e. Theft of trade secrets 2. Legal i.e. Not bribing
3. Social Responsibility – company supply information to their customers for its operations 4. Sustainability i.e. Not to harm future generations
Social Marketing
Definition:
It is the systematic application of marketing alongside other concepts and techniques, to achieve specific goals, for a “SOCIAL” good, often by non-profit or government organisations. i.e. Say no to Drugs, Exercise More and Eat Better.
Lecture 11 The Future of Marketing
1. The
Marketing manager’s key tasks
Lecture 11
The Future of Marketing
2. A holistic approach to marketing management 3. The nature of marketing
4. Relationship activity – Marketing, Customer, Customer-perceived value
5. Market Research – Companies will need to pay more attention to market research
The Future of Marketing
6. New Product Development - Companies will have to concentrate to find New Innovative
products
7. Marketing Communications activity – New Technological Advances will be used
Lecture 11
Managing Marketing Metrics
Definition:
It is the set of measures that helps firms to quantify, compare and interpret their marketing performance.
Managing Marketing Metrics
Reasons for the need of Marketing Metrics
1. Companies want to measure the return on marketing need to treat marketing expenditure as an investment instead of just a short-term expense.
2. Conventional methods (i.e. Balance Sheet, Income statements, gross margins) of productivity and return are often historical and say little about the future long-term performance of a company.
3. Availability of ICT and Internet infrastructure (i.e. The use of different planning, management and relationship
Lecture 11 Managing Marketing Metrics
Lecture 11 Managing Marketing Metrics
Lecture 11 Measuring Marketing Performance
& Productivity
The Three dimensions of Marketing Metrics
1. Counting-based (or activity) metrics
2. Accounting-based (or operational) metrics 3. Outcome metrics
Lecture 11 Measuring Marketing Performance
& Productivity
1. Counting-based (or activity) metrics
Counting-based metrics include, for example, number of customers, number of orders, sales, number of complaints. Any Internal and External factor that can be counted may serve as a counting-based metric
Lecture 11 Measuring Marketing Performance
& Productivity
2. Accounting-based (or operational) metrics 2.1 Return On Investment (ROI)
ROI % = Net Income before tax X 100 Investment
ROI % = €200,000 X 100 = 13.3% €1,500,000
Lecture 11 Measuring Marketing Performance
& Productivity
2.2 Return On Assets (ROA)
2. Accounting-based (or operational) metrics
ROA % = Net Income before tax X 100 Total Assets
Lecture 11 Measuring Marketing Performance
& Productivity
2. Accounting-based (or operational) metrics Net Present Value (NPV)
“Having €1000 in your hand today is better than having €1000 in five years from now”.
NPV helps companies to accept projects that the expected cash flows from these projects add value
Lecture 11 Measuring Marketing Performance
& Productivity 3. Outcome Metrics
Marketers collect and conduct multivariate analyses of many info from a variety of sources outside the company, such as retailer scanned data, company shipping data, pricing, media and promotion spending data.
Lecture 11 The Balanced Scorecard
Approach
Include ROI, Cash Flow Analyses
Include Opportunity success rates, number of activities and defect rates Include performance to customers, customer satisfaction rate Include illness rates, internal promotions %, employee turnover
Lecture 11 The Balanced Scorecard Approach –
The 4 processes for strategic management
Marketing Dashboards
Definition:
Dashboards are on screen easy to read summaries of key marketing metrics. A marketing dashboard is a personalised view of all relevant marketing information to a specific job and role.
Lecture 11
Summary – Lecture 11
1. We analyzed the important trends in marketing practices.
3. We discussed how a company can build a creative marketing organisation.
5. We explained what the marketing metrics are, what is the need, what are useful marketing metrics, what are the key marketing metrics, what metrics do companies use and what is a marketing dashboard.
2. We identified the keys to effective internal marketing.
4. We analyzed the tools that are available to help companies monitor and improve their marketing activities.
Chapters 21 and 22
Lecture 11
