Comprehensive Marketing Programs

1. Comprehensive Marketing Programs Chapter 10

2. In this chapter, you will learn about… • Marketing Program Fit • Marketing-Mix Sensitivities and Interactions • Marketing Implementation • Marketing Organization

3. Comprehensive Marketing Program Choice of Markets to Pursue Choice of Marketing Mix to Reach Target Markets Create Value for Customers

4. Major Marketing Decisions • Where to Compete • How to Compete • When to Compete

5. Characteristics of a Successful Marketing Program • Must effectively stimulate target markets to buy • Must be consistent with organizational capabilities • Must outmaneuver competition • Equal attention must be paid to strategy implementation and formulation

6. Implementation of the Marketing ProgramCentral Issues • Fit with the market, organization, and competition • Target market’s sensitivities and interactions with the marketing mix • Implementation • Organizational issues

7. Marketing Program Fit • Determined by the extent to which the marketing mix satisfies the unique needs and buyer requirements of a chosen target market (DuPont’s Kevlar) • Depends on the match between an organization’s marketing skills and financial position with the marketing mix (Continental Airlines) • Fit with the competition depends on the strengths, weaknesses, and marketing mixes of competitors (long-distance telephone companies)

8. Marketing-Mix Sensitivities and Interactions Example of DuPont’s Dilemma • John Murray, marketing manager for DuPont’s Sontara, a polyester fabric used for hospital surgical gowns and drapes, was evaluating a marketing program to: • Maintain market share • Gain the confidence of garment makers • Numerous options were possible…

9. Marketing-Mix Sensitivities and InteractionsExample of DuPont’s Dilemma • If sales force/missionary expenses were raised from 0 to $200,000, market share would increase to 33%. • If trade support/maintenance expenses were increased to $100,000, a 33% market share would result. • If trade support/missionary expenses were increased to $100,000, a 33% market share would result. • If advertising to intermediate users were increased to $50,000, the effect would be a 1% increase in market share. • An increase to $300,000 in advertising to end users would also result in a 1% share gain. • Raising all expenditures to their maximum reasonable levels would increase market share to 39% in the short run.

10. Marketing-Mix Sensitivities and InteractionsExample of DuPont’s Dilemma • Reducing sales force/maintenance expenditures to 0 would reduce market share to 32%. • Reducing trade support/maintenance expenditures to 0 would reduce market share to 27%. • Reducing trade support/missionary expenditures to 0 would reduce market share to 32%. • Reducing advertising to intermediaries to 0 would reduce market share to 31%. • Reducing advertising to end users to 0 would reduce market share to 28%. • Reducing all above expenditures to 0 would reduce market share to 22%.

11. Marketing ImplementationHampering Factors • Poor timing • Not considering the logistical aspects of a marketing program • Failure to synchronize marketing mix activities • Failing to monitor the price-cost plan

12. Marketing Organization Strategy determines organizational structure, which in turn determines the effectiveness of a marketing program.

13. Marketing Organization A central issue is finding the proper balance between centralization and decentralization of marketing activities • Region-specific marketing (e.g., Frito-Lay) • Global marketing (e.g., Coca-Cola) • “Glocalization” is an attempt to balance standardization with local market requirements