Comprehensive Marketing Programs

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Comprehensive Marketing Programs
Chapter 10
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In this chapter, you will learn about

• Marketing Program Fit
• Marketing-Mix Sensitivities and Interactions
• Marketing Implementation
• Marketing Organization

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Comprehensive Marketing Program
Choice of Markets to Pursue
Choice of Marketing Mix to Reach Target Markets
Create Value for Customers
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Major Marketing Decisions

• Where to Compete
• How to Compete
• When to Compete

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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

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Implementation of the Marketing ProgramCentral
Issues

• Fit with the market, organization, and
  competition
• Target markets sensitivities and interactions
  with the marketing mix
• Implementation
• Organizational issues

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Marketing Program Fit

• Determined by the extent to which the marketing
  mix satisfies the unique needs and buyer
  requirements of a chosen target market (DuPonts
  Kevlar)
• Depends on the match between an organizations
  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)

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Marketing-Mix Sensitivities and Interactions
Example of DuPonts Dilemma

• John Murray, marketing manager for DuPonts
  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

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Marketing-Mix Sensitivities and
InteractionsExample of DuPonts 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.

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Marketing-Mix Sensitivities and
InteractionsExample of DuPonts 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.

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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

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