2.Modern marketing departments can be organized in a number of ways. Some com-
panies are organized by functional specialization; others focus on geography and
regionalization. Still others emphasize product and brand-management or market-
segment management. Some companies establish a matrix organization consisting
of both product and market managers. Some companies have strong corporate mar-
keting, others have limited corporate marketing, and still others place marketing
only in the divisions.
3.Effective modern marketing organizations are marked by a strong cooperation and
customer focus among the company’s departments: marketing, R&D, engineering,
purchasing, manufacturing, operations, finance, accounting, and credit.
4.A brilliant strategic marketing plan counts for little if it is not implemented prop-
erly. Implementing marketing plans calls for skills in recognizing and diagnosing
a problem, assessing the company level where the problem exists, implementation
skills, and skills in evaluating the implementation results.
5.The marketing department has to monitor and control marketing activities con-
tinuously. The purpose of annual-plan controlis to ensure that the company achieves
the sales, profits, and other goals established in its annual plan. The main tools
of annual-plan control are sales analysis, market-share analysis, marketing
expense–to–sales analysis, financial analysis, and market-based scorecard analysis.
6.Profitability controlseeks to measure and control the profitability of various prod-
ucts, territories, customer groups, trade channels, and order sizes. An important
part of controlling for profitability is assigning costs and generating profit-and-loss
statements.
7.Efficiency controlfocuses on finding ways to increase the efficiency of the sales force,
advertising, sales promotion, and distribution.
8.Strategic controlentails a periodic reassessment of the company and its strategic ap-
proach to the marketplace, using the tools of the marketing-effectiveness review
and the marketing audit. Companies should also undertake ethical–social respon-
sibility reviews.CONCEPTS
1.Rewrite the questions in the Components of a Marketing Audit (Table 6.11) in such
a way that they reflect the individual problems and terminology associated with
your industry. Be as specific and as detailed as you can when writing the questions.
If you are not presently employed, rewrite the questions for either a company you
have worked for or one for which you would like to work in the future.2.A large manufacturer of industrial equipment has a salesperson assigned to each
major city. Regional sales managers supervise the sales representatives in several
cities. The chief marketing officer wants to evaluate the profit contribution of the
different cities. How might each of the following costs be allocated to each of the
cities: (a) the aggregate costs of sending bills to customers; (b) district sales man-
ager’s expenses; (c) national magazine advertising; and (d) marketing research?3.NAPLCO (North American Phillips Lighting Corporation) wanted to put Norelco
bulbs on supermarket shelves as a third national brand (GE had 60 percent of the
market and Westinghouse had 20 percent of the market). Lightbulb purchases had
been slowly declining over the last five years. Lightbulbs were the grocer’s most
profitable store item per linear foot of goods stocked. NAPLCO concluded that the
strong Norelco name, proven capability at making quality lightbulbs, and profits
for supermarkets would make this project very successful. After conducting con-
sumer research, it created a new and clever gravity-fed display and novel trans-
parent and protective package for the bulbs themselves. The display held 12 of the
most popular lightbulb types. (Most supermarkets carried 50 types of lightbulbs,part five
Managing and
Delivering Marketing(^714) Programs
APPLICATIONS