2.4 Managing the Marketing Effort and Marketing Return on Investment

Question 1

In addition to being good at the marketing in marketing management, what must companies also pay attention to?

Answer 1

In addition to being good at the marketing in marketing management, companies also need to pay attention to the management.

Question 2

What are the 5 marketing management functions of managing?

Answer 2

Managing the marketing process requires the five marketing management functions shown in Figure 2.6—

Analysis
Planning
Implementation
Organization
Control

Question 3

Figure 2.6 Managing Marketing: Analysis, Planning, Implementation, and Control

Answer 3

Question 4

What does managing the markiting function begin with?

Answer 4

Managing the marketing function begins with a complete analysis of the company’s situation. The marketer should conduct a SWOT analysis

Question 5

Definition of SWOT analysis

Answer 5

SWOT analysis:

An overall evaluation of the company’s

Strengths (S) - internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives.

Weaknesses (W) - internal limitations and negative situational factors that may interfere with the company’s performance.

Opportunities (O) - favourable factors or trends in the external environment that the company may be able to exploit to its advantage.

Threats (T) - unfavourable external factors or trends that may present challenges to performance.

Question 6

Figure 2.7 SWOT Analysis: Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T)

Answer 6

Question 7

What is the goal of SWOT analysis?

Answer 7

The goal is to match the company’s strengths to attractive opportunities in the environment while simultaneously eliminating or overcoming the weaknesses and minimizing the threats.

Question 8

What does Marketing planning involve?

Answer 8

Marketing planning involves choosing marketing strategies that will help the company attain its overall strategic objectives.

A detailed marketing plan is needed for each business, product, or brand.

Question 9

What does a Marketing Plan begin with?

Answer 9

The plan begins with an executive summary that quickly reviews major assessments, goals, and recommendations.

Question 10

What does the main section of a marketing plan present?

Answer 10

The main section of the plan presents a detailed SWOT analysis of the current marketing situation as well as potential threats and opportunities.

Question 11

After the SWOT analysys, what comes next in a marketing plan?

Answer 11

The plan next states major objectives for the brand and outlines the specifics of a marketing strategy for achieving them.

Question 12

What is the Excutive summary of a marketing plan?

Answer 12

Executive summary

Presents a brief summary of the main goals and recommendations of the plan for management review, helping top management find the plan’s major points quickly.

Question 13

What is the “Current marketing situation” part of the Marketing plan?

Answer 13

Describes the target market and the company’s position in it, including information about the market, product performance, competition, and distribution. This section includes the following:

• Marketing description
• Product Review
• Review of Competition
• Review of Distribution

Question 14

What is a Market description?

Answer 14

A market description defines the market and major segments and then reviews customer needs and factors in the marketing environment that may affect customer purchasing.

Question 15

What is a Product review?

Answer 15

A product review shows sales, prices, and gross margins of the major products in the product line.

Question 16

What is a review of competition?

Answer 16

A review of competition identifies major competitors and assesses their market positions and strategies for product quality, pricing, distribution, and promotion.

Question 17

What is a review of distribution?

Answer 17

A review of distribution evaluates recent sales trends and other developments in major distribution channels.

Question 18

What is the Threats and opportunities analysis?

Answer 18

Threats and opportunities analysis

Assesses major threats and opportunities that the product might face, helping management to anticipate important positive or negative developments that might have an impact on the firm and its strategies.

Question 19

What does the Objectives and issues portion of a Marketing plan involve?

Answer 19

Objectives and issues

States the marketing objectives that the company would like to attain during the plan’s term and discusses key issues that will affect their attainment.

Question 20

What does the Marketing strategy portion of the Marketing plan involve?

Answer 20

Marketing strategy

Outlines the broad marketing logic by which the business unit hopes to engage customers, create customer value, and build customer relationships, plus the specifics of target markets, positioning, and marketing expenditure levels.

How will the company create value for customers in order to capture value from customers in return?

This section also outlines specific strategies for each marketing mix element and explains how each responds to the threats, opportunities, and critical issues spelled out earlier in the plan.

Question 21

What is the Action Program portion of the Marketing Plan?

Answer 21

Action programs

Spells out how marketing strategies will be turned into specific action programs that answer the following questions: What will be done? When will it be done? Who will do it? How much will it cost?

Question 22

What is the Budget portion of the Marketing plan?

Answer 22

Budgets

Details a supporting marketing budget that is essentially a projected profit-and-loss statement.

It shows expected revenues and expected costs of production, distribution, and marketing. The difference is the projected profit.

The budget becomes the basis for materials buying, production scheduling, personnel planning, and marketing operations.

Question 23

What is the Controls portion of the Marketing plan?

Answer 23

Controls

Outlines the controls that will be used to monitor progress, allow management to review implementation results, and spot products that are not meeting their goals.

It includes measures of return on marketing investment.

Question 24

Defintion of Marketing implementation

Answer 24

Marketing implementation:

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

Whereas marketing planning addresses the what and why of marketing activities, implementation addresses the who, where, when, and how.

Question 25

What are some of the different kinds of marketing specialists?

Answer 25

• Product and market managers,
• Sales managers and salespeople,
• Market researchers, and
• Advertising and social media experts,

among others.

Question 26

What is the position that leads a marketing department?

Answer 26

To head up such large marketing organizations, many companies have now created a chief marketing officer (or CMO) position.

This person heads up the company’s entire marketing operation and represents marketing on the company’s top management team.

The CMO position puts marketing on equal footing with other “C-level” executives, such as the chief operating officer (COO) and the chief financial officer (CFO).

As a member of top management, the CMO’s role is to champion the customer’s cause.

Question 27

What are some different names for a CMO?

Answer 27

Many companies call their top marketer the

“Chief Customer Experience Officer” or the

“Chief Customer Value Officer.”

Question 28

Modern marketing departments can be arranged in several ways.

What are some of them?

Answer 28

• Functional organization
• Geographic organization
• Product management organization
• Market or customer management organization

Question 29

What does the functional organization look like?

Answer 29

The most common form of marketing organization is the functional organization, under which different marketing activities are headed by a functional specialist—a sales manager, an advertising manager, a marketing research manager, a customer service manager, or a new product manager

Question 30

What is geographic organization?

Answer 30

A company that sells across the country or internationally often uses a geographic organization, assigning sales and marketing people to specific countries, regions, and districts.

Question 31

What is Product management organization?

Answer 31

Companies with many very different products or brands often create a product management organization.

Question 32

What is market or customer management organzation?

Answer 32

For companies that sell one product line to many different types of markets and customers who have different needs and preferences, a market or customer management organization might be best.

Question 33

In reality, do comanies only use one type of organization method?

Answer 33

Large companies that produce many different products flowing into many different geographic and customer markets usually employ some combination of the functional, geographic, product, and market organization forms.

Question 34

What are more and more companies shifting their brand management focus towards?

Answer 34

Marketing organization has become an increasingly important issue in recent years. More and more, companies are shifting their brand management focus toward customer management—moving away from managing only product or brand profitability and toward managing customer profitability and customer equity.

Question 35

Defintion of Marketing control

Answer 35

Marketing control:

Setting specific marketing goals, and then measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

Question 36

What are the four steps of Marketing control?

Answer 36

Management first sets specific marketing goals.

It then measures its performance in the marketplace and evaluates the causes of any differences between expected and actual performance.

Finally, management takes corrective action to close the gaps between goals and performance. This may require changing the action programs or even changing the goals.

Question 37

What does Operating control involve?

Answer 37

Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary.

Its purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan.

It also involves determining the profitability of different products, territories, markets, and channels.

Question 38

What does Strategic control involve?

Answer 38

Strategic control involves looking at whether the company’s basic strategies are well matched to its opportunities.

Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace.

Question 39

What is a big difference in how marketing managers must carry out their work in todays organizations?

Answer 39

Marketing managers must ensure that their marketing dollars are being well spent. In the past, many marketers spent freely on big, expensive marketing programs and flashy advertising campaigns, often without thinking carefully about the financial returns on their spending. Their goal was often a general one—to “build brands and consumer preference.”

However, those free-spending days have been replaced by a new era of marketing measurement and accountability. More than ever, today’s marketers are being held accountable for linking their strategies and tactics to measurable marketing performance outcomes.

Question 40

Definition of Marketing return on investment (Marketing ROI)

Answer 40

Marketing return on investment (marketing ROI):

The net return from a marketing investment divided by the costs of the marketing investment.

Question 41

What are the R and the I in ROI measured in?

Answer 41

In measuring financial ROI, both the R and the I are uniformly measured in dollars.

Question 42

How can a company assess marketing ROI?

Answer 42

A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share.

Question 43

What is a marketing dashboard?

Answer 43

marketing dashboards—meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.

Question 44

Beyond standard proformance measures, what are marketeres using to measure ROI?

Answer 44

Increasingly, however, beyond standard performance measures, marketers are using customer-centred measures of marketing impact, such as

Customer acquisition,
Customer engagement,
Customer experience,
Customer retention,
Customer lifetime value
Customer equity.

These measures capture not only current marketing performance but also future performance resulting from stronger customer relationships.

Question 45

Figure 2.8 Marketing Return on Investment

Answer 45