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Chapter22-—ManagingtheTotalMarketingEffort

Overview

Thischapterexamineshowthemarketingfunctionisorganizedandhowitrelatestoothercompanyfunctionsandhowmarketingplan

XE"marketingplan"

smustbeimplementedinordertosucceedinthemarketplace.

Themodernmarketingdepartmentevolvedthroughseveralstages.Itstartedasasalesdepartment,andlatertookonancillaryfunctions,suchasadvertisingandmarketingresearch

XE"marketingresearch"

.Astheancillaryfunctionsgrewinimportance,manycompaniescreatedaseparatemarketingdepartmenttomanagethem.Salesandmarketingpeoplegenerallyworkedwelltogether.Eventually,thetwodepartmentsweremergedintoamodernmarketingdepartmentheadedbyamarketingvice-president.Amodernmarketingdepartment,however,doesnotautomaticallycreateaneffectivemarketingcompanyunlesstheotherdepartmentsacceptandpracticecustomerorientation.Whenacompanyrefocusesonitsorganizationalstructureonkeyprocess,ratherthandepartments,itbecomesaprocess-outcome-basedcompany.

Modernmarketingdepartmentsareorganizedinanumberofways.Afunctionalmarketingorganizationiswhereseparatemanagersheadmarketingfunctions,reportingtothemarketingvice-president.Ageographicalmarketingorganizationallocatesitssalesorganizationresourcesalonggeographiclines,nationally,regionally,orlocally.Aproductmanagementorganizationassignsproductstoproductmanagerswhoworkwithfunctionalspecialiststodevelopandachieveproductplans.Amarketmanagementorganizationassignsmajormarketstomarketmanagerswhointurnworkwithfunctionalspecialiststodevelopandimplementtheirplans.Somelargecompaniesuseaproductandmarketmanagementorganizationcalledamatrixorganization.Finally,multi-divisioncompaniesusuallyoperatewithacorporatemarketingdepartmentanddivisionalmarketingdepartments.

Marketingmustworkharmoniouslywithotherfunctionalareas.Initspursuitofthecustomer’’sinterests,marketingmaycomeintoconflictwithR&D,engineering,purchasing,manufacturing,operations,finance,accounting,credit,andotherfunctions.Theseconflictscanbereducedwhenthecompanypresidentcommitsthefirmtoacustomerorientationandwhenthemarketingvice-presidentlearnstoworkeffectivelywiththeotherexecutives.Acquiringamodernmarketingorientationrequirestopexecutivesupport,amarketingtaskforce,outsidemarketingconsultinghelp,in-housemarketingtraining,acquisitionofstrongmarketingtalent,acustomer-orientedsystem,andotherrelatedsteps.

Thoseresponsibleforthemarketingfunctionmustnotonlydevelopeffectivemarketingplan

XE"marketingplan"

sbutalsoimplementthemsuccessfully.Marketingimplementationistheprocessofturningplansintoactionexercisesdescribingwhodoeswhat,when,andhow.Effectiveimplementationrequiresskillsinallocating,monitoring,organizing,andinteractingatalllevelsofthemarketingeffort.Evaluationsandcontrolincludeannual-plancontrol

XE"marketingplan"

,profitabilitycontrol,efficiencycontrol,andstrategycontrol.Thecapstoneeffortinthisprocessisthemarketingaudit.

LearningObjectives

Afterreadingthechapterthestudentshouldunderstand:

Theneedfororganization

Organizationofthemarketingandsalesfunctions

Howmarketingrelatestootherkeybusinessfunctions

Howtodevelopastrongermarket-focusedorganizationandorientation

Theskillsneededforeffectiveimplementation

Howacompanymayimproveitsmarketingimplementationskills

ChapterOutline

TrendsinCompanycompanyOrganizationorganization

Companiesmustreorganizeinresponsetoglobalization,deregulation,advancesincomputertechnologyandtelecommunications,marketfragmentation,andotherdevelopments.

Responses:reengineering,outsourcing,benchmarking,supplierpartnering,customerpartnering,merging,globalizing,flattening,focusing,empowering

MarketingOrganizationorganization

TheEvolutionoftheMarketingmarketingDepartmentdepartment

SimpleSalessalesDdepartment-—salesvicepresident,sellingorientation,occasionaloutsidesupport.

Salesdepartmentwithancillarymarketingfunctions

SeparateMarketingmarketingDdepartment-—stillwithafocusonsales

ModernMmarketingDdepartment/effectivemarketingcompany-—beginningofcustomerorientation

Salesandmarketingrelativelyequal,

Planningfrommarketing,

Implementationbysales

Keyisthatallemployeesmustrealizethattheirjobsaretocreate,serve,andsatisfycustomers.

Process-andoutcome-basedcompany-—focusofstructureonkeyprocesses(new-productdevelopment,customeracquisition,etc.)versusdepartments

OrganizingtheMmarketingDepartmentdepartment

FunctionalOrganizationorganization

GeographicOrganizationorganization

Product-orBrandbrand-MmanagementOrganizationorganization–

Advantagesanddisadvantages.

Alternativetoproductmanagersisproductteams.

Market-Managementmanagement/CustomercustomerManagementmanagementOrganizationorganization

Forfirmsthatselltheirproductstomanydifferentmarkets

Orthosethatdealwithindividualcustomersversusthemass-marketorevenmarketsegments.

Product-management/market-managementorganization

Knownalsoasamatrixorganization

Focusonmeetingtheirmarket’’sneedsversussellingaparticularproduct

Corporate/dDivisionalOorganization-—fromnocorporatemarketingstafftoastrongcorporatemarketingstaff

RelationsWithOtherDepartmentswithotherdepartments

R&D

Engineering&andPurchasingpurchasing

Manufacturing&andOperationsoperations

Finance

Accounting&Creditandcredit

BuildingacompanywidemarketingOrientationorientation.-—mainsteps:

Convincetheseniormanagementoftheneedtobecomecustomerfocused;

Appointaseniormarketingofficerandamarketingtaskforce;

Getoutsidehelpandguidance;

Changetherewardstructuresinthecompany;

Hirestrongmarketingtalent;

Developstrongin-housemarketingtrainingprograms;

Installamodernmarketingplan

XE"marketingplan"

ningsystem;

Establishanannualmarketingexcellencerecognitionprogram;

Shiftfromadepartmentfocustoaprocess/outcomefocus;

Empowertheemployees.

Injectingmorecreativityintotheorganization

Keyquestion—:whethermarketersgivetoomuchallegiancetothemarketingconcept?

Point—:marketersshouldnotemphasizesatisfyingcustomersattheexpenseofimaginativestrategies.

MarketingImplementationimplementation

XE"Implementation"

XE"Implementation"

ThePprocessthatturnsmarketingplan

XE"marketingplan"

sintoactionassignmentsandensuresthatsuchassignmentsareexecutedinamannerthataccomplishestheplan’’sstatedobjectives.

Strategy:whatandwhyofmarketingactivities;implementthewho,where,when,andhow.

Skillsrelatedtoeffectiveimplementation(4):

Diagnosticskills

Identificationofcompanylevel

Implementationskills

XE"Implementation"

EvaluationSkillsskills

EvaluationandCcontrol-—typesofcontrol(4):

Annual-PlanplanControlcontrol

SalesAnalysisanalysis

MarketShareshareAnalysisanalysis

MarketingExpenseexpense-Toto-SsalesAnalysisanalysis

FinancialAnalysisanalysis

Market-basedscorecardanalysis

ProfitabilityControlcontrol

Marketing-ProfitabilityprofitabilityAnalysisanalysis(identifyingthefunctionalexpenses,assigningthefunctionalexpensestothemarketingentities,andpreparingaprofit-and-lossstatementforeachmarketingentity)

DeterminingCorrectivecorrectiveActionaction

Directversusfullcosting(directcosts,traceablecommoncosts,andnontraceablecommoncosts)

EfficiencyControlcontrol

SalesFforceEfficiencyefficiency

Advertising

XE"Advertising"

Efficiencyefficiency

Sales-PpromotionEfficiencyefficiency

DistributionEfficiencyefficiency

StrategicControlcontrol

TheMarketing-EffectivenesseffectivenessReviewreview

TheMarketingAuditaudit

TheMarketingEexcellenceReviewreview

TheEthicalandSocialsocialRresponsibilityReviewreview

Lecture—:ReorganizingMarketingManagement—–MediaNeutrality

Introduction

Thereisanewdirectionemerginginmarketingmanagementandplanning.Itbeginswithclientsandagenciesusingnewwaystoconnectwithconsumers.Accordingly,marketingplansforsomenewproductscallforadoptionofnon-nonconventionalpatternsofadvertisingsupport.For,example,VolvolauncheditsnewS60viathewebWeblastyear,whileKelloggcreateddemandforitsRealFruitWindersusingamixofpublicrelationsandonlineactivity.

Advertisersalsohavebegunsigningdealsdirectwithmediaownerswhoprovideaccesstoawiderangeofmediaoptions.Perhapsthemosthigh-profileofthesemoveswasUnilever'’sdecisiontosignamulti-year,multi-milliondollardealtoadvertisebrands,suchasRaguandDove,inAOLTimeWarner'’snewmediaandprintoutlets.

Suchexamplesmaycurrentlybetheexceptionratherthantherule,buttheyalsoprovidesignsthat““media-neutral〞〞planningisstartingtomeanmorethan"“let'’susepostersaswellasTV."〞.

SpoiledforchoiceChoice

Theriseofdifferentmediachannelshascreatedanewrangeofoptionsforclients.NotonlyistheremoreInternet,combinedwithothermedia,butthereisalsoagrowthinsponsorshipopportunitiesandthearrivalofanewtypeofmediaowner.Thenon-non-TVmediahavebeguntoclaimsuccessinpersuadingclientsthatmediaspendingshouldnotgojusttotelevisionadspots.Inaddition,respectedresearchcompaniesnowcanprovidecasestudiesthatprovethathittingtheconsumeracrossarangeofdifferentmediacanboostimpactwellbeyondthatprovidedsolelyinthetraditionalbroadcastandprintmedia.

Despitethis,theactualpatternoftotalmediaspendinghasnotyetchangedsignificantly.Inrecentyears,TV'’spercentageoftotaladexpenditurehasbeensqueezedslightly,radiohasgainedalargershareanddirectmarketinghasmoveditselfupafewpercentagepoints.Inbroadterms,however,spendingpatternshavenotchangedradically.

Somemediaanalystsbelievethatmarketersareawarethattheyprobablyshouldbedoingthingsdifferently.Someofthemarenearerthanothers,butnonearetakingboldstepsyet.Thereareanumberofproblemswiththeadoptionofapotentiallybeneficialmedia-neutralapproach.:

First,thereisconsiderableculturalresistanceagainstchangingaformulathathasworkedinthepastandfromwhichrevenuepatternshavebeenestablished.

Anotherfactoristheneedforbrandclientstoensurethattheyaregivingouttherightmessageinalltheirmarketingefforts.Ontheonehand,theyclaimtheywantintegratedplanning,butontheotherhandmosthavenotupdatedtheirauditmeasurestoaccountforchangesinthewayconsumersreceiveandprocessmessages.

Last,thepressureforfinancialaccountabilityworksagainstanewapproachbecauseitencouragesagenciestostickwiththemediatheyknowbestandthosethatbestsuittheirbudgetsandplans.

MediaNeutralorNot?

Thegradualmovementfromcommissiontofee-basedsystemsencouragesmarketingplannersandadvertisingagenciestobebolderandbroaderintheirmediaschedules.Theviewisthatastheprocessbecomesmorefee-based,marketingandmediadecisionsalsowillbemoreimpartial.

However,thereTherewillbeorganizationalandstructuralissues,however,becausetheclientadvertisingmanagersdominatethecurrentsystem.Ifthebudgetmovestoamoreintegratedmarketingapproach,thesefolksmaybeleftbehind,andtheywillnotbehappy.Also,therewillbeanincreasingneedtotrainmediaplannerswhocancrosstheartificiallinethatdividestraditionalfromintegratedmedia,withtheintegratedmediaperceivedaslessglamorous.

Directmarketingisinlong-termgrowth,butintegrationwithtraditionaladvertisingcampaignsissadlyararity.Publicrelationscampaignsfrequentlyoperateintotalisolationfrompaid-formediacommunications.Itseemsthatwhilealthoughmedia-neutralplanningmaybeano-brainerinprinciple,actuallyputtingitintopracticeisprovingmuchmorechallenging.Onesolutionmaybetosimplifytheagencyrelationship,sothatclientandagenciescanworkclosertogether.

Anumberofforwardinglookingmarketing-orientedcompanies,suchasCanon,havemovedtheirbusinessontoamoreglobalbasisandrevampedtheirplanningandadagencystructures.Canonappointedoneagencytohandleitsmedia,anothertodoconsumercreative,anothertodobusiness-to-businesscreative,anothertododirectmailandanothertohandlePR.

IntheCanonstructure,theagenciessitdownwithcompanyexecutivesonCanon'’sbrandcontinuitygrouptoensurethateveryonetakespartintheearlydiscussions.Inthismanner,theydeterminethatiftheconsumerbusinessisdoingX,itissharedwiththeB2Bpeople,andthecreativeagenciesworkwiththemediaagencybeforethebriefisevenformulated.

ThebottomlineisthatCanongetsmorebangforthebuckbyintegratingthemarketingandmediaprogram,notjustintermsofvisualidentity,butalsointermsoftone.

NewCoordination?

Integrationmayimproveco-ordinationofcampaigns,butthekeyquestioniswhetheritencouragesachangeinmarketingplanningandinmediaspending?Itappearsthatovertimeanentirelynewbudgetmodelwillevolve.Thereisnoquestionthattheeffortstogettherightmixwilltaketime,andfirmscontinuallywillevaluatethespendingbalance,tryingtodeterminetherightbalancebetweenthetraditionalandnewerapproachesandmedia.

TheHands-OnClient

Anotherdevelopmentistheemergingconceptofthe"“brandcustodian"〞.WhileAlthoughmostmarketinganalystsagreethattheclienthastobethecustodianofthebrand,therealsoisagreementthattherearetoomanyfirmsthathaveabrogatedtheresponsibilitytotheiragencies.Theycanusepartnerstohelpwiththeproblem,buttheownerofthebrandhastomaintaintheultimateidentityofwhatthebrandshouldbeandthesortsofmediachannelstoutilizeinthebranddevelopmentandmaintenanceeffort.

Itisimportanttohaveexpertisein-housebecauseitisdangeroustorelyonanexternalresourceforallmarketingstrategicdevelopment.Thecircumstancesoftheearly21sttwenty-firstcenturymakeitclearthattheremustbemoretwo-wayknowledgetomaintaindirectiononcethereisagreementontheobjectivesandstrategy.

Agenciesandpartnersneedandappreciatequalityofthoughtwithintheclientcompanysothattheycanbounceideasoffthosewhobestunderstandthebrand.Theagenciesneedsuchexpertiseinordertobeabletojudgetheirperformanceandthatoftheirmediachoices.Lastly,themediaplanningorganizationshouldbeabletoprovidecontentratherthanjustadvertise.Thepointisthatifalltheydoisadvertiseatpeoplethentheyarenotengagingwiththem.

Itisbecomingmoreandmoreclearthatgreatmarketingfirmstendtoallowcommunicationstrategytoleadtheactualcreativestrategybecausetheymustputemphasisonwhotheyarecommunicatingtoandbywhatsortofchannel.Further,thegoalformarketersandcreativeagenciesshouldbetobecomebetteratunderstandingtheirconsumersandasaresultbecomemoreconfidentaboutreachingthemdirectly.Insteadoflookingatratecardseveryday,theyshouldinsteadthinkabouttherightmediachannelforacommunicationefforttotherighttargetmarket.Theyshouldask:““What'’stheaudiencehereandcanwereachthembetter?〞〞

LowbudgetBudgetneutralityNeutrality

Anothertrendisthemovementforsmallerandmedium-sizefirmsalsotoengageinsuchplanningandcontrolversusonlythelargeanddeep-pocketfirms.Toassistinthisprocess,therearemarketingfirmsthatcan““parachute〞〞intoacompanytoprovidemarketingexpertiseonashort-termbasis,effectivelyrepresentingtheclientandtobeneutralonthemarketingintegrationissue.Therehavebeencreativeindependentsandmediaindependentsinthepast,butnowwehaveaccountmanagementindependents.

Therewillbemoreofthatsortofagencydowntheroadtoovercomethelackofstrategicfocusinmediaplanning,tomakesurethatitisalignedwithbrandobjectives.However,threeThreemajorissuesneedtoberesolved,however,beforetrueconsumer-centricmedia-neutralplanningispossiblearethefollowing:.

First,thereisaquestionofmoney.Accountabilitycriteriashouldtomoveawayfromefficiencytowardeffectiveness.Thisissomethingthatpaymentbyresultsorsaleswouldencourage.

Second,thereisaneedforagenciestounderstandhowallthemediachannelsfittogether,includingdirectmarketingandPR.

Third,weneedanenvironmentthatencourageschange,createsnewwaysofdoingbusinessandprovidesincentivestomoveinamedia-neutralmanner.

WhileAlthoughadagenciescancurrentlyoffermedia-neutralthinkingin"“pockets,"〞,theylackconsistency.Mostbigagencies,inpockets,aregoodatit,butthechallengeistobeconsistentacrosstheboard.

Inaddition,themediaareideallypositionedtotakeadvantageofclientneeds,buttheystilldonothavetherightskillsets.Itisanopengoalforthemediaagenciesbuttheyhavetouptheirskills.Theyhavetofindawayofmanagingthedichotomybetweentheeconomicsofthebusinessandservingtheclient.

PRandthewebWebdrivewell-organizedmarketingeffortstomaximumcapacitywithintwotothreemonths,andinsomerecentexamplesthebrandshavenotutilizedTVuntilsixmonthsafterlaunch.Inanycase,marketersshouldbeawarethatfuturebudgetsfornewlaunchesorforbrandextensionsmightnotallowtheuseoftraditionalstrategies.

Giventhelevelofcompetition,shorterproductlifecycles,consumerawareness,andchangingchannelsofdistribution,budgetsjustmaynotbethereanymore,andmarketingfirmswillhavetocomeupwithdifferentsolutions.Thiswilllead,soonerthanlater,tomedianeutralityintheimplementationofmarketingplansandstrategies.

Source:MediaWeek,March1,2002.

MarketingandAdvertising

1.WhenBumbleBeeintroducedthenewvacuum-sealedpouchhighlightedintheadinFigure1,ithadtocoordinatetheworkofthemarketingdepartmentwiththeworkofmanyotherdepartmentswithinthecompany.

a.Howwouldthemarketingdepartmenthaveneededtointeractwithpurchasinginthecourseofdevelopingandlaunchingthisnewproductpackage?

b.Increatingthisnewproduct,whatkindsofinteractionswouldtheproductmanagerhavehadwithhisorhercounterpartsinthemanufacturingdepartment?

c.OutlinehowBumbleBee'’smarketingmanagerswouldhaveinteractedwithemployeesinfinance,accounting,andcreditastheyplannedandimplementedthemarketingofthisproduct.

Answer:

a.ThemarketingdepartmentatBumbleBeewouldhaveneededtocheckwithpurchasingbeforeplacingordersfornewpackagingmaterials.Marketerswouldalsohavehadtodiscusscostsandanticipatedvolumessopurchasingcouldplanfortheseneeds.

b.Theproductmanagerwouldhaveneededtodiscussvarioustimingandproductionissueswithpeopleinthemanufacturingdepartment.Inparticular,manufacturingwouldhavetoplanfortherightamountofsuppliesattherighttime,ensurethattheproperequipmentandmaterialswereinplacetohandlethenewpackaging,trainmanufacturingemployeestomakethenewpackaging,andplanforanynewhandlingproceduresrelatedtobringingintherawmaterialsandshippingoutfinishedproducts.

c.Themarketingpeoplewouldhaveneededtotalkwiththecreditdepartmenttoarrangeforcreditwiththecompaniesfromwhommaterialsandequipmentwouldbepurchasedandtoalertthecreditpeoplethatdistributorswouldbeplacingordersforthisnewproduct.Marketingwouldalsohavetotalkwithfinanceaboutthefinancialresourcesavailabletosupportplanning,testing,andimplementationofthenewproductplansandtodiscusspotentialreturnsonthisfinancialinvestment.Finally,marketerswouldhavetoworkwithaccountingtoplanfornewbillsandpaymentdiscountsrelatedtopaymentsforplanning,creating,andexecutingthenewpackaging,andtheadvertisingtosupportthenewproduct.

2.TheadinFigure2usesafirst-personstorytoshowhowIomega'’sZiptechnologycanhelpacompanymovemorequickly—andmaketheemployeelookgood,aswell.

a.WhatmeasurementscouldIomegausetodeterminetheefficiencyofitsprintadvertisingcampaign?

b.WhatimplementationissueswouldIomega'’smarketersneedtoconsiderwhenplanningthisadvertisement?

c.WhatquestionsshouldIomegamarketersaskindeterminingwhethercorrectiveactionisneededifthisadvertisingcampaigndoesnotmeetexpectations?

Answer:

a.Iomegamightlookatsalestrendsinrelationtothecostandfrequencyoftheprintadvertisingcampaign.Italsomightexaminetheadvertisingcostperthousandtargetbuyersreachedbythisad,thepercentageoftheaudiencewhowereexposedtothead,attitudemeasuresbasedonthead,andconsumerreactionstothead.

b.Studentsmaysuggestseveralissues.Twoexamples:(1)externally,aredistributorsreadyforthiscampaignandstockedwithsufficientinventorytohandletheexpectedsalesvolume;and(2)internally,arealldepartmentswithinIomegaalertedtothetimingandcontentoftheadsotheycansupportimplementation.

c.Studentswillhavedifferentideas,butherearesomesamplelinesofinquiry:didtheadappearintherightpublications,anddidthepropertargetaudienceseeit?Didtheadappearontimeandintherightpositionwithinthemagazines?Wasthetimingappropriateforthesellingcycle?

3. Adnumberthree:Ad#3

Lycosplacedthiseye-catchingprintadingeneralconsumermagazinestodrawattentiontothetravelplanningideasandotherdiverseinformationavailablethroughitsInternetsearchsite.

a.Althoughthisadcontainsnodirect-responsemechanism,howmightLycosmeasureitsefficiency?

b.Wouldcostsrelatedtothisadbeconsidereddirect,traceable,ornontraceable?Why?

c.WhatcantheseniormanagementofLycosdotouncoverpossibleareasforimprovementinthecompany'’smarketingfunction?

Answer:

a.Lycosmightmonitoroverallsalesduringtheperiodwhenthisadisrunningandforashortperiodafterithasruntodetectsalesincreases.Lycoscouldalsolookatdistributors'’ordersandsalesduringandaftertheperiodwhentheadruns.Finally,Lycoscouldusemarketingresearchtofindouthowmanypeoplesaw,noticed,understood,andactedonthead.

b.ExpensesforthisadwouldbeconsidereddirectcostsbecausetheyaredirectlyattributabletothisspecificaspectoftheLycosoffering.

c.Lycos'’seniormanagementmightuseamarketing-effectivenessreviewtouncoverweaknessesinthefirm'’smarketingfunction.Theymightalsouseamarketingaudittofindoutwhichspecificareasneedimprovementandtosupportaplanforimprovingthoseareas.Finally,theycoulduseamarketingexcellencereviewtocomparetheirperformancetothebestpracticesofhigh-performingfirms.

Ad#44. **BONUSAD--SeeCompanionWebsite!Adnumberfour:

ConAgrausedthismouth-wateringadtoinformconsumersaboutthehealthbenefitsofitsEggBeatersproducts.

a.UsingFigure22.3,theConAgrafigure,identifytheinteractionsthattheproductmanagerofEggBeaterswouldneedtoplanandimplementthisad.

b.Whatelementsinthecustomer-performancescorecardwouldbemostusefulforidentifyingmarketresponsetotheEggBeatersproduct?Why?

c.WhatotherstakeholdersshouldConAgraconsiderwhenplanningadsforEggBeaters?Explain.

Answer:

a.StudentswillidentifynumerousinteractionsthattheEggBeatersproductmanagerwouldneedtoplanandimplementforthisad,includinginteractionwiththeadagency,themedia,promotionservices,purchasing,marketresearch,andlegalpeople(amongothers).

b.Elementsinthecustomer-performancescorecardthatwouldhelpidentifymarketresponsetothisadinclude:(1)percentageofcustomersfallingintoverydissatisfied,dissatisfied,neutral,satisfied,andverysatisfiedcategories;(2)percentageofcustomerswhosaytheywouldrepurchasetheproduct;(3)percentageofcustomerswhosaytheywouldrecommendtheproducttoothers;(4)percentageoftargetmarketcustomerswhohavebrandawarenessorrecall;(5)percentageofcustomerswhosaythatthecompany’’sproductisthemostpreferredinitscategory;(6)percentageofcustomerswhocorrectlyidentifythebrand’’sintendedpositioninganddifferentiation;and(7)theaverageperceptionofcompany’’sproductqualityrelativetochiefcompetitor.

c.ConAgrashouldalsoconsidercompetitorswhenplanningitsads(tobesureithasdifferentiateditsproductsfromthoseofcompetitors);legalandregulatoryexperts(tocomplywithallguidelines);themedia(toensureconsistencywithotherpublicrelationsinitiatives);andemployees(sotheyareawareofwhatthecompanyisdoingandcanserveasambassadorstothemarket).Studentsmayidentifyotherstakeholderstobeconsidered,aswell.

OnlineMarketingToday—:BrightHouse

BrightHouse,asnotedearlier,specializesinhelpingcompaniesgenerateinnovativemarketingideas.Byhiringoutsideexpertstojump-starttheinnovationprocess,managementcangainvaluableinsightsandidentifynewwaysofexploitingmarketopportunities.Forexample,BrightHousehelpedCotycreate"“ghostmyst"〞perfume—aproductthatbecamethebest-sellingperfumeinthemarketduringitsfirstyear.BrightHouseusesafour-stepprocesstocomeupwithinnovativeideas,startingwithinvestigation(tolearnmoreaboutthesituation)andincubation(toallowtimefordifferentthoughtstosurface),thencontinuingwithilluminationandillustration(thestepsinwhichtheideasareelaboratedandbroughttolifewithdetail).

LearnmoreaboutBrightHousebyvisitingitsWebsite().Reviewthehomepageandthenfollowthe"“brightprofile"〞linktoreadabouthowthiscompanyapproachesitsassignments.Also,lookattheglossaryatthebottomofthepage.HowdoBrightHouse'’stechniqueshelpacompanyinnovateonamoresystematicbasis?Whataretheprosandconsofhiringanoutsidefirmtohelpwithinnovation?

Answer:

BrightHhousehelpscompaniesinnovatebyprovidingastructuredprocessforidentifyinginnovations,usingspecialistsfromvariousfieldstohelpexpandandclarifyideas,andeffectivelycommunicatingtheideasoemployeescanshapeitintoamarketableoffering.Prosofhiringanoutsidefirm:newideasandnewmethodsforinnova

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