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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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