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MANAGING A HOLISTIC MARKETING ORGANIZATION FOR THE LONG RUN | CHAPTER 22 623<br />

Marketers also face ethical dilemmas and perplexing trade-offs. Consumers may value convenience,<br />

but how to justify disposable products or elaborate packaging in a world trying to <strong>min</strong>imize waste?<br />

Increasing material aspirations can defy the need for sustainability. Given increasing consumer<br />

sensitivity and government regulation, smart companies are creatively designing with energy efficiency,<br />

carbon footprints, toxicity, and disposability in <strong>min</strong>d. Some are choosing local suppliers over distant<br />

ones. Auto companies and airlines must be particularly conscious of releasing CO 2 in the atmosphere.<br />

Toyota Prius<br />

Toyota Prius Some auto experts scoffed when Toyota predicted sales of 300,000<br />

cars within five years of launching its gas-and-electric Prius hybrid sedan in 2001. But by 2004,<br />

the Prius had a six-month waiting list. Toyota’s winning formula consists of a powerful electric<br />

motor and the ability to quickly switch power sources—resulting in 55 miles per gallon for city<br />

and highway driving—with the roo<strong>min</strong>ess and power of a family sedan and an eco-friendly<br />

design and look, for a little over $20,000. The lesson? Functionally successful products that consumers see<br />

as good for the environment can offer enticing options. Toyota is now rolling out hybrids throughout its auto<br />

lineup, and U.S. automakers have followed suit. 7<br />

Now more than ever, marketers must think holistically and use creative win-win solutions to balance<br />

conflicting demands. They must develop fully integrated marketing programs and meaningful<br />

relationships with a range of constituents. 8 They must do all the right things inside their company<br />

and consider the broader consequences in the marketplace, topics we turn to next.<br />

Internal <strong>Marketing</strong><br />

Traditionally, marketers played the role of middleman, charged with understanding customers’ needs<br />

and transmitting their voice to various functional areas. 9 But in a networked enterprise, every<br />

functional area can interact directly with customers. <strong>Marketing</strong> no longer has sole ownership of<br />

customer interactions; rather, it now must integrate all the customer-facing processes so customers<br />

see a single face and hear a single voice when they interact with the firm. 10<br />

Internal marketing requires that everyone in the organization accept the concepts and goals of<br />

marketing and engage in choosing, providing, and communicating customer value. Only when all<br />

employees realize their job is to create, serve, and satisfy customers does the company become an<br />

effective marketer. 11 “<strong>Marketing</strong> Memo: Characteristics of Company Departments That Are Truly<br />

Customer Driven” presents a tool that evaluates which company departments are truly customer driven.<br />

Let’s look at how marketing departments are being organized, how they can work effectively with<br />

other departments, and how firms can foster a creative marketing culture across the organization. 12<br />

Organizing the <strong>Marketing</strong> Department<br />

Modern marketing departments can be organized in a number of different, sometimes overlapping<br />

ways: functionally, geographically, by product or brand, by market, or in a matrix.<br />

FUNCTIONAL ORGANIZATION In the most common form of marketing<br />

organization, functional specialists report to a marketing vice president who coordinates their<br />

activities. Figure 22.1 shows five specialists. Others might include a customer service manager,<br />

<strong>Marketing</strong><br />

vice president<br />

|Fig. 22.1|<br />

Functional<br />

Organization<br />

<strong>Marketing</strong><br />

ad<strong>min</strong>istration<br />

manager<br />

Advertising and<br />

sales promotion<br />

manager<br />

Sales<br />

manager<br />

<strong>Marketing</strong><br />

research<br />

manager<br />

New-products<br />

manager

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