marketing implementation and control copyright © houghton mifflin company. all rights reserved....

Marketing Implementationand Control

Copyright © Houghton Mifflin Company. All rights reserved.Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook

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Part SevenPart SevenImplementation Implementation and Electronic and Electronic

MarketingMarketing

Copyright © Houghton Mifflin Company. All rights reserved. 22–2

Chapter Learning Objectives

• To describe the marketing implementation process and the major approaches to marketing implementation

• To identify the components of the marketing implementation process

• To understand the role of the marketing unit in a firm’s organizational structure

• To describe the alternatives for organizing a marketing unit

• To understand the control processes used in managing marketing strategies


Chapter Learning Objectives (cont’d)

• To explain how cost and sales analyses are used to evaluate the performance of marketing strategies

• To identify the major components of a marketing audit


Chapter Outline

• The Marketing Implementation Process• Approaches to Marketing Implementation• Organizing Marketing Activities• Organizing the Marketing Unit• Implementing Marketing Activities• Controlling Marketing Activities• Methods of Evaluating Performance• The Marketing Audit


The Marketing Implementation Process

• Marketing Implementation–The process of putting marketing strategies into action

• Intended Strategy–The strategy that the company decides on during the

planning phase

• Realized Strategy–The strategy that actually takes place

IntendedIntendedStrategyStrategy

RealizedRealizedStrategyStrategyImplementationImplementation


Problems in Implementing Marketing Activities

Marketing StrategyMarketing StrategyImplementationImplementation

Marketing StrategyMarketing StrategyImplementationImplementation

Marketing strategy Marketing strategy and implementation and implementation

are constantly are constantly evolving.evolving.


are constantly are constantly evolving.evolving.


are related.are related.


are related.are related.

The responsibility The responsibility for marketing for marketing strategy and strategy and

implementation is implementation is separated.separated.

The responsibility The responsibility for marketing for marketing strategy and strategy and

implementation is implementation is separated.separated.


Separation of Strategic Planning and Marketing Implementation

FIGURE 22.1Source: Figure adapted from Marketing Strategy by O. C Ferrell, Michael D. Hartline, and George H. Lucas, Jr.,. Copyright © 2002 Harcourt Brace & Company. Reproduced by permission of the publisher.


Marketing Implementation

FIGURE 22.2


Approaches to Marketing Implementation

• Internal Marketing–Coordinating internal exchanges between the firm and

its employees to achieve successful external exchanges between the firm and its customers

–Helping employees understand and accept their roles in the marketing strategy

–External customers• Individuals who patronize a business

–Internal customers• A company’s employees


The Internal Marketing Framework

FIGURE 22.3Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change, Copyright © 1992, Butterworth-Heinemann Ltd., p. 371. Used with permission.


Components of Total Quality Management

Total QualityTotal QualityManagementManagementTotal QualityTotal QualityManagementManagement

Empowered Empowered EmployeesEmployees

Empowered Empowered EmployeesEmployees

Continuous Continuous Quality Quality

ImprovementImprovement

Continuous Continuous Quality Quality

ImprovementImprovement

Quality Quality Improvement Improvement

TeamsTeams

Quality Quality Improvement Improvement

TeamsTeams


Total Quality Management

• Total Quality Management (TQM)–A philosophy that uniform commitment to quality in all

areas of the organization will promote a culture that meets customers’ perceptions of quality

• Continuous Quality Improvement–A slow, long-term process of creating small

improvements in quality by building quality from the very beginning

• Benchmarking–Comparing the quality of the firm’s goods, services, or

processes with that of the best-performing competitors


Total Quality Management (cont’d)

• Empowerment–Giving customer-contact employees authority and

responsibility to make marketing decisions on their own

• Quality Improvement Teams–A team of employees drawn from a cross-section of

jobs within the organization that works on quality improvement issues


Organizing Marketing Activities (cont’d)

• The Role of Marketing in an Organization

Close coordination of Close coordination of organizational unitsorganizational units

Understanding customer Understanding customer needs and desiresneeds and desires

Organizational goals for Organizational goals for customer value and firm customer value and firm

profitabilityprofitability

Marketing Marketing ConceptConcept


Organizing Marketing Activities

• The Role of Marketing in an Organization’s Structure

• Adopting the Marketing Concept–Understanding that the customer’s needs and desires

are pivotal to marketing strategy decisions–Concentrating on discovering buyers’ wants and

fulfilling them so as to achieve organizational goals–Closer coordination with other functional areas to

ensure that the proper volume and variety of products are available to support marketing efforts


Alternatives for Organizing the Marketing Unit• Centralized Organization

–A structure in which top management delegates little authority to levels below it

• Decentralized Organization–A structure in which decision-making authority is

delegated as far down the chain of command as possible


Organizing the Marketing Unit

ProductProductGroupsGroups

ProductProductGroupsGroups

CentralizedCentralizedoror

DecentralizedDecentralized

CentralizedCentralizedoror

DecentralizedDecentralized

MarketingMarketingFunctionsFunctions

MarketingMarketingFunctionsFunctions

GeographicGeographicRegionsRegions

GeographicGeographicRegionsRegions

CustomerCustomerTypesTypes

CustomerCustomerTypesTypes

Alternatives for OrganizingAlternatives for Organizingthe Marketing Unitthe Marketing Unit

Alternatives for OrganizingAlternatives for Organizingthe Marketing Unitthe Marketing Unit


Implementing Marketing Activities

Establishing a Timetable Establishing a Timetable for Implementationfor ImplementationEstablishing a Timetable Establishing a Timetable for Implementationfor Implementation

Motivating Marketing Motivating Marketing PersonnelPersonnelMotivating Marketing Motivating Marketing PersonnelPersonnel

Communicating Within Communicating Within the Marketing Unitthe Marketing UnitCommunicating Within Communicating Within the Marketing Unitthe Marketing Unit

Coordinating Marketing Coordinating Marketing ActivitiesActivitiesCoordinating Marketing Coordinating Marketing ActivitiesActivities

Marketing Marketing ActivitesActivites

Marketing Marketing ActivitesActivites


Example of an Implementation Timetable

FIGURE 22.4


The Marketing Control Process

FIGURE 22.5


Controlling Marketing Activities

• Marketing Control Process–Establishing performance standards and trying to

match actual performance to those standards

• Establishing Performance Standards–Expected levels of performance

• Taking Corrective Action–Improve actual performance–Reduce or change the performance standards–Do both


Controlling Marketing Activities (cont’d)

• Problems in Controlling Marketing Activities–Lack of the information required to control activities–Uncontrollable influence of market environment

changes on marketing activities–Time lag that occurs between marketing campaigns

and their results delays corrective actions


Methods of Evaluating Performance

• Sales Analysis–Using sales figures to evaluate a firm’s current

performance –A common method of evaluation that uses sales

transactions in dollars or units sold per sales group or individual salesperson to evaluate performance

• Market Share Analysis–Measuring marketing performance by the percentage of

an industry’s total sales that an individual firm captures


Methods of Evaluating Performance (cont’d)• Marketing Cost Analysis

–Breaking down and classifying costs to determine those that stem from specific marketing activities

Cost Classification Allocation

Fixed costs Costs based on how money was actually spent

Variable costs Costs directly attributable to production and selling volume

Traceable common costs

Costs allocated indirectly to the functions they support

Nontraceable com-mon costs

Costs assignable only on an arbitrary basis


Methods of Evaluating Performance (cont’d)

• Marketing Cost Analysis (cont’d)–Full-cost approach

• Including direct costs and both traceable and nontraceable common costs in the cost analysis

–Direct-cost approach• Including only direct costs

and traceable common costs in the cost analysis


The Marketing Audit

• Marketing Audit–A systematic examination of the marketing group’s

objectives, strategies, organization, and performance• Identifies weaknesses in ongoing marketing operations

and plans improvements

–Customer service audit• A comparison of the performance of specific customer

service activities with service goals and standards

–Ensuring a successful audit• Focus questions on the right issues• Be systematic—follow a step-by-step plan• Interview and consult with as diverse group of employees

as possible


After reviewing this chapter you should:

• Be able to describe the marketing implementation process, and the major approaches to marketing implementation.

• Understand the components of the marketing process.

• Know about the role of the marketing unit in the firm's organizational structure.

• Be able to identify the alternatives for organizing a marketing unit.

• Understand the control processes used in managing marketing strategies.


After reviewing this chapter you should:

• Know how costs and sales analyses are used to evaluate the performance of marketing strategies.

• Be aware of the major components of a marketing audit.

Chapter 22Chapter 22Supplemental SlidesSupplemental Slides



Key Terms and Concepts

• The following slides (a listing of terms and concepts) are intended for use at the instructor’s discretion.

• To rearrange the slide order or alter the content of the presentation–select “Slide Sorter” under View on the main menu.–left click on an individual slide to select it; hold and drag

the slide to a new position in the slide show.–To delete an individual slide, click on the slide to select,

and press the Delete key.–Select “Normal” under View on the main menu to return

to normal view.


Important Terms

• Marketing Implementation–The process of putting marketing strategies into action

• Intended Strategy–The strategy that the company decides on during the

planning phase

• Realized Strategy–The strategy that actually takes place

• Internal Marketing–Coordinating internal exchanges between the firm and

its employees to achieve successful external exchanges between the firm and its customers


Important Terms

• External Customers–Individuals who patronize a business

• Internal Customers–A company’s employees

• Total Quality Management (TQM)–A philosophy that uniform commitment to quality in all

areas of the organization will promote a culture that meets customers’ perceptions of quality

• Continuous Quality Improvement–A slow, long-term process of creating small

improvements in quality by building quality from the very beginning


Important Terms

• Benchmarking–Comparing the quality of the firm’s goods, services, or

processes with that of the best-performing competitors

• Empowerment–Giving customer-contact employees authority and

responsibility to make marketing decisions on their own

• Quality Improvement Teams–A team of employees drawn from a cross-section of

jobs within the organization that works on quality improvement issues


Important Terms

• Centralized Organization–A structure in which top management delegates little

authority to levels below it

• Decentralized Organization–A structure in which decision-making authority is

delegated as far down the chain of command as possible

• Marketing Control Process–Establishing performance standards and trying to

match actual performance to those standards


Important Terms

• Sales Analysis–Using sales figures to evaluate a firm’s current

performance

• Market Share Analysis–Measuring marketing performance by the percentage of

an industry’s total sales that an individual firm captures

• Marketing Cost Analysis–Breaking down and classifying costs to determine those

that stem from specific marketing activities

• Fixed Costs–Costs based on how money was actually spent


Important Terms

• Variable Costs–Costs directly attributable to production and selling

volume

• Traceable Common Costs–Costs allocated indirectly to the functions they support

• Nontraceable Common Costs–Costs assignable only on an arbitrary basis

• Full-Cost Approach–Including direct costs and both traceable and

nontraceable common costs in the cost analysis


Important Terms

• Direct-Cost Approach–Including only direct costs and traceable common costs

in the cost analysis

• Marketing Audit–A systematic examination of the marketing group’s

objectives, strategies, organization, and performance

• Customer Service Audit–A comparison of the performance of specific customer

service activities with service goals and standards


Transparency Figure 22D

Road Blocks to Implementing Public Relations or Advertising

Source: Sales and Marketing Management, Sept. 2001, p.56. Used with permission.

This survey asked executives the single biggest obstacle they face when coordinating a PR or advertising campaign. While cost is a big issue, lack of other executive’s support is also a problem.


Transparency Figure 22G

Americans Work the Most Hours

Source: USA Today, October 11, 2001, p. B1. Used with permission.

The USA led the world in average annual hours worked in 2000:

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