Part Seven Implementation and Electronic Marketing 22 Marketing
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Part Seven Implementation and Electronic Marketing 22 Marketing Implementation and Control Copyright © Houghton Mifflin Company. All rights reserved. Power. Point Presentation by Charlie Cook
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 Copyright © Houghton Mifflin Company. All rights reserved. 2
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 Copyright © Houghton Mifflin Company. All rights reserved. 3
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 Copyright © Houghton Mifflin Company. All rights reserved. 4
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 Intended Strategy Implementation Copyright © Houghton Mifflin Company. All rights reserved. Realized Strategy 5
Problems in Implementing Marketing Activities Marketing Strategy Implementation Marketing strategy and implementation are related. Marketing strategy and implementation are constantly evolving. Copyright © Houghton Mifflin Company. All rights reserved. The responsibility for marketing strategy and implementation is separated. 6
Separation of Strategic Planning and Marketing Implementation Source: 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. Copyright © Houghton Mifflin Company. All rights reserved. FIGURE 22. 1 7
Marketing Implementation FIGURE 22. 2 Copyright © Houghton Mifflin Company. All rights reserved. 8
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 accept their roles in the marketing strategy – External customers • Individuals who patronize a business – Internal customers • A company’s employees Copyright © Houghton Mifflin Company. All rights reserved. 9
The Internal Marketing Framework Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change, Copyright © 1992, Butterworth-Heinemann Ltd. , p. 371. Used with permission. Copyright © Houghton Mifflin Company. All rights reserved. FIGURE 22. 3 10
Components of Total Quality Management Continuous Quality Improvement Empowered Employees Copyright © Houghton Mifflin Company. All rights reserved. Quality Improvement Teams 11
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 Copyright © Houghton Mifflin Company. All rights reserved. 12
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 Copyright © Houghton Mifflin Company. All rights reserved. 13
Organizing Marketing Activities (cont’d) • The Role of Marketing in an Organization Understanding customer needs and desires Organizational goals for customer value and firm profitability Marketing Concept Close coordination of organizational units Copyright © Houghton Mifflin Company. All rights reserved. 14
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 Copyright © Houghton Mifflin Company. All rights reserved. 15
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 Copyright © Houghton Mifflin Company. All rights reserved. 16
Organizing the Marketing Unit Alternatives for Organizing the Marketing Unit Centralized or Decentralized Marketing Functions Copyright © Houghton Mifflin Company. All rights reserved. Product Groups Geographic Regions Customer Types 17
Implementing Marketing Activities Motivating Marketing Personnel Marketing Activites Communicating Within the Marketing Unit Coordinating Marketing Activities Establishing a Timetable for Implementation Copyright © Houghton Mifflin Company. All rights reserved. 18
Example of an Implementation Timetable FIGURE 22. 4 Copyright © Houghton Mifflin Company. All rights reserved. 19
The Marketing Control Process FIGURE 22. 5 Copyright © Houghton Mifflin Company. All rights reserved. 20
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 Copyright © Houghton Mifflin Company. All rights reserved. 21
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 Copyright © Houghton Mifflin Company. All rights reserved. 22
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 Copyright © Houghton Mifflin Company. All rights reserved. 23
Methods of Evaluating Performance (cont’d) • Marketing Cost Analysis – Breaking down and classifying costs to determine those that stem from specific marketing activities Copyright © Houghton Mifflin Company. All rights reserved. 24
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 Copyright © Houghton Mifflin Company. All rights reserved. 25
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 Copyright © Houghton Mifflin Company. All rights reserved. 26
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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. Copyright © Houghton Mifflin Company. All rights reserved. 31
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. Copyright © Houghton Mifflin Company. All rights reserved. 32
Chapter 22 Supplemental Slides Copyright © Houghton Mifflin Company. All rights reserved. 22– 33
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. Copyright © Houghton Mifflin Company. All rights reserved. 34
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 Copyright © Houghton Mifflin Company. All rights reserved. 35
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 Copyright © Houghton Mifflin Company. All rights reserved. 36
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 Copyright © Houghton Mifflin Company. All rights reserved. 37
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 Copyright © Houghton Mifflin Company. All rights reserved. 38
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 Copyright © Houghton Mifflin Company. All rights reserved. 39
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 Copyright © Houghton Mifflin Company. All rights reserved. 40
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 Copyright © Houghton Mifflin Company. All rights reserved. 41
Transparency Figure 22 D Road Blocks to Implementing Public Relations or Advertising 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. Source: Sales and Marketing Management, Sept. 2001, p. 56. Used with permission. Copyright © Houghton Mifflin Company. All rights reserved. 42
Transparency Figure 22 G Americans Work the Most Hours The USA led the world in average annual hours worked in 2000: Source: USA Today, October 11, 2001, p. B 1. Used with permission. Copyright © Houghton Mifflin Company. All rights reserved. 43
