Part Seven
Implementation and Electronic Marketing
22
Marketing Implementation and Control
Copyright Houghton Mifflin Company. All rights reserved. PowerPoint 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 firms organizational structure To describe the alternatives for organizing a marketing unit To understand the control processes used in managing marketing strategies
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Chapter Learning Objectives (contd)
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
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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
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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
Realized Strategy
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Problems in Implementing Marketing Activities
Marketing Strategy Implementation
Marketing strategy and implementation are related.
Marketing strategy and implementation are constantly evolving.
The responsibility for marketing strategy and implementation is separated.
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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
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Marketing Implementation
FIGURE 22.2
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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 companys employees
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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
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Components of Total Quality Management
Total Quality Management
Continuous Quality Improvement
Empowered Employees
Quality Improvement Teams
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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 firms goods, services, or processes with that of the best-performing competitors
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Total Quality Management (contd)
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
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Organizing Marketing Activities (contd)
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
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Organizing Marketing Activities
The Role of Marketing in an Organizations Structure Adopting the Marketing Concept
Understanding that the customers 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
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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
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Organizing the Marketing Unit
Alternatives for Organizing the Marketing Unit
Centralized or Decentralized
Marketing Functions
Product Groups
Geographic Regions
Customer Types
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Implementing Marketing Activities
Motivating Marketing Personnel Communicating Within the Marketing Unit Marketing Activites Coordinating Marketing Activities Establishing a Timetable for Implementation
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Example of an Implementation Timetable
FIGURE 22.4
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The Marketing Control Process
FIGURE 22.5
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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
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Controlling Marketing Activities (contd)
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
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Methods of Evaluating Performance
Sales Analysis
Using sales figures to evaluate a firms 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 industrys total sales that an individual firm captures
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Methods of Evaluating Performance (contd)
Marketing Cost Analysis
Breaking down and classifying costs to determine those that stem from specific marketing activities
Cost Classification
Fixed costs Variable costs Traceable common costs Nontraceable common costs
Allocation
Costs based on how money was actually spent Costs directly attributable to production and selling volume Costs allocated indirectly to the functions they support Costs assignable only on an arbitrary basis
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Methods of Evaluating Performance (contd)
Marketing Cost Analysis (contd)
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
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The Marketing Audit
Marketing Audit
A systematic examination of the marketing groups 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 systematicfollow a step-by-step plan Interview and consult with as diverse group of employees as possible
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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.
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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.
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Chapter 22 Supplemental Slides
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Key Terms and Concepts
The following slides (a listing of terms and concepts) are intended for use at the instructors 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.
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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. 2235
Important Terms
External Customers
Individuals who patronize a business
Internal Customers
A companys 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. 2236
Important Terms
Benchmarking
Comparing the quality of the firms 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
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2237
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
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2238
Important Terms
Sales Analysis
Using sales figures to evaluate a firms current performance
Market Share Analysis
Measuring marketing performance by the percentage of an industrys 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. 2239
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
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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 groups objectives, strategies, organization, and performance
Customer Service Audit
A comparison of the performance of specific customer service activities with service goals and standards
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Transparency Figure 22D
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 executives support is also a problem.
Source: Sales and Marketing Management, Sept. 2001, p.56. Used with permission.
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Transparency Figure 22G
Americans Work the Most Hours
The USA led the world in average annual hours worked in 2000:
Source: USA Today, October 11, 2001, p. B1. Used with permission.
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