Marketing Implementationand ControlCopyright Houghton Mifflin Company. All rights reserved.PowerPoint Presentation by Charlie Cook22Part Seven Implementation and Electronic Marketing

Chapter Learning ObjectivesTo describe the marketing implementation process and the major approaches to marketing implementationTo identify the components of the marketing implementation processTo understand the role of the marketing unit in a firms organizational structureTo describe the alternatives for organizing a marketing unitTo understand the control processes used in managing marketing strategies

Chapter Learning Objectives (contd)To explain how cost and sales analyses are used to evaluate the performance of marketing strategiesTo identify the major components of a marketing audit

Chapter OutlineThe Marketing Implementation ProcessApproaches to Marketing ImplementationOrganizing Marketing ActivitiesOrganizing the Marketing UnitImplementing Marketing ActivitiesControlling Marketing ActivitiesMethods of Evaluating PerformanceThe Marketing Audit

The Marketing Implementation ProcessMarketing ImplementationThe process of putting marketing strategies into actionIntended StrategyThe strategy that the company decides on during the planning phaseRealized StrategyThe strategy that actually takes placeIntended StrategyRealized StrategyImplementation

Problems in Implementing Marketing ActivitiesMarketing Strategy Implementation

Separation of Strategic Planning and Marketing ImplementationFIGURE 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 ImplementationFIGURE 22.2

Approaches to Marketing ImplementationInternal MarketingCoordinating internal exchanges between the firm and its employees to achieve successful external exchanges between the firm and its customersHelping employees understand and accept their roles in the marketing strategyExternal customersIndividuals who patronize a businessInternal customersA companys employees

The Internal Marketing FrameworkFIGURE 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 ManagementTotal Quality Management

Total Quality ManagementTotal 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 qualityContinuous Quality ImprovementA slow, long-term process of creating small improvements in quality by building quality from the very beginningBenchmarkingComparing the quality of the firms goods, services, or processes with that of the best-performing competitors

Total Quality Management (contd)EmpowermentGiving customer-contact employees authority and responsibility to make marketing decisions on their ownQuality Improvement TeamsA team of employees drawn from a cross-section of jobs within the organization that works on quality improvement issues

Organizing Marketing Activities (contd)The Role of Marketing in an OrganizationClose coordination of organizational unitsUnderstanding customer needs and desiresOrganizational goals for customer value and firm profitabilityMarketing Concept

Organizing Marketing ActivitiesThe Role of Marketing in an Organizations StructureAdopting the Marketing ConceptUnderstanding that the customers needs and desires are pivotal to marketing strategy decisionsConcentrating on discovering buyers wants and fulfilling them so as to achieve organizational goalsCloser 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 UnitCentralized OrganizationA structure in which top management delegates little authority to levels below itDecentralized OrganizationA structure in which decision-making authority is delegated as far down the chain of command as possible

Organizing the Marketing UnitAlternatives for Organizing the Marketing Unit

Implementing Marketing ActivitiesMarketing Activites

Example of an Implementation TimetableFIGURE 22.4

The Marketing Control ProcessFIGURE 22.5

Controlling Marketing ActivitiesMarketing Control ProcessEstablishing performance standards and trying to match actual performance to those standardsEstablishing Performance StandardsExpected levels of performanceTaking Corrective ActionImprove actual performanceReduce or change the performance standardsDo both

Controlling Marketing Activities (contd)Problems in Controlling Marketing ActivitiesLack of the information required to control activitiesUncontrollable influence of market environment changes on marketing activitiesTime lag that occurs between marketing campaigns and their results delays corrective actions

Methods of Evaluating PerformanceSales AnalysisUsing 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 performanceMarket Share AnalysisMeasuring marketing performance by the percentage of an industrys total sales that an individual firm captures

Methods of Evaluating Performance (contd)Marketing Cost AnalysisBreaking 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 common costs

Costs assignable only on an arbitrary basis

Methods of Evaluating Performance (contd)Marketing Cost Analysis (contd)Full-cost approachIncluding direct costs and both traceable and nontraceable common costs in the cost analysisDirect-cost approachIncluding only direct costs and traceable common costs in the cost analysis

The Marketing AuditMarketing AuditA systematic examination of the marketing groups objectives, strategies, organization, and performanceIdentifies weaknesses in ongoing marketing operations and plans improvementsCustomer service auditA comparison of the performance of specific customer service activities with service goals and standards Ensuring a successful auditFocus questions on the right issuesBe systematicfollow a step-by-step planInterview 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 22Supplemental SlidesCopyright Houghton Mifflin Company. All rights reserved.*22*

Key Terms and ConceptsThe 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 presentationselect 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 TermsMarketing ImplementationThe process of putting marketing strategies into actionIntended StrategyThe strategy that the company decides on during the planning phaseRealized StrategyThe strategy that actually takes placeInternal MarketingCoordinating internal exchanges between the firm and its employees to achieve successful external exchanges between the firm and its customers

Important TermsExternal CustomersIndividuals who patronize a businessInternal CustomersA companys employeesTotal 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 qualityContinuous Quality ImprovementA slow, long-term process of creating small improvements in quality by building quality from the very beginning

Important Terms BenchmarkingComparing the quality of the firms goods, services, or processes with that of the best-performing competitorsEmpowermentGiving customer-contact employees authority and responsibility to make marketing decisions on their ownQuality Improvement TeamsA team of employees drawn from a cross-section of jobs within the organization that works on quality improvement issues

Important TermsCentralized OrganizationA structure in which top management delegates little authority to levels below itDecentralized OrganizationA structure in which decision-making authority is delegated as far down the chain of command as possibleMarketing Control ProcessEstablishing performance standards and trying to match actual performance to those standards

Important TermsSales AnalysisUsing sales figures to evaluate a firms current performance Market Share AnalysisMeasuring marketing performance by the percentage of an industrys total sales that an individual firm capturesMarketing Cost AnalysisBreaking down and classifying costs to determine those that stem from specific marketing activitiesFixed CostsCosts based on how money was actually spent

Important TermsVariable CostsCosts directly attributable to production and selling volumeTraceable Common CostsCosts allocated indirectly to the functions they supportNontraceable Common CostsCosts assignable only on an arbitrary basisFull-Cost ApproachIncluding direct costs and both traceable and nontraceable common costs in the cost analysis

Important TermsDirect-Cost ApproachIncluding only direct costs and traceable common costs in the cost analysisMarketing AuditA systematic examination of the marketing groups objectives, strategies, organization, and performanceCustomer Service AuditA 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 executives 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: