Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–1 Part 4: Evaluating marketing Chapter 17: Implementation and control Step 6: Implement and control the marketing strategy

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–2 When we finish this lecture you should Appreciate the importance of forecasting Understand why effective implementation is critical to customer satisfaction and the achievement of corporate goals Understand how TQM can improve marketing implementation Understand how planning and control can be combined Appreciate the importance of costing activities for marketing plans Recognise the differences between sales analysis, performance analysis, performance indices and cost analysis Understand the different ways in which a company can plan and implement its international marketing operations Know what is involved in a marketing audit and understand the circumstances in which it should be undertaken

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–3 Forecasting target market potential and sales Target market potential—what a whole market segment might buy Sales forecast—an estimate of how much an industry or company hopes to sell to a market segment

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–4 Two approaches to forecasting Extending past behaviour Predicting future behaviour

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–5 Forecasting by extending past behaviour Extending past sales – Trend extension – Assumes future patterns will be like past patterns Factor models – Based on finding a variable (a factor) that is related to the variable being forecast – Multiple factors may be helpful Time series and leading series – Time series—Historical records of the fluctuations in economic variables – Leading series—A time series that changes in the same direction but ahead of the series to be forecast

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–6 Using judgments and opinions to forecast sales Jury of executive opinion—Forecasting by combining the opinions of experienced executives, perhaps from marketing, production, finance, purchasing and top management Sales force estimates—Combining the sales estimates from each sales person Surveys, panels and test markets

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–7 Information, implementation and control Feedback improves the marketing management process Fast feedback leads to competitive advantage New information technologies

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–8 Effective implementation Timing of the strategy – Flow charts Implementation objectives Innovative implementation

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–9 Figure 17.2 Examples of approaches to overcome specific marketing implementation problems

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–10 Quality and implementation Total quality management (TQM) The cost of dissatisfied customers Identifying customer needs Implementing quality service Managing the quality effort Benchmarking performance Quality improvement and profit

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–11 Figure 17.3 Pareto chart showing frequency of different complaints

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–12 Figure 17.4 Fishbone diagram showing cause and effect

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–13 Implementing quality service Training and empowering staff Managing customer expectations Responding to customer needs

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–14 Costing and controlling marketing plans Estimating the cost of each activity – Most common method is to compute a percentage of either past or anticipated sales – Match expenditure with competitors – Set the budget as a certain dollar figure per sales unit using past year as a base – Base the budget on any uncommitted revenue perhaps including budgeted profits – Base the budget on the task at hand  Based on number of new customers desired  Determine which marketing objectives are most important and the most economical method to achieve the marketing objectives

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–15 Controlling marketing plans Sales analysis – Sales breakdowns Performance analysis – Performance indices Marketing cost analysis – Allocating costs  Functional accounts  Allocating fixed costs Full-cost approach Contribution-margin approach

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–16 Figure 17.5 Comparative performance of sales representatives

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–17 Figure 17.6 Comparative costs of sales representatives

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–18 Figure 17.7 Development of a measure of sales performance (by region)

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–19 Figure 17.8 Planning and control chart for Cindy’s Fashions

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–20 Figure 17.9 International market entry strategies

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–21 Multinational corporations Have direct investments in several countries Operate the business depending on the choices available anywhere in the world – Selecting vendors – Locations for production – Target markets to go after Take a world view, not just the view of the home country More companies are looking at world-wide competition

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–22 The marketing audit Appraising – Objectives – Policies – Methods – Procedures – People

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy 17–23 What we will be doing in the next chapter In the following chapter we will be discussing ethical marketing in a consumer-oriented world, including – How marketing can and should be evaluated – How to assess the connection between marketing, materialism and social values – The challenges facing marketers in the future – How far marketing can or should go