Performance Metrics and Strategy Implementation Chapter Fifteen M arket-Based Management, 4 th edition

15-2 Performance Metrics and Strategy Implementation Chapter Fifteen –Marketing Performance Metrics –Successful Implementation of a Marketing Plan (Evaluation) –Performance Variance Analysis

15-3 Stockholder Value and Market-Based Management

15-4 The Importance of Market Metrics

15-5 Process Market Metrics Leading Indicators of end-result performance Examples of Process Metrics –Customer Awareness –Customer Interest –Product Trial –Customer Satisfaction/Dissatisfaction –Relative Quality and Value

15-6 Process Market Metrics

15-7 End-Result Market Metrics Occur Simultaneously with Financial Performance Metrics Provide External Measures of Performance Examples of End-Result Market Metrics –Market Share –Customer Retention –Revenue per Customer

15-8 End-Result Market Metrics

15-9 Three Major Forces of Successful Strategy Implementation Owning the Marketing Plan Supporting the Marketing Plan Adapting the Marketing Plan 1.Detailed Action Plans 2. Champion and Ownership Team 3. Compensation 4. Management Involvement 1.Continuous Improvement 2.Feedback Measures 3.Persistence 4.Adaptive Rollout 1.Time to Succeed 2.Resource Allocation 3.Communication 4.Required Skills

15-10 Assessing Marketing Plan Implementation

15-11 Variance Analysis Why is Variance Analysis employed to measure performance? –Compares actual with expected performance –Isolates components of Marketing Performance What components of marketing performance can Variance Analysis evaluate? –Volume –Marketing Expense –Margin –Demand –Share –Price –Cost

15-12 Takeaways / Review Importance of Strategy Implementation in Achieving Desired Performance Process and End-Result Metrics Performance Variance Analysis Successful Strategy Implementation

15-13 Marketing Performance Tools Variance Analysis

15-14 Marketing Performance Tools Variance Analysis