Marketing Implementation and Control 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 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.

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.

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.

The Marketing Implementation Process 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 Copyright © Houghton Mifflin Company. All rights reserved.

Problems in Implementing Marketing Activities Marketing Strategy Implementation Marketing strategy and implementation are constantly evolving. Marketing strategy and implementation are related. The responsibility for marketing strategy and implementation is separated. Copyright © Houghton Mifflin Company. All rights reserved.

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. FIGURE 22.1 Copyright © Houghton Mifflin Company. All rights reserved.

Marketing Implementation FIGURE 22.2 Copyright © Houghton Mifflin Company. All rights reserved.

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 company’s employees Copyright © Houghton Mifflin Company. All rights reserved.

The Internal Marketing Framework Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change, Copyright © 1992, Butterworth-Heinemann Ltd., p. 371. Used with permission. FIGURE 22.3 Copyright © Houghton Mifflin Company. All rights reserved.

Components of Total Quality Management Empowered Employees Continuous Quality Improvement Quality Improvement Teams Copyright © Houghton Mifflin Company. All rights reserved.

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.

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.

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.

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.

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.

Organizing the Marketing Unit Alternatives for Organizing the Marketing Unit Product Groups Centralized or Decentralized Marketing Functions Geographic Regions Customer Types Copyright © Houghton Mifflin Company. All rights reserved.

Implementing Marketing Activities Establishing a Timetable for Implementation Motivating Marketing Personnel Communicating Within the Marketing Unit Coordinating Marketing Activities Marketing Activites Copyright © Houghton Mifflin Company. All rights reserved.

Example of an Implementation Timetable FIGURE 22.4 Copyright © Houghton Mifflin Company. All rights reserved.

The Marketing Control Process FIGURE 22.5 Copyright © Houghton Mifflin Company. All rights reserved.

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.

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.

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.

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.

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.

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.

Copyright © Houghton Mifflin Company. All rights reserved.

Copyright © Houghton Mifflin Company. All rights reserved.

Copyright © Houghton Mifflin Company. All rights reserved.

Copyright © Houghton Mifflin Company. All rights reserved.

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.

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.

Chapter 22 Supplemental Slides 22–33 Copyright © Houghton Mifflin Company. All rights reserved.

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.

Important Terms Marketing Implementation Intended Strategy 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.

Important Terms External Customers Internal 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.

Important Terms Benchmarking Empowerment Quality Improvement Teams 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.

Important Terms Centralized Organization Decentralized 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.

Important Terms Sales Analysis Market Share 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.

Important Terms Variable Costs Traceable Common 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.

Important Terms Direct-Cost Approach Marketing Audit 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.

This survey asked executives the single 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 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.

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. Copyright © Houghton Mifflin Company. All rights reserved.