11 MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE Marketing Implementation and Control

Strategic Issues in Marketing Implementation (1 of 2) The Link Between Strategic Planning and Implementation Interdependency Evolution Separation

Southwest: Improving Customer Service

Strategy and Implementation: A Two-Way Relationship Exhibit 11.1

Discussion Question Forget for a moment that planning the marketing strategy is equally as important as implementing the marketing strategy. What arguments can you make for one being more important than the other? Explain your answers.

The Separation of Planning and Implementation Exhibit 11.2

Strategic Issues in Marketing Implementation (2 of 2) The Elements of Marketing Implementation Shared Goals and Values Marketing Structure Systems and Processes Resources People (Human Resources) Employee selection and training Employee evaluation and compensation policies Employee motivation, satisfaction and commitment Leadership

Home Depot Employees

The Elements of Marketing Implementation Exhibit 11.3

Approaches to Marketing Implementation Implementation By Command Implementation Through Change Implementation Through Consensus Implementation as Organizational Culture

Marketing Strategy in Action Chrysler Corporation’s acquisition of Jeep/Eagle was a critical step in the process of rebuilding Chrysler. How can an implementation through change strategy alter the success of a company? Can you think of other mergers/acquisitions that improved the company’s competitive position?

Discussion Question If you were personally responsible for implementing a particular marketing strategy, which implementation approach would you be most comfortable using given your personality and personal preferences? Why?

Internal Marketing and Marketing Implementation The Internal Marketing Approach Goals of Internal Marketing (1) Help employees understand their roles (2) Create motivated and customer-oriented employees (3) Deliver external customer satisfaction The Internal Marketing Process Internal Customers External Customers Putting Internal Marketing Into Action

The Internal Marketing Process Exhibit 11.5

Discussion Question What do you see as the major stumbling blocks to the successful use of the internal marketing approach? Given the hierarchical structure of employees in most firms, is internal marketing a viable approach for most organizations? Why or why not?

Evaluating and Controlling Marketing Activities Four possible causes of differences between intended strategy and realized strategy: (1) The marketing strategy was inappropriate or unrealistic. (2) The implementation was inappropriate for the strategy. (3) The implementation process was mismanaged. (4) Substantial changes occurred in the environment between development and implementation.

A Framework for Marketing Control Exhibit 11.6

Formal Marketing Controls Input Controls Recruiting, selecting, and training employees Resource allocation decisions Process Controls Commitment to the strategy System for evaluating and compensating employees Output Controls Formal performance standards Marketing audits

Informal Marketing Controls Employee Self-Control Employees manage their own behaviors Establish personal objectives and monitor results Social Control Standards, norms, and ethics found in workgroups Peer pressure causes employees to conform Cultural Control Behavioral and social norms of the entire firm Shared values throughout the firm

Scheduling Marketing Activities Basic steps in creating a schedule and timeline: (1) Identify the activities to be performed (2) Determine the time required to complete each activity (3) Determine which activities must precede other activities (4) Arrange the proper sequence and timing of all activities (5) Assign responsibility

A Hypothetical 3-Month Marketing Implementation Schedule Exhibit 11.8