1. Strategy Implementation and Control
GLOBAL MARKETING
Strategy Implementation and Control

2. Shaping the Success of Strategy Implementation
Three Forces
Ownership of marketing plan
Supporting the marketing plan
Adaptive market planning

3. Ownership Detailed action plans Champion/ownership team Compensation
Management involvement

4. Marketing Tactic: To create adequate end user product availability,
80 manufacturer’s reps and 5 missionary salespeople will be used
to sell and distribute our product to 5,000 industrial supply houses.
* From time of implementation

5. Support
Time
Resources
Communication
Skills

6. Adaptation
Continuous improvement
Feedback measurements
Persistence

7. Overall Performance Measures
Unit sales
Dollar sales
Sales in specific segments
Marketing costs
Production costs
Market share
Customer ratings of product quality
Customer ratings of service

8. Program Performance Measures
New Product Programs
Rate of trial
Repurchase rate
Cannibalized sales
Number of customer returns

9. Program measures, continued
Pricing Programs
Actual price charged
Price relative to industry average

10. Program Measures, continued
Advertising Programs
Awareness levels
Attribute ratings
Actual expenditures
Consumer response index

11. Program Measures, continued
Sales promotion programs
Redemption rates
Displacement rates
Stock-up rates

12. Program Measures, continued
Distribution Programs
Direct response rates
# of sales calls
# of new accounts
# of lost accounts
# of distributors carrying product
# of customer complaints
Travel costs

13. Other Control Actions Contribution Analysis
Determine the amount of revenue expected from a given set of costs
Required sales = Total FC ($) + desired gross margin ($)
volume in units Gross margin contributed per unit

14. Example: Selling price per unit $200 Variable costs per unit $110
Total fixed costs $5,000,000
Gross margin target $4,000,000

15. Gross margin contribution per unit =
$200 - $110 = $90
Required sales volume in units =
($5,000 + $4,000,000) / $90 = 100,000 units

16. Response Analysis
Predicting how large a % change in sales will occur when a variable in the marketing mix is altered.
Price changes
Advertising expenditures
Promotion expenditures

17. Marketing Productivity
What is the return on marketing expenditures? How effective are the marketing expenditures in producing sales?
Market = Net marketing contribution
Productivity Marketing budget
Market Efficiency = Net income
Index Marketing expenditures