1. 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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

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

9. 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.

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

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

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

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

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

21. 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.

22. 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.

23. 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.

24. 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.

25. 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.

26. 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.

27. Copyright © Houghton Mifflin Company. All rights reserved.

28. Copyright © Houghton Mifflin Company. All rights reserved.

29. Copyright © Houghton Mifflin Company. All rights reserved.

30. Copyright © Houghton Mifflin Company. All rights reserved.

31. 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.

32. 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.

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

34. 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.

35. 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.

36. 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.

37. 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.

38. 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.

39. 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.

40. 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.

41. 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.

42. 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.

43. 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.