1. Market-Based Management
Chapters 14, 15, 16
Marketing Plans and Performance

2. Marketing Planning Process
Step 1: Situation Analysis
Step 2: SWOT Analysis
Step 3: Strategic Market Plan
Step 4: Marketing Mix Strategy
Adjust Marketing Plan as Necessary
Step 7: Perform Review
Step 6: Profit Plan
Step 5: Marketing Budget

3. Figure 14-9 Components of a Market Strategy
Review Handout

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

5. A Hierarchy of Performance
Strategic
Performance
Marketing
Performance
Financial
Performance
Program A
Performance
Program B
Performance
Program C
Performance
Task 1
Performance
Task 2
Performance
Task 3
Performance

6. Marketing Performance is the End Product of Marketing Plans and Marketing Actions
But, this model doesn’t account for all that
can go wrong.

7. Marketing Plans Marketing Actions Marketing Performance Poor
Data Analysis
and Planning
Poor
Communication
of Objectives
Poor
Tracking of
Performance
Insufficient
Resource
Allocation
Insufficient
Training
Changes in
Customer
Needs

8. This is Further Complicated by Difficulties in Problem Diagnosis

9. SUCCESS UNCERTAIN TROUBLE UNCERTAIN MARKETING PLANS APPROPRIATE
INAPPROPRIATE
SUCCESS
All that can be done to insure success has
been done
UNCERTAIN
Good execution can mitigate poor strategy, forcing success. OR
The same good
execution can hasten failure I M P L E N T A O
GOOD
TROUBLE
Poor execution hampers good strategy. Mgmt may never become aware of strategic soundness because of
implementation
inadequacies
UNCERTAIN
Very Difficult to diagnose because bad strategy is masked by poor execution.
Difficult to fix because
both strategy and
execution are wrong.
POOR

10. As with Corporate or Business Unit Performance, Marketing Performance Has Multiple Dimensions

11. Performance Relationships
Program Effectiveness
Sales/Share
Increases
New Service
Performance
Profitability
Customer
Satisfaction
Efficiency

12. Defining Marketing Effectiveness
The Achievement of Marketing Program Goals
Sales growth/share growth
Retention
Profitability
Awareness
Positioning
Cost reduction

13. Sub-dimensions of Performance

14. Performance Dimensions - Growth
Sales growth
Share growth
Increased sales to existing customers
Sales to new customers
Opening new markets

15. Performance Dimensions - Efficiency
Achieving goals with minimum resource invested.
Productivity
Outputs/Inputs Efficiency = Sales Mktg Exp.

16. Performance Dimensions - New Products Development
Trial rate
Retention rate
Time to market
Revenue from new services

17. Performance Dimensions - Customer Satisfaction
Retention/Loyalty
Perceived value received

18. Performance Dimensions - Profitability
ROA = Profits/Assets
Cash Flow/Assets = CFROA
Return on Sales (ROS) = Profits/Sales
Meeting Margin or Contribution Goals

19. Conclusions:
Evaluation of program effectiveness depends on the objectives set for the program.
While profitability is one dimension, success will be determined by those variables which drive profitability.
Many of these variables are marketing performance indicators.

20. Common Firm Goal Attainment Metrics
Awareness rates.
Satisfaction and Loyalty Ratings
Growth and Share targets.
Hurdle rates for Project ROI
NPV hurdles.