Download Marketing 12e - Pride and Ferrell

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
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22–2
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
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22–3
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
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22–4
The Marketing Implementation Process
• Marketing Implementation
–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
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Realized
Strategy
22–5
Problems in Implementing Marketing
Activities
Marketing Strategy
Implementation
Marketing strategy
and implementation
are related.
Marketing strategy
and implementation
are constantly
evolving.
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The responsibility
for marketing
strategy and
implementation is
separated.
22–6
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.
Copyright © Houghton Mifflin Company. All rights reserved.
FIGURE 22.1
22–7
Marketing Implementation
FIGURE 22.2
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22–8
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
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22–9
The Internal
Marketing
Framework
Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change, Copyright © 1992, Butterworth-Heinemann Ltd., p. 371.
Used with permission.
Copyright © Houghton Mifflin Company. All rights reserved.
FIGURE 22.3
22–10
Components of Total Quality Management
Total Quality
Management
Continuous
Quality
Improvement
Empowered
Employees
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Quality
Improvement
Teams
22–11
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
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22–12
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
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22–13
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
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22–14
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
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22–15
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
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22–16
Organizing the Marketing Unit
Alternatives for Organizing
the Marketing Unit
Centralized
or
Decentralized
Marketing
Functions
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Product
Groups
Geographic
Regions
Customer
Types
22–17
Implementing Marketing Activities
Motivating Marketing
Personnel
Communicating Within
the Marketing Unit
Marketing
Activites
Coordinating Marketing
Activities
Establishing a Timetable
for Implementation
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22–18
Example of an Implementation Timetable
FIGURE 22.4
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22–19
The Marketing Control Process
FIGURE 22.5
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22–20
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
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22–21
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
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22–22
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
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22–23
Methods of Evaluating Performance
(cont’d)
• Marketing Cost Analysis
–Breaking down and classifying costs to determine those
that stem from specific marketing activities
Cost Classification
Allocation
Fixed costs
Costs based on how money was actually
spent
Variable 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
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22–24
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
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22–25
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
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22–26
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22–27
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22–28
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22–29
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22–30
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.
22–31
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.
22–32
Chapter 22
Supplemental Slides
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22–33
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.
22–34
Important Terms
• Marketing Implementation
–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.
22–35
Important Terms
• External 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.
22–36
Important Terms
• Benchmarking
–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.
22–37
Important Terms
• 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
• Marketing Control Process
–Establishing performance standards and trying to
match actual performance to those standards
Copyright © Houghton Mifflin Company. All rights reserved.
22–38
Important Terms
• Sales 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.
22–39
Important Terms
• Variable 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.
22–40
Important Terms
• Direct-Cost Approach
–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.
22–41
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.
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22–42
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.
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22–43