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Transcript
Presentation prepared by Robin Roberts, Griffith University and
Copyright of
JohnTechnology
Wiley & Sons 2007
Chapter
16
Mike Spark,
Swinburne University
Chapter 16
Marketing implementation
and control
Chapter 16
Copyright John Wiley & Sons 2007
Chapter Objectives
1. Connect together the key concepts studied
in your marketing course
2. Relate marketing to key business
functions, including production, human
resource management and finance
3. Demonstrate an understanding of
marketing’s role in the performance of a
company
4. Explain why implementing the marketing
concept can be difficult
Chapter 16
Copyright John Wiley & Sons 2007
Chapter Objectives
5. Describe the marketing implementation
process and the two major approaches to
marketing implementation
6. Demonstrate how companies can control
marketing activities
7. Apply the balanced scorecard to monitor
strategy
Chapter 16
Copyright John Wiley & Sons 2007
The marketing process
There is a link between a market
orientation (also called an external or
customer orientation) and business survival
•
•
Companies with well-defined marketing
strategies outperform companies without
them
Key marketing success practices will
ensure the organisation’s success – this
includes effective implementation!
Chapter 16
Copyright John Wiley & Sons 2007
Marketing as a
way of doing business
Marketing – a process whereby marketers
seek to develop a unique and innovative
solution to a customer problem in order for
the customer to fulfil a need. This view
sees marketing as a philosophy of business
Customers are at the core of marketing, and
knowledge of the customers is a prerequisite
for successful marketing
Chapter 16
Copyright John Wiley & Sons 2007
Marketing as a business function
This view of marketing believes that the
marketing communication and promotion
functions is the major activity of marketers,
and the marketing department is simply
another functional support unit like HR and
Finance
It is a commonly-held but erroneous view
(equivalent to the old ‘Marketing is just selling
or promotion’ belief)
Chapter 16
Copyright John Wiley & Sons 2007
Marketing as a way of doing
business leads to success
An integrated and cohesive business that has
customers’ core interests at heart is likely to
send a consistent and relevant message to
customers, something vital for survival in our
cluttered environment
Chapter 16
Copyright John Wiley & Sons 2007
Marketing as a way of doing
business leads to success
• Marketing is the process of developing and implementing
creative solutions to buyer problems.
• Organisational size does not determine the need for
marketing.
• Marketing is the
engine of business
– the growth driver
needed to stay
ahead.
Challenges in implementing the
marketing concept
Returning to an internally focused orientation
– Commitment shown by the company is
a key indicator of probable success
Resisting change
– Change management is needed to
implement the concept
– Silo mentalities have to be eradicated
and structures may have to change as
well
Chapter 16
Copyright John Wiley & Sons 2007
Challenges in implementing the
marketing concept (cont'd)
Proliferation
• Distribution channels, products, customer
segments – reducing effectiveness
• Hard to capture the attention of consumers
A couple of questions:
•
•
How many SKUs are in the average
supermarket today?
How many SKUs does an average family
use?
Chapter 16
Copyright John Wiley & Sons 2007
Challenges in implementing the
marketing concept (cont'd)
Lacking a long-term outlook
– short-term focus on results — common
– Long-term results may require the
sacrificing of short-term profits, and this
tends to be unpopular
– Brand identity
(the total proposition that is made to
customers) depicts the organisation, but
it takes a long term to develop and build
Chapter 16
Copyright John Wiley & Sons 2007
Challenges in implementing the
marketing concept (cont'd)
– Lifetime value
The longer customers remain with a
company, the more profitable they are to
serve.
From a company’s viewpoint,
marketing's prime role is to increase
profitable demand for products and
services
Chapter 16
Copyright John Wiley & Sons 2007
Challenges in implementing the
marketing concept (cont'd)
Ways of increasing shareholder wealth:
Rationalisation
– Cutting costs and investments will work
in the short term
– may damage long-term capabilities
Growth
– Investments may take years to become
profitable
– existing or new customers or markets
Chapter 16
Copyright John Wiley & Sons 2007
Creating shareholder value
Chapter 16
Copyright John Wiley & Sons 2007
Implementing marketing strategies
Marketing implementation is the process of
executing, controlling and evaluating
marketing strategies
While often considered less favourably
than strategic planning, it can determine
whether the strategy adopted is successful
Chapter 16
Copyright John Wiley & Sons 2007
Approaches to
marketing implementation
Internal marketing — Attract, motivate and
retain staff with jobs that satisfy their
needs (by allowing them to understand
and accept their roles)
Marketing techniques employed:
– Market segmentation
– Product development (job descriptions)
– Research (HR satisfaction surveys)
– PR and sales promotion
Chapter 16
Copyright John Wiley & Sons 2007
Approaches to marketing
implementation (cont'd)
Customer Relationship Management
(CRM) — Using information about
customers to better meet their needs,
and develop and sustain long-term
relationships
• It can avoid duplication of data input, and
requests for data from the customer.
• CRM is growing from the increase in
customer contact services
Chapter 16
Copyright John Wiley & Sons 2007
How do you evaluate the effectiveness of
your marketing campaigns?
Dial-Up
Broadband
Jason Haynes, Director of Marketing, Quiksilver Australasia
Chapter 16
Copyright John Wiley & Sons 2007
Customer relationship management
Failure to implement CRM successfully
comes from:– Failure to adopt CRM as a business
strategy
– Failure to plan adequately (<60% of
projects)
– Poor data quality (eliminate ‘dirty data’
and use data mining)
– Lack of employee ‘buy-in’ — different
geographies unsuccessful implementation
Chapter 16
Copyright John Wiley & Sons 2007
Organising marketing activities
• Appropriate organisational structure and
relationships can lead to a Distinct
organisational culture (a shared set of
beliefs that customers are the pivotal point
of all activities), that
• Connects and coordinates the individuals,
and also
• Connects and coordinates the SBUs,
divisions and departments.
Chapter 16
Copyright John Wiley & Sons 2007
Organising marketing activities
(cont'd)
Marketing interacts with other functions in
many key areas
The marketing unit has to be internally
structured and organised to be effective
• Centralisation versus decentralisation
• There is no single approach to all
situations (functions, products, regions or
types of customers or combinations of can
be used).
Chapter 16
Copyright John Wiley & Sons 2007
Organising marketing activities
(cont'd)
• Organising by functions – (MR, PD,
distribution, sales, advertising and
customer relations)
• Organising by products – different product
groups, lines or products
• Organising by regions – or subregions,
nationally or internationally
• Organising by types of customers – retail
or wholesale or institutional, B2B or B2C
Chapter 16
Copyright John Wiley & Sons 2007
Controlling marketing activities
The marketing control process consists of:
– Establishing performance standards
– Evaluating performance by
comparing it with established
standards
– Reducing the differences between
desired and actual performance
Chapter 16
Copyright John Wiley & Sons 2007
Controlling marketing activities
(cont’d)
Chapter 16
Copyright John Wiley & Sons 2007
Controlling marketing activities
(cont’d)
Establishing Performance Standards:
expected levels of performance against which
actual performance can be compared
– Tied to organisational goals.
– Start with the vision and mission statements,
and are linked to them
– Balanced, and include both quantitative and
qualitative measures
– Capable of definite measurement
Chapter 16
Copyright John Wiley & Sons 2007
Controlling marketing activities
(cont’d)
Measuring Performance
– Marketing metrics — the set of
measures of marketing performance
– No one universal set can suit all
situations
– Adapted for each organisation according
to industry and strategic situation
– The balanced scorecard approach —
monitors and manages business
strategy from 4 perspectives
Chapter 16
Copyright John Wiley & Sons 2007
Balanced scorecard
Chapter 16
Copyright John Wiley & Sons 2007
Controlling marketing activities
(cont’d)
Evaluating Performance
– Records of actual performance are
compared with performance standards
Taking Corrective Action
1. Take steps to improve actual
performance.
2. Reduce or totally change the
performance standard, or
3. Do both
Chapter 16
Copyright John Wiley & Sons 2007
Linking marketing and
shareholder value
Chapter 16
Copyright John Wiley & Sons 2007
Chapter 16
Copyright John Wiley & Sons 2007