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CHAPTER NINETEEN
Implementing and
Controlling Marketing
Plans: Evolution and
Revolution
For use only with
Perreault/Cannon/McCarthy
or Perreault/McCarthy texts.
© 2008 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
When we finish this lecture you should
1.
2.
3.
4.
Understand how information technology speeds
up feedback for better implementation and
control.
Know why effective implementation is critical to
customer satisfaction and profits.
Know how total quality management can
improve implementation—including
implementation of service quality.
Understand how sales analysis can aid
marketing strategy planning.
When we finish this lecture you should
5.
Understand the differences in sales analysis,
performance analysis, and performance analysis
using performance indexes.
6.
Understand the difference between the full-cost
approach and the contribution-margin approach.
Understand how planning and control can be
combined to improve the marketing management
process.
Understand what a marketing audit is and when
and where it should be used.
7.
8.
Strategy Planning, Implementation, and Control
(Exhibit 19-1)
Implementation
• IT speeds information flow
• Total quality management
• Quality and implementation
Control
• Sales analysis
• Performance analysis
• Cost analysis
• Planning and control
• Marketing audit
Speed Up Information For Better Implementation
and Control
Fast feedback can be a
competitive advantage
Marketing manager
must take charge
New IT offers speed
and detail
Effective Implementation Means That Plans Work
As Intended
On Saturday, July
8th, Amazon.com
and FedEx made
Harry Potter and
the Goblet of Fire
one of the largest
book releases in
Internet history.
Dealing with Customer Complaints
Complaints Bring Problems
to Light
Complaints Need a
Response
Using Information Technology to Improve
Implementation (Exhibit 19-2)
Technology and Implementation
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Building Quality Into the Implementation Effort
TQM is Easier Said Than Done (Exhibit 19-3)
Why Things Go Wrong (Exhibit 19-4)
Building Quality into Services
Server Is Linked
To the Service
Training Is Crucial
Empowerment Works
Other Issues in Quality Implementation Efforts
Manage Expectations with
Good Communication
Separate the Routine
from the Special
Managers Lead the Effort
Specify Jobs and
Benchmark
Get a Return on Quality
Sales Analysis Shows What’s Happening
Product
Characteristics
Order Size
Financial
Arrangement
Geographic
Region
Breakdowns
for Sales
Analysis
Method of
Sale
Customer
Characteristics
Channel of
Distribution
Price or
Discount Class
Performance Analysis Looks for Differences
(Exhibit 19-5)
What About Costs? (Exhibit 19-6)
Performance Indexes Simplify Human Analysis
(Exhibit 19-7)
Checking your knowledge
A sales manager for Wilson Sporting Goods
reviewed salesperson performance.
Salesperson A had a performance index of 110,
while Salesperson B had a performance index
of 80. What might the sales manager conclude:
A. Salesperson B’s performance should be a
model for the whole sales force.
B. Salesperson A should change her effort to bring
her to the average.
C. Salesperson A requires additional sales training
D. Salesperson B may be having some problems.
E. Salesperson B requires additional training.
Marketing Cost Analysis – Controlling Costs Too
Allocation
Full-Cost
Approach
Contribution
Margin
Approach
A Full-Cost Example (Exhibit 19-12)
A Full-Cost Example (Exhibit 19-13)
A Contribution-Margin Example (Exhibit 19-14)
Planning and Control Combined (Exhibit 19-15)
Checking your knowledge
Mark Sun is a sales manager for Applied Robotics.
He has asked his assistant to prepare a report that
shows him how each of his sales reps has
performed over the last year – showing their
percentage above or below quota This is an
example of:
A. using natural accounts.
B. the contribution margin approach.
C. the marketing strategy planning process.
D. performance analysis.
E. sales analysis.
Checking your knowledge
Wendy Ball, sales manager for Applied
Engineering Products, was reviewing the
performance of her salespeople. One sales rep
has sales 25% below quota. This analysis
should lead the sales manager to conclude:
A.that the sales rep has a great deal of
competition in her territory.
B.that the sales rep is not working hard enough.
C.that the sales rep’s quota was set too high
D.that there is no reason to worry, because the
rest of the sales force is 25% over quota.
E.Nothing at this point because of the iceberg
principle.
Checking your knowledge
A marketing cost analysis conducted by Rosa
Ruiz, marketing manager at Ruiz Windows, shows
Watson Construction to be an unprofitable
customer. Ruiz Windows should:
A. change the delivery terms on Watson’s orders.
B. raise prices on all items sold to Watson.
C. assign a new salesperson to Watson.
D. try to find out why Watson is unprofitable.
E. refuse to sell to Watson Construction.
The Marketing Audit
Detailed
Examination of Plans
Use of Strategy
Planning Framework
Evaluation of Quality
Involvement of
Internal/External Parties
An Audit Shouldn’t Be Necessary, But Often Is!
Interactive Exercise: Sales and Performance
Analysis
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
You now
1.
2.
3.
4.
Understand how information technology speeds
up feedback for better implementation and
control.
Know why effective implementation is critical to
customer satisfaction and profits.
Know how total quality management can
improve implementation, including
implementation of service quality.
Understand how sales analysis can aid
marketing strategy planning.
You now
5.
Understand the differences in sales analysis,
performance analysis, and performance analysis
using performance indexes.
6.
Understand the difference between the full-cost
approach and the contribution-margin approach.
Understand how planning and control can be
combined to improve the marketing management
process.
Understand what a marketing audit is and when
and where it should be used.
7.
8.
Key Terms
• Control
• Total quality
•
•
•
•
•
•
•
management (TQM)
Continuous
improvement
Pareto chart
Fishbone diagram
Empowerment
Benchmarking
Sales analysis
Performance
analysis
• Performance index
• Iceberg principle
• Full-cost approach
• Contribution-margin
•
approach
Marketing audit