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Marketing Chapter 20 Implementing and Controlling Marketing Activities Gilbert A. Churchill, Jr. J. Paul Peter Slide 20-1a Organizing Marketing Within a Company Function-Based Organization Geographic-Based Organization Marketing Research Territory Sales Region Product Planning Country Slide 20-1b Organizing Marketing Within a Company Customer-Based Organization Product-Based Organization Government Customers Product Categories Industrial Customers Brands Large Corporate Customers Products Slide 20-2 Figure 20.1 A Network Organization Strategic Alliances R&D Core Firm An organization of independent business units interacting with one another Slide 20-3 Implementing Marketing Plans and Strategies Staff Marketing Positions Coordinating Marketing Activities Communicating Ideas and Information Motivating Employees Slide 20-4a Figure 20.3 The Control Process Measure Realized Results Objectives Met or Exceeded Compare Realized Results with Objectives Find Reasons Objectives Set Too Low? Excellent Objectives Plan and Implementation Raise Objectives Evaluate for Performance Improvement Objectives Not Met Find Problems The process evaluating performance against of objectives, plans, and strategies and making changes when and where needed. Slide 20-4b Figure 20.3 The Control Process Measure Realized Results Compare Realized Results with Objectives Objectives Not Met Find Problems Objective Set Too High? Faulty Plan? Faulty Implementation? Combination of Problems? Lower Objectives Change Plan and Reimplement Change Implementation Start Over Slide 20-5 Sales Analysis Sales analysis can be broken down: • by product type • by customer type • by geographic region • by price or discount • by sales method • by payment method • by order size • by salespeople • by reason for purchase Gathering, classifying, comparing, and studying company sales data Slide 20-6 Profitability Analysis Revenue - Expenses Profit Margin = Revenues 1996 1997 1998 Revenues 100,000 102,000 100,000 Expenses 95,000 95,000 93,000 Profit 5,000 7,000 7,000 Profit Margin 5.0 % 6.9 % 7.0 % The difference between sales revenues and costs to produce them Slide 20-7 Customer Satisfaction Analysis Customer Satisfaction analysis may include: • employee training • toll-free customer hotlines • e-mail • comment cards • internal survey research • external independent survey Customer Satisfaction is the feeling that a product (i.e., perceived performance) has met or exceeded the customer’s expectations. Slide 20-8 The Marketing Audit Areas to be audited include: • Products - the reason for existence • Markets - where products are sold • Customers - user profiles • Competitors - their influence • Distribution channels - selling paths • Sales administration - selling efficiency • Pricing - profitability planning • Advertising - overall program • Sales promotion - sales inducement In-depth, systematic reviews of an organization’s SBU’s environment, objectives, plans, strategies, activities, and personnel of concern to marketing.