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
firms 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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Chapter Learning Objectives (contd)
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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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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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 Realized
Implementation
Strategy Strategy

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Problems in Implementing Marketing
Activities

Marketing
Marketing Strategy
Strategy
Implementation
Implementation

The
Theresponsibility
responsibility
Marketing
Marketingstrategy
strategy
Marketing
Marketingstrategy
strategy for
formarketing
marketing
and
andimplementation
implementation
and
andimplementation
implementation strategy
strategyand
and
are
areconstantly
constantly
are
arerelated.
related. implementation
implementationis is
evolving.
evolving. separated.
separated.

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 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. FIGURE 22.1

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Marketing Implementation

FIGURE 22.2

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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 companys employees

Copyright Houghton Mifflin 229

 The Internal
Marketing
Framework

Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change, Copyright 1992, Butterworth-Heinemann Ltd., p. 371.
Used with permission. FIGURE 22.3

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Components of Total Quality Management

Total
Total Quality
Quality
Management
Management

Continuous
Continuous Quality
Quality
Empowered
Empowered
Quality
Quality Improvement
Improvement
Employees
Employees
Improvement
Improvement Teams
Teams

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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 firms goods, services, or
processes with that of the best-performing competitors

Copyright Houghton Mifflin 2212

Total Quality Management (contd)
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 2213

Organizing Marketing Activities (contd)
The Role of Marketing in an Organization

Organizational goals for

Understanding customer
customer value and firm
needs and desires
profitability

Marketing
Concept

Close coordination of
organizational units

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Organizing Marketing Activities
The Role of Marketing in an Organizations
Structure
Adopting the Marketing Concept
Understanding that the customers 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

Copyright Houghton Mifflin 2215

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

Copyright Houghton Mifflin 2216

 Organizing the Marketing Unit

Alternatives
Alternativesfor
for Organizing
Organizing
the
theMarketing
MarketingUnit
Unit

Centralized
Centralized Marketing
Marketing Product
Product Geographic
Geographic Customer
Customer
or
or Functions
Functions Groups
Groups Regions
Regions Types
Types
Decentralized
Decentralized

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 Implementing Marketing Activities

Motivating
Motivating Marketing
Marketing
Personnel
Personnel

Communicating
Communicating Within
Within
the
the Marketing
Marketing Unit
Unit
Marketing
Marketing
Activites
Activites
Coordinating
Coordinating Marketing
Marketing
Activities
Activities

Establishing
Establishing aa Timetable
Timetable
for
for Implementation
Implementation

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Example of an Implementation Timetable

FIGURE 22.4

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 The Marketing Control Process

FIGURE 22.5

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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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Controlling Marketing Activities (contd)
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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Methods of Evaluating Performance
Sales Analysis
Using sales figures to evaluate a firms 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 industrys total sales that an individual firm captures

Copyright Houghton Mifflin 2223

Methods of Evaluating Performance
(contd)
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 allocated indirectly to the functions
costs they support
Nontraceable com- Costs assignable only on an arbitrary basis
mon costs

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Methods of Evaluating Performance
(contd)
Marketing Cost Analysis (contd)
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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The Marketing Audit
Marketing Audit
A systematic examination of the marketing groups
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 systematicfollow a step-by-step plan
Interview and consult with as diverse group of employees
as possible

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Copyright Houghton Mifflin 2227
Copyright Houghton Mifflin 2228
Copyright Houghton Mifflin 2229
Copyright Houghton Mifflin 2230
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 2231

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 2232

 Chapter 22
Supplemental Slides

Copyright Houghton Mifflin Company. All rights reserved. 2233

Key Terms and Concepts
The following slides (a listing of terms and
concepts) are intended for use at the instructors
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
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To delete an individual slide, click on the slide to select,
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to normal view.

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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 2235

Important Terms
External Customers
Individuals who patronize a business
Internal Customers
A companys 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 2236

Important Terms
Benchmarking
Comparing the quality of the firms 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 2237

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 2238

Important Terms
Sales Analysis
Using sales figures to evaluate a firms current
performance
Market Share Analysis
Measuring marketing performance by the percentage of
an industrys 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 2239

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 2240

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 groups
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 2241

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 executives support is
also a problem.

Source: Sales and Marketing Management, Sept. 2001, p.56. Used with permission.

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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.

Copyright Houghton Mifflin 2243