CRAVENSCRAVENS
PIERCYPIERCY
8/e8/eMcGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All
Rights Reserved.
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ChapterFifteen
Marketing StrategyImplementation
and Control
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Marketing Strategy Implementation and
Control
The marketing plan Implementing the plan Strategic evaluation and
control Performance criteria and
information needs Performance assessment
and action
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The Marketing Plan
How the marketing plan guides implementation
Contents of the marketing plan
Managing the planning process
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MARKETTARGET(S)
OBJECTIVESPROGRAM
POSITIONINGSTRATEGY
Marketing Strategy Overview
15-6Exhibit 15-1
Marketing Planning Relationships
MARKETINGSTRATEGY
Annual Marketing Plan Implementation
Evaluation Revision
Annual Marketing Plan
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Contents of theMarketing Plan
(Sonesta Hotels Example)
I IntroductionII Marketing PositionIII The ProductIV Marketplace OverviewV The CompetitionVI Marketing DataVII Strategy by Market SegmentVIII AdvertisingIX Public RelationsX Summary
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Dimensions of Planning Process
MarketingPlanningProcess
AnalyticalProcess
Dimension
BehavioralProcess
Dimension
OrganizationalProcess
Dimension
TechniquesProceduresSystemsPlanning Models
ManagerialperceptionsParticipationStrategic assumptions
StructureInformationCulture
ProcessConsistency
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Implementing the Plan
Implementation process Improving implementation Internal marketing A comprehensive approach to
improving implementation Internal strategy-structure Fit Developing a market orientation The role of external
organization
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The Implementation Process
Activitiesto be
implemented
Howimplementation
will be done
Responsibilityfor
implementation
Time andlocation of
implementation
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ImprovingImplementation
SkilledImplementers
Incentives
OrganizationalDesign
EffectiveCommunications
Improving Implementation
InternalMarketing
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Internal Marketing
Strategy
Plan
ExternalMarketingProgram
InternalMarketingProgram
Internal MarketingProgram:Targeted at keygroups in thecompany, alliancepartner companies,and other influencers
External MarketingProgramTargeted at keycustomers, segmentsand niches, and otherexternal influencers
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BALANCEDSCORECARD
MANAGEMENTCONTROLSYSTEM
FinancialMeasures
InternalBusinessProcessMeasures
CustomerMeasures
LearningandInnovationMeasures
Comprehensive Approach to Improving Implementation
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Factors Affecting the Implementationof Business and Marketing Strategies
Source: Harper W. Boyd, Jr., and Orville C. Walker, Jr., Marketing Management (Burr Ridge, IL: Richard D. Irwin, 1990), 826.
Corporatestrategy
Externalenvironment
Corporate-SBUrelationship
SBU’sorganization
structure;interfunctionalcoordination
processes
SBU’sstrategy
ManufacturingR & D Finance Marketingpolicies andstrategies
Marketingplans forindividual
product-marketentries
SBU’sperformance
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Strategic Evaluation and
Control Customer relationship
management (CRM) Overview of evaluation
activities The strategic marketing
audit
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Data Mining and CRM
Victoria’s Secret - Data mining to improve inventory decisions Music company - People over 62 buy rap music Wal-Mart - Data mining so each store adapts merchandizing to local preferences AT&T - CRM data to identify profitability of individual customer and adapt service levels
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Find NewOpportunities
or AvoidThreats
SolveSpecific
Problems
KeepPerformance
on Target
Evaluation Activities
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Strategic Marketing Evaluationand Control
Conduct strategicmarketing audit
Select performance criteria, measures, and metrics
Obtain and analyze information
Assess performance and take necessary action
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Strategic Marketing Audit
Corporate Mission and Objectives
Business Composition and Strategies
Marketing Strategy (for each planning unit)
Marketing Program Activities
Implementation and Management
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Performance Criteria and Information
Needs Selecting performance
criteria and measures Marketing metrics Obtain and analyze
information
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Marketing MetricsExternal market metrics
Financial measures Sales value/volumeMarketing investmentProfit
Brand equity Relative satisfactionCommitmentRelative perceived qualityRelative priceAvailability
Internal Market metrics
Innovation health Strategyand employee Culturealignment and Outcomescommitment
Source: Tim Ambler, Marketing and the Bottom-Line, 2nd ed., Hemel Hempstead:Prentice-Hall, 2003.
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Performance Assessment and Action
Opportunities and performance gaps
Determining normal and abnormal variability
Deciding what actions to take