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CHAPTER NINETEENCHAPTER NINETEEN
For use only withPerreault/Cannon/McCarthy or Perreault/McCarthy texts.© 2008 McGraw-Hill Companies, Inc.McGraw-Hill/Irwin
Implementing and Controlling Marketing Plans: Evolution and Revolution
Implementing and Controlling Marketing Plans: Evolution and Revolution
When we finish this lecture you should
1. Understand how information technology speeds up feedback for better implementation and control.
2. Know why effective implementation is critical to customer satisfaction and profits.
3. Know how total quality management can improve implementation—including implementation of service quality.
4. 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.
7. Understand how planning and control can be combined to improve the marketing management process.
8. Understand what a marketing audit is and when and where it should be used.
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
Marketing manager must take charge
Marketing manager must take charge
Marketing manager must take charge
Marketing manager must take charge
Fast feedback can be a competitive advantage
Fast feedback can be a competitive advantageFast feedback can be a competitive advantage
Fast feedback can be a competitive advantage
New IT offers speed and detail
New IT offers speed and detail
Speed Up Information For Better Implementation and Control
Effective Implementation Means That Plans Work As Intended
On Saturday, July On Saturday, July 88thth, Amazon.com , Amazon.com and FedEx made and FedEx made Harry Potter and Harry Potter and the Goblet of Firethe Goblet of Fire one of the largest one of the largest book releases in book releases in Internet history. Internet history.
Complaints Bring Problems to Light
Complaints Bring Problems to Light
Complaints Bring Problems to Light
Complaints Bring Problems to Light
Complaints Need a Response
Complaints Need a Response
Dealing with Customer Complaints
Using Information Technology to Improve Implementation (Exhibit 19-2)
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Technology and Implementation
Building Quality Into the Implementation Effort
TQM is Easier Said Than Done (Exhibit 19-3)
Why Things Go Wrong (Exhibit 19-4)
Training Is CrucialTraining Is CrucialTraining Is CrucialTraining Is Crucial
Server Is Linked To the Service
Server Is Linked To the Service
Server Is Linked To the Service
Server Is Linked To the Service
Empowerment WorksEmpowerment Works
Building Quality into Services
Specify Jobs and Benchmark
Specify Jobs and Benchmark
Managers Lead the EffortManagers Lead the Effort
Separate the Routine from the Special
Separate the Routine from the Special
Manage Expectations with Good Communication
Manage Expectations with Good Communication
Manage Expectations with Good Communication
Manage Expectations with Good Communication
Separate the Routine from the Special
Separate the Routine from the Special
Managers Lead the EffortManagers Lead the Effort
Specify Jobs and Benchmark
Specify Jobs and Benchmark
Get a Return on QualityGet a Return on Quality
Other Issues in Quality Implementation Efforts
Financial Arrangement
Financial Arrangement
Financial Arrangement
Financial Arrangement Method of
SaleMethod of
SaleMethod of
SaleMethod of
Sale
Price or Discount Class
Price or Discount Class
Price or Discount Class
Price or Discount Class
Channel of DistributionChannel of DistributionChannel of DistributionChannel of Distribution
Customer Characteristics
Customer Characteristics
Customer Characteristics
Customer Characteristics
Geographic Region
Geographic Region
Geographic Region
Geographic RegionProduct
CharacteristicsProduct
CharacteristicsProduct
CharacteristicsProduct
Characteristics
Order SizeOrder SizeBreakdowns
for SalesAnalysis
Breakdownsfor SalesAnalysis
Sales Analysis Shows What’s Happening
Performance Analysis Looks for Differences(Exhibit 19-5)
What About Costs? (Exhibit 19-6)
Performance Indexes Simplify Human Analysis (Exhibit 19-7)
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.
Checking your knowledge
Full-Cost ApproachFull-Cost ApproachFull-Cost ApproachFull-Cost Approach
Contribution Margin
Approach
Contribution Margin
Approach
AllocationAllocation
Marketing Cost Analysis – Controlling Costs Too
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)
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 highD.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.
Checking your knowledge
Evaluation of QualityEvaluation of QualityEvaluation of QualityEvaluation of Quality
Use of Strategy Planning Framework
Use of Strategy Planning Framework
Use of Strategy Planning Framework
Use of Strategy Planning Framework
Detailed Examination of Plans
Detailed Examination of Plans
Detailed Examination of Plans
Detailed Examination of Plans
Involvement of Internal/External Parties
Involvement of Internal/External Parties
An Audit Shouldn’t Be Necessary, But Often Is!An Audit Shouldn’t Be Necessary, But Often Is!
The Marketing Audit
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Interactive Exercise: Sales and Performance Analysis
You now
1. Understand how information technology speeds up feedback for better implementation and control.
2. Know why effective implementation is critical to customer satisfaction and profits.
3. Know how total quality management can improve implementation, including implementation of service quality.
4. 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.
7. Understand how planning and control can be combined to improve the marketing management process.
8. Understand what a marketing audit is and when and where it should be used.
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