Strategy Implementation and Control GLOBAL MARKETING Strategy Implementation and Control

Shaping the Success of Strategy Implementation Three Forces Ownership of marketing plan Supporting the marketing plan Adaptive market planning

Ownership Detailed action plans Champion/ownership team Compensation Management involvement

Marketing Tactic: To create adequate end user product availability, 80 manufacturer’s reps and 5 missionary salespeople will be used to sell and distribute our product to 5,000 industrial supply houses. * From time of implementation

Support Time Resources Communication Skills

Adaptation Continuous improvement Feedback measurements Persistence

Overall Performance Measures Unit sales Dollar sales Sales in specific segments Marketing costs Production costs Market share Customer ratings of product quality Customer ratings of service

Program Performance Measures New Product Programs Rate of trial Repurchase rate Cannibalized sales Number of customer returns

Program measures, continued Pricing Programs Actual price charged Price relative to industry average

Program Measures, continued Advertising Programs Awareness levels Attribute ratings Actual expenditures Consumer response index

Program Measures, continued Sales promotion programs Redemption rates Displacement rates Stock-up rates

Program Measures, continued Distribution Programs Direct response rates # of sales calls # of new accounts # of lost accounts # of distributors carrying product # of customer complaints Travel costs

Other Control Actions Contribution Analysis Determine the amount of revenue expected from a given set of costs Required sales = Total FC ($) + desired gross margin ($) volume in units Gross margin contributed per unit

Example: Selling price per unit $200 Variable costs per unit $110 Total fixed costs $5,000,000 Gross margin target $4,000,000

Gross margin contribution per unit = $200 - $110 = $90 Required sales volume in units = ($5,000 + $4,000,000) / $90 = 100,000 units

Response Analysis Predicting how large a % change in sales will occur when a variable in the marketing mix is altered. Price changes Advertising expenditures Promotion expenditures

Marketing Productivity What is the return on marketing expenditures? How effective are the marketing expenditures in producing sales? Market = Net marketing contribution Productivity Marketing budget Market Efficiency = Net income Index Marketing expenditures