Marketing Implementation and Control 11 C H A P T E R

Strategic Issues in Marketing Implementation (1 of 2) The Link Between Strategic Planning and Implementation Interdependency Evolution Separation

The Symbiotic Relationship Between Marketing Strategy and Marketing Implementation Exhibit 11.1

Discussion Question Forget for a moment that planning the marketing strategy is equally as important as implementing the marketing strategy. What arguments can you make for one being more important than the other? Explain your answers.

The Separation of Planning and Implementation Exhibit 11.2

Strategic Issues in Marketing Implementation (2 of 2) The Elements of Marketing Implementation Shared Goals and Values Marketing Structure Systems and Processes Resources People (Human Resources) Employee selection and training Employee evaluation and compensation Employee motivation, satisfaction and commitment Leadership

The Elements of Marketing Implementation Exhibit 11.3

Green Mountain Coffee Green Mountain Coffee Roasters, Inc. is a leader in the specialty coffee industry. Most of their revenue comes from over 8,000 wholesale customer accounts in the eastern United States. One of the major reasons for Green Mountain’s success is its overall focus on implementation. How can marketing implementation serve as a strategic impetus for success? Beyond the Pages 11.1

Advantages and Disadvantages of Implementation Approaches Implementation by Command Adv: makes decision making easier, reduces uncertainty Dis: does not consider feasibility, divides the firm, employee motivation Implementation through Change Adv: considers the relationship between planning and implementation Dis: clings to “power-at-the-top” mentality, can take a long time Implementation through Consensus Adv: incorporates multiple viewpoints, can make implementation easier Dis: slows the strategy/implementation process, potential for groupthink Implementation as Organizational Culture Adv: eliminates barriers, can lead to a strong corporate vision Dis: increases employee costs, can be painful and time consuming From Exhibit 11.4

Marketing Strategy in Action Chrysler’s acquisition of Jeep/Eagle was a critical step in the process of rebuilding Chrysler. How can an implementation through change strategy alter the success of a company? Can you think of other mergers/acquisitions that improved the company’s competitive position?

Discussion Question If you were personally responsible for implementing a marketing strategy, which implementation approach would you be most comfortable using, given your personality and personal preferences? Why? Would your approach be universally applicable to any given situation? If not, what would cause you to change or adapt your approach?

Internal Marketing and Marketing Implementation The Internal Marketing Approach Help employees understand their roles Create motivated and customer-oriented employees Deliver external customer satisfaction The Internal Marketing Process Internal Customers External Customers Putting Internal Marketing Into Action

The Internal Marketing Process Exhibit 11.5

Discussion Question What do you see as the major stumbling blocks to the successful use of the internal marketing approach? Given the hierarchical structure of employees in most organizations (e.g., CEO, middle management, staff employees), is internal marketing a viable approach for most organizations? Why or why not?

Evaluating and Controlling Marketing Activities Four possible causes of differences between the intended strategy and the realized strategy: The marketing strategy was inappropriate or unrealistic. The implementation was inappropriate for the strategy. The implementation process was mismanaged. Substantial changes in the environment between development and implementation.

A Framework for Marketing Control Formal Controls (Initiated by Management) Input Controls Process Controls Output Controls Informal Controls (Initiated by Employees) Employee Self-control Social Control Cultural Control From Exhibit 11.6

Formal Marketing Controls Input Controls (prior to implementation) Recruiting, selecting, and training employees Resource allocation decisions Process Controls (during implementation) Commitment to the strategy System for evaluating and compensating employees Output Controls (after implementation) Performance standards Marketing audits

A Marketing Audit Identification of Marketing Activities Review of Standard Procedures for each Marketing Activity Identification of Performance Standards for each Marketing Activity Identification of Performance Measures for each Marketing Activity Review and Evaluation of Marketing Personnel Identification and Evaluation of Customer Support Systems From Exhibit 11.7

Informal Marketing Controls Employee Self-Control (personal expectations) Job satisfaction, organizational commitment Social Control (small group control) Shared values, social and behavioral norms in groups Cultural Control (organizational norms) Organizational culture, stories, rituals

Scheduling Marketing Activities Basic steps to creating a schedule and timeline: Identify the activities to be performed Determine the time required to complete each activity Determine which activities must precede others Arrange the proper sequence and timing of all activities Assign responsibility

A Hypothetical 3-Month Marketing Implementation Schedule Exhibit 11.8