McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Chapter Fifteen Marketing Strategy Implementation and Control McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Marketing Strategy Implementation and Control The marketing plan Implementing the plan Strategic evaluation and control Performance criteria and information needs Performance assessment and action

The Marketing Plan How the marketing plan guides implementation Contents of the marketing plan Managing the planning process

Marketing Strategy Overview TARGET(S) PROGRAM POSITIONING STRATEGY OBJECTIVES

Marketing Planning Relationships Exhibit 15-1 Marketing Planning Relationships MARKETING STRATEGY Annual Marketing Plan Implementation Evaluation Revision Annual Marketing Plan

Contents of the Marketing Plan (Sonesta Hotels Example) I Introduction II Marketing Position III The Product IV Marketplace Overview V The Competition VI Marketing Data VII Strategy by Market Segment VIII Advertising IX Public Relations X Summary

Dimensions of Planning Process Analytical Process Dimension Techniques Procedures Systems Planning Models Marketing Planning Process Managerial perceptions Participation Strategic assumptions Process Consistency Behavioral Process Dimension Organizational Process Dimension Structure Information Culture

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

The Implementation Process Activities to be implemented How implementation will be done Responsibility for implementation Time and location of implementation

Improving Implementation Skilled Implementers Effective Communications Organizational Design Improving Implementation Internal Marketing Incentives

Internal Marketing Strategy Plan Internal Marketing Program External Targeted at key groups in the company, alliance partner companies, and other influencers External Marketing Program Targeted at key customers, segments and niches, and other external influencers

Comprehensive Approach to Improving Implementation Financial Measures BALANCED SCORECARD MANAGEMENT CONTROL SYSTEM Learning and Innovation Measures Customer Measures Internal Business Process Measures

Factors Affecting the Implementation of Business and Marketing Strategies External environment Corporate strategy Corporate-SBU relationship SBU’s strategy SBU’s organization structure; interfunctional coordination processes R & D Manufacturing Finance Marketing policies and strategies Marketing plans for individual product-market entries SBU’s performance Source: Harper W. Boyd, Jr., and Orville C. Walker, Jr., Marketing Management (Burr Ridge, IL: Richard D. Irwin, 1990), 826.

Strategic Evaluation and Control Customer relationship management (CRM) Overview of evaluation activities The strategic marketing audit

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

Evaluation Activities Find New Opportunities or Avoid Threats Solve Specific Problems Keep Performance on Target

Strategic Marketing Evaluation and Control Conduct strategic marketing audit Select performance criteria, measures, and metrics Obtain and analyze information Assess performance and take necessary action

Strategic Marketing Audit Corporate Mission and Objectives Business Composition and Strategies Marketing Strategy (for each planning unit) Marketing Program Activities Implementation and Management

Performance Criteria and Information Needs Selecting performance criteria and measures Marketing metrics Obtain and analyze information

Marketing Metrics External market metrics Financial measures Sales value/volume Marketing investment Profit Brand equity Relative satisfaction Commitment Relative perceived quality Relative price Availability Internal Market metrics Innovation health Strategy and employee Culture alignment and Outcomes commitment Source: Tim Ambler, Marketing and the Bottom-Line, 2nd ed., Hemel Hempstead: Prentice-Hall, 2003.

Performance Assessment and Action Opportunities and performance gaps Determining normal and abnormal variability Deciding what actions to take