Transcript Slide 1
Presentation prepared by Robin Roberts, Griffith University and Copyright John Wiley & Sons 2007
Chapter 16 Marketing implementation and control
Chapter 16 Copyright John Wiley & Sons 2007
Chapter Objectives
1. Connect together the key concepts studied in your marketing course 2. Relate marketing to key business functions, including production, human resource management and finance 3. Demonstrate an understanding of marketing’s role in the performance of a company 4. Explain why implementing the marketing concept can be difficult Chapter 16 Copyright John Wiley & Sons 2007
Chapter Objectives
5. Describe the marketing implementation process and the two major approaches to marketing implementation 6. Demonstrate how companies can control marketing activities 7. Apply the balanced scorecard to monitor strategy Chapter 16 Copyright John Wiley & Sons 2007
The marketing process
• • There is a link between a market orientation (also called an external or customer orientation) and business survival Companies with well-defined marketing strategies outperform companies without them Key marketing success practices will ensure the organisation’s success – this includes effective implementation!
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Marketing as a way of doing business
Marketing – a process whereby marketers seek to develop a unique and innovative solution to a customer problem in order for the customer to fulfil a need. This view sees marketing as a philosophy of business Customers are at the core of marketing, and knowledge of the customers is a prerequisite for successful marketing Chapter 16 Copyright John Wiley & Sons 2007
Marketing as a business function
This view of marketing believes that the marketing communication and promotion functions is the major activity of marketers, and the marketing department is simply another functional support unit like HR and Finance It is a commonly-held but erroneous view (equivalent to the old ‘Marketing is just selling or promotion’ belief) Chapter 16 Copyright John Wiley & Sons 2007
Marketing as a way of doing business leads to success
An integrated and cohesive business that has customers’ core interests at heart is likely to send a consistent and relevant message to customers, something vital for survival in our cluttered environment Chapter 16 Copyright John Wiley & Sons 2007
Marketing as a way of doing business leads to success
• Marketing is the
process
of developing and implementing creative solutions to buyer problems.
• Organisational size does
not
determine the need for marketing.
• Marketing is the
engine of business
– the growth driver needed to stay ahead.
Challenges in implementing the marketing concept
Returning to an internally focused orientation – Commitment shown by the company is a key indicator of probable success Resisting change – Change management is needed to implement the concept – Silo mentalities have to be eradicated and structures may have to change as well Chapter 16 Copyright John Wiley & Sons 2007
Challenges in implementing the marketing concept (cont'd)
• • Proliferation Distribution channels, products, customer segments – reducing effectiveness Hard to capture the attention of consumers • • A couple of questions: How many SKUs are in the average supermarket today?
How many SKUs does an average family use?
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Challenges in implementing the marketing concept (cont'd)
Lacking a long-term outlook – short-term focus on results — common – Long-term results may require the sacrificing of short-term profits, and this tends to be unpopular – Brand identity (the total proposition that is made to customers) depicts the organisation, but it takes a long term to develop and build Chapter 16 Copyright John Wiley & Sons 2007
Challenges in implementing the marketing concept (cont'd)
– Lifetime value The longer customers remain with a company, the more profitable they are to serve.
From a company’s viewpoint, marketing's prime role is to increase profitable demand for products and services Chapter 16 Copyright John Wiley & Sons 2007
Challenges in implementing the marketing concept (cont'd)
Ways of increasing shareholder wealth: Rationalisation – Cutting costs and investments will work in the short term – may damage long-term capabilities Growth – Investments may take years to become profitable – existing or new customers or markets Chapter 16 Copyright John Wiley & Sons 2007
Creating shareholder value
Chapter 16 Copyright John Wiley & Sons 2007
Implementing marketing strategies
Marketing implementation is the process of executing, controlling and evaluating marketing strategies While often considered less favourably than strategic planning, it can determine whether the strategy adopted is successful Chapter 16 Copyright John Wiley & Sons 2007
Approaches to marketing implementation
Internal marketing — Attract, motivate and retain staff with jobs that satisfy their needs (by allowing them to understand and accept their roles) Marketing techniques employed: – Market segmentation – Product development (job descriptions) – Research (HR satisfaction surveys) – PR and sales promotion Chapter 16 Copyright John Wiley & Sons 2007
Approaches to marketing implementation (cont'd)
Customer Relationship Management (CRM) — Using information about customers to better meet their needs, and develop and sustain long-term relationships • It can avoid duplication of data input, and requests for data from the customer.
• CRM is growing from the increase in customer contact services Chapter 16 Copyright John Wiley & Sons 2007
How do you evaluate the effectiveness of your marketing campaigns?
Dial-Up Broadband
Jason Haynes, Director of Marketing, Quiksilver Australasia Chapter 16 Copyright John Wiley & Sons 2007
Customer relationship management
Failure to implement CRM successfully comes from: – Failure to adopt CRM as a business strategy – Failure to plan adequately (<60% of projects) – Poor data quality (eliminate ‘dirty data’ and use data mining) – Lack of employee ‘buy-in’ — different geographies unsuccessful implementation Chapter 16 Copyright John Wiley & Sons 2007
Organising marketing activities
• Appropriate organisational structure and relationships can lead to a Distinct organisational culture (a shared set of beliefs that customers are the pivotal point of all activities), that • Connects and coordinates the individuals, and also • Connects and coordinates the SBUs, divisions and departments.
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Organising marketing activities (cont'd)
Marketing interacts with other functions in many key areas The marketing unit has to be internally structured and organised to be effective • Centralisation versus decentralisation • There is no single approach to all situations (functions, products, regions or types of customers or combinations of can be used).
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Organising marketing activities (cont'd)
• Organising by functions – (MR, PD, distribution, sales, advertising and customer relations) • Organising by products – groups, lines or products different product • Organising by regions – or subregions, nationally or internationally • Organising by types of customers – retail or wholesale or institutional, B2B or B2C Chapter 16 Copyright John Wiley & Sons 2007
Controlling marketing activities
The marketing control process consists of: – Establishing performance standards – Evaluating performance by comparing it with established standards – Reducing the differences between desired and actual performance Chapter 16 Copyright John Wiley & Sons 2007
Controlling marketing activities
(cont’d)
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Controlling marketing activities (cont’d)
Establishing Performance Standards: expected levels of performance against which actual performance can be compared – Tied to organisational goals.
– Start with the vision and mission statements, and are linked to them – Balanced, and include both quantitative and qualitative measures – Capable of definite measurement Chapter 16 Copyright John Wiley & Sons 2007
Controlling marketing activities (cont’d)
Measuring Performance – Marketing metrics — the set of measures of marketing performance – No one universal set can suit all situations – Adapted for each organisation according to industry and strategic situation – The balanced scorecard approach — monitors and manages business strategy from 4 perspectives Chapter 16 Copyright John Wiley & Sons 2007
Balanced scorecard
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Controlling marketing activities (cont’d)
Evaluating Performance – Records of actual performance are compared with performance standards Taking Corrective Action 1. Take steps to improve actual performance.
2. Reduce or totally change the performance standard, or 3. Do both Chapter 16 Copyright John Wiley & Sons 2007
Linking marketing and shareholder value
Chapter 16 Copyright John Wiley & Sons 2007
Chapter 16 Copyright John Wiley & Sons 2007