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9
C H A P T E R
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing
Implementation
and Control
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The process of executing the marketing strategy by
creating and performing specific actions that will
ensure the achievement of the firm’s marketing
objectives
 Intricately tied to the marketing strategy. Both must
be done well to achieve the firm’s objectives.
 All firms have two strategies
 Intended strategy – What the firm wants to happen
 Realized strategy – The strategy that actually takes place
Marketing Implementation
2
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Interdependency
 Implementation depends on strategy; strategy depends on
implementation
 Evolution
 Planning and implementation must evolve over time because
environmental factors constantly change.
 There is no single, correct way to implement a strategy.
 Separation
 While planning is often done at the top of the organizational
hierarchy, implementation occurs at the frontline of the firm.
The Link Between Planning and
Implementation
3
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Separation of Planning and
Implementation (Exhibit 9.1)
4
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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.
5
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Marketing Strategy
 How the firm plans to meet its goals and objectives
 Shared Goals and Values
 The “glue” of successful implementation
 Marketing Structure
 Formal lines of authority; how the firm is organized
 Centralization vs. decentralization
 Systems and Processes
 Work activities that absorb inputs to create information and
communication outputs that ensure the firm’s operation
The Elements of Marketing
Implementation
6
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Resources
 The firm’s tangible and intangible assets that can be used to
implement the marketing strategy
 People (Human Resources)
 Employee selection and training
 Employee evaluation and compensation
 Employee motivation, satisfaction, and commitment
 Leadership
 The art of managing others; how managers communicate with
employees and motivate their employees to implement the
strategy
The Elements of Marketing
Implementation (continued)
7
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Elements of Marketing
Implementation (Exhibit 9.2)
8
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 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
Approaches to Marketing
Implementation (Exhibit 9.3)
9
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Which implementation approach
would you be most comfortable using,
given your personality and personal
preferences? Why? Would your
chosen approach be universally
applicable to any given situation? If
not, what would cause you to change
or adapt your approach?
10
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Internal Marketing Approach
 Help employees understand their roles
 Create motivated and customer-oriented employees
 Deliver external customer satisfaction
 The Internal Marketing Process
 Internal products – new strategies, employee tasks
 Internal prices – increased effort and changes that employees
must exhibit
 Internal distribution – internal communication of the strategy
 Internal promotion – informing and persuading employees
about the merits of the strategy
Internal Marketing and Marketing
Implementation
11
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Internal Marketing Process
(Exhibit 9.4)
12
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1. The recruitment, selection, and training of employees
must be considered an important part of implementation.
2. Top executives must be completely committed to the
strategy and the overall marketing plan.
3. Employee compensation programs must be linked to the
implementation of the marketing strategy.
4. The firm should be characterized by open
communication among all employees, regardless of their
level in the firm.
5. The firm’s structure, policies, and processes should
match the marketing strategy.
Putting Internal Marketing into Action
13
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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, is internal marketing a
viable approach for most organizations?
Why or why not?
14
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Why are the intended strategy and the realized
strategy different?
 The marketing strategy was inappropriate or unrealistic.
 The implementation was inappropriate for the strategy.
 The implementation process was mismanaged.
 The internal and/or external environments changed
substantially between the development of the marketing
strategy and its implementation.
Evaluating and Controlling Marketing
Activities
15
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A Framework for Marketing Control
(Exhibit 9.5)
16
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 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
Formal Marketing Controls
17
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Identification of Marketing Activities
 Review of Standard Procedures for Each Marketing
Activity
 Identification of Performance Standards for Each
Marketing Activity
 Identification of Performance Metrics for Each Marketing
Activity
 Review and Evaluation of Marketing Personnel
 Evaluation of Customer Support Systems
Marketing Audit Framework
(see Exhibit 9.6)
18
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Employee Self-Control (personal expectations)
 Job satisfaction
 Organizational commitment
 Social Control (small group control)
 Shared values
 Social and behavioral norms in work groups
 Cultural Control (organizational norms)
 Organizational culture
 Organizational stories, rituals, and legends
 Cultural change
Informal Marketing Controls
19
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1. Identify the specific activities to be performed
2. Determine the time required to complete each
activity
3. Determine which activities must precede others
4. Arrange the proper sequence and timing of all
activities
5. Assign responsibility
Scheduling Marketing Activities
20
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Hypothetical Implementation Schedule
(Exhibit 9.7)
21

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  • 1. 9 C H A P T E R © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Implementation and Control
  • 2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  The process of executing the marketing strategy by creating and performing specific actions that will ensure the achievement of the firm’s marketing objectives  Intricately tied to the marketing strategy. Both must be done well to achieve the firm’s objectives.  All firms have two strategies  Intended strategy – What the firm wants to happen  Realized strategy – The strategy that actually takes place Marketing Implementation 2
  • 3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Interdependency  Implementation depends on strategy; strategy depends on implementation  Evolution  Planning and implementation must evolve over time because environmental factors constantly change.  There is no single, correct way to implement a strategy.  Separation  While planning is often done at the top of the organizational hierarchy, implementation occurs at the frontline of the firm. The Link Between Planning and Implementation 3
  • 4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Separation of Planning and Implementation (Exhibit 9.1) 4
  • 5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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. 5
  • 6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Marketing Strategy  How the firm plans to meet its goals and objectives  Shared Goals and Values  The “glue” of successful implementation  Marketing Structure  Formal lines of authority; how the firm is organized  Centralization vs. decentralization  Systems and Processes  Work activities that absorb inputs to create information and communication outputs that ensure the firm’s operation The Elements of Marketing Implementation 6
  • 7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Resources  The firm’s tangible and intangible assets that can be used to implement the marketing strategy  People (Human Resources)  Employee selection and training  Employee evaluation and compensation  Employee motivation, satisfaction, and commitment  Leadership  The art of managing others; how managers communicate with employees and motivate their employees to implement the strategy The Elements of Marketing Implementation (continued) 7
  • 8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Elements of Marketing Implementation (Exhibit 9.2) 8
  • 9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  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 Approaches to Marketing Implementation (Exhibit 9.3) 9
  • 10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Which implementation approach would you be most comfortable using, given your personality and personal preferences? Why? Would your chosen approach be universally applicable to any given situation? If not, what would cause you to change or adapt your approach? 10
  • 11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  The Internal Marketing Approach  Help employees understand their roles  Create motivated and customer-oriented employees  Deliver external customer satisfaction  The Internal Marketing Process  Internal products – new strategies, employee tasks  Internal prices – increased effort and changes that employees must exhibit  Internal distribution – internal communication of the strategy  Internal promotion – informing and persuading employees about the merits of the strategy Internal Marketing and Marketing Implementation 11
  • 12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Internal Marketing Process (Exhibit 9.4) 12
  • 13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1. The recruitment, selection, and training of employees must be considered an important part of implementation. 2. Top executives must be completely committed to the strategy and the overall marketing plan. 3. Employee compensation programs must be linked to the implementation of the marketing strategy. 4. The firm should be characterized by open communication among all employees, regardless of their level in the firm. 5. The firm’s structure, policies, and processes should match the marketing strategy. Putting Internal Marketing into Action 13
  • 14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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, is internal marketing a viable approach for most organizations? Why or why not? 14
  • 15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Why are the intended strategy and the realized strategy different?  The marketing strategy was inappropriate or unrealistic.  The implementation was inappropriate for the strategy.  The implementation process was mismanaged.  The internal and/or external environments changed substantially between the development of the marketing strategy and its implementation. Evaluating and Controlling Marketing Activities 15
  • 16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. A Framework for Marketing Control (Exhibit 9.5) 16
  • 17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  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 Formal Marketing Controls 17
  • 18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Identification of Marketing Activities  Review of Standard Procedures for Each Marketing Activity  Identification of Performance Standards for Each Marketing Activity  Identification of Performance Metrics for Each Marketing Activity  Review and Evaluation of Marketing Personnel  Evaluation of Customer Support Systems Marketing Audit Framework (see Exhibit 9.6) 18
  • 19. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Employee Self-Control (personal expectations)  Job satisfaction  Organizational commitment  Social Control (small group control)  Shared values  Social and behavioral norms in work groups  Cultural Control (organizational norms)  Organizational culture  Organizational stories, rituals, and legends  Cultural change Informal Marketing Controls 19
  • 20. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1. Identify the specific activities to be performed 2. Determine the time required to complete each activity 3. Determine which activities must precede others 4. Arrange the proper sequence and timing of all activities 5. Assign responsibility Scheduling Marketing Activities 20
  • 21. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hypothetical Implementation Schedule (Exhibit 9.7) 21