Transcript Chapter 14 Marketing implementation and evaluation

Chapter 14
Marketing Implementation
and Evaluation
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–1
Implementing marketing programs
• Implementation is the operational stage during
which an organisation attempts to put its marketing
plan into practice.
–
Comprises three activities:
1 Organising the marketing effort.
2 Staffing the organisation.
3 Directing the execution of marketing plans.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–2
Organising the marketing department
•
Several factors affect decisions about structure
– Ability to talk to and listen to customers.
– Teamwork between departments.
– Leaner organisations, fewer staff members.
•
Vertical structures replaced with horizontal structures
– Fewer organisation levels.
– Cross-functional teams.
– Employee empowerment.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–3
Company-wide organisation
• Production- or sales-oriented firms usually find:
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Marketing activities are fragmented.
Sales team is a separate entity to marketing dept.
Physical distribution handled by production.
• Marketing-oriented firms usually find:
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All marketing activities coordinated under one manager.
Activities grouped into:
 Line activities.
 Staff activities.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–4
Marketing/Sales
department organisation
• Geographic specialisation
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The focus is on organising the sales team on the basis of
geographic territories.
• Product specialisation
–
A company can divide its products into two or more lines,
with separate sales teams selling each line.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–5
Marketing/Sales
department organisation
• Customer specialisation
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A company divides their sales departments according to
the type of customer (industry or distribution channel or
major accounts).
• Combination of organisational bases
–
Many medium-sized and large companies often combine
a territorial sales organisation with either product or
customer specialisation.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–6
Staffing the organisation
• Selecting the people who will be doing the actual
implementation work
–
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Critical implementation task is usually done by the sales
team.
Staff selection is critical—recruiting the right people.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–7
Managing marketing operations
• Delegation
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Measured by ability to delegate authority and
responsibility ably (competently and energetically).
• Coordination
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Coordination will bring about synergy in the organisation.
• Motivation
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Ability to motivate people.
• Communication
–
Ability to communicate effectively with their staff.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–8
Marketing evaluation and control
•
An evaluation of what is working (the plan) and what factors
are contributing to success or failure.
•
The marketing audit
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A marketing audit is a comprehensive review and
evaluation of the marketing function in an organisation.
 The marketing environment.
 The marketing strategy.
 Structure of the marketing division.
 Marketing systems.
 Marketing productivity.
 Marketing functions.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–9
The circular relationship between the
three management tasks
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–10
Budgeting and controlling
marketing programs
• The major tool for evaluating any business
program, including marketing, is the annual
budgeting process.
• The budget quantifies the marketing plan.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–11
Budgeting and controlling
marketing programs
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Budgeting has benefits.
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A budgeting process is used to prepare budgets.
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Different approaches to budgeting include:
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Fixed, flexible and zero-based budgets.
Non-financial marketing controls include:
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Market share, number of new products developed, strength
of brand equity, product complaints received, price
independence, weighted distribution achieved, attitude
towards our brand.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–12
The 80–20 principle (Pareto)
• The 80–20 principle implies that 80 per cent of
business will come from 20 per cent of customers
or total sales.
• For many firms, a small number of products or
customers will account for a disproportionately
large percentage of total sales.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–13
Misdirected marketing effort
• Many managers are unaware of the misdirected
marketing effort in their firms. They do not know
what percentage of total sales and profit comes
from a given product line or customer group.
• Time, effort and marketing funds should be
directed to those customers who are producing the
firm’s sales, rather than equally across all
customers.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–14
The evaluation process
• Finding out what happened.
• Finding out why it happened.
• Deciding what to do about it.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–15
The evaluation process
• Various options and approaches include:
• Sales-volume analysis.
• Sales results versus sales goals.
• Market-share analysis.
• Marketing-costs analysis.
• Full-cost versus contribution-margin approach.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–16
Taking corrective action
• Territory decisions.
• Product decisions.
• Customer decisions.
• Order-size decisions.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by: Joe Rosagrata
14–17