Transcript evansberman_chapter_22

Chapter 22:
“Pulling It All Together: Integrating
and Analyzing the Marketing Plan”
Joel R. Evans & Barry Berman
Marketing, 10e: Marketing in the 21st Century
Copyright Atomic Dog Publishing, 2007
Chapter Objectives
• To show the value of an integrated marketing plan
• To discuss the elements of a well-integrated
marketing plan
• To present five types of marketing plan analysis:
benchmarking, customer satisfaction research,
marketing cost analysis, sales analysis, and the
marketing audit
• To see the merit of anticipating and planning for
the future
Copyright Atomic Dog Publishing, 2007
Organizational Planning
Vision
Driving Force
Values
Climate
Culture
Why are we in business?
How do we do business?
Where are we now?
Where do we want to be?
Gap Analysis
How can we get there?
Mission
Strengths
Weaknesses
Opportunities
Threats
Competition
Constraints
Strategies
Tactics
Resources
How will we know we’ve arrived?
Coordination
Budgets
Controls
Reports
Milestones
Copyright © 1991 by In-Com. Inc. Revision © 1999 by Clark E. Crouch. All Rights reserved.
Copyright Atomic Dog Publishing, 2007
The Value of an Integrated Marketing Plan
An integrated marketing plan outlines the actions
needed, who is responsible, when and where they will
be completed, and how they will be coordinated.
The benefits may include:
 Improved profits.
 Increased market share.
 Greater return on assets and investments.
 Opportunities for positive economies of scale.
 Greater customer satisfaction leading to long-run
success.
Copyright Atomic Dog Publishing, 2007
A Total Quality Approach
It is a process- and output-related philosophy,
striving to satisfy customers effectively. It always:




Seeks to satisfy customers.
Has a top management commitment.
Emphasizes continuous improvement.
Requires support from employees, suppliers,
and distribution intermediaries.
Copyright Atomic Dog Publishing, 2007
Elements Leading to a Well-Integrated
Marketing Plan
Long-Term
Competitive
Advantages
Clear
Organizational
Mission
Well-Integrated
Marketing Plan
Precisely Defined
Target Market(s)
Compatible Long-,
Moderate-, and
Short-Term Subplans
Copyright Atomic Dog Publishing, 2007
Stability Over
Time
Coordination of
the Marketing Mix
Coordination
Among SBUs
Step 1 in a Well-Integrated Marketing Plan
1.
Clear
Organizational
Mission
Copyright Atomic Dog Publishing, 2007
A clear organizational mission outlines a
commitment to a type of business and a
place in the market.
It should be reviewed when:
• A firm seeks new customer groups or
abandons existing ones.
• Adds or deletes product lines.
• Acquires other firms or sells part of its
own business.
• Utilizes different marketing functions.
• Shifts its technological focus.
Step 2 in a Well-Integrated Marketing
Plan
2.
Long-Term
Competitive
Advantage
Copyright Atomic Dog Publishing, 2007
Long-term competitive advantages are
attributes whose distinctiveness and
appeal to consumers can be maintained
over an extended period of time.
• To sustain advantages, consumers must
perceive a consistent positive difference
in key attributes over competitors.
• Differences must be linked to a
capability gap that competitors will
have difficulty in closing.
• A firm should stress customer service
and a total quality program.
Step 3 in a Well-Integrated Marketing
Plan
3.
Precisely
Defined Target
Market
Copyright Atomic Dog Publishing, 2007
By precisely defining target market(s), a
firm identifies those to be addressed in
its marketing plans.
• When a firm uses concentrated or
differentiated marketing, each
segment must be understood.
• The target market approach may need
fine-tuning due to changing
demographics and lifestyles—or
declining sales.
• Data-base marketing helps reach goals.
Step 4 in a Well-Integrated Marketing
Plan
4.
Compatible
Long, Moderate,
& Short-Term
Subplans
Copyright Atomic Dog Publishing, 2007
A firm’s marketing subplans need to be
compatible with one another.
• Long-term plans are the most general
and set a broad framework for
moderate-term plans.
• Short-term plans are the most specific,
but need to be derived from both
moderate-term and long-term plans.
• Marketing plans must be flexible and
adapt to changing customer priorities.
• Frequent reviews are critical.
Step 5 in a Well-Integrated Marketing Plan
5.
Coordination
Among SBUs
Copyright Atomic Dog Publishing, 2007
The coordination among an
organization’s SBUs is enhanced
when the functions, strategies,
and resources allocated to each
are described in long-, moderate-,
and short-term plans.
Step 6 in a Well-Integrated Marketing Plan
6.
Coordination
of Marketing
Mix
Copyright Atomic Dog Publishing, 2007
The components of the marketing
mix (product, distribution,
promotion, and price) need to
be coordinated and consistent
with the firm’s organizational
mission.
Step 7 in a Well-Integrated Marketing Plan
7.
Stability
Over
Time
Copyright Atomic Dog Publishing, 2007
A marketing plan must have a certain
degree of stability over time to be
implemented and evaluated
properly.
• The plan should be consistent with
the firm’s mission and guide the
firm’s long-term efforts.
• The plan should be fine-tuned
regularly and be consistent with
the firm’s total quality approach.
Benchmarking
By benchmarking, a company sets marketing standards
based on its prior actions, direct competitors, the best firms
in its industry, and/or innovative firms in other industries.
The Keys to Good Benchmarking
1. Determine What to Benchmark
2. Build Buy In and Plan the Project
3. Understand Existing Operations
4. Research Others’ Practices and Potential Partners
5. Identify Best Practices
6. Pinpoint Improvement Areas
7. Conclude and Communicate
8. Create an Action Plan for the Future
Copyright Atomic Dog Publishing, 2007
Customer Satisfaction Research
Customer satisfaction is the degree to which there is a
match between customer expectations and actual
performance.
 The largest ongoing research project is the American
Customer Satisfaction Index (ACSI), a joint effort by
the University of Michigan, the American Society for
Quality Control, and CFI Group.
 To compute ACSI, thousands of consumers are surveyed
annually regarding companies in dozens of industries.
 ACSI links customer expectations, perceived quality,
and perceived value to customer satisfaction.
Copyright Atomic Dog Publishing, 2007
Marketing Cost Analysis
Marketing cost analysis evaluates the cost efficiency of
marketing factors such as total quality configurations,
product lines, order size, distribution methods, sales
territories, channel members, salespersons, media,
and customer types.
It consists of three steps:
 Studying natural account expenses
 Reclassifying natural accounts into functional ones
 Allocating functional accounts by marketing
classification
Copyright Atomic Dog Publishing, 2007
Sales Analysis
Sales analysis is the detailed study of sales data to assess a
marketing strategy’s appropriateness and effectiveness.
Without it,
 A poor consumer response to the total value chain
offered by a firm may not be seen early enough.
 The strength of certain market segments and
territories may be overlooked.
 Sales effort may be poorly matched with market
potential.
 Trends may be missed.
 Support for sales personnel may not be forthcoming.
Copyright Atomic Dog Publishing, 2007
Key Concepts in Sales Analysis
• Control units are the sales categories for which data
are gathered.
• The 80-20 principle identifies large proportions of sales
(profits) that come from a small proportion of
customers, products, or territories.
• The iceberg principle states that superficial data are
insufficient to make sound evaluations and errors will
occur unless firms isolate and categorize data.
• Sales exception reporting highlights situations where
goals are not met or opportunities are not present.
Copyright Atomic Dog Publishing, 2007
Marketing Audit
A marketing audit is a
systematic,
critical,
impartial
review and appraisal
of the basic goals and policies of the marketing function,
and of the organization, methods, procedures, and
personnel employed to implement the policies and
achieve the goals.
Copyright Atomic Dog Publishing, 2007
The Marketing Audit Process (1)
2.
Determining
When and How
Often Audit Is
Conducted
1.
Determining
Who Does the
Audit
6.
Presenting the
Results to
Management
Copyright Atomic Dog Publishing, 2007
3.
Determining
the Areas to
Be Audited
4.
Developing
Audit Forms
5.
Implementing
the Audit
The Marketing Audit Process (2)
1. The audit is conducted by company specialists, company
division, or department managers, or outside specialists.
2. It may be done at the end of a calendar or annual reporting
year, or when doing a physical inventory.
3. A horizontal audit studies the overall performance of a firm,
emphasizing the interrelationship of variables. A vertical
audit is an in-depth analysis of one aspect of a firm’s
marketing strategy.
4. Audit forms list the topics to be examined and the exact
information required to evaluate each topic.
5. Implementation decisions include: the timing and duration,
employee awareness, when and how audit is performed, and
how the audit report will be prepared.
6. Findings & recommendations are given to management.
Copyright Atomic Dog Publishing, 2007
Chapter Summary
• This chapter shows the value of an integrated
marketing plan.
• It discusses the elements of a well-integrated
marketing plan.
• It presents five types of marketing plan analysis:
benchmarking, customer satisfaction research,
marketing cost analysis, sales analysis, and the
marketing audit.
• It shows the merit of anticipating and planning
for the future.
Copyright Atomic Dog Publishing, 2007