Transcript Chapter 8
Chapter 10 Marketing Implementation Marketing Implementation …the process of executing marketing strategies by creating specific actions that will ensure that the marketing objectives are achieved …usually causes the difference between intended marketing strategy & realized marketing strategy COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Factors That Influence Marketing Strategies… Intended marketing strategy-the planned strategic choice, what the organization wants to happen Realized marketing strategy-the strategy that actually takes place COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Environmental Factors Change… Importance of contingency planning in developing marketing strategies & implementation – customers change their wants & needs – competitors devise new marketing strategies – internal organizational environment changes COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Realities of Marketing Implementation… Implementation involves trial & error—there is no one correct way to implement a particular strategy Plan must be flexible enough to adapt to changing customer needs/preferences and the competitive environment Planning & implementation are interdependent processes but separate issues COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Planning & Implementing are Separated Strategic planning occurs at the top levels of the organization and implementation falls on lowerlevel managers and frontline employees Top level managers often do not understand the problems that occur with implementation Front line and lower-level managers often have little say in developing the marketing plan COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved A Key Problem in Marketing Planning… …how to get employees excited and motivated to support the implementation of the plan. COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved The Components of Marketing Implementation… Shared goals & objectives Marketing structure Systems & processes Resources People COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Shared Goals & Objectives Without a common direction,different areas of the organization pursue unrelated goals Institutionalizing shared goals & values in the firm’s culture is a long term process – occurs through employee training & socialization – tends to stimulate organizational commitment in implementing the marketing strategy & meeting customer needs COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Marketing Structure The organization of a firm’s marketing activities Divides marketing responsibilities or centralizes decision making – centralized marketing structure: very cost efficient & effective through standardization – decentralized marketing structure: place marketing decisions close to the front line where customer needs are a priority – represents a tradeoff between reduced costs & increased flexibility COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Systems & Processes The marketing information system is a critical part of the planning process Collects internal and external information to assist in strategy development Also assists in evaluating & controlling all marketing activities COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Resources Must consider tangible resources including financial resources, manufacturing capacity, or facilities & equipment Also must consider intangible resources such as marketing expertise, customer loyalty, and external relationships/strategic alliances Any gaps may require additional resource allocation from top management COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved People Implementation is effected by the quality, quantity, diversity & skills of the work force Motivation & leadership are key – leaders are responsible for establishing the corporate culture & motivating employees – open communication supports successful implementation COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Human Side of Implementation Employee selection & training – matching employees skills & abilities to the marketing tasks to be performed Employee evaluation & compensation policies – outcome based versus behavior based rewards Employee motivation, satisfaction & commitment – dependent upon training, evaluation/compensation & leadership COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Compensation Programs Outcome based – compensation is based on measurable, quantitative standards (sales or margins) – easy to use, requires less supervision & works well when the goal is sales or profits Behavior based – evaluates effort, motivation, teamwork, & customer problem solving ability – difficult & costly to administer COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Leadership How managers communicate with employees as well as how they motivate employees to implement marketing strategy Establishes the corporate culture necessary for implementation success COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Approaches to Marketing Implementation Command approach Change approach Consensus approach Cultural approach COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Command Approach Top level selection of marketing strategies with lower level implementation Advantages: – makes decision making easier – reduces uncertainty as to what is to be done Disadvantages: – does not consider the feasibility of implementation – divides the organization into strategiest & implementers – can create motivation problems COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Command Approach Works best when: – an organization is headed by a strong leader – the strategy is simple to implement – the strategy process poses few threats COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Change Approach Focuses explicitly on implementation Modifies the organization in ways that will ensure successful implementation Changes the organzation to fit the strategy Disadvantages: – separates planning & implementation – time consuming COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Consensus Approach Top managers & lower-level employees work together to evaluate & develop marketing strategies Different functional areas come together to ‘brainstorm’ & develop the strategy Advantages: – moves decision making authority closer to the front line Disadvantages: – difficult to coordinate COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Consensus Approach Tends to work best in environments that are: – complex – uncertain – highly unstable COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Cultural Approach Allows a participative style with lower levels of the organization Shapes the organizational culture Breaks down barriers between strategist & implementators Employees design their work procedures consistent with organizational goals, missions, & objectives – a.k.a.-empowerment COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Cultural Approach Advantages: – certain types of employees thrive under this approach Disadvantages: – firm must spend more money on training & selection to ensure qualified employees – empowered employees must work harder because of their added decision making authority – empowered employees may make costly mistakes COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Role of Internal Marketing The managerial actions necessary to make all members of the organization understand & accept their role in implementation – internal products-marketing strategies – internal prices-changes that must be undertaken to implement the marketing strategy – internal distribution-how the strategies are communicated internally (training) – internal promotion-persuasive communications COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Implementing Marketing Activities Good communication is key – upward communication from the front line – allows management to understand problems & needs of the employees Employees must understand the implementation timetable – specific activities to be performed, time required, sequence, & who is responsible COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Implementing an Internal Marketing Approach Conscientious recruitment, selection & training of employees Top managers must be completely committed to the marketing strategy & overall plan Employee compensation must be linked to marketing strategy implementation Open communication must exist at all levels Organizational structure, processes & policies must match the marketing strategy COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Causes of Improper Implementation Marketing strategy is inappropriate or unrealistic Implementation was inappropriate for the strategy or was simply mismanaged Internal &/or external environment changed significantly between the development of the marketing strategy & its implementation COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Formal Marketing Controls Input control mechanisms Process control mechanisms Output control mechanisms COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved The Marketing Audit Describes current marketing activities & their results Gathers information about changes in the external or internal environment that may affect marketing activities Explores different alternatives for improving implementation Provides a framework for evaluating the attainment of performance standards COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Informal Marketing Controls Employee self control Employee social control Employee cultural control COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved