Transcript Chapter 18

Part 4: Evaluating marketing
Chapter 17: Implementation and control
Step 6: Implement and control the
marketing strategy
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PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
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When we finish this lecture you should
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Appreciate the importance of forecasting
Understand why effective implementation is critical to customer
satisfaction and the achievement of corporate goals
Understand how TQM can improve marketing implementation
Understand how planning and control can be combined
Appreciate the importance of costing activities for marketing
plans
Recognise the differences between sales analysis, performance
analysis, performance indices and cost analysis
Understand the different ways in which a company can plan
and implement its international marketing operations
Know what is involved in a marketing audit and understand the
circumstances in which it should be undertaken
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PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
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Forecasting target market potential
and sales
• Target market potential—what a whole market
segment might buy
• Sales forecast—an estimate of how much an
industry or company hopes to sell to a market
segment
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Two approaches to forecasting
• Extending past behaviour
• Predicting future behaviour
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Forecasting by extending past
behaviour
• Extending past sales
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Trend extension
Assumes future patterns will be like past patterns
• Factor models
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Based on finding a variable (a factor) that is related to
the variable being forecast
Multiple factors may be helpful
• Time series and leading series
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Time series—Historical records of the fluctuations in
economic variables
Leading series—A time series that changes in the same
direction but ahead of the series to be forecast
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Using judgments and opinions to
forecast sales
• Jury of executive opinion—Forecasting by
combining the opinions of experienced executives,
perhaps from marketing, production, finance,
purchasing and top management
• Sales force estimates—Combining the sales
estimates from each sales person
• Surveys, panels and test markets
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Information, implementation and
control
• Feedback improves the marketing management
process
• Fast feedback leads to competitive advantage
• New information technologies
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Effective implementation
• Timing of the strategy
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Flow charts
• Implementation objectives
• Innovative implementation
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Figure 17.2 Examples of approaches to overcome
specific marketing implementation problems
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PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
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Quality and implementation
• Total quality management (TQM)
• The cost of dissatisfied customers
• Identifying customer needs
• Implementing quality service
• Managing the quality effort
• Benchmarking performance
• Quality improvement and profit
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Figure 17.3 Pareto chart showing frequency of
different complaints
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Figure 17.4 Fishbone diagram showing cause and
effect
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Implementing quality service
• Training and empowering staff
• Managing customer expectations
• Responding to customer needs
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Costing and controlling marketing
plans
• Estimating the cost of each activity
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Most common method is to compute a percentage of
either past or anticipated sales
Match expenditure with competitors
Set the budget as a certain dollar figure per sales unit
using past year as a base
Base the budget on any uncommitted revenue perhaps
including budgeted profits
Base the budget on the task at hand
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Based on number of new customers desired
Determine which marketing objectives are most important
and the most economical method to achieve the marketing
objectives
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PPTs t/a Marketing 4/e by Quester, McGuiggan, Perreault and McCarthy
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Controlling marketing plans
• Sales analysis
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Sales breakdowns
• Performance analysis
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Performance indices
• Marketing cost analysis
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Allocating costs
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Functional accounts
Allocating fixed costs
• Full-cost approach
• Contribution-margin approach
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Figure 17.5 Comparative performance of sales
representatives
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Figure 17.6 Comparative costs of sales
representatives
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Figure 17.7 Development of a measure of sales
performance (by region)
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Figure 17.8 Planning and control chart for Cindy’s
Fashions
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Figure 17.9 International market entry strategies
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Multinational corporations
• Have direct investments in several countries
• Operate the business depending on the choices
available anywhere in the world
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Selecting vendors
Locations for production
Target markets to go after
• Take a world view, not just the view of the home
country
• More companies are looking at world-wide
competition
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The marketing audit
• Appraising
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Objectives
Policies
Methods
Procedures
People
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What we will be doing in the next
chapter
• In the following chapter we will be discussing
ethical marketing in a consumer-oriented world,
including
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How marketing can and should be evaluated
How to assess the connection between marketing,
materialism and social values
The challenges facing marketers in the future
How far marketing can or should go
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