Transcript EvansBerman_Chapter_22+

Pulling It All Together:
Integrating and Analyzing the
Marketing Plan
Evans & Berman
Chapter 22
L.P. Chew
JUNE 7, 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
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Organizational Planning
Vision
Driving Force
Values
Climate
Culture
?
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?
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Gap Analysis
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Mission
Why are we in business?
Strengths
Weaknesses
Opportunities
Threats
Competition
Constraints
Strategies
How do we do business?
Where are we now?
Where do we want to be?
Tactics
How can we get there?
Resources
? How will we know we’ve arrived?
Coordination
© Clark E. Crouch
Budgets
Controls
Reports
Milestones
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The Value of an Integrated
Marketing Plan
An integrated marketing plan outlines the
actions necessary, who is
responsible, when and where they
will be completed, and how they will
be coordinated.
The benefits may include:
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Improved profits
Increased market share
Greater return on assets and investments
Opportunities for positive economies of scale
Greater customer satisfaction leading to firm’s long-term
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success
A Total Quality Approach
It is a process- and output-related philosophy, striving
to satisfy customers effectively. It always:
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Seeks to satisfy customers
Has a top management commitment
Emphasizes continuous improvement
Requires support from employees, suppliers, and distribution
intermediaries
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Elements Leading to a WellIntegrated Marketing Plan
Long-Term
Competitive
Advantages
Precisely Defined
Target Market(s)
Clear
Organizational
Mission
Well-Integrated
Marketing PlanYou did steps 1-2
for your project
Compatible Long-,
Moderate-, and
Short-Term Subplans
Stability Over
Time
Coordination of the
Marketing Mix
Coordination
Among SBUs
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Step 1. in a
Well-Integrated Marketing Plan
A clear Organizational Mission outlines a
commitment to a type of business and a place in
the market.
It should be reviewed reviewed when:
1.
Clear
Organizational
Mission
 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.
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Step 2. in a
Well-Integrated Marketing Plan
Long-term competitive advantages are attributes
whose distinctiveness and appeal to consumers
can be maintained over an extended period of time.
2.
Long-Term
Competitive
Advantage
 To sustain advantages, consumers must
perceive a consistent positive difference
in key attributes over firm’s 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.
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Step 3. in a
Well-Integrated Marketing Plan
3.
Precisely
Defined Target
market
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 aids in achieving goals.
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Step 4. in a
Well-Integrated Marketing Plan
A firm’s marketing subplans need to be
compatible with one another.
4.
Compatible
Long,
Moderate, &
Short-Term
Subplans
 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.
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Step 5. in a
Well-Integrated Marketing Plan
5.
Coordination
Among
SBUs
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.
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Step 6. in a
Well-Integrated Marketing Plan
6.
Coordination
of Marketing
Mix
The components of the marketing mix (product,
distribution, promotion, and price) need to be
coordinated and consistent with the firm’s
organizational mission.
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Step 7. in a
Well-Integrated Marketing Plan
7.
Stability
Over
Time
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.
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Benchmarking vs. Benchmarks
By benchmarking, a firm sets its marketing standards based on prior
actions by the firm, direct competitors, the best companies in its
industry, and/or innovative companies 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
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Customer Satisfaction Research
Customer satisfaction is the degree to which there is a match
between a customer’s expectations of a good or service and
its actual performance. It “is undoubtedly one of the top
strategic issues in the new decade.”
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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, 50,000 consumers are surveyed annually
regarding 200 companies and government agencies in 34 different
industries.
ACSI links customer expectations, perceived quality, and perceived
value to customer satisfaction.
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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, advertising
media, and customer types.
It consists of three steps:
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Studying natural account expenses
Reclassifying natural accounts into functional ones
Allocating functional accounts by marketing classification
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Sales Analysis
Sales analysis is the detailed study of sales data to
appraise the appropriateness and effectiveness
of a marketing strategy.
Without it,
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A poor 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, 2002
Key Concepts in Sales Analysis
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Control units are the sales categories for which data are gathered.
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The 80-20 principle
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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.
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identifies large proportions of
sales (profits) that come from a small
proportion of customers, products, or
territories. REMEMBER TWEDT!
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The 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.
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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
3.
Determining
the Areas to
Be Audited
4.
Developing
Audit Forms
5.
Implementing
the Audit
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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 year, the of the
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 and recommendations are given to management.
Copyright Atomic Dog Publishing, 2002
Chapter Summary
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This chapter shows the value of an
integrated marketing plan.
It discusses the elements of a wellintegrated 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, 2002