Transcript Chapter 11

marketing strategy
O. C. Ferrell
Michael D. Hartline
Marketing
Implementation and
Control
C H A P T E R
Strategic Issues in
Marketing Implementation (1 of 2)
• The Link Between Strategic Planning and
Implementation
– Interdependency
– Evolution
– Separation
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Southwest: Improving Customer Service
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The Symbiotic Relationship Between Marketing
Strategy and Marketing Implementation
Exhibit 11.1
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Discussion Question
• Forget for a moment that planning the marketing
strategy is equally as important as implementing
the marketing strategy. What arguments can you
make for one being more important than the
other? Explain your answers.
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The Separation of
Planning and Implementation
Exhibit 11.2
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Strategic Issues in
Marketing Implementation (2 of 2)
• The Elements of Marketing Implementation
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Shared Goals and Values
Marketing Structure
Systems and Processes
Resources
People (Human Resources)
• Employee selection and training
• Employee evaluation and compensation
• Employee motivation, satisfaction and commitment
– Leadership
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Home Depot Employees
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The Elements of
Marketing Implementation
Exhibit 11.3
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Green Mountain Coffee
• Green Mountain Coffee Roasters, Inc. is a leader in the specialty
coffee industry. Most of their revenue comes from over 8,000
wholesale customer accounts in the eastern United States.
• One of the major reasons for Green Mountain’s success is its
overall focus on implementation. How can marketing
implementation serve as a strategic impetus for success?
Beyond the Pages 11.1
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Advantages and Disadvantages of
Implementation Approaches
• Implementation by Command
– Adv: makes decision making easier, reduces uncertainty
– Dis: does not consider feasibility, divides the firm, employee motivation
• Implementation through Change
– Adv: considers the relationship between planning and implementation
– Dis: clings to “power-at-the-top” mentality, can take a long time
• Implementation through Consensus
– Adv: incorporates multiple viewpoints, can make implementation easier
– Dis: slows the strategy/implementation process, potential for groupthink
• Implementation as Organizational Culture
– Adv: eliminates barriers, can lead to a strong corporate vision
– Dis: increases employee costs, can be painful and time consuming
From Exhibit 11.4
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Marketing Strategy in Action
• Chrysler’s acquisition of
Jeep/Eagle was a critical step
in the process of rebuilding
Chrysler.
• How can an implementation
through change strategy alter
the success of a company?
Can you think of other
mergers/acquisitions that
improved the company’s
competitive position?
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Discussion Question
• If you were personally responsible for implementing a
marketing strategy, which implementation approach
would you be most comfortable using, given your
personality and personal preferences? Why?
• Would your approach be universally applicable to any
given situation? If not, what would cause you to change
or adapt your approach?
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Internal Marketing
and Marketing Implementation
• The Internal Marketing Approach
– Help employees understand their roles
– Create motivated and customer-oriented employees
– Deliver external customer satisfaction
• The Internal Marketing Process
– Internal Customers
– External Customers
• Putting Internal Marketing Into Action
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The Internal Marketing Process
Exhibit 11.5
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Discussion Question
• What do you see as the major stumbling blocks to
the successful use of the internal marketing
approach? Given the hierarchical structure of
employees in most organizations (e.g., CEO,
middle management, staff employees), is internal
marketing a viable approach for most
organizations? Why or why not?
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Evaluating and Controlling
Marketing Activities
• Four possible causes of differences between the
intended strategy and the realized strategy:
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The marketing strategy was inappropriate or unrealistic.
The implementation was inappropriate for the strategy.
The implementation process was mismanaged.
Substantial changes in the environment between
development and implementation.
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A Framework for Marketing Control
• Formal Controls (Initiated by Management)
– Input Controls
– Process Controls
– Output Controls
• Informal Controls (Initiated by Employees)
– Employee Self-control
– Social Control
– Cultural Control
From Exhibit 11.6
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Formal Marketing Controls
• Input Controls (prior to implementation)
– Recruiting, selecting, and training employees
– Resource allocation decisions
• Process Controls (during implementation)
– Commitment to the strategy
– System for evaluating and compensating employees
• Output Controls (after implementation)
– Performance standards
– Marketing audits
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A Marketing Audit
• Identification of Marketing Activities
• Review of Standard Procedures for each Marketing Activity
• Identification of Performance Standards for each Marketing
Activity
• Identification of Performance Measures for each Marketing
Activity
• Review and Evaluation of Marketing Personnel
• Identification and Evaluation of Customer Support Systems
From Exhibit 11.7
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Informal Marketing Controls
• Employee Self-Control (personal expectations)
– Job satisfaction, organizational commitment
• Social Control (small group control)
– Shared values, social and behavioral norms in groups
• Cultural Control (organizational norms)
– Organizational culture, stories, rituals
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Scheduling Marketing Activities
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Basic steps to creating a schedule and timeline:
1. Identify the activities to be performed
2. Determine the time required to complete each
activity
3. Determine which activities must precede others
4. Arrange the proper sequence and timing of all
activities
5. Assign responsibility
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A Hypothetical 3-Month
Marketing Implementation Schedule
Exhibit 11.8
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