Marketing Strategies: Discussion 11

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Marketing Implementation and Control

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C H A P T E R

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The process of executing the marketing strategy by creating and performing specific actions that will ensure the achievement of the firm’s marketing objectives

Intricately tied to the marketing strategy. Both must be done well to achieve the firm’s objectives.

All firms have two strategies

Intended strategy – What the firm wants to happen

Realized strategy – The strategy that actually takes place

Marketing Implementation

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Interdependency

Implementation depends on strategy; strategy depends on implementation

Evolution

Planning and implementation must evolve over time because environmental factors constantly change.

There is no single, correct way to implement a strategy.

Separation

While planning is often done at the top of the organizational hierarchy, implementation occurs at the frontline of the firm.

The Link Between Planning and Implementation

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The Separation of Planning and Implementation (Exhibit 9.1)

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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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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Marketing Strategy

How the firm plans to meet its goals and objectives

Shared Goals and Values

The “glue” of successful implementation

Marketing Structure

Formal lines of authority; how the firm is organized

Centralization vs. decentralization

Systems and Processes

Work activities that absorb inputs to create information and communication outputs that ensure the firm’s operation

The Elements of Marketing Implementation

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Resources

The firm’s tangible and intangible assets that can be used to implement the marketing strategy

People (Human Resources)

Employee selection and training

Employee evaluation and compensation

Employee motivation, satisfaction, and commitment

Leadership

The art of managing others; how managers communicate with employees and motivate their employees to implement the strategy

The Elements of Marketing Implementation (continued)

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The Elements of Marketing Implementation (Exhibit 9.2)

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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

Approaches to Marketing Implementation (Exhibit 9.3)

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Which implementation approach would you be most comfortable using, given your personality and personal preferences? Why? Would your chosen approach be universally applicable to any given situation? If not, what would cause you to change or adapt your approach?

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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Internal Marketing Approach

Help employees understand their roles

Create motivated and customer-oriented employees

Deliver external customer satisfaction

The Internal Marketing Process

Internal products – new strategies, employee tasks

Internal prices – increased effort and changes that employees must exhibit

Internal distribution – internal communication of the strategy

Internal promotion – informing and persuading employees about the merits of the strategy

Internal Marketing and Marketing Implementation

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The Internal Marketing Process (Exhibit 9.4)

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The recruitment, selection, and training of employees must be considered an important part of implementation.

Top executives must be completely committed to the strategy and the overall marketing plan.

Employee compensation programs must be linked to the implementation of the marketing strategy.

The firm should be characterized by open communication among all employees, regardless of their level in the firm.

The firm’s structure, policies, and processes should match the marketing strategy.

Putting Internal Marketing into Action

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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, is internal marketing a viable approach for most organizations? Why or why not?

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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why are the intended strategy and the realized strategy different?

The marketing strategy was inappropriate or unrealistic.

The implementation was inappropriate for the strategy.

The implementation process was mismanaged.

The internal and/or external environments changed substantially between the development of the marketing strategy and its implementation.

Evaluating and Controlling Marketing Activities

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A Framework for Marketing Control (Exhibit 9.5)

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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

Formal Marketing Controls

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Identification of Marketing Activities

Review of Standard Procedures for Each Marketing Activity

Identification of Performance Standards for Each Marketing Activity

Identification of Performance Metrics for Each Marketing Activity

Review and Evaluation of Marketing Personnel

Evaluation of Customer Support Systems

Marketing Audit Framework (see Exhibit 9.6)

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Employee Self-Control (personal expectations)

Job satisfaction

Organizational commitment

Social Control (small group control)

Shared values

Social and behavioral norms in work groups

Cultural Control (organizational norms)

Organizational culture

Organizational stories, rituals, and legends

Cultural change

Informal Marketing Controls

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Identify the specific activities to be performed

Determine the time required to complete each activity

Determine which activities must precede others

Arrange the proper sequence and timing of all activities

Assign responsibility

Scheduling Marketing Activities

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Hypothetical Implementation Schedule (Exhibit 9.7)

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