Marketing Strategies: Discussion 11
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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© 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.
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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