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Chapter 11

Chapter 11. Marketing Implementation and Control. Marketing Implementation. The process of executing the marketing strategy by creating and performing specific actions that will ensure the achievement of the firm’s marketing objectives

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Chapter 11

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  1. Chapter 11 Marketing Implementation and Control

  2. Marketing Implementation • 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

  3. The Link Between Planning and Implementation • 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.

  4. The Separation of Planning and Implementation (Exhibit 9.1)

  5. 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.

  6. The Elements of Marketing Implementation • 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

  7. The Elements of Marketing Implementation(continued) • 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

  8. The Elements of Marketing Implementation (Exhibit 9.2)

  9. Approaches to Marketing Implementation (Exhibit 9.3) • 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

  10. 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?

  11. 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 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

  12. The Internal Marketing Process(Exhibit 9.4)

  13. Putting Internal Marketing into Action • 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.

  14. 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?

  15. Evaluating and Controlling Marketing Activities • 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.

  16. A Framework for Marketing Control (Exhibit 9.5)

  17. 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

  18. Marketing Audit Framework(see Exhibit 9.6) • 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

  19. Informal Marketing Controls • 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

  20. Scheduling Marketing Activities • 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

  21. Hypothetical Implementation Schedule (Exhibit 9.7)

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