Strategic marketing 9edi.chapter15

1. Imperatives for Market-Driven Strategy

2. Markets and Competitive Space

3. Strategic Market Segmentation

4. Strategic Customer Relationship Management

5. Capabilities for Learning about Customers and Markets

6. Market Targeting and Strategic Positioning

7. Strategic Relationships

8. Innovation and New Product Strategy

9. Strategic Brand Management

10. Value Chain Strategy

11. Pricing Strategy

12. Promotion, Advertising and Sales Promotion

Strategies

13. Sales Force, Internet, and Direct Marketing Strategies

14. Designing Market-Driven Organizations

15. Marketing Strategy Implementation And Control

Strategic Marketing

Chapter 15

Marketing StrategyImplementation

and Control

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Marketing strategy implementation and Marketing strategy implementation and controlcontrol

* The strategic marketing planning processThe strategic marketing planning process

* Implementing the strategic marketing planImplementing the strategic marketing plan

* Strategic marketing evaluation and controlStrategic marketing evaluation and control

* Marketing performance measurementMarketing performance measurement

* Global issues for planning, implementation Global issues for planning, implementation and controland control

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Marketing strategy implementation and Marketing strategy implementation and controlcontrol

* Fiat - strategic turnaround in auto industryFiat - strategic turnaround in auto industry

* Debts, losses, market share falling, Debts, losses, market share falling, reputation for low quality, diversificationreputation for low quality, diversification

* Recovery strategy of radical restructuring, Recovery strategy of radical restructuring, dismantling management and bureaucracydismantling management and bureaucracy

* Marketing, operations and R&D overhauled - Marketing, operations and R&D overhauled - small car focussmall car focus

* Range of strategic relationships establishedRange of strategic relationships established

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The strategic marketing planning processThe strategic marketing planning process

* The marketing plan guides The marketing plan guides implementationimplementation

* Contents of the marketing planContents of the marketing plan

* Managing the planning processManaging the planning process

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Strategy and planning relationshipsStrategy and planning relationships

MARKETING STRATEGY

AnnualMarketingPlanning

ImplementationControl and Evaluation

Revision

AnnualMarketingPlanning

AnnualMarketingPlanning

ImplementationControl and Evaluation

Revision

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MARKETING PLANMARKETING PLANOUTLINEOUTLINE

I.I. Strategic Situation SummaryStrategic Situation Summary

Summarize the key points from your situation analysis (marketSummarize the key points from your situation analysis (market analysis, segments, industry/competition) in order to recount theanalysis, segments, industry/competition) in order to recount the

major events and provide information to better understand themajor events and provide information to better understand the strategies outlined in the marketing plan.strategies outlined in the marketing plan.

II. II. Market-Targets and ObjectivesMarket-Targets and Objectives The market target may be defined demographically (key The market target may be defined demographically (key

characteristics only), geographically, or in social/economic terms. Each market target should characteristics only), geographically, or in social/economic terms. Each market target should have needs and wants that differ to have needs and wants that differ to

some degree from other targets. These differences may be withsome degree from other targets. These differences may be with respect to types of products purchased, use situation, frequencyrespect to types of products purchased, use situation, frequency of purchase, and other variations that indicate a need to alter theof purchase, and other variations that indicate a need to alter the

positioning strategy to fit the needs and wants of each target.positioning strategy to fit the needs and wants of each target.An objective is a quantified goal identifying An objective is a quantified goal identifying whatwhat is expected is expected

whenwhen. It specifies the end results expected. The objectives should. It specifies the end results expected. The objectives should be written for each target market. Objectives should also bebe written for each target market. Objectives should also be included for the following program components: (1) product, included for the following program components: (1) product,

(2) price, (3) distribution, (4) promotion (salesforce, advertising,(2) price, (3) distribution, (4) promotion (salesforce, advertising, sales promotion, and public relations), and (5) technical services.sales promotion, and public relations), and (5) technical services.

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III. III. Positioning StatementsPositioning Statements

Write statements that describe how you want each marketWrite statements that describe how you want each market target to perceive each product relative to competition. State thetarget to perceive each product relative to competition. State the core concept used to position the product (brand) in the eyes andcore concept used to position the product (brand) in the eyes and

mind of the targeted buyer. The positioning statement shouldmind of the targeted buyer. The positioning statement should describe: (1) What criteria or benefits the customer considers whendescribe: (1) What criteria or benefits the customer considers when

buying a product along with the level of importance, (2) What webuying a product along with the level of importance, (2) What we offer that differentiates our product from competition, and (3) Theoffer that differentiates our product from competition, and (3) The

limitations of competitive products.limitations of competitive products.

MARKETING PLANMARKETING PLANOUTLINEOUTLINE

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A. Product Strategy Identify how each product fits the market target. Other issues that may be addressed would be new product suggestions, adjustments in the mix of existing products, and productdeletion candidates.

B. Price StrategyThe overall pricing strategy (I.e., competitive, premium-priced,etc.) should be identified along with a cost/benefit analysis ifapplicable. Identify what role you want price to play, i.e.,increase share, maintenance, etc.

IV. Market Mix Strategy for Each Market Target

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C. Distribution StrategyDescribe specific distribution strategies for each market target. Issues to be addressed are intensity of distribution(market coverage), how distribution will be accomplished, andassistance provided to distributors. The role of the sales forcein distribution strategy should also be considered.

D. Promotion StrategyPromotion strategy is used to initiate and maintain a flow ofcommunication between the company and the market target.To assist in developing the communications program, theattributes or benefits of our product should be identified foreach market target. How our product differs from competition(competitive advantage) should be listed. The sales force’sresponsibilities in fulfilling the market plan must be integratedinto the promotion strategy. Strategies should be listed for(1) personal selling, (2) advertising, (3) sales promotion, and(4) public relations.

IV. Market Mix Strategy for Each Market Target

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E. Marketing Research

Describe the market research problem and the kind of information needed. Include a statement which addresseswhy this information is needed. The specific marketresearch strategies can be written once the above twosteps have been followed.

V. Coordination with Other Business Functions

Indicate other departments/functions that haveresponsibilities for implementing the marketing plan.

VI. Sales Forecasts and Budgets

VII. Contingency Plans

Indicate how your plans should be modified if eventsshould occur that are different from those assumedin the plan.

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Dimensions of Planning ProcessDimensions of Planning Process

MarketingPlanningProcess

AnalyticalProcess

Dimension

BehavioralProcess

Dimension

OrganizationalProcess

Dimension

TechniquesProceduresSystemsPlanning Models

ManagerialperceptionsParticipationStrategic assumptions

StructureInformationCulture

ProcessConsistency

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Implementing the strategic marketing plan Implementing the strategic marketing plan (1)(1)

* Implementation processImplementation process

* Structural issuesStructural issues

* Behavioral issuesBehavioral issues

* Building implementation effectivenessBuilding implementation effectiveness

* Organizational designOrganizational design

* IncentivesIncentives

* CommunicationsCommunications

* Internal marketingInternal marketing

* Comprehensive approach to improving Comprehensive approach to improving implementationimplementation

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Implementation processImplementation process

IMPLEMENTATIONPROCESS

Activities to be implemented

How implementationwill be done

Responsibility forimplementation

Time and locationof implementation

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ImprovingImplementation

SkilledImplementers

Incentives

OrganizationalDesign

EffectiveCommunications

Improving Implementation

InternalMarketing

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Internal MarketingInternal Marketing

Strategy

Plan

ExternalMarketingProgram

InternalMarketingProgram

Internal MarketingProgram:Targeted at keygroups in thecompany, alliancepartner companies,and other influencers

External MarketingProgramTargeted at keycustomers, segmentsand niches, and otherexternal influencers

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BALANCEDSCORECARD

MANAGEMENTCONTROLSYSTEM

FinancialMeasures

InternalBusinessProcessMeasures

CustomerMeasures

LearningandInnovationMeasures

Comprehensive Approach to Improving Implementation

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Implementing the strategic marketing plan Implementing the strategic marketing plan (2)(2)

* Internal strategy-organization fitInternal strategy-organization fit

*Organizational stretchOrganizational stretch

*The role of external organizationThe role of external organization

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Strategic marketing evaluation and Strategic marketing evaluation and control (1)control (1)

* Customer relationship managementCustomer relationship management

* Overview of control and evaluation activities Overview of control and evaluation activities

*Find new opportunities/avoid threatsFind new opportunities/avoid threats

*Keep performance in line with Keep performance in line with expectationsexpectations

*Solve specific problemsSolve specific problems

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Find NewOpportunities

or AvoidThreats

SolveSpecific

Problems

KeepPerformance

on Target

Evaluation Activities

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Evaluation and controlEvaluation and control

Conductstrategic

marketingaudit

Select performancecriteria and

choose relevantmarketing metrics

Obtain andanalyze

information

Assessperformance andtake necessary

action

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Strategic marketing evaluation and Strategic marketing evaluation and control (2)control (2)

* The strategic marketing auditThe strategic marketing audit

*Results provide basis for selecting Results provide basis for selecting performance criteria to assess actual performance criteria to assess actual performance against lansperformance against lans

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Strategic Marketing AuditStrategic Marketing Audit

Corporate Mission and ObjectivesCorporate Mission and Objectives

Business Composition and StrategiesBusiness Composition and Strategies

Marketing Strategy (for each planning unit)Marketing Strategy (for each planning unit)

Marketing Program ActivitiesMarketing Program Activities

Implementation and Management Implementation and Management

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Marketing performance assessment (1)Marketing performance assessment (1)

* The importance of marketing metricsThe importance of marketing metrics

* The use of marketing metricsThe use of marketing metrics

* Types of marketing metricsTypes of marketing metrics

* Selecting relevant metricsSelecting relevant metrics

* Designing a management dashboardDesigning a management dashboard

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Marketing metrics (A)Marketing metrics (A)

* Marketing metrics focusing on operationsMarketing metrics focusing on operations

* Competitive and customer metricsCompetitive and customer metrics

* Profitability metricsProfitability metrics

* Product and portfolio metricsProduct and portfolio metrics

* Customer profitability metricsCustomer profitability metrics

* Sales and channel metricsSales and channel metrics

* Pricing metricsPricing metrics

* Promotion metricsPromotion metrics

* Advertising, media and web metricsAdvertising, media and web metrics

* Financial metricsFinancial metrics

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Marketing metrics (B)Marketing metrics (B)

* Brand equity metricsBrand equity metrics

* FamiliarityFamiliarity

* PenetrationPenetration

* What they think about the brandWhat they think about the brand

* What they feelWhat they feel

* LoyaltyLoyalty

* AvailabilityAvailability

* Innovation metricsInnovation metrics

* StrategyStrategy

* CultureCulture

* OutcomesOutcomes

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Marketing metrics (C)Marketing metrics (C)

* Internal market metricsInternal market metrics

* Awareness of corporate goalsAwareness of corporate goals

* Perceived caliber of employerPerceived caliber of employer

* Relative employee satisfactionRelative employee satisfaction

* Commitment to corporate goalsCommitment to corporate goals

* Employee retentionEmployee retention

* Perceived resource adequacyPerceived resource adequacy

* Appetite for learningAppetite for learning

* Freedom to failFreedom to fail

* Customer-brand empathyCustomer-brand empathy

* Internal process metricsInternal process metrics

* E.g., internal communicationsE.g., internal communications

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Marketing performance assessment (2)Marketing performance assessment (2)

* Interpreting performance measurement resultsInterpreting performance measurement results

* Opportunities and performance gapsOpportunities and performance gaps* Problem/opportunity definitionProblem/opportunity definition* Interpreting informationInterpreting information

* Determining normal and abnormal variabilityDetermining normal and abnormal variability

* Deciding what actions to takeDeciding what actions to take

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Global issues for planning, Global issues for planning, implementation and controlimplementation and control

* Global marketing planningGlobal marketing planning

* Additional complexityAdditional complexity

* Simplifying assumptionsSimplifying assumptions

* Limited information availabilityLimited information availability

* Accommodate international strategy variabilityAccommodate international strategy variability

* Implementation globallyImplementation globally

* Importance of relationships between domestic Importance of relationships between domestic and international executivesand international executives

* Performance measurement and control globallyPerformance measurement and control globally

* International markets may require different International markets may require different metricsmetrics