chapter 19: implementing and controlling marketing plans: evolution and revolution
TRANSCRIPT
Chapter 19: Implementing and Controlling Marketing Plans: Evolution and Revolution
Implementation Objectives
Innovative thinking and approaches may help the marketing manager overcome challenges and better achieve major implementation objectivesBetter, so customers really get superior value as
plannedFaster, to avoid delays that cause customers
problemsLower cost, without wasting money on things
that don't add value for the customer
Complaint Management
Smart Marketers Encourage Customer Complaints
Complaints Alert Marketers to ProblemsWhen Using Personal Selling – Best if
Salespeople Directly Ask About ProblemsMarketers With Many Customers Can:
Have Toll-Free Phone LinesWebsitesEmail & Snail Mail
Making Customer Contact Easier Provides
Praise Identifies Critical AdvantagesQuestions Can Prevent Problems From
OccurringComplaints Identify Problems Faster
Keep Track of All Three ToIdentify Important AdvantagesIdentify Potential ProblemsIdentify Current Problems
When Managing Complaints
Suggest A Solution Where AppropriateMake SURESURE to Execute on SolutionsIdentify Nuts & Ignore ThemResponses Should Be Tracked By
ManagementFrequencies Should Be Part of MIS System
Total Quality Management
Everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs
The cost of poor quality is lost customersAchieving quality requires continuous improvement—a
commitment to constantly make things better one step at a time
Uses statistical process controls to identify problems. Examples:Pareto chartsFishbone diagrams
"Slay the dragons first"... to get a return on qualitySpecify jobs and benchmark performance
Pareto Chart (Exhibit 19-3)
Why Things Go Wrong – Fishbone Diagram (E 19-4)
Losing A Good Customer Is Expensive!
Avg profit per day for a car rental company is $15.
Salesperson Sally rents a car 45 days a yearIf you make Sally mad - what is the cost?$15 profit for one day?$675 for one year?$6,750 for ten years?
Customer Service
Critical not to over promiseFull explanations of shortcomings often
helpsOften improved when routine & special
attention situations are separatedOften try to use computers to handle
routine information
Computerization Guidelines
1] Identify the usage situations2] Identify the heavy users 3] Have menus or other information
ranked by order of use - don’t make customers go through the entire menu
Are the very heavy users profitable? If not, drop them.
Quality Programs Need 3 Things to Succeed
1] Top management support2] Specify each task that needs to be done,
how it is to be done, and who is to perform the task
3] Quantify the measures
Benchmarking
Benchmarking – picking a basis of comparison for evaluating how well a job is done (527)
Always Benchmark Against Internal Standards
Benchmark Against External Standards If Company is Weak In An Area
When Poorly Performing – Don’t Give “The Best of the Worst” Major Rewards
Feedback & Sales Analysis
Feedback process that helps the marketing manager learnhow ongoing plans and implementation are
workinghow to plan for the future
Sales Analysis looks at details of where sales come fromcustomersproductsterritories, etc.
Performance & Cost Analysis
Performance Analysis compares actual with targets
Cost Analysis controls spending
Some Bases for Sales, Cost, or Profit Analysis
Geographic regionProduct (package size, style, etc.)Customer sizeCustomer type or class of tradePrice or discount classMethod of saleCash or charge (financial arrangement)Size of orderCommission class
Cost Analysis
Must understand costs to control themAnalyzing and dealing with fixed costs
can be a challengefull-cost approach allocates fixed costscontribution-margin approach is an
alternativetwo approaches have different benefits,
limitations
Performance Analysis Looks for Differences
(Exhibit 19-5)
What About Costs? (Exhibit 19-6)
Performance Indexes Simplify Human Analysis (Exhibit 19-7)
A Full-Cost Example (Exhibit 19-12)
A Full-Cost Example (Exhibit 19-13)
A Contribution-Margin Example (Exhibit 19-14)
Planning and Control Combined (Exhibit 19-15)
Evaluation of QualityEvaluation of QualityEvaluation of QualityEvaluation of Quality
Use of Strategy Planning Framework
Use of Strategy Planning Framework
Use of Strategy Planning Framework
Use of Strategy Planning Framework
Detailed Examination of Plans
Detailed Examination of Plans
Detailed Examination of Plans
Detailed Examination of Plans
Involvement of Internal/External Parties
Involvement of Internal/External Parties
An Audit Shouldn’t Be Necessary, But Often Is!An Audit Shouldn’t Be Necessary, But Often Is!
The Marketing Audit