marketing management chapter 03

8/9/2019 Marketing Management Chapter 03

1/19

SHH Kazmi, 2007

Excel BooksMarketing Management Text and Cases,S H H Kazmi3-1

Marketing Implementation & Control

Marketing Management Text and Cases

Excel Books3-1

Marketing

Implementation& Control

3Chapter


2/19

SHH Kazmi, 2007



McKinseys 7-S Framework

STRUCTURE

SYSTEMS

STYLE

STAFF

STRATEGY

SKILLS

SHARED

VALUES


3/19

SHH Kazmi, 2007



1. Strategy is a coherent set of actions aimed at attaining a sustainable

competitive advantage, improving the companys position with customers, or

allocating resources.

2. Structure shows the companys organisation and depicts who reports towhom in the hierarchy.

3. Systems refer to the processes and flows showing how a company gets

things done in its day-to-day functioning such as information systems,

capital budgeting systems, manufacturing processes, quality control

systems, and performance measurement systems.

4. Style refers to tangible evidence of what management considers as

important, not by what it says, but the way management actually

behaves.


Cont


4/19

SHH Kazmi, 2007



5. Staff means all the people in a company. It is not about their individual

personalities but about company demographics.

6. Skills refer to the capabilities that are possessed by a company as a

whole, needed to carry out the companys strategy.

7. Shared values are the guiding values that almost all employees share, not

merely the simple goal statements in determining corporate identity.



5/19

SHH Kazmi, 2007



Components of Implementation

Marketing managers can adopt different approaches to implementing marketing

strategies. In this regard, two general approaches to implementation are (1)

internal marketing, and (2) quality control management.


6/19

SHH Kazmi, 2007



Marketing Implementation Process

Determine marketing strategy and Communicate measurableobjectives for departments in marketing unit

Evaluate results, assess gaps, Determine key managerial tasks.

and provide feedback.

Regularly ascertain adequacy Assign tasks to various departments

of control procedures. in the unit.

Develop managerial talent and keep them Delegate authority relationship and

aware of values and styles of the organisation. establish methods for coordination.

Develop a reward system State policies and guides

to reinforce desired behaviour. for action.

Build information system to form adequate Clarify goals of various

and timely data useful for business evaluation. individual managers.

Operationalise methods to measure performance.


7/19

SHH Kazmi, 2007



External Marketing

These activities involve market segmentation, product development,

research, promotion, and distribution.


8/19

SHH Kazmi, 2007



Quality Control Management

Principles

ofTQM

1. Quality must be perceived by customers.

2. Quality must be reflected in every company activity, not just in

company products.3. Quality requires total employee commitment.

4. Quality requires high-quality partners.

5. Quality can always be improved.

6. Quality improvement sometimes requires quantum leaps.

7. Quality does not always cost more.

8. Quality is necessary but may not be sufficient.

9. Quality drive cannot save a bad product.


9/19

SHH Kazmi, 2007



Alternatives to Organising MarketingDepartment

Marketing department structure establishes the lines of authority and

relationships among personnel and establishes who is responsible for taking

which particular type of decisions, and for performing specific activities.

Marketing activities can be organised on the basis of:

1. Functions

2. Products

3. Customer Groups

4. Regions


10/19

SHH Kazmi, 2007



Organising by Functions:

Marketing Vice President

Marketing Product Sales Advertising Distribution

Research Development & Service & Promotion Manager

Manager Manager Manager Manager


11/19

SHH Kazmi, 2007



Organising by Products

Marketing Vice President

Marketing Sales and Advertising Distribution

Research Service & Promotion Manager

Manager Manager Manager

Product Manager Product Manager Product Manager

Beauty Products Soap Group Laundry Products


Brand A Brand B Brand C


12/19

SHH Kazmi, 2007



Organising by Customer Groups

Vice President Marketing

Manager Manager Manager Manager Marketing Product Advertising Public

Research Development Relations

Marketing Marketing Marketing


Lumber Construction Mining

Industry Industry Industry


13/19

SHH Kazmi, 2007



Organising by Regions

Vice President Marketing

Marketing Marketing Marketing Marketing

Manager Manager Manager Manager

(West) (North) (East) (South)


14/19


15/19

SHH Kazmi, 2007



Mechanisms to Control MarketingImplementation

All the implementation control procedures relate to: (1)setting performance

standards, (2)measuring actual performance against these standards,and

(3)taking corrective timely actions to reduce gaps between desired and

actual performances.


16/19

SHH Kazmi, 2007



Performance Evaluation MethodsMarketing objectives are often stated in terms of sales, costs, profits, product

or brand awareness, etc.Performance evaluation always relates to measuring

the accomplishment of objectives.


17/19

SHH Kazmi, 2007



Sales AnalysisAnalysis of sales is extremely important for evaluation of marketing strategy

and programmes.


18/19

SHH Kazmi, 2007



Marketing Cost Analysis

Cost analysis is necessary to determine the costs incurred for performing

different marketing activities.These costs can be compared with earlier costs

with respect to performing the same activities to achieve a certain sales

volume.

Cost analysis proceeds by generally reclassifying costs into natural accounts

and functional accounts. Generally, four broad types of costs are considered:

Fixed Costs

Variable Costs

Traceable Common Costs

Non-traceable Common Costs


19/19

SHH Kazmi, 2007



Marketing AuditMarketing audit is the final method of marketing evaluation and refers to a

thorough, systematic, objective examination of its objectives, strategies,

organisation, and performance.

Marketing audit helps evaluation by undertaking the following: Describing the present activities and realised results in the areas of sales,

costs, prices, profits and feedback with respect to other areas of

performance.

Analysing information about factors that may have an impact on

marketing strategy such as environmental conditions, target customers,

and competition. An analysis of opportunities, threats, and deciding suitable alternatives for

marketing strategy.

Develop a comprehensive database to be used in the evaluation of

objective and achievements.

marketing management chapter 03

Documents