www.mhhe.com/fourps chapter nineteen for use only with perreault/cannon/mccarthy or...

www.mhhe.com/fourps

CHAPTER NINETEENCHAPTER NINETEEN

For use only withPerreault/Cannon/McCarthy or Perreault/McCarthy texts.© 2008 McGraw-Hill Companies, Inc.McGraw-Hill/Irwin

Implementing and Controlling Marketing Plans: Evolution and Revolution

Implementing and Controlling Marketing Plans: Evolution and Revolution

When we finish this lecture you should

1. Understand how information technology speeds up feedback for better implementation and control.

2. Know why effective implementation is critical to customer satisfaction and profits.

3. Know how total quality management can improve implementation—including implementation of service quality.

4. Understand how sales analysis can aid marketing strategy planning.

When we finish this lecture you should

5. Understand the differences in sales analysis, performance analysis, and performance analysis using performance indexes.

6. Understand the difference between the full-cost approach and the contribution-margin approach.

7. Understand how planning and control can be combined to improve the marketing management process.

8. Understand what a marketing audit is and when and where it should be used.

Strategy Planning, Implementation, and Control (Exhibit 19-1)

Implementation• IT speeds information flow• Total quality management• Quality and implementation

Control• Sales analysis• Performance analysis• Cost analysis• Planning and control• Marketing audit

Marketing manager must take charge

Marketing manager must take charge

Marketing manager must take charge

Marketing manager must take charge

Fast feedback can be a competitive advantage

Fast feedback can be a competitive advantageFast feedback can be a competitive advantage

Fast feedback can be a competitive advantage

New IT offers speed and detail

New IT offers speed and detail

Speed Up Information For Better Implementation and Control

Effective Implementation Means That Plans Work As Intended

On Saturday, July On Saturday, July 88thth, Amazon.com , Amazon.com and FedEx made and FedEx made Harry Potter and Harry Potter and the Goblet of Firethe Goblet of Fire one of the largest one of the largest book releases in book releases in Internet history. Internet history.

Complaints Bring Problems to Light

Complaints Bring Problems to Light

Complaints Bring Problems to Light

Complaints Bring Problems to Light

Complaints Need a Response

Complaints Need a Response

Dealing with Customer Complaints

Using Information Technology to Improve Implementation (Exhibit 19-2)

© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Technology and Implementation

Building Quality Into the Implementation Effort

TQM is Easier Said Than Done (Exhibit 19-3)

Why Things Go Wrong (Exhibit 19-4)

Training Is CrucialTraining Is CrucialTraining Is CrucialTraining Is Crucial

Server Is Linked To the Service

Server Is Linked To the Service

Server Is Linked To the Service

Server Is Linked To the Service

Empowerment WorksEmpowerment Works

Building Quality into Services

Specify Jobs and Benchmark

Specify Jobs and Benchmark

Managers Lead the EffortManagers Lead the Effort

Separate the Routine from the Special

Separate the Routine from the Special

Manage Expectations with Good Communication

Manage Expectations with Good Communication

Manage Expectations with Good Communication

Manage Expectations with Good Communication

Separate the Routine from the Special

Separate the Routine from the Special

Managers Lead the EffortManagers Lead the Effort

Specify Jobs and Benchmark

Specify Jobs and Benchmark

Get a Return on QualityGet a Return on Quality

Other Issues in Quality Implementation Efforts

Financial Arrangement

Financial Arrangement

Financial Arrangement

Financial Arrangement Method of

SaleMethod of

SaleMethod of

SaleMethod of

Sale

Price or Discount Class

Price or Discount Class

Price or Discount Class

Price or Discount Class

Channel of DistributionChannel of DistributionChannel of DistributionChannel of Distribution

Customer Characteristics

Customer Characteristics

Customer Characteristics

Customer Characteristics

Geographic Region

Geographic Region

Geographic Region

Geographic RegionProduct

CharacteristicsProduct

CharacteristicsProduct

CharacteristicsProduct

Characteristics

Order SizeOrder SizeBreakdowns

for SalesAnalysis

Breakdownsfor SalesAnalysis

Sales Analysis Shows What’s Happening

Performance Analysis Looks for Differences(Exhibit 19-5)

What About Costs? (Exhibit 19-6)

Performance Indexes Simplify Human Analysis (Exhibit 19-7)

A sales manager for Wilson Sporting Goods reviewed salesperson performance. Salesperson A had a performance index of 110, while Salesperson B had a performance index of 80. What might the sales manager conclude:

A. Salesperson B’s performance should be a model for the whole sales force.

B. Salesperson A should change her effort to bring her to the average.

C. Salesperson A requires additional sales training D. Salesperson B may be having some problems.E. Salesperson B requires additional training.

Checking your knowledge

Full-Cost ApproachFull-Cost ApproachFull-Cost ApproachFull-Cost Approach

Contribution Margin

Approach

Contribution Margin

Approach

AllocationAllocation

Marketing Cost Analysis – Controlling Costs Too

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)

Mark Sun is a sales manager for Applied Robotics. He has asked his assistant to prepare a report that shows him how each of his sales reps has performed over the last year – showing their percentage above or below quota This is an example of:

A. using natural accounts.B. the contribution margin approach.C. the marketing strategy planning process.D. performance analysis.E. sales analysis.

Checking your knowledge

Wendy Ball, sales manager for Applied Engineering Products, was reviewing the performance of her salespeople. One sales rep has sales 25% below quota. This analysis should lead the sales manager to conclude:

A.that the sales rep has a great deal of competition in her territory.

B.that the sales rep is not working hard enough.C.that the sales rep’s quota was set too highD.that there is no reason to worry, because the

rest of the sales force is 25% over quota.E.Nothing at this point because of the iceberg

principle.

Checking your knowledge

A marketing cost analysis conducted by Rosa Ruiz, marketing manager at Ruiz Windows, shows Watson Construction to be an unprofitable customer. Ruiz Windows should:

A. change the delivery terms on Watson’s orders.

B. raise prices on all items sold to Watson.

C. assign a new salesperson to Watson.

D. try to find out why Watson is unprofitable.

E. refuse to sell to Watson Construction.

Checking your knowledge

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

© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Interactive Exercise: Sales and Performance Analysis

You now

1. Understand how information technology speeds up feedback for better implementation and control.

2. Know why effective implementation is critical to customer satisfaction and profits.

3. Know how total quality management can improve implementation, including implementation of service quality.

4. Understand how sales analysis can aid marketing strategy planning.

You now

5. Understand the differences in sales analysis, performance analysis, and performance analysis using performance indexes.

6. Understand the difference between the full-cost approach and the contribution-margin approach.

7. Understand how planning and control can be combined to improve the marketing management process.

8. Understand what a marketing audit is and when and where it should be used.

Key Terms

• Control

• Total quality management (TQM)

• Continuous improvement

• Pareto chart

• Fishbone diagram

• Empowerment

• Benchmarking

• Sales analysis

• Performance analysis

• Performance index

• Iceberg principle

• Full-cost approach

• Contribution-margin approach

• Marketing audit