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