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www.mhhe.com/fourps CHAPTER NINETEEN For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Implementing and Controlling Marketing Plans: Evolution and Revolution

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When we finish this lecture you should 1. 1. Understand how information technology speeds up feedback for better implementation and control. 2. 2. Know why effective implementation is critical to customer satisfaction and profits. 3. 3. Know how total quality management can improve implementationincluding implementation of service quality. 4. 4. Understand how sales analysis can aid marketing strategy planning.

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When we finish this lecture you should 5. 5. Understand the differences in sales analysis, performance analysis, and performance analysis using performance indexes. 6. 6. Understand the difference between the full-cost approach and the contribution-margin approach. 7. 7. Understand how planning and control can be combined to improve the marketing management process. 8. 8. Understand what a marketing audit is and when and where it should be used.

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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

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Marketing manager must take charge Fast feedback can be a competitive advantage New IT offers speed and detail Speed Up Information For Better Implementation and Control

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Effective Implementation Means That Plans Work As Intended On Saturday, July 8 th, Amazon.com and FedEx made Harry Potter and the Goblet of Fire one of the largest book releases in Internet history.

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Complaints Bring Problems to Light Complaints Need a Response Dealing with Customer Complaints

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

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2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Technology and Implementation

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Building Quality Into the Implementation Effort

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

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Why Things Go Wrong (Exhibit 19-4)

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Training Is Crucial Server Is Linked To the Service Empowerment Works Building Quality into Services

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Specify Jobs and Benchmark Managers Lead the Effort Separate the Routine from the Special Manage Expectations with Good Communication Separate the Routine from the Special Managers Lead the Effort Specify Jobs and Benchmark Get a Return on Quality Other Issues in Quality Implementation Efforts

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Financial Arrangement Method of Sale Price or Discount Class Channel of Distribution Customer Characteristics Geographic Region Product Characteristics Order Size Breakdowns for Sales Analysis Sales Analysis Shows Whats Happening

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Performance Analysis Looks for Differences (Exhibit 19-5)

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What About Costs? (Exhibit 19-6)

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Performance Indexes Simplify Human Analysis (Exhibit 19-7)

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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 Bs 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

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Full-Cost Approach Contribution Margin Approach Allocation Marketing Cost Analysis Controlling Costs Too

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A Full-Cost Example (Exhibit 19-12)

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A Full-Cost Example (Exhibit 19-13)

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A Contribution-Margin Example (Exhibit 19-14)

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Planning and Control Combined (Exhibit 19-15)

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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

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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 reps quota was set too high D.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

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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 Watsons 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

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Evaluation of Quality Use of Strategy Planning Framework Detailed Examination of Plans Involvement of Internal/External Parties An Audit Shouldnt Be Necessary, But Often Is! The Marketing Audit

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2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Interactive Exercise: Sales and Performance Analysis

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You now 1. 1. Understand how information technology speeds up feedback for better implementation and control. 2. 2. Know why effective implementation is critical to customer satisfaction and profits. 3. 3. Know how total quality management can improve implementation, including implementation of service quality. 4. 4. Understand how sales analysis can aid marketing strategy planning.

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You now 5. 5. Understand the differences in sales analysis, performance analysis, and performance analysis using performance indexes. 6. 6. Understand the difference between the full-cost approach and the contribution-margin approach. 7. 7. Understand how planning and control can be combined to improve the marketing management process. 8. 8. Understand what a marketing audit is and when and where it should be used.

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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