Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 14–1 Chapter

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix

Slides prepared by: Joe Rosagrata

14–1

Chapter 14

Marketing Implementation and Evaluation



14–2

Implementing marketing programs

• Implementation is the operational stage during which an organisation attempts to put its marketing plan into practice.

– Comprises three activities:

1 Organising the marketing effort.

2 Staffing the organisation.

3 Directing the execution of marketing plans.



14–3

Organising the marketing department

• Several factors affect decisions about structure– Ability to talk to and listen to customers.– Teamwork between departments.– Leaner organisations, fewer staff members.

• Vertical structures replaced with horizontal structures– Fewer organisation levels.– Cross-functional teams.– Employee empowerment.



14–4

Company-wide organisation

• Production- or sales-oriented firms usually find:– Marketing activities are fragmented.– Sales team is a separate entity to marketing dept.– Physical distribution handled by production.

• Marketing-oriented firms usually find:– All marketing activities coordinated under one manager.– Activities grouped into:

Line activities. Staff activities.



14–5

Marketing/Sales department organisation

• Geographic specialisation– The focus is on organising the sales team on the basis of

geographic territories.

• Product specialisation– A company can divide its products into two or more lines,

with separate sales teams selling each line.



14–6

Marketing/Sales department organisation

• Customer specialisation– A company divides their sales departments according to

the type of customer (industry or distribution channel or major accounts).

• Combination of organisational bases– Many medium-sized and large companies often combine

a territorial sales organisation with either product or customer specialisation.



14–7

Staffing the organisation

• Selecting the people who will be doing the actual implementation work

– Critical implementation task is usually done by the sales team.

– Staff selection is critical—recruiting the right people.



14–8

Managing marketing operations

• Delegation– Measured by ability to delegate authority and

responsibility ably (competently and energetically).

• Coordination– Coordination will bring about synergy in the organisation.

• Motivation– Ability to motivate people.

• Communication– Ability to communicate effectively with their staff.



14–9

Marketing evaluation and control

• An evaluation of what is working (the plan) and what factors are contributing to success or failure.

• The marketing audit– A marketing audit is a comprehensive review and

evaluation of the marketing function in an organisation. The marketing environment. The marketing strategy. Structure of the marketing division. Marketing systems. Marketing productivity. Marketing functions.



14–10

The circular relationship between the three management tasks



14–11

Budgeting and controlling marketing programs

• The major tool for evaluating any business program, including marketing, is the annual budgeting process.

• The budget quantifies the marketing plan.



14–12

Budgeting and controlling marketing programs

• Budgeting has benefits.

• A budgeting process is used to prepare budgets.

• Different approaches to budgeting include:– Fixed, flexible and zero-based budgets.

• Non-financial marketing controls include:– Market share, number of new products developed, strength

of brand equity, product complaints received, price independence, weighted distribution achieved, attitude towards our brand.



14–13

The 80–20 principle (Pareto)

• The 80–20 principle implies that 80 per cent of business will come from 20 per cent of customers or total sales.

• For many firms, a small number of products or customers will account for a disproportionately large percentage of total sales.



14–14

Misdirected marketing effort

• Many managers are unaware of the misdirected marketing effort in their firms. They do not know what percentage of total sales and profit comes from a given product line or customer group.

• Time, effort and marketing funds should be directed to those customers who are producing the firm’s sales, rather than equally across all customers.



14–15

The evaluation process

• Finding out what happened.• Finding out why it happened.• Deciding what to do about it.



14–16

The evaluation process

• Various options and approaches include:

• Sales-volume analysis.• Sales results versus sales goals.• Market-share analysis.• Marketing-costs analysis.• Full-cost versus contribution-margin approach.



14–17

Taking corrective action

• Territory decisions.

• Product decisions.

• Customer decisions.

• Order-size decisions.

Documents

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by: Joe Rosagrata 14–1 Chapter