Slide 1:Organizing and Planning for Effective Implementation 12


Discussion Question :Discussion Question 1. Which is more important: planning or implementation?


Slide 3:Arguments for the importance of planning Implementation of marketing strategies is unlikely to be effective unless all of the business’ people are following the same plan. Formal plans also establish the timetables and objectives that are the benchmarks for management’s evaluation and control of the firm’s marketing strategies.


Slide 4:Arguments for the importance of implementation It is crucial for carrying out strategic planning decisions. If improper implementation, management may mistakenly decide the wrong strategy had been chosen Common venture capitalist’s adage “Give me ‘A’ implementation of a ‘B’ plan over ‘B’ implementation of an ‘A’ plan.”


Discussion Question :Discussion Question 2. How should marketing’s degree of autonomy, shared programs and resources, and the basis for its incentives vary across different business strategies?


SBU Autonomy :SBU Autonomy Prospector - relatively high level Differentiated defender - moderate level Low-cost defender - relatively low level


Shared Programs and Synergy :Shared Programs and Synergy Prospector - relatively little Differentiated defender - little synergy in areas central to differentiation Low-cost defender - high level of synergy and shared programs


Evaluation and Reward Systems :Evaluation and Reward Systems Prospector - high incentives based on sales and share growth Differentiated defender - high incentives based on profits or ROI Low cost defender - incentives based on profits or ROI


Discussion Question :Discussion Question 3. How should the firm’s organization be structured to most effectively implement different business strategies?


Organizational Structure :Organizational Structure Important structural variables include: Formalization Centralization Specialization


Slide 13:Formalization The degree to which formal rules and standard policies and procedures govern decisions and working relationships. Centralization Refers to the location of decision authority and control within an organization’s hierarchy Specialization Refers to the division of tasks and activities across positions within the organizational unit.


Discussion Question :Discussion Question 4. What are the merits and limitations of structuring the marketing organization on a functional, product, or market basis? When might each form best be used?


Slide 17:Functional? Merits: Simple and easy to implement. Limitations: Relies heavily on standard rules and operating procedures. Conflicts across functional areas are resolved in a hierarchical manner. Best use: for small companies; or for large companies operating in stable and slow-growth industries where the environments are predictable. The form is appropriate for low-cost defender SBUs attempting to maximize their efficiency and profitability in mature or declining industries.


Slide 19:Product management? Merits: Has the ability to identify and react more quickly to the threats and opportunities individual product-market entries face; improved coordination of functional activities within and across product markets; and increased attention to smaller product-market entries that might be neglected in a functional organization. Limitations: This structure has difficulty in obtaining the cooperation necessary to develop and implement effective programs for a particular product given that a product manager has little direct authority. Best use: For companies or SBUs that have many product-market entries.


Slide 21:Market management? Merits: Gives market managers more authority and independent budgets to work with. Limitations: Potential for lack of control or consistency with this kind of decentralized structure. Best use: For companies who market a single product to a large number of markets where customers have very different requirements and preferences.


Slide 22:What about a Matrix structure? Merits: Brings multiple points of view to decision-making. Once decisions are reached, they are more likely to reflect the expertise of a variety of functional specialists, to be innovative, and to be quickly and effectively implemented. Limitations: Requires participative decision making which can be very inefficient; requires a good deal of time and effort for the team to reach mutually acceptable decisions and gain approval from all the affected functional areas. Even with fast implementation, may slow responsiveness to changes in market and competitive conditions. Best use: A business facing an extremely complex and uncertain environment may find a matrix organization appropriate.


Discussion Question :Discussion Question 5. How should managers decided when the time has come to restructure an organization and what new structure should replace the old?


Five Key Drivers :Five Key Drivers Customer needs Informational requirements of the sales and marketing personnel charged with meeting those needs Ability of a given structure to motivate and coordinate the kinds of activities that market conditions require Available competencies and resources Costs


Discussion Question :Discussion Question 6. What does a Marketing Plan contain?


Slide 27:Executive Summary: Presents a short overview of the issues, objectives, strategy, and actions incorporated in the plan and their expected outcomes for quick management review. Current Situation: Summarizes relevant background information on the market, competition, past performance of the product and the various elements of its marketing program (e.g., distribution, promotion, etc.), and trends in the macro-environment.


Slide 28:Key Issues: Identifies the main opportunities and threats to the product that the plan must deal with in the coming year, and the relative strengths and weaknesses of the product and business unit that must be taken into account in facing those issues Objectives: Specifies the goals to be accomplished in terms of sales volume, market share, and profit.


Slide 29:Marketing Strategy: Summarizes the overall strategic approach that will be used to meet the plan’s objectives. Action Plans: This is the most critical section of the annual plan for helping to ensure effective implementation and coordination of activities across functional departments. It specifies: What specific actions are to be taken. Who is responsible for each action. When the action will be engaged in. How much will be budgeted for each action


Slide 30:Projected Profit & Loss Statement: Presents the expected financial payoff from the plan. Controls: Discusses how the plan’s progress will be monitored; may present contingency plans to be used if performance falls below expectations or the situation changes. Contingency Plans: Describes actions to be taken if specific threats or opportunities materialize during the planning period.


Discussion Question :Discussion Question 6. What are some of the things a good marketing plan does to help ensure its effective implementation?


Slide 36:Marketing plans are more likely to be implemented effectively when: Objectives meet the SMART test [Specific, Measurable, Attainable,Relevant (to the firm’s mission), Time-bound] Target market is clearly identified Action plans and milestones identify specific timelines, responsibilities, and budgets Contingency plans are identified