Chapter 10 : Chapter 10 Marketing Implementation
Marketing Implementation : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Marketing Implementation …the process of executing marketing strategies by creating specific actions that will ensure that the marketing objectives are achieved
…usually causes the difference between intended marketing strategy & realized marketing strategy
Factors That Influence Marketing Strategies… : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Factors That Influence Marketing Strategies… Intended marketing strategy-the planned strategic choice, what the organization wants to happen
Realized marketing strategy-the strategy that actually takes place
Environmental Factors Change… : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Environmental Factors Change… Importance of contingency planning in developing marketing strategies & implementation
customers change their wants & needs
competitors devise new marketing strategies
internal organizational environment changes
Realities of Marketing Implementation… : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Realities of Marketing Implementation… Implementation involves trial & error—there is no one correct way to implement a particular strategy
Plan must be flexible enough to adapt to changing customer needs/preferences and the competitive environment
Planning & implementation are interdependent processes but separate issues
Planning & Implementing are Separated : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Planning & Implementing are Separated Strategic planning occurs at the top levels of the organization and implementation falls on lower-level managers and frontline employees
Top level managers often do not understand the problems that occur with implementation
Front line and lower-level managers often have little say in developing the marketing plan
A Key Problem in Marketing Planning… : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved A Key Problem in Marketing Planning… …how to get employees excited and motivated to support the implementation of the plan.
The Components of Marketing Implementation… : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved The Components of Marketing Implementation… Shared goals & objectives
Marketing structure
Systems & processes
Resources
People
Shared Goals & Objectives : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Shared Goals & Objectives Without a common direction,different areas of the organization pursue unrelated goals
Institutionalizing shared goals & values in the firm’s culture is a long term process
occurs through employee training & socialization
tends to stimulate organizational commitment in implementing the marketing strategy & meeting customer needs
Marketing Structure : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Marketing Structure The organization of a firm’s marketing activities
Divides marketing responsibilities or centralizes decision making
centralized marketing structure: very cost efficient & effective through standardization
decentralized marketing structure: place marketing decisions close to the front line where customer needs are a priority
represents a tradeoff between reduced costs & increased flexibility
Systems & Processes : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Systems & Processes The marketing information system is a critical part of the planning process
Collects internal and external information to assist in strategy development
Also assists in evaluating & controlling all marketing activities
Resources : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Resources Must consider tangible resources including financial resources, manufacturing capacity, or facilities & equipment
Also must consider intangible resources such as marketing expertise, customer loyalty, and external relationships/strategic alliances
Any gaps may require additional resource allocation from top management
People : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved People Implementation is effected by the quality, quantity, diversity & skills of the work force
Motivation & leadership are key
leaders are responsible for establishing the corporate culture & motivating employees
open communication supports successful implementation
Human Side of Implementation : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Human Side of Implementation Employee selection & training
matching employees skills & abilities to the marketing tasks to be performed
Employee evaluation & compensation policies
outcome based versus behavior based rewards
Employee motivation, satisfaction & commitment
dependent upon training, evaluation/compensation & leadership
Compensation Programs : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Compensation Programs Outcome based
compensation is based on measurable, quantitative standards (sales or margins)
easy to use, requires less supervision & works well when the goal is sales or profits
Behavior based
evaluates effort, motivation, teamwork, & customer problem solving ability
difficult & costly to administer
Leadership : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Leadership How managers communicate with employees as well as how they motivate employees to implement marketing strategy
Establishes the corporate culture necessary for implementation success
Approaches to Marketing Implementation : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Approaches to Marketing Implementation Command approach
Change approach
Consensus approach
Cultural approach
Command Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Command Approach Top level selection of marketing strategies with lower level implementation
Advantages:
makes decision making easier
reduces uncertainty as to what is to be done
Disadvantages:
does not consider the feasibility of implementation
divides the organization into strategiest & implementers
can create motivation problems
Command Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Command Approach Works best when:
an organization is headed by a strong leader
the strategy is simple to implement
the strategy process poses few threats
Change Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Change Approach Focuses explicitly on implementation
Modifies the organization in ways that will ensure successful implementation
Changes the organzation to fit the strategy
Disadvantages:
separates planning & implementation
time consuming
Consensus Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Consensus Approach Top managers & lower-level employees work together to evaluate & develop marketing strategies
Different functional areas come together to ‘brainstorm’ & develop the strategy
Advantages:
moves decision making authority closer to the front line
Disadvantages:
difficult to coordinate
Consensus Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Consensus Approach Tends to work best in environments that are:
complex
uncertain
highly unstable
Cultural Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Cultural Approach Allows a participative style with lower levels of the organization
Shapes the organizational culture
Breaks down barriers between strategist & implementators
Employees design their work procedures consistent with organizational goals, missions, & objectives
a.k.a.-empowerment
Cultural Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Cultural Approach Advantages:
certain types of employees thrive under this approach
Disadvantages:
firm must spend more money on training & selection to ensure qualified employees
empowered employees must work harder because of their added decision making authority
empowered employees may make costly mistakes
Role of Internal Marketing : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Role of Internal Marketing The managerial actions necessary to make all members of the organization understand & accept their role in implementation
internal products-marketing strategies
internal prices-changes that must be undertaken to implement the marketing strategy
internal distribution-how the strategies are communicated internally (training)
internal promotion-persuasive communications
Implementing Marketing Activities : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Implementing Marketing Activities Good communication is key
upward communication from the front line
allows management to understand problems & needs of the employees
Employees must understand the implementation timetable
specific activities to be performed, time required, sequence, & who is responsible
Implementing an Internal Marketing Approach : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Implementing an Internal Marketing Approach Conscientious recruitment, selection & training of employees
Top managers must be completely committed to the marketing strategy & overall plan
Employee compensation must be linked to marketing strategy implementation
Open communication must exist at all levels
Organizational structure, processes & policies must match the marketing strategy
Causes of Improper Implementation : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Causes of Improper Implementation Marketing strategy is inappropriate or unrealistic
Implementation was inappropriate for the strategy or was simply mismanaged
Internal &/or external environment changed significantly between the development of the marketing strategy & its implementation
Formal Marketing Controls : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Formal Marketing Controls Input control mechanisms
Process control mechanisms
Output control mechanisms
The Marketing Audit : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved The Marketing Audit Describes current marketing activities & their results
Gathers information about changes in the external or internal environment that may affect marketing activities
Explores different alternatives for improving implementation
Provides a framework for evaluating the attainment of performance standards
Informal Marketing Controls : COPYRIGHT © 2002 by Thomson Learning, Inc. All Rights Reserved Informal Marketing Controls Employee self control
Employee social control
Employee cultural control