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 objectives
 Better, so customers really get superior value as
planned
 Faster, to avoid delays that cause customers
problems
 Lower 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 Problems
When Using Personal Selling – Best if
Salespeople Directly Ask About Problems
Marketers With Many Customers Can:
 Have Toll-Free Phone Lines
 Websites
 Email & Snail Mail
Making Customer Contact Easier Provides
Praise Identifies Critical Advantages
Questions Can Prevent Problems From
Occurring
Complaints Identify Problems Faster
Keep Track of All Three To
 Identify Important Advantages
 Identify Potential Problems
 Identify Current Problems
When Managing Complaints
Suggest A Solution Where Appropriate
Make SURE to Execute on Solutions
Identify Nuts & Ignore Them
Responses Should Be Tracked By
Management
Frequencies 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 customers
 Achieving 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 charts
 Fishbone diagrams
 "Slay the dragons first"... to get a return on quality
 Specify 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 year
If 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 promise
Full explanations of shortcomings often
helps
Often improved when routine & special
attention situations are separated
Often try to use computers to handle routine
information
Computerization Guidelines
1] Identify the usage situations
2] 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 support
2] 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 learn
 how ongoing plans and implementation are
working
 how to plan for the future
 Sales Analysis looks at details of where sales
come from
 customers
 products
 territories, etc.
Performance & Cost Analysis
Performance Analysis compares actual with
targets
Cost Analysis controls spending
Some Bases for Sales, Cost, or Profit
Analysis
Geographic region
Product (package size, style, etc.)
Customer size
Customer type or class of trade
Price or discount class
Method of sale
Cash or charge (financial arrangement)
Size of order
Commission class
Cost Analysis
Must understand costs to control them
Analyzing and dealing with fixed costs
can be a challenge
 full-cost approach allocates fixed costs
 contribution-margin approach is an
alternative
 two 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)
The Marketing Audit
Detailed
Examination of Plans
Use of Strategy
Planning Framework
Evaluation of Quality
Involvement of
Internal/External Parties
An Audit Shouldn’t Be Necessary, But Often Is!