Basic Marketing, 17e

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Chapter 19
Implementing and Controlling
Marketing Plans: Evolution and
Revolution
For use only with
Perreault/Cannon/
McCarthy texts, © 2009
McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
At the end of this presentation, you should be
able to:
1.
2.
3.
4.
5.
Understand how information technology
speeds up feedback for better implementation
and control.
Know why effective implementation is critical to
customer satisfaction and profits.
Understand how sales analysis can aid
marketing strategy planning.
Understand the differences in sales analysis,
performance analysis, and performance
analysis using performance indexes.
Understand the difference between the full-cost
approach and the contribution-margin
approach.
At the end of this presentation, you should be
able to:
6.
7.
Understand how planning and control can be
combined to improve the marketing
management process.
Understand what a marketing audit is and
when and where it should be used.
Strategy Planning, Implementation, and
Control (Exhibit 19-1)
Implementation
• IT speeds information flow
• Making plans work
Control
• Sales analysis
• Performance analysis
• Cost analysis
• Planning and control
• Marketing audit
Speed Up Information For Better
Implementation and Control
Fast feedback can be a
competitive advantage
Marketing manager
must take charge
New IT offers speed
and detail
Effective
Implementation
Means That
Plans Work As
Intended
Dealing with Customer Complaints
Complaints Bring Problems
to Light
Complaints Need a
Response
Dealing with Customer Complaints
Technology and Implementation
© 2009 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Sales Analysis Shows What’s Happening
Product
Characteristics
Order Size
Financial
Arrangement
Geographic
Region
Breakdowns
for Sales
Analysis
Method of
Sale
Customer
Characteristics
Channel of
Distribution
Price or
Discount Class
Performance Analysis Looks for Differences
(Exhibit 19-3)
Checking Your Knowledge
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.
What About Costs? (Exhibit 19-4)
Performance Indexes Simplify Human Analysis
(Exhibit 19-5)
Checking Your Knowledge
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 B’s 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
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 rep’s 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.
Interactive Exercise: Sales and Performance
Analysis
Marketing Cost Analysis – Controlling Costs
Too
Allocation
Full-Cost
Approach
Contribution
Margin
Approach
A Full-Cost Example (Exhibit 19-10)
A Full-Cost Example (Exhibit 19-11)
A Contribution-Margin Example (Exhibit 19-12)
Checking Your Knowledge
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 of Watson’s 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.
Planning and Control Combined (Exhibit 19-13)
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!
You should now be able to:
1.
2.
3.
4.
5.
Understand how information technology
speeds up feedback for better implementation
and control.
Know why effective implementation is critical to
customer satisfaction and profits.
Understand how sales analysis can aid
marketing strategy planning.
Understand the differences in sales analysis,
performance analysis, and performance
analysis using performance indexes.
Understand the difference between the full-cost
approach and the contribution-margin
approach.
You should now be able to:
6.
7.
Understand how planning and control can be
combined to improve the marketing
management process.
Understand what a marketing audit is and
when and where it should be used.
Key Terms
• Control
• Sales analysis
• Performance
analysis
• Performance index
• Iceberg principle
• Full-cost approach
• Contribution-margin
approach
• Marketing audit
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