Chapter 19:
Implementing and
Controlling Marketing Plans:
Evolution and Revolution
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Chapter 19 Objectives
When you finish this chapter, you should
1. Understand how information
technology is speeding up feedback
for better implementation and
control.
2. Know why effective implementation
is critical to customer satisfaction and
profits.
3. Know how total quality management
can improve implementation—
including implementation of service
quality.
4. Understand how sales analysis can
aid marketing strategy planning.
19-2
5. Understand the differences in sales
analysis, performance analysis, and
performance analysis using
performance indexes.
6. Understand the difference between
the full-cost approach and the
contribution-margin approach.
7. Understand how planning and
control can be combined to improve
the marketing management process.
8. Understand what a marketing audit
is—and when and where it should be
used.
9. Understand important new terms.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Information Technology
Faster
Feedback
Relationship
Building
19-3
Real Time
Data Details
Efficient
and
Effective
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Specific Implementation Problems
Marketing Mix
Operational Problem
Decision Area
Implementation
Approach
Product
Rapid product design
Pretest different versions
Use 3-D CAD software
PC graphics samples
Place
Inventory coordination
Get input and cooperation
Bar code, EDI
TV conference
Promotion
Quick TV ad distribution
Answer questions
Satellite distribution
Toll-free number
Price
Identify frequent users
Determine impact of price
sensitivity
Create “favorite” club
Show unit price, vary by
market and competition
Exhibit 19-1
19-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Total Quality Management
Cost of Defects
Management
Leadership and
return on quality
Continuous
Improvement
TQM
Customer
Focus
Empowerment
Quality tools,
benchmarking,
and the like
19-5
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Sales and Performance Analyses
Sales Analysis
Tools for
Control
Performance Analysis
Performance Index
19-6
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Cost Analysis
Allocation
Full-Cost
Approach
19-7
ContributionMargin Approach
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Key Terms
Total Quality Management (TQM)
Continuous Improvement
Pareto Chart
Fishbone Diagram
Empowerment
Benchmarking
Sales Analysis
Performance Analysis
Performance Index
Iceberg Principle
Marketing Cost Analysis
Full-Cost Approach
Contribution-Margin Approach
Marketing Audit
19-7
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill