Chapter 10
Marketing Implementation
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
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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
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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
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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
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Planning & Implementing are
Separated
Strategic planning occurs at the top levels of the
organization and implementation falls on lowerlevel 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
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A Key Problem in Marketing
Planning…
…how to get employees excited and motivated
to support the implementation of the plan.
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The Components of Marketing
Implementation…
Shared goals & objectives
Marketing structure
Systems & processes
Resources
People
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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
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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
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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
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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
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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
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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
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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
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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
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Approaches to Marketing
Implementation
Command approach
Change approach
Consensus approach
Cultural approach
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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
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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
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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
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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
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Consensus Approach
Tends to work best in environments that are:
– complex
– uncertain
– highly unstable
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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
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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
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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
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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
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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
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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
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Formal Marketing Controls
Input control mechanisms
Process control mechanisms
Output control mechanisms
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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
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Informal Marketing Controls
Employee self control
Employee social control
Employee cultural control
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