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32 Cards in this Set
- Front
- Back
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Marketing's Responsibility at Functional/Operational Level |
marketing as tactics: Skillful management of firm's resoures to achieve marketing success |
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marketing success |
1. achieving above-normal, superior market performance/profit 2. creating customer loyalty
•It has been demonstrated that a customer-centered organization tends to realize above-normal market performance through the creation of customer loyalty. |
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•What activities/processes must a manager perform to skillfully manage the organization’s resources? |
Planning, Implementation, Control
Planning: situation analysis, positioning, marketing mix, outcome projection
Implementation: coordinating (acquiring resources, organizing) & execution (performing tasks)
Control: measuring results, diagnosing results, taking corrective action |
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how does a company create a customer-centric organization/customer-centric (Loyalty) leadership |
1. create and convey customer-centric vision 2. coordinate planning process across firm's functions 3. reinforce behaviors needed to build customer loyalty
leaders must be passionate Goal: create customer loyalty - monopoly in mind of customer |
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Benefits of Marketing Plan |
1. Identify market opportunities 2. Leverage core capabilities 3. Focused marketing strategy 4. Cost-efficient and less-wasted resource allocation
5. Performance roadmap - strategic windows, benchmarks, dashboard |
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why is planning process more important than plan itself |
Best: planning is where learning actually takes place, knowledge is created |
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when does planning process stop |
planning process is a continuous endeavor and does not stop at creation of plan; living documents must be updated; learning is not done
The marketing planning process continues through the plan’s implementation, including control; it does not stop when the marketing plan begins to be implemented. |
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why is the planning process a balance between creativity and structure (no marketing plans vs. highly formalized plans) |
balanced approach between abstract and molar; just enough structure to achieve efficiency and enough creativity to make adjustments as necessary
Highly formalized: structure at expense of creativity; planner has greater guidance on allocating resources but is not able to adjust quickly to changing circumstances; reduces thought process
Creativity: challenging the assumptions
No marketing plan: creativity at expense of structure; planner able to adjust quickly to changing circumstances but has little guidance on how to allocate resources |
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Sources of marketing problems |
marketing functions (actions - execution) marketing programs (plans - based on inappropriate assumptions) marketing policies (rules) |
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Dimensions of Implementation |
Organization of marketing programs: Coordination, arrange resources
Execution of marketing programs: (performing task) |
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do good marketing plans guarantee success? |
no - business plan needs good implementation |
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where do problems arise during execution of a marketing plan? |
Even with a great plan, implementation and control process can be problematic
Breakdown in implementation: coordination doesn’t exist or there is an inability to execute
we often blame action first when there is a problem; in reality, most common source of problem is the policy |
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what can marketing managers do to influence the successful implementation of marketing plan? |
Less than 50% of employees are engaged in work and less than 60% are satisfied à one reason is that there is too much structure. Creativity allows for us to make adjustments when necessary and allows employees to be more engaged in the process |
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sources of marketing problems |
Sources of Marketing Problems: Marketing Functions (actions), Marketing Programs (plans), Marketing Policies (Rules)
most problems occur @ marketing policies level |
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what is control |
control = regulate
exec identifies an unexpected change (in firm or environment), discovers causes, provides action
effective control --> good management
90% of product/business failures attributed to poor, ineffective management
Provides diagnostics --> discover source of difficulties: something in our control? something we can fix? adjust price, product, promotion, place
is it something outside of our control? adapt to environment |
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how can control be used |
managers use control as an early-warning system and/or a diagnostic tool
insights help managers modify marketing plan (intended short term actions and resource allocations) to bring results of plan as close as possible to objectives, which is primary goal of efective control models |
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what are types of control models |
Yes-No Control Models
Post-Action Control
Steering Marketing Control |
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Theory of Action |
separate marketing program into string of individual events that are performed in a specified order - syntax of action
1. each activity has an actor 2. '' an end 3. occurs within a context that of controllable and non-controllable factors 4. each activity is regulated |
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Components of Strategic Marketing Plan |
1. situation analysis 2. swot analysis 3. strategic marketing plan - long term marketing strategy 4. tactical marketing plan - short term marketing plan, positioning strategy 5. marketing budget 6. performance timeline 7. performance eval - performance gap?
1,2,3 long term planning 4 - becomes step one in short term plan between 3 &4 - adjust marketing plan step 4 - convert into long term step 5 - convert plan to budget |
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sources of problems in executing marketing activities |
marketing policies (rules) - where most problems tend to occur markeeting programs (plans) marketing functions (actions |
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Typical performance loss |
- ave company achieves less than 63% of projected financial performances -strategy performance gap - no single factor makes or breaks successful implementation of marketing plan (multiple issues) market based organization --> successful marketing implementation |
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strategy-to-performance gap
see slides 15-20 |
- companies rarely track performance against long-run plans - Venetian Blind - multi-year results rarely meet projections -value lost in translation -performance bottlenecks invisible to top management - culture of underperformance |
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closing Strategy-to-Performance Gap
see slides 21-27 |
simple strategy statement
assumptions v forecasts
rigorous framework; fact based decisions making
discuss resource deployments early
clearly ID priorities - dashboard metrics
continuously monitor performance
reward and develop execution capabilities
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Benefits of Closing the Strategy-Performance Gap |
- immediate performance improvement; increase performance 60-100%
- driver of cultural change
(60% strategy performance gap = realized performance is 40% of strategy's potential) |
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Yes-No Control Models |
each stage requires no/no-go decision based on outcome of previous stage
utilized during execution of plan
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post-action control models |
Diagnostic tool
provides valuable planning data for similar projects or future plans
utilized after entire plan is executed (at end of planning period)
analyze causes of variation between actual and predicted results by examining history of actions that occurred during most recently completed planning period
insights used to improve plan/strategy for next planning period |
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Steering (marketing) control models |
Early-Warning System
utilized during ex of plan (during planning period)
performance assessments at regular intervals
corrective action taken to bring plan back into control if actual performance deviates from projected
open-loop control models -
company specific
calibrated periodically due to possible changes in structural parameters |
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Steering Marketing Control Model/Process (STEMCOM)
see slide 33 |
Goal Setting - what do we want to achieve Performance Measurment - what is happening Performance Diag - why is it happening Corrective Action - what should we do about it |
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Composite Performance Index (PI)
see slide 32 |
Compare PI to a target index
early warning signal but doesn't make attempts to explain determinants of performance
Advantage: Time-Saving - rather than evaluating each performance metic separately
limitation: doesn't explain extent to which each performance metric contributed to composite performance |
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STEMCOM - marketing manager responsibilities |
1. understand & document objectives that are to be achieved 2. decide on relative attributes/dimensions and corresponding indicators/predictors 3. formulate & implement marketing plan/strategy |
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3 Critical factors to Creating Customer-Centric Organization |
- leaders must create & convey vision - leaders must coordinate planning process across organization's functions - leaders must reinforce behaviors needed to build customer loyalty - evaluate employees on behavior based rather than outcome based - outcome based performances are short term oriented and may not correspond to desired company practices management must reward behaviors that are consistent with customer-centric organizational goals
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Successful Implementation of a Market Plan
see slide 11 |
Ownership of Plan (action plans, ownership team, compensation, involvement)
Supporting the Plan (time to succeed, resources, communication, required skills)
Adaptive Planning (improvement, feedback, persistence, roll-out) |
