Lecture Basic Marketing: A global-managerial approach: Chapter 19 - William D. Perreault, E. Jerome McCarthy

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.

5. Understand the differences in sales 
analysis, performance analysis, and 
performance analysis using 
performance indexes. 

2. Know why effective implementation 
is critical to customer satisfaction 
and profits.

6. Understand the difference between 
the full­cost approach and the 
contribution­margin approach. 

3. Know how total quality management 
can improve implementation— 
including implementation of service 
quality.

7. Understand how planning and 
control can be combined to improve 
the marketing management process. 

4. Understand how sales analysis can 
aid marketing strategy planning. 

8. Understand what a marketing audit is
—and when and where it should be 
used. 
9.  Understand important new terms.

19­2

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Information Technology
Faster
Faster
Feedback
Feedback

Relationship
Relationship
Building
Building

19­3

Real
Real Time
Time
Data
Data Details
Details

Efficient
Efficient
and
and
Effective
Effective
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Specific Implementation Problems
Marketing Mix
Decision Area
Operational Problem

Implementation
Approach

Product

Rapid product design
Pretest different versions

Use 3­D 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
Toll­free number

Price

Identify frequent users 
Determine impact of price 
sensitivity 

Create “favorite” club
Show unit price, vary by
market and competition

Exhibit 19­1
19­4

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
19­5

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Sales and Performance Analyses
Sales
Sales Analysis
Analysis

Tools for
Control

Performance
Performance Analysis
Analysis

Performance
Performance Index
Index

19­6

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999

Irwin/McGraw-Hill


Marketing Cost Analysis
Allocation

Full-Cost
Approach
19­7

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

19­7

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill