copyright atomic dog publishing, 2007 chapter 22: “pulling it all together: integrating and...

Copyright Atomic Dog Publishing, 2007

Chapter 22:“Pulling It All Together: Integrating and Analyzing the Marketing Plan”

Joel R. Evans & Barry Berman

Marketing, 10e: Marketing in the 21st Century


Chapter Objectives

• To show the value of an integrated marketing plan

• To discuss the elements of a well-integrated marketing plan

• To present five types of marketing plan analysis: benchmarking, customer satisfaction research, marketing cost analysis, sales analysis, and the marketing audit

• To see the merit of anticipating and planning for the future


Organizational Planning

Why are we in business?

How do we do business?

Where are we now?

Where do we want to be?

How can we get there?

How will we know we’ve arrived?

Coordination Budgets ControlsReports Milestones

Driving Force

MissionValues

CultureClimate

Strategies

Tactics

Resources

Strengths Weaknesses Opportunities Threats Competition Constraints

Vision

Gap Analysis

Copyright © 1991 by In-Com. Inc. Revision © 1999 by Clark E. Crouch. All Rights reserved.


The Value of an Integrated Marketing Plan

An integrated marketing plan outlines the actions needed, who is responsible, when and where they will be completed, and how they will be coordinated.

The benefits may include: Improved profits. Increased market share. Greater return on assets and investments. Opportunities for positive economies of scale. Greater customer satisfaction leading to long-run

success.


A Total Quality Approach

It is a process- and output-related philosophy, striving to satisfy customers effectively. It always:

Seeks to satisfy customers. Has a top management commitment. Emphasizes continuous improvement. Requires support from employees,

suppliers, and distribution intermediaries.


Elements Leading to a Well-Integrated Marketing Plan

Coordination of the

Marketing Mix

Stability Over Time

Well-Integrated Marketing

Plan

Clear Organizationa

l MissionLong-Term Competitive Advantages

Precisely Defined Target Market(s)

Coordination Among SBUs

Compatible Long-,

Moderate-, and Short-Term Subplans


Step 1 in a Well-Integrated Marketing Plan

A clear organizational mission outlines a commitment to a type of business and a place in the market.

It should be reviewed when: • A firm seeks new customer groups or

abandons existing ones.• Adds or deletes product lines.• Acquires other firms or sells part of

its own business.• Utilizes different marketing functions.• Shifts its technological focus.

1. Clear

Organizational Mission



Long-term competitive advantages are attributes whose distinctiveness and appeal to consumers can be maintained over an extended period of time.

• To sustain advantages, consumers must perceive a consistent positive difference in key attributes over competitors.

• Differences must be linked to a capability gap that competitors will have difficulty in closing.

• A firm should stress customer service and a total quality program.

2. Long-Term

Competitive Advantage



By precisely defining target market(s), a firm identifies those to be addressed in its marketing plans.

• When a firm uses concentrated or differentiated marketing, each segment must be understood.

• The target market approach may need fine-tuning due to changing demographics and lifestyles—or declining sales.

• Data-base marketing helps reach goals.

3. Precisely Defined Target Market



A firm’s marketing subplans need to be compatible with one another.

• Long-term plans are the most general and set a broad framework for moderate-term plans.

• Short-term plans are the most specific, but need to be derived from both moderate-term and long-term plans.

• Marketing plans must be flexible and adapt to changing customer priorities.

• Frequent reviews are critical.

4. Compatible

Long, Moderate, &

Short-Term Subplans



The coordination among an organization’s SBUs is enhanced when the functions, strategies, and resources allocated to each are described in long-, moderate-, and short-term plans.

5. Coordination Among

SBUs



The components of the marketing mix (product, distribution, promotion, and price) need to be coordinated and consistent with the firm’s organizational mission.

6. Coordination

of Marketing

Mix



A marketing plan must have a certain degree of stability over time to be implemented and evaluated properly.

• The plan should be consistent with the firm’s mission and guide the firm’s long-term efforts.

• The plan should be fine-tuned regularly and be consistent with the firm’s total quality approach.

7. Stability

Over Time


Benchmarking

The Keys to Good Benchmarking1. Determine What to Benchmark

2. Build Buy In and Plan the Project

3. Understand Existing Operations

4. Research Others’ Practices and Potential Partners

5. Identify Best Practices

6. Pinpoint Improvement Areas

7. Conclude and Communicate

8. Create an Action Plan for the Future

By benchmarking, a company sets marketing standards based on its prior actions, direct

competitors, the best firms in its industry, and/or innovative firms in other industries.


Customer Satisfaction Research

Customer satisfaction is the degree to which there is a match between customer expectations and actual performance. The largest ongoing research project is the American

Customer Satisfaction Index (ACSI), a joint effort by the University of Michigan, the American Society for Quality Control, and CFI Group.

To compute ACSI, thousands of consumers are surveyed annually regarding companies in dozens of industries.

ACSI links customer expectations, perceived quality, and perceived value to customer satisfaction.


Marketing Cost Analysis

Marketing cost analysis evaluates the cost efficiency of marketing factors such as total quality configurations, product lines, order size, distribution methods, sales territories, channel members, salespersons, media, and customer types.

It consists of three steps: Studying natural account expenses Reclassifying natural accounts into functional

ones Allocating functional accounts by marketing

classification


Sales Analysis

Sales analysis is the detailed study of sales data to assess a marketing strategy’s appropriateness and effectiveness.

Without it, A poor consumer response to the total value chain

offered by a firm may not be seen early enough. The strength of certain market segments and

territories may be overlooked. Sales effort may be poorly matched with market

potential. Trends may be missed. Support for sales personnel may not be forthcoming.


Key Concepts in Sales Analysis

• Control units are the sales categories for which data are gathered.

• The 80-20 principle identifies large proportions of sales (profits) that come from a small proportion of customers, products, or territories.

• The iceberg principle states that superficial data are insufficient to make sound evaluations and errors will occur unless firms isolate and categorize data.

• Sales exception reporting highlights situations where goals are not met or opportunities are not present.


Marketing Audit

A marketing audit is a

systematic,

critical,

impartial

review and appraisal

of the basic goals and policies of the marketing function, and of the organization, methods,

procedures, and personnel employed to implement the policies and achieve the goals.


The Marketing Audit Process (1)

1. Determining Who Does the Audit

2. Determining When and How Often

Audit Is Conducted

3. Determini

ng the Areas to

Be Audited 4. Developing Audit Forms

5. Implementing the Audit

6. Presenting the

Results to Management


The Marketing Audit Process (2)

1. The audit is conducted by company specialists, company division, or department managers, or outside specialists.

2. It may be done at the end of a calendar or annual reporting year, or when doing a physical inventory.

3. A horizontal audit studies the overall performance of a firm, emphasizing the interrelationship of variables. A vertical audit is an in-depth analysis of one aspect of a firm’s marketing strategy.

4. Audit forms list the topics to be examined and the exact information required to evaluate each topic.

5. Implementation decisions include: the timing and duration, employee awareness, when and how audit is performed, and how the audit report will be prepared.

6. Findings & recommendations are given to management.


Chapter Summary

• This chapter shows the value of an integrated marketing plan.

• It discusses the elements of a well-integrated marketing plan.

• It presents five types of marketing plan analysis: benchmarking, customer satisfaction research, marketing cost analysis, sales analysis, and the marketing audit.

• It shows the merit of anticipating and planning for the future.

copyright atomic dog publishing, 2007 chapter 22: “pulling it all together: integrating and...

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