Strategi Marketing Implementaton And control

How well marketing strategy is implamented and managed on a continuing basis is the ultimate test
of the robustness of market targeting and positioning decisions . putting strategy into action and
making adjusments to elmnate performance gaps are essentialstage in strategy marketing .strategy
and implementation are interdependent activities concerned with mathcing cpabilities with
opportunities and this interdepedence is crtical ;

Drawing a line between strategy and execution almost guarantees failure .. its commonly held idea
that strategy is distinct from execution , but this a flawed assumption . the idea that a strategy can
be brilliant and its execution poor is simply wrong

The importance of effective processes for both strategy and implementation iis illustrated by the
strategic turnaround at car-maker fiat in italy.turin saw to the launch of the fiat 500 n europe in mid-
2007 a modern mini car designed to resemble the tiny 1957 cinquecento that put many italians on
the road for the first time.yet when sergio marchionne was appointed fiat CEO in 2004 , fiat was
deeply in debt and making substantial financial losses.the reputation of fiat vehicles was terrible
quality and reliability , considerable market share share had been lost , and the fiat group had
diversified into eveything from banking and insurance to energy . in the early 2000s ,fiat actively
considered leaving the auto industry altogether

Marchionnes strategy started with a radical restructuring and dismantling of fiats management and
bureaucracy .young managers were taken from lower levels of the organization to take charge of
new units for each of fiats car brand . he negotiated his out of an alliance with general motors and
advertisement proclaaimed to costumers and employees fiat is all-italyan again R&D and
operation were overhauled and updated the fiat bravo progressed from design to production in a
record 18 mounths , about half the usual time

Marchionne has launched a range of strategy relationships in cooperative ventures and technology
licence deals . strategycally , fiat is widely seen as a brand that has regained its sense of direction.the
brand credibility does not rely on expensive cars .fiat is succeding with small cars, on which other
manufactures findits hard to make money , because it is very effecient at making them. Fiat is
traying to position its self as leader in cleaner cars. Management has succeded in implenting radical
change in short time period.fiat is back in profit , regaining market share and reducing its mountain
of debt.

In 2009 marchionne took on the challenge of applying his strategic change capabilities at chrysler ,
where he has rapidlya dopted unconvetional methods like fostering internal competition by making
each Chrysler brand a separate company.marchionne took day-to-day management control of
Chrysler when it emerged fom bankruptcy after U.S goverment financial support , with fiat taking a
20 percent ownership stake and he is working on a vigorous revival plan for machigans smallest
carmaker

We begin by examining the strategic role of the chief marketing officer in managing the
implementation of targeting and positioning choices and then riview issues relating to the
devlopment of strategic marketing plants and management of the planning process. Next , we
discuss strategy implementation and building implementation effectiveness,including consideration
of internal marketing approaches.then we overview srtategic evaluation and control in marketing
this is followed by and evaluation of the measurement of marketing performance , including the
deplovment of marketing metrics and the managemet dashboard. Finally , we consider several
global marketing aspect of planning , implementation and control .

THE STRATEGIC ROLE OF THE CHIEF MARKETING OFFICER

I the turbulent global market place now faced by many companies , and with and continued inpact
of economic downtrun and recession on different markets , a high priority is effective and insightful
leadership by the chief marketing officer (CMO) .mandates for high ambition leader include
powerful strategic vision drawing on a broad view of a companys heritage and cultural ,
organizational and social assets ; building widespread commitment and capabilities to achive that
vision by an organization with shared purpuse emotional conection trust and respect ; and the
strangeh to commit to the strategic vision over the longer term . importantly, the CMO role extends
beyond compelling strategic vision to effective strategy implementation and managing
organizational change

STRATEGIC CMO CAPABILITIES

Reseacrh by McKinsey underlines the challenges for CMOs in adapting to rapidly changing
marketing emvironment resulting from unprecednted proliferation in new media , market
segment and distribution channels-consequntly priorities include enchancing the capabilities and
flexibility of organizations, emphasizing portfolios rather than singel brands , and promoting
consistency across the marketing organization

The avarage tenure for CMOs in major organizations is less than 2 years . rapid technological
change and senior managemant concerns for profitability place priority on CMO abilities : to
mobilize marketing across the organization ( for example . in 2009 , best buys CMO created the
twelpforce to allow many employees to handle costumer service or product queries via twitter 0 ;
to act as afuturist (for exemple , walgreens first ever CMO in 2008 has repositioned the company
as a premium helth care brand , rather than a conveience store with a pharmacy in the black ,
achieving 14 percent sales growth in spite of the sluggish economy); and to track the financial
returns on marketing expenditures

CORE CMO TASKS

A recent study suggest that there are seven key tasks expected of the CMO , although our
understanding of some of these roles remains only partial ;

-estabilishing the role of marketing in the firm

-owning the voice of he market

-responsibility of marketing strategy

-coordinating marketing with order areas of the firm

-running the marketing organization

-identifying and leading the marketing scorecars and performance matrics

While the earlier chapters have bees concerned with the first five of these tasks facing the CMO,
the emphasis in this chapter is on the tasks of leading tranformation and estabilishing appropriate
performance matrics .

PLANNING , IMPLEMENATION , AND ACCOUNTABILTY

We have discussed creating effective marketing strategies and examined some of the
organizational issues central to strategic marketing ( see chapter 14 ). The develping and strategic
role of the CMO is underlined by this coverage . e now examine the strategic marketing planning
process as a mechanism for implementing strategy and marketing matrics for performance
measurement and meeting new pressures for greater marketing accountability in the firm .

THE STRATEGIC MARKETING PALNNING PROCCES

The strategic marketing plan indicates marketing objective and and the strategy and tactics for
accomplishing the objectives , and guides implementation and control . the appendix to chapter 1
presents a step by step planning procces. Our perspective at this stage is more on implementation
and control then analysis

MARKETING PLANS GUIDE IMPLEMENTATION

The relationships between marketing strategi and the annual marketing plan re shown in exhibit
15.1 . the palnning cycle is continuous . plans are developed , implemented , evaluated , and
revised to keep the marketing strategy on target . since strategy typically extends beyond 1 year,
the annual plas is used to guide short-term marketng activities. An annual planning period is
necessary , since saveral of the activities shown reqire action within 12 months or less , and
budgets also reqire annual planning

Marketing strategy

A ook at the marketing planning proces used by a large pharmaceutical company illustrates how
planning is done , as summarized in the STRATEGY APPLICATION
CONTENS OF THE MARKETING PLANS

And outline for developing the marketing plans is presented in the appendix to chapter ( see exhibit
1.a. 1) many plans follow this general format . planning activities include making a situation
assessment , identifying market targets , setting objectives , developing targeting and positioning
strategie , deciding action program for the marketing mix component, and preparing supporting
financial statements (budgets and profit-and loss projections)

The typical planning process involves considerable coordination and intraction among functional
areas . team palnning approaches like the pharmaceutical companys planning workshop are
illustrative . succesfull implementation of the marketing plans requires a brod sensus among various
functional areas . for example , a consensud is essential between product managers and sales
managers is essential to provide sales coverage for the product portofolio . multiple product require
negotiation in eaching agreement on the amount of sales force time devoted to various product.
Recall the chapter 14 discussion of the importance of effort to secure the integration of marketing
with other function and units in the organization and approaches to achieving this

MANAGING THE PLANNING PROCESS

A useful perspective i to consider that lanning is an organizational process in which intractions and
discussion between executives hape out comes. Examining planning as an organizational process can
provide saveral insight into improving planning effectivness. Planning involves more than analytical
tecniques and computation.insight into problems faced in making marketing planning effective may
be addresed by considering the behavior of executives in conducting planning an the organizational
context in which planning is done , as wiil as by formal training in planning techniques and
procedures . an effective planning process is closely linked to sucsessful implementation.exhibit 15.2

Marketing planning at a large pharma ceutical company

-product manager are responsible for coordinating the preparation of marketing lans

-a planning workshop is conducted midyear for the kick-off the next years plans

-The workshop is attended by top management and by product , research , sales and finance
managers . the firms advertising agency manager also participates in the work shop

_the current years plans are reviewed and aeach product manager present the proposed
marketing plan for nex year

-the work shop member citique each plan and suggest change

-since the requested budgets may exceed availble funds, priorities are placed on mojor
budget components. Each product manager must provide strong support for requested
funds.
-the same group meets agai in 90 days and the resived pland are reviewed. At this meeting ,
the place are finalized and approved for immplementation

-each product manager is responsible for cordinating ad implementing the plan

-progress is reviewed throughout the plan year and when necessary the plan is revised

Marketing planning process

Show three dementions of planning process-analytical behavioral, and

organizatonal dimensions- that should be managed consistently.

The analytical demansion of planning process consist of the tools for planning
analytical techniques ,formal procedures and system- that re needed to
develop robust and tested plans and strategies . the behavioral demansion of
plannig is concerned with how managers perceive planning activities and the
strategic assumptions the make , as well as the degree and extend of
participation in planning .correspondingly the organizational demansion of
planning is concerned with the oganizational sructure in which planing is
carried out , along with he assocated information resources and coorporate
culture . one challenge to management is to manage all these aspects of the
planning process in a consistent way-the conduct of planning should fit with 3
M a global enterprise anufacturing more than 60000 product from a base of
112 technology platforms , and 28 autonomous bussines units,of which
abrasive system division (ASD) is one . ASDmis 3Ms orginal business and
operates in a mature market , supplying abrasives mainly to manufacturing
companies

-at 3M(UK), the early 1990s ASD market share falling , accompanied by
declining staff morale (compared to other company units and benchmark
companies otside 3M )

-the appointment of stuart line as ASD business unit managers in 1992 had
three keys goal : to restore sales growth to minimum of 5 percent per year , to
return gross margin to the level of the 1980s, and to bring the employee
satisfaction level to least te company average

-lanes first observation were that people felt they were not treated with
respec or thanked for jobs well done ; they lacked freedom to use initiative and
make dicisions; there was little information sharing and too much bureucracy

-lanes first decision was to double ASDs sales growth taret from the 25
percent required by senior management ( for 1992-1996 )to 50 percent

- in collaboration with 3Ms corporate marketing business planners he

designed what he describe as semi-formal , structued , iterative process of
planning for ASD
-the new planning process started with to day planning workshopin spring 1992,followed by five
workshop over the following three months.lane considers the workshops as critical to developing a
robust plan for ASD , but also the team-building ,ownership,ethusiasm , and commitment to make
the plan happen , and confidence among the team members that they were going to achieve the
ambitiuos stretchgoal for ASD lane was prepade to sacrife some sophisticationin planning in favor
of slimpicity and involvement to win peoples sopport

-the planning was linked directly to an implementation process with three key element ;

1.a written plann ,presented to management but also to reduced to an index card containing the
essence of the plan in simple and memorable terms

2.the launch of the new plan to the ASD organization at the annual sales conference , and
distribution of the index cards to be kept at the front of peoples diares
3.the introduction of segment action teams(with a member of the management team as leader, but
including people from sales marketing,costumer service and technical service from different levels in
the organization)to take responsibility for segment-specific tactics and programmes.the segment
action team have evolved into a key and permanent part of the ASD structure

The result achieved by 1996 were a 53 percent growth in sales , a 100 percent growth in gross
margin contribution , a 30 percent increase in market share and employee satisfication 12 percent
above the company average .this was achivied,recall,in a mature market showing little growth

Other organizational characteristic , executive should be trained and supported in developing plans .

The inovaton application describes how a mangers addresser planning process issues an an SBU of
the 3M corporation in the united kingdom .it illustrates the adventages of lingking of planning
process to implementation issues

Implementing the strategic marketing plan

the effectivenes of strategy implementation determines the outcome of marketing
planning.the management of the planning process may enhance implementation
effectivenes buy building commitment and ownership of the plan and execution .for
example actively managing the participation of different functions and execuitives from
different specialization may improve the ft between the plan and the companys real
capabilities and resources and avoid implemtation barriers .planning and execution are
interdependent parts of strategic change.

Marking managers increasingly funtion as boundary-spanners both internally between

functional areas and externally with suppliers, organizational partners and costomers 9see
chapter 14).additional effort to make the strategy implementation process more effective
are a high priority in many companies.estimates suggest as many as 70 percent of new
strategic initiatives in companies fail at the implementation stage.many companies now
recoginaze that implementation capabilities are an important corporate resource that
requres detailed management attention.