MARKETING MANAGEMENT: A

SOUTH AFRICAN PERSPECTIVE

4th EDITION

MC CANT & CH VAN HEERDEN (EDITORS)

M MAKHITHA (CONSULTING EDITIOR)

 
INSPIRING
POSSIBILITIES
TOGETHER
 CHAPTER 14

Marketing planning, implementation and control

MARKETING MANAGEMENT: A SOUTH AFRICAN PERSPECTIVE 2

INSPIRING POSSIBILITIES 4th EDITION

TOGETHER
Learning objectives
After studying this chapter, you should be able to:
• Discuss the relationship between planning, implementation and
control
• Discuss and apply the steps in the marketing planning process
• Describe the various marketing planning models
• Discuss the various ways in which the marketing department can be
organised
• Explain the management tasks involved in implementing the
marketing plan
• Describe the steps in the marketing evaluation and control process
• Discuss different methods of marketing evaluation and control
• Understand the components of a marketing audit and how it can be
carried out.
 Strategic marketing management
• The process of strategic marketing management involves the
following three steps:
– Step 1 – Planning
– Step 2 – Implementation
– Step 3 – Evaluation
Marketing management process
Planning
• Nature of planning
• The advantages of planning:
– Planning facilitates management by objectives
– Planning reduces uncertainties
– Planning facilitates coordination
– Planning improves employee morale
– Planning helps in achieving economies of scale
– Planning facilitates controlling
– Planning provides a competitive edge
– Planning encourages innovation
The marketing plan
• The use of marketing plans can offer the following benefits:
– Target market focus. Having a marketing plan helps businesses
to focus on their current target market, as well as to identify any
gaps in the market that could be opportunities for new markets.
– Ability to measure progress. Marketing plans provide a tool
against which a business can measure its progress in relation to
its goals. In this way, an organisation can identify which
strategies work well and which do not.
– Confidence when approaching investors. A solid marketing plan
enables a business to show potential external financiers, with
great confidence, that it is able to reach its planned goals.
– New leads. Good marketing plans create new networking
opportunities for businesses, thus enabling them to source new
leads.
Steps in the marketing planning process
• Step 1: Historic appraisal
– General market data (sales and market shares)
– Market activity information (advertising and price history as well
as historical cost and profit data)
– Facts related to changes in technology, regulations or any other
general environmental conditions
• Step 2: Environmental analysis
– The Internal environment
– The customer environment
– The external environment
– Swot analysis
• Step 3: Planning assumptions
– The market potential of the product
– Market and brand forecasts
– Exogenous factors
• Step 4: Marketing objectives
– Mission statement
– Requirements of objectives
– Hierarchy of objectives
• A high rate of return on investment (ROI)
• An increase in sales
• An increase in relative market share
• Continued growth
• Step 5: Formulating marketing strategies
Strategic competitive positions:
– Market leader
– Market challenger
– Market follower
– Market specialist (Nicher)
• Step 6: Finalising of the plan
– Format of a marketing plan
• Executive summary
• Current marketing situation
• Threats and opportunities
• Objectives and issues
• Market and marketing strategies
• Action programmes
• Budget
• Controls
• Step 7: Reviewing progress
Benefits of correct and strategic marketing planning:
– Consistency
– Responsibility
– Environmental scanning
– Organisational adaptation
– Achievement
– Resource allocation
– Competitive advantages
– Communication
– Commitment
Planning models
• The market growth-market share matrix
– Growth rate and market share

– Product portfolio analysis

– Product portfolio and product lifecycle
– Usefulness of the market growth-market share mix
The market attractiveness-enterprise strength
model
 Model analysis
 Models for planning and implementation
Implementation
• The importance of implementation
• Drivers of strategy implementation
– Organisational structure
– Organisational leadership
– The organisational culture
– Managerial processes
Organisational structure
 Functional organisational structure
 Organisational structure of a multi-product enterprise
The matrix organisational structure
Product-oriented organisational structure
• The marketing units are organised by product or product line,
with a separate product manager taking full responsibility for
the marketing of each specific product or line.
• Enterprises that offer many diverse products sometimes use
this approach.
• In some cases, the product or product line may be an SBU.
The geographic organisational structure
Building on a sound structure
• Putting marketing strategies into action then involves:
– leadership
– the coordination of marketing activities
– the motivation of the personnel performing these activities
– regulating communication flow within the marketing
organisation
– creating a beneficial corporate culture.
Organisational leadership
• Delegating authority
• Coordination
• Communication
– Communication channels
– Empowerment and policies
• Motivation
Organisational culture
• The corporate culture of a company is the sum total of the
values, symbols and traditions of the business and the style of
leadership applied by top management in motivating,
communicating, exercising authority and handling conflict.
• Corporate culture consists of the following elements:
– The business environment
– Shared values
– Norms
– Heroes
– Rites and rituals
– Cultural network
 Managerial processes
• Resource allocation
– Intangible assets
– Tangible assets
– Organisational capabilities
• Reward systems
Barriers to strategy implementation
• Vision barrier
• People barrier
• Resources barrier
• Management barrier
Evaluation and control
• The nature of evaluation
– Monitoring
– Evaluation
– -Purpose
• Steps in the evaluation and control process
• Evaluation methods
– Sales analysis
– Marketing costs analysis
– Efficiency analysis
– Customer value analysis
– Obtaining feedback from customers
– Getting feedback from the business itself
– Comparing the business’s service standard to its objectives and
customer attitudes
– Taking the correct corrective action
 The marketing audit
– Components of a marketing audit
– Conducting a marketing audit