Bonus

Chapter 1
Implementing and
Controlling Marketing
Plans: Metrics and
Analysis

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 At the end of this presentation,
you should be able to:
1. understand how information technology speeds up
feedback for better implementation and control.
2. know why effective implementation is critical to
customer satisfaction and profits.
3. understand how sales analysis can aid marketing
strategy planning.
4. understand the differences in sales analysis,
performance analysis, and performance analysis using
performance indexes.
5. understand the difference between the full-cost
approach and the contribution-margin approach.
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 At the end of this presentation,
you should be able to:

6. understand how planning and control can be

combined to improve the marketing management
process.
7. describe measures used to monitor and control
marketing strategy planning
8. understand what a marketing audit is and when
and where it should be used.
9. understand important new terms.

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Strategy Planning, Implementation, and
Control (Exhibit BC1-1)

Implementation Control
• IT speeds information flow • Sales analysis
• Making plans work • Performance analysis
• Cost analysis
• Planning and control
• Marketing metrics
• Marketing audit

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 Speed Up Information for Better
Implementation and Control
Fast feedback can be a
competitive advantage

Marketing manager
must take charge

Analytics occurs
quickly

New IT offers speed

and detail

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 Effective Implementation Means
That Plans Work As Intended

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 M4BW: Better, faster, lower cost –
and saving lives
Company not
seeking profit at
first

NEED: Benefits from

development
Ebola Vaccine process

Develops new method

(profitable) to
refrigerate vaccines

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Dealing with Customer Complaints

Complaints Bring
Problems to Light

Complaints Need a
Response

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 Overcome Specific Marketing
Implementation Problems
(Exhibit Bonus 1-2)

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Control Provides Feedback to Improve
Plans and Implementation

Control Analyze the

Questions Data

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Sales Analysis Shows What’s Happening

Geographic
Region
Product Customer
Characteristics Characteristics

Breakdowns
Channel of
Order Size for Sales
Distribution
Analysis

Financial Price or
Arrangement Method of Discount Class
Sale

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Comparative Performance of Sales
Reps (Exhibit Bonus 1-3)

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 Checking Your Knowledge

Mark Sun is a sales manager for Applied Robotics.

He has asked his assistant to prepare a report that
shows him how each of his sales reps has performed
over the last year, showing their percentage above or
below quota. This is an example of:
A. using natural accounts.
B. the contribution margin approach.
C. the marketing strategy planning process.
D. performance analysis.
E. sales analysis.
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 Comparative Cost of Sales Reps
(Exhibit Bonus 1-4)

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 Development of a Measure of Sales
Performances (by region)
(Exhibit Bonus 1-5)

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 Checking Your Knowledge

A sales manager for Wilson Sporting Goods reviewed

salesperson performance. Salesperson A had a
performance index of 110, while Salesperson B had a
performance index of 80. What might the sales manager
conclude?
A. Salesperson B’s performance should be a model for the
whole sales force.
B. Salesperson A should change her effort to bring her to the
average.
C. Salesperson A requires additional sales training.
D. Salesperson B may be having some problems.
E. Salesperson B requires additional training.
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 Checking Your Knowledge

Wendy Ball, sales manager for Applied Engineering

Products, was reviewing the performance of her
salespeople. One sales rep has sales 25% below quota.
This analysis should lead the sales manager to conclude:
A. that the sales rep has a great deal of competition in her
territory.
B. that the sales rep is not working hard enough.
C. that the sales rep’s quota was set too high.
D. that there is no reason to worry, because the rest of the sales
force is 25% over quota.
E. nothing at this point because of the iceberg principle.
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 Marketing Cost Analysis—
Controlling Costs Too

Allocation

Contribution
Full-Cost
Margin
Approach
Approach
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Profit and Loss Statement by Department
(Exhibit Bonus 1-10)

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Profit and Loss Statement by Department
If Department 1 Were Eliminated
(Exhibit Bonus 1-11)

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 Contribution-Margin Statement by
Departments (Exhibit Bonus 1-12)

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 Checking Your Knowledge

A marketing cost analysis conducted by Rosa

Ruiz, marketing manager at Ruiz Windows, shows
Watson Construction to be an unprofitable
customer. Ruiz Windows should:
A. change the delivery terms of Watson’s orders.
B. raise prices on all items sold to Watson.
C. assign a new salesperson to Watson.
D. try to find out why Watson is unprofitable.
E. refuse to sell to Watson Construction.

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 Planning and Control Combined
(Exhibit Bonus 1-13)

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Marketing Metrics and Analytics Can
Guide Marketing Strategy Planning

Marketing metrics/
marketing analytics
drive strategy planning

Recognize
“What gets
challenges in
measured gets
marketing
improved”
analytics
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 The Marketing Audit

Detailed
Examination of Plans

Use of Strategy
Planning Framework

Evaluation of Quality

Involvement of
Internal/External
Parties
An Audit Shouldn’t Be Necessary, But Often Is!
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 Key Terms

1. control
2. sales analysis
3. performance analysis
4. performance index
5. iceberg principle
6. full-cost approach
7. contribution-margin approach
8. marketing metrics
9. marketing analytics
10. marketing audit
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