Page 81 - Foundations of Marketing

48 Part 1 | Strategic Marketing and Its Environment

market opportunity exists. Strategic windows are temporary are also involved in implementing the marketing strategies.
periods of optimal fit between the key requirements of a mar- Finally, successful marketing implementation requires that a
ket and the particular capabilities of a company competing in timetable be established. Establishment of an implementation
that market. When a company matches a core competency to timetable involves several steps and ensures that employees
opportunities in the marketplace, it is said to have a competi- know the specific activities for which they are responsible
tive advantage. A marketer can use SWOT analysis to assess a and the timeline for completing each activity. Completing
firm’s ability to achieve a competitive advantage. all activities on schedule requires tight coordination among
If marketers want to understand how the timing of entry departments. Many organizations use sophisticated computer
into a marketplace can create competitive advantage, they programs to plan the timing of marketing activities.
can examine the comparative benefits of first-mover versus
late-mover advantages. The next phase of strategic planning 3 . Describe the major elements of strategic
involves the development of marketing objectives and strate- performance evaluation.
gies. Marketing objectives state what is to be accomplished
Strategic performance evaluation consists of establishing
through marketing activities, and should be consistent with
performance standards, analyzing actual performance, com-
both business-unit and corporate strategies. Marketing strate-
paring actual performance with established standards, and
gies, the most detailed and specific of the three levels, are com-
modifying the marketing strategy when needed. When actual
posed of two elements: the selection of a target market and the
performance is compared with performance standards, mar-
creation of a marketing mix that will satisfy the needs of the
keters must determine whether a discrepancy exists and, if
target market. Marketing mix decisions should also be consis-
so, whether it requires corrective action, such as changing
tent with business-unit and corporate strategies and be flexible
the standard or improving actual performance. Two possible
enough to respond to changes in market conditions, competi-
ways to evaluate the actual performance of marketing strate-
tion, and customer needs. Marketers can alter elements of the
gies are sales analysis and marketing cost analysis.
marketing mix to accommodate different marketing strategies.
Sales analysis uses sales figures to evaluate a firm’s cur-
2 . Examine what is necessary to effectively manage rent performance. It is the most common method of evalu-
the implementation of marketing strategies. ation because sales data are a good indication of the target
market’s reaction to a marketing mix. Marketers analyze
Marketing implementation is the process of executing mar- sales by comparing current sales to forecasted sales, indus-
keting strategies. Through planning, marketing managers try sales, specific competitors’ sales, or the costs incurred to
provide purpose and direction for an organization’s marketing achieve the sales volume. Companies can analyze sales in
efforts. Marketing managers must understand the problems terms of the dollar volume or market share.
and elements of marketing implementation before they can Marketing cost analysis breaks down and classifies costs
implement specific marketing activities effectively. Proper to determine which are associated with specific marketing
implementation requires creating efficient organizational efforts. Marketing cost analysis helps marketers decide how
structures, motivating marketing personnel, properly commu- to best allocate the firm’s marketing resources. Companies
nicating within the marketing unit, coordinating the marketing can use marketing cost analysis to identify profitable or
activities, and establishing a timetable for implementation. unprofitable customers, products, and geographic areas.
The marketing unit must have a coherent internal struc- Marketers can compare current costs to previous years, fore-
ture in order to organize direct marketing efforts. In a cen- casted costs, industry averages, competitors’ costs, or to the
tralized organization, top-level managers delegate very little results generated by costs. Companies should identify which
authority to lower levels, whereas in decentralized organi- of its costs are variable and therefore affected by sales or
zations, decision-making authority is delegated as far down production volumes, and which are fixed and therefore not
the chain of command as possible. Motivating marketing related to sales volume. Companies should also categorize
employees is crucial to effectively implementing marketing costs based on whether or not they can be linked to a specific
strategies. Marketing managers learn marketing employees’ business function, specifically marketing.
needs and develop methods to motivate them to help the
organization meet its goals. Proper communication within 4 . Understand the development of a
the marketing unit is a key element in successful marketing marketing plan.
implementation. Communication should move down (from
A key component of marketing planning is the development
top management to the lower-level employees) and up (from
of a marketing plan, which outlines all the activities neces-
lower-level employees to top management). Marketing man-
sary to implement marketing strategies. The plan fosters
agers must also be able to effectively coordinate marketing
communication among employees, assigns responsibilities
activities. This entails both coordinating the activities of the
and schedules, specifies how resources are to be allocated to
marketing staff within the firms and integrating those activi-
achieve objectives, and helps marketing managers monitor
ties with the marketing actions of external organizations that
and evaluate the performance of a marketing strategy.

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