Strategic Implementation and Control

1

• Strategic Implementation and Control
• Bonoma and Critenden (1988) have put forward a
• well considered case showing that the successful
• implementation of marketing plan results from the
  
• interactions of structure and skills.
• The structure is seen to consist of the
  following
• Actions
• Programmes
• Systems
• Policies

2

• Strategic Implementation and Control
• Managerial skills embrace the following
• Interacting
• Allocating
• Monitoring
• Organizing

3

• Strategic implementation and control
• Problems to overcome
• The following problems must be overcome in
• controlling marketing activities. These include
  the
• following
• Business pressures
• Marketing Subsystems
• Problem of marketing information adequacy
• Cost problems
• Problems of marketing orientation
• Problems of planning

4
Strategic implementation and control Business
pressures King (1991) has pointed out that the
pressures on marketing organisations are
formidable and it is likely to
continue. Supplier behavior Capital, Labour,
and Goods Markets Distribution Channels,
transportation, warehouse, Customer
characteristics Attitudes, income, location,
ages International business Exchange rates,
foreign competition Domestic business
Investment, inflation, share price,
TUC. Technological progress Patents, new
products, new process. Government activities
Laws, taxations, pay and price policies Social
and political climate Image, culture,
ethnic/religious
5

• Strategic Implementation and Control
• Problems of marketing subsystem
• Kotler (1972) gave several facets of the
  marketing subsystems
• that gave rise to problems of control which
  include the
• following
• Output of other functional subsystems turn to
  affect marketing
• subsystems. A poor cash flow may lead to a need
  to cease
• extending credit and hence to a lower level of
  sales and profit.
• The output of the marketing function have
  repercussions on
• the outputs of other corporate functions, such as
  credit
• collection having a significant bearing on the
  controllers cash
• flow situation.

6
Strategic Implementation and Control Problems
of marketing feedback The marketing manager
cannot benefit from the advantages of
statistical feedback to provide an automatic
corrective control over marketing activities in
the same way that the production manager can use
such control over much of his plant. Information
adequacy A marketing manager will depend on how
much, how relevant and how good his information
is, and how well he interprets and act upon it.
7

• Strategic implementation and control
• The aim of this information may be to produce the
  
• internal data needed for effective planning and
  control
• of marketing activities and the requirements as
  follows
• Marketing Planning
• Establishing sales quota by territory, product,
  industry
• and channel.
• Developing advertising budget, and planning the
• allocation of funds
• Developing additional outlets and new channel of
• distribution.

8
Strategic implementation and control Cost
problems The sense of control in marketing, as in
any other activity, is measurement. It is
invariably found that the cost of stemming from
marketing activities are difficult to plan and
control. The elements
to be controlled Sales volume Mix of sales
Profit Contribution Selling prices

Marketing
Less Promotional
cost
Profit Selling cost
Marketing Costs Distribution cost
9
Strategic implementation and control Marketing
Orientation This is the process by which an
enterprises target customers needs and wants
are effectively and efficiently satisfied within
the resource limitations and long term survival
requirements of that enterprise. It is
therefore more helpful to think of marketing
orientation as a process by which an enterprise
seeks to maintain continuous matched between its
products/services and customer needs.
10

• Strategic implementation and control
• Planning Orientation
• Among the most important benefits of planning
  orientation are
• the following
• Planning requires effective communication which
  improves the
• functional co-ordination of efforts throughout
  the organisation.
• Planning motivates by what is expected from each
  other of the
• organisation and if plans have been agreed
  between superiors
• and subordinates in an appropriate way there
  should be a high
• degree of commitment to their attainment.

11
Strategic implementation and control Control
Defined Maciariello (1984) defined management
control as the process of ensuring that the
human, physical and technological resources are
allocated so as to achieve the overall purposes
of an organisation. Tannenaum (1963) also
defined management control as any process in
which a person (or a group of persons) determines
or intentionally affects what another person or
a group will do. Merchant (1985) see control is
seen as having one basic function to help
ensure the proper behaviour of people in the
organisation.
12
Strategic implementation and control Basic
Control Concepts Open loop control Close loop
control Open loop control is a form of control
that exist when an attempt is made by a system
to achieve some desire goal, but when no
adjustment are made to its actions once the
sequence of intended act is underway.
13
Strategic implementation and control Close loop
control Feed forward control can be defined as a
measurement and prediction system which assesses
the system and predicts the output of the system
at some future date. (Baskar and Housden
1985) Feed forward is proactive and continuous
and seek to predict the outcomes of propose
courses of action. Feedback Control seeks to
anticipates, and thereby to avoid, deviations
between actual and desired outcomes. Cushing
(1982) Let us look at each a little more
closely.
14

• Strategic implementation and control
• Approaches to control
• Merchants approach to control
• An organisations control system is comprised of
  a variety of
• Mechanisms. This includes
• Personal supervision
• Job description
• Rules
• Standard operating procedures
• Performance appraisals
• Budgets
• Standard costing
• Incentives compensation scheme

15
Strategic implementation and control Audits Budge
ting Variance analysis Taking corrective
action Bench marking Management reports