Strategic Marketing Implementation and

Control

Dr. Zunan Setiawan. SE. MM

Strategic Marketing
December 6th, 2019
Learning Objectives
◎ The strategic role of the chief marketing
officer
◎ The strategic marketing planning process
◎ Implementing the strategic marketing plan
◎ Strategic marketing evaluation and control
◎ Marketing performance measurement
◎ Global issues for planning, implementation,
and control

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The Strategic Role of the Chief Marketing Officer

◎ Strategic CMO capabilities

◎ Core CMO tasks
◎ Planning, implementation, and accountability

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Strategic CMO Capabilities

◎ Priorities include:
○ Enhancing the capabilities and fl exibility of
organizations
○ Emphasizing portfolios rather than single brands
○ Promoting consistency across the marketing
organization

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Core CMO Tasks
• Establishing the role of marketing in the firm
• Owning the voice of the market
• Responsibility for marketing strategy
• Coordinating marketing with other areas of the
firm
• Running the marketing organization
• Identifying and leading the marketing
transformation effort
• Establishing a marketing scorecard and
performance metrics

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Planning, Implementation, and Accountability

◎ Strategic marketing planning process a

mechanism for:
○ Implementing strategy and marketing metrics for
performance measurement
○ Meeting new pressures for greater marketing
accountability in the firm

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The Strategic Marketing Planning Process

◎ Marketing plans guide implementation

◎ Contents of the marketing plan
◎ Managing the planning process

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The Strategic Marketing Planning Process

◎ The strategic marketing plan:

○ Indicates:
■ Marketing objectives
■ Strategy and tactics for accomplishing the
objectives
○ Guides implementation and control

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Exhibit 15.1 - Strategy and Planning
Relationships

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Contents of the Marketing Plan

◎ Planning activities include:

○ Making a situation assessment
○ Identifying market targets
○ Setting objectives
○ Developing targeting and positioning strategies
○ Deciding action programs for the marketing-mix
components
○ Preparing supporting financial statements

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Managing the Planning Process

◎ Planning is an organizational process

○ Interactions and discussions between executives
shape outcomes
◎ Planning involves more than analytical
techniques and computation

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 Dimensions of Marketing Planning Process

Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change: Transforming the Process of Going to Market, 4th ed. (Oxford: Elsevier, 2009), 461.

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Implementing the Strategic Marketing Plan

◎ Implementation process
◎ Building implementation effectiveness
◎ Internal marketing
◎ A comprehensive approach to improving
implementation
◎ Internal strategy-organization fit

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Implementation Process

◎ Influence of two sets of factors on marketing

strategy implementation:
○ Structural issues including the company’s:
■ Marketing functions
■ Control systems
■ Policy guidelines
○ Behavioral issues concerning marketing managers’
skills in:
■ Bargaining and negotiation
■ Resource allocation
■ Developing informal organizational
arrangements
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The Implementation Process

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Building Implementation Effectiveness

◎ Desirable implementation skills include:

○ Ability to understand how others feel, and good
bargaining skills
○ Strength to be tough and fair in putting people and
resources where they will be most effective
○ Effectiveness in focusing on the critical aspects of
performance in managing marketing activities
○ Ability to create a necessary informal organization
or network to match each problem with which they
are confronted

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Building Implementation Effectiveness

◎ Factors facilitating the implementation

process:
○ Organizational design
○ Incentives
○ Effective communications

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 Internal Marketing

Source: Reprinted from Market-Led Strategic Change: A Guide to Transforming the Process of Going to Market, Nigel F. Piercy, Copyright 2009, with permission from Elsevier.

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A Comprehensive Approach to Improving
Implementation

◎ Employ the balanced scorecard method

○ A formalized management control system that
implements a given business unit strategy by means
of activities across four areas:
■ Financial
■ Customer
■ Internal business process
■ Learning and growth (or innovation)

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A Comprehensive Approach to Improving
Implementation

◎ Benefit of employing the balanced scorecard

method
○ An often aggregate, broadly defined strategy is
translated to very specific actions

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Internal Strategy-Organization Fit

◎ Important that the organization’s competitive

and marketing strategy is compatible with the
internal structure of the business
◎ Organizational stretch - To execute strategy
should be considered
○ It is the degree to which structures, capabilities,
systems, processes, and resource allocation may
require adjustment to deliver the strategy

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Internal Strategy-Organization Fit

◎ The role of external organizations - The

implementation of marketing strategy is
affected by external organizations such as:
○ Strategic alliance partners
○ Marketing consultants
○ Advertising and public relations firms
○ Channel members
○ Other organizations participating in the marketing
effort

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Strategic Marketing Evaluation and Control

◎ Customer relationship management

◎ Overview of control and evaluation activities
◎ The strategic marketing audit

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Customer Relationship Management

◎ Adoption of customer relationship

management (CRM) systems offers several new
and powerful resources for strategic evaluation
and control

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Customer Relationship Management

◎ CRM systems have the potential to:

○ Greatly expand the measures of performance used
○ Take a more fine-grained look at marketing
effectiveness related to:
■ Customer acquisition and defection rates
■ Customer tenure
■ Customer value and worth
■ Proportion of inactive customers
■ Cross-selling

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Overview of Control and Evaluation Activities

◎ Consume a high proportion of marketing

executives’ time and energy
◎ Evaluation may seek to:
○ Find new opportunities or avoid threats
○ Keep performance in line with management’s
expectations
○ Solve specific problems that exist

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Strategic Marketing Evaluation and Control

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The Strategic Marketing Audit
• Useful when initiating a strategic evaluation
program
• The audit can be used to:
• Initiate a formal strategic marketing planning
program
• May be repeated on a periodic basis
• Results of the audit provide the basis for:
• Selecting performance criteria
• Choosing relevant marketing metrics to assess actual
performance against plans and strategic intent

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Marketing Performance Measurement

◎ The importance of marketing metrics

◎ The use of marketing metrics
◎ Types of marketing metrics
◎ Selecting relevant metrics
◎ Designing a marketing management dashboard
◎ Interpreting performance measurement results

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The Importance of Marketing Metrics

◎ Impacts the professional standing of the

marketing organization within the firm
◎ Ability to measure marketing performance is
related to:
○ Company performance
○ Profitability
○ Stock returns
○ Marketing’s stature within the organization

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The Use of Marketing Metrics
• Questions to consider in developing a metrics-
based reporting system:
• Does what we report to management actively probe end-
user behavior and why consumers behave that way?
• Are the results of end-user research routinely reported
and in a format integrated with financial metrics?
• In these reports, are results compared with levels
previously forecast in business plans?
• Are the results compared with the levels achieved by
competitors on the same indicators?
• Is short-term performance adjusted according to the
change in brand equity?

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Types of Marketing Metrics
• Several ways of grouping marketing metrics:
• Some measures are associated with assessing:
• Competitive position
• Effectiveness with the customer
• Others address:
• Product profitability
• Product and portfolio performance
• Customer profitability
• Sales and channel effectiveness
• Pricing
• Promotion
• Advertising and Web activities
• Financial performance

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Selecting Relevant Metrics

◎ Guidelines suggest that choices should be

made in the light of the need to:
○ Measure performance relative to strategy
○ Track performance relative to competitors
○ Track performance relative to customers
○ Track performance over time
○ Model performance

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Designing a Marketing Management Dashboard

◎ May be a conventional report or a software

product
◎ Requires that senior management agree to
○ A restricted set of key marketing metrics to
■ Communicate and evaluate the company’s
marketing performance
◎ Facilitates:
○ Control of short-term activities
○ Longer-term planning

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Interpreting Performance Measurement Results

◎ Actual results achieved are compared with

planned results
○ Corrective actions may be required if performance
gaps are too large

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Interpreting Performance Measurement Results

◎ Opportunities and performance gap

○ Initiate actions to take advantage of the
opportunities or to correct existing and pending
problems
◎ Problem/opportunity definition
○ Should be clear since it will be needed to guide
whatever strategic action may be taken
◎ Interpreting information
○ Management must separate normal variations in
performance from significant gaps in performance

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Interpreting Performance Measurement Results

• Determining normal and abnormal variability

• Important to recognize that operating results and
metrics are likely to display normal up- and down-
fluctuations
• Deciding what actions to take
• Many corrective actions are possible, depending on
the situation
• Exiting from a product-market
• New-product planning
• Changing the target-market strategy
• Adjusting marketing strategy
• Improving efficiency

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Global Issues for Planning, Implementation, and
Control

◎ Global marketing planning

◎ Implementation globally
◎ Performance measurement and control
globally

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Global Marketing Planning

◎ Must accommodate more substantial variation

in marketing strategies and programmes than
is the case domestically
◎ Information regarding global markets is not
available in the same quantity or quality that
would be expected in the domestic market

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Implementation Globally

◎ Must address issues related to:

○ Market differences in national culture
○ Economic development
○ Political characteristics

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Performance Measurement and Control
Globally

◎ Follows the same general principles

○ But in the global market situation must additionally
consider market differences in:
■ Local marketing arrangements
■ Product or market life cycle stage
■ The availability of information
■ The strength of the relationships between local
and central management

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