Lecture 10

Strategic Implementation

By johnson and Scholes, 1999

• use of KPI

• high cost solutions

• unquantifiable benefits

• personal ambitions

• reward systems

• saying versus doing

• complacency

  • no well internal marketing

  • people need to understand how they impact goals intern

• define objectives

• develop strategy for internally marketing the programme/ change

  • getting people on board

• execution (important to maintain commitment)

• need to evaluate and appraise throughout and at completion

  • Who wins? What can be learned?

    • explaining what they will get back

      • Teamwin -> Organisationwin

Groups divided by Supporters, Neutrals, and Opposers

• most companies spend most time on opposers

  • they get a lot of focus, trying to convinve neutrals

  • get them on board to neutrals, but some will always stay there

• better to focus on supporters

• no marketing department

  • everyone does a little bit

    • Skills???

• functional organisation (Executive, sales, research, IMC and Channel)

• brand management (distinct brand managers seperate from other sub-departments)

• service/ product based organisation (complete sub-departments lead by distinct product/service managers)

• market centered organisation (complete sub-departments lead by distinct market managers)

• matrix organisation

  • all different combinations

• first strategic control to address major strategic issues, should be part of the marketing planning process

• then operational control to measure

  • customer satisfaction

  • andanalyse market share, sales,

  • cost and profitability

  • marketing metrics to measure effectiveness

    • Porter Value chain

• find out who controls marketing budget

• what is impact of marketing acitvities

• basis

  • region, function, brand

• how is information disseminated?

• markets

• products / service

• brand

• function

• annual plan

• financial or expense control

• strategic control

Deshpande et al. 1993

• communication flow (internal and external)

• flexibility and agility (willingness to respond to market and changes)

• decision making processes (by whom and how fast)

  • cross selling possible

• openness to innovation & ideas

• customer relationships

  • insights

• staff retention

Customer lifetime value describes value of a customer including the expected future benefits less the anticipated future costs

by Dwyer 1997

• increases through increasing both retention rate and the sales associated with a customer (purchases and referrals) while reducing costs of serving customer

Loyalty drives profitability!!