GLOBAL MARKETING

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GLOBAL MARKETING

• Strategy Implementation and Control

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Shaping the Success of Strategy Implementation

• Three Forces

Ownership of marketing plan
Supporting the marketing plan
Adaptive market planning
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Ownership

• Detailed action plans
• Champion/ownership team
• Compensation
• Management involvement

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Marketing Tactic To create adequate end user
product availability, 80 manufacturers reps and
5 missionary salespeople will be used to sell
and distribute our product to 5,000 industrial
supply houses.
From time of implementation
5
Support

• Time
• Resources
• Communication
• Skills

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Adaptation

• Continuous improvement
• Feedback measurements
• Persistence

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Overall Performance Measures

• Unit sales
• Dollar sales
• Sales in specific segments
• Marketing costs
• Production costs
• Market share
• Customer ratings of product quality
• Customer ratings of service

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Program Performance Measures

• New Product Programs
• Rate of trial
• Repurchase rate
• Cannibalized sales
• Number of customer returns

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Program measures, continued

• Pricing Programs
• Actual price charged
• Price relative to industry average

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Program Measures, continued

• Advertising Programs
• Awareness levels
• Attribute ratings
• Actual expenditures
• Consumer response index

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Program Measures, continued

• Sales promotion programs
• Redemption rates
• Displacement rates
• Stock-up rates

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Program Measures, continued

• Distribution Programs
• Direct response rates
• of sales calls
• of new accounts
• of lost accounts
• of distributors carrying product
• of customer complaints
• Travel costs

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Other Control Actions

• Contribution Analysis
• Determine the amount of revenue expected from a
  given set of costs

Required sales Total FC () desired gross
margin () volume in units Gross margin
contributed per unit
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Example

• Selling price per unit 200
• Variable costs per unit 110
• Total fixed costs 5,000,000
• Gross margin target 4,000,000

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• Gross margin contribution per unit
• 200 - 110 90
• Required sales volume in units
• (5,000 4,000,000) / 90 100,000 units

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Response Analysis

• Predicting how large a change in sales will
  occur when a variable in the marketing mix is
  altered.
• Price changes
• Advertising expenditures
• Promotion expenditures

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Marketing Productivity

• What is the return on marketing expenditures? How
  effective are the marketing expenditures in
  producing sales?

Market Net marketing
contribution Productivity Marketing
budget
Market Efficiency Net income
Index Marketing
expenditures