Chapter 15 - Marketing Strategy Implementation and Control

Chapter 15
Marketing Strategy Implementation and Control

True / False Questions

1. (p. 473) How well marketing strategy is implemented and managed on a continuing basis is
the ultimate test of market targeting and positioning decisions.
TRUE

Difficulty: Moderate

. (p. 481) !ne comprehensi"e way to deal with difficulty in the implementation of the
marketing plan is to employ the sure-to-grow method. #his process is a formali$ed
management control system that implements a gi"en business unit strategy by means of
acti"ities across four areas% financial& customer& internal business process and learning and
growth 'or inno"ation(.
F!SE

Difficulty: Challenging

). (p. 482) #he implementation of marketing strategy is affected by e*ternal organi$ations such
as strategic alliance partners& marketing consultants& ad"ertising and public relations firms&
channel members and other organi$ations participating in the marketing effort.
TRUE

Difficulty: Challenging

+. (p. 486) #he purpose of reports is to state the results that management is seeking and also
pro"ide a basis for e"aluating the strategy,s success.
F!SE

Difficulty: a!y

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Chapter 15 - Marketing Strategy Implementation and Control
5. (p. 487) Since many possible marketing performance criteria can be selected& management
must identify the key measures that will show how the firm,s marketing strategy is performing
in its competiti"e en"ironment and point to where changes are needed.
TRUE

Difficulty: Challenging

-. (p. 487) Marketing metrics use only e*ternal information about competitors to pro"ide a
structure for monitoring the effecti"eness of marketing acti"ities and strategies.
F!SE

Difficulty: a!y

.. (p. 48") /or strategic decision makers& the marketing dashboard should contain metrics related
to the main business dri"ers& the factors that directly and predictably affect performance and
should reflect the pipeline of growth ideas 0 how knowledge of customers is translated into a
strategy for sustaining growth 0 and re"iew the marketing talent pool.
TRUE

Difficulty: Moderate

1. (p. 4"#) Strategic e"aluation acti"ities seek to '1( identify opportunities or performance gaps
and '( a"oid planning actions that could correct e*isting problems.
TRUE

Difficulty: Moderate

2. (p. 4"1) !pportunity monitoring and problem identification might include the emergence of
concerns about en"ironmental and 3green3 issues in many countries.
TRUE

Difficulty: Challenging

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Chapter 15 - Marketing Strategy Implementation and Control
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Chapter 15 - Marketing Strategy Implementation and Control
14. (p. 4"3) 5fter identifying opportunities and performance gaps& management,s correcti"e
actions would ne"er include e*iting from a product-market or new-product planning.
F!SE

Difficulty: Moderate


Multiple Choi"e Questions

11. (p. 474) #he 66666 indicates marketing ob7ecti"es and the strategy and tactics for
accomplishing the ob7ecti"es and guides implementation and control.
# Strategic marketing plan
8. 5nnual marketing plan
C. Situation analysis
9. :ositioning strategy

Difficulty: a!y

1. (p. 474) #he 66666 guides short-term marketing acti"ities. 5n annual planning period is
necessary& since se"eral marketing acti"ities re;uire action within 1 months or less and
budgets also re;uire annual planning.
5. Strategic marketing plan
$# 5nnual marketing plan
C. Situation analysis
9. :ositioning strategy

Difficulty: a!y

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Chapter 15 - Marketing Strategy Implementation and Control
1). (p. 477) 5 set of factors influencing marketing strategy implementation is 66666 issues&
including the company,s marketing functions& control systems and policy guidelines.
# Structural
8. 5nnual marketing plan
C. Situation
9. :ositioning

Difficulty: a!y

1+. (p. 477) 5 set of factors influencing marketing strategy implementation is 66666 issues&
concerning marketing managers, skills in bargaining and negotiation& resource allocation and
de"eloping informal organi$ational arrangements.
5. Structural
$# 8eha"ioral
C. Situation
9. :ositioning

Difficulty: a!y

15. (p. 478) #he flat& fle*ible 66666 offer se"eral ad"antages in implementation& since they
encourage inter-functional cooperation and communication. #hese types are responsi"e to
changing conditions.
# !rgani$ation designs
8. Incenti"es
C. Communications
9. :lans

Difficulty: a!y

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Chapter 15 - Marketing Strategy Implementation and Control
1-. (p. 47") :erformance standards for the implementation must be fair and 66666 should
encourage something more than normal performance. /ocusing rewards on the achie"ement
of o"erall plan goals rather than indi"idual efforts is particularly rele"ant.
5. !rgani$ation designs
$# Incenti"es
C. Communications
9. :lanning

Difficulty: a!y

1.. (p. 47") <apid and accurate mo"ement of information through the organi$ation is essential in
implementation. Meetings& status reports and informal discussions help the 66666.
5. !rgani$ation designs
8. Incenti"es
C# Communications
9. :lanning

Difficulty: a!y

11. (p. 481) #he 66666 approach allows consideration of specific acti"ities which will
accomplish the ob7ecti"e& but also formally includes an assessment of the strategy component
across all aspects of the business unit at the same time.
# 8alanced scorecard
8. Incenti"es
C. Communications
9. Internal marketing

Difficulty: Moderate

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Chapter 15 - Marketing Strategy Implementation and Control
12. (p. 483) #he results of the 66666 pro"ide the basis for selecting performance criteria and
choosing rele"ant marketing metrics to assess actual performance against plans and strategic
intent.
# 8alanced scorecard
8. Strategic marketing audit
C. Communications
9. Internal marketing

Difficulty: Moderate

4. (p. 486) <easons for conducting a'n( 66666 include% starting an e"aluation program&
corporate restructuring& entry into new product and market areas& ac;uisitions and the impact
of Internet-based business models.
5. 8alanced scorecard
8. Communications plan
C# Strategic marketing audit
9. Internal marketing plan

Difficulty: Moderate

1. (p. 487) Marketing performance criteria needs to be established to monitor the total
performance of the marketing acti"ities. =hich of the following would not be in the
marketing total performance criteria>
5. Sales
8. :rofit
C# Human resources ;uality control
9. Market share

Difficulty: Moderate

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Chapter 15 - Marketing Strategy Implementation and Control
. (p. 487) :erformance criteria are needed for the marketing mi* components. =hich of the
following would not be in the marketing mi* performance criteria>
5. ?ew-customer and lost customer tracking
8. Compare actual to list prices
C. :rofit contribution
%# :roduction estimates

Difficulty: Moderate

). (p. 488) @roups of marketing metrics would not include 66666.
5. Customer profitability
8. Sales and channel effecti"eness
C# Human resources ;uality control
9. =eb acti"ities

Difficulty: Moderate

+. (p. 488) Cadbury Schweppes& in the Managing for Aalue program& some key measures
include% performance against strategic milestonesB market share. #his illustrates the use of
66666.
5. Customer profitability
8. CA:
C# Marketing metrics
9. C<M

Difficulty: Moderate

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Chapter 15 - Marketing Strategy Implementation and Control
5. (p. 488) /ord e"aluated sponsoring /errari in /ormula !ne by comparing attitudes toward
the Shell brand of those who were aware of the /errari link and those who were not illustrates
the use of 66666.
5. Customer profitability
8. Sales and channel effecti"eness
C# Marketing metrics
9. 5d"ertising effecti"eness

Difficulty: Moderate

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Chapter 15 - Marketing Strategy Implementation and Control
-. (p. 48") #he management 66666 takes its name by comparison with the instrument panel of
an automobile& which also presents key data in an easily understandable way.
# 9ashboard
8. Cockpit
C. Marketing metric
9. :9/

Difficulty: Moderate

.. (p. 48") #he attraction of the 66666 concept is to pro"ide decision makers with a reduced set
of "ital measures in a form that is easy to interpret and apply. 5d"anced software packages
can display critical information in easy-to-read graphics& assembled in real time from
corporate information system
5. Marketing metric
8. Cockpit
C# 9ashboard
9. :9/

Difficulty: Moderate

1. (p. 4"#) 5 66666 occurs when actual results achie"ed are different than planned results.
# Computer gap
8. :erformance gap
C. 9ashboard gap
9. Cockpit gap

Difficulty: a!y

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Chapter 15 - Marketing Strategy Implementation and Control
2. (p. 4"1) 9efining the 66666 is'are( 'a( critical factor's( that can be difficult to discern since it
is easy to confuse symptoms with causes.
5. Computer gap
8. :erformance gap
C. 9ashboard gap
%# :roblems and opportunities

Difficulty: Challenging

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Chapter 15 - Marketing Strategy Implementation and Control
)4. (p. 4"1) ?o matter how e*tensi"e the information resources may be& they cannot 66666. #his
is the responsibility of marketing management.
5. Calculate the data
8. Interpret the strategic importance of the information
C. <eport the information
%# :rioriti$e marketing metrics

Difficulty: Challenging


Essay Questions

)1. (p. 47$) C*plain the dimensions in managing marketing planning as a process.
#he analytical dimension of planning process consists of the tools for systematic planning 0
analytical techni;ues& formal procedures and systems 0 which are needed to de"elop robust
and tested plans and strategies.
#he beha"ioral dimension of planning is concerned with how managers percei"e planning
acti"ities and the strategic assumptions they make& as well as the degree and e*tent of
participation in planning.
#he organi$ational dimension of planning is concerned with the organi$ational structure in
which planning is carried out& along with the associated information resources and corporate
culture.
5ll these aspects of the planning process should be managed in a consistent way 0 the conduct
of planning should fit with other organi$ational characteristics& e*ecuti"es should be trained
and supported in de"eloping plans.

Difficulty: Moderate

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Chapter 15 - Marketing Strategy Implementation and Control
). (p. 4"7) =hat role can internal marketing play in enhancing the effecti"eness of
implementation>
!ne interesting approach to enhancing strategy implementation effecti"eness is the adoption
of internal marketing methods. Internal marketing in"ol"es% de"eloping programs to win line
management support for new strategiesB changing the attitudes and beha"ior of employees
working at key points of contact with customersB and& gaining the commitment of those whose
problem-sol"ing skills are important to superior e*ecution of the strategy. <esearch suggests
many organi$ations fail to deli"er their planned brand e*perience because of insufficient
internal marketing.

Difficulty: a!y

)). (p. 481) How can the 3balanced scorecard3 methods assist managers in their implementation
efforts>
#he balanced scorecard pro"ides a framework to minimi$e such an occurrence by
encouraging implementation of a common strategy& which is communicated and coordinated
across all ma7or areas of the organi$ation.
#he 3balanced3 component of the balanced scorecard reflects the need to consider how all
areas of the organi$ation function together to achie"e a common goal of strategy
implementation.
5 benefit of the balanced scorecard is that an often aggregate& broadly-defined strategy is
translated to "ery specific actions. #hrough e*ecution and monitoring of these actions&
management can assess the success of the strategy and also modify and ad7ust the strategy if
necessary.
5 benefit of the balanced scorecard methodology is that it is feasible for any business unit
le"el strategy and pro"ides a means to link performance e"aluation to strategy
implementation.

Difficulty: Challenging

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Chapter 15 - Marketing Strategy Implementation and Control
)+. (p. 487) C*plain the importance of marketing metrics.
In the ma7ority of organi$ations& marketing e*ecuti"es are under growing pressure to
demonstrate their contribution to firm performance. #his pressure reflects a mandate for
greater accountability in the use of company resources& but also impacts the professional
standing of the marketing organi$ation within the firm. #he goal is to make better causal links
between marketing acti"ities and financial returns to the business. <esearch suggests that the
ability to measure marketing performance& through appropriate systems and metrics& is
significantly and positi"ely related to company performance& profitability& stock returns and to
marketing,s stature within the organi$ation.

Difficulty: Moderate

)5. (p. 4"3%4"4) C*plain the use of simplifying assumptions in international marketing planning.
International plans fre;uently make simplifying assumptions to cope with the additional
comple*ity of planning for the global situation. /or e*ample& global plans often use regional
identities as the planning unit. Many companies refer to 3CMC53& as a global market for
which plans are formed. CMC5 stands for Curope& Middle Cast and 5frica. #his region
contains country-markets which are substantially different in economic de"elopment&
infrastructure and culture. =hile regional plans may be a necessity& it is important to look in
more detail at the countries and cultures within these regions to identify opportunities and
trends. #he same applied to designations like 3:<53 ':acific <im and 5sia3 or 3<!=3 <est
of =orld 0 all areas outside the domestic market(.
:lanning globally must also accommodate more substantial "ariation in marketing strategies
and programs than is the case domestically. Situations will differ regarding the balance
between standardi$ing strategy internationally and adapting to local market conditions& but it
is important that the chosen le"el of adaptation and "ariability should not be obscured by the
way in which plans are constructed. Strategy "ariation between markets may be e*treme.

Difficulty: Challenging

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