Chapter 17:

Marketing
Performance
Measurement

PowerPoint by:
Ray A. DeCormier, Ph.D.
Central Ct. State U.

Astute marketers evaluate the profitability of alternative

segments and assess their marketing mix to isolate problems
and opportunities and, if necessary, alter strategy. From this
chapter you will understand:

1.

A system for converting a strategy vision into a concrete set of

performance measures.

2.

The function and significance of marketing control in business

marketing management.

3.

The components of the control process.

4.

The distinctive value of dashboards for evaluating marketing

strategy performance.

5.

The importance of execution to the success of business

marketing strategy.

When Marketing Strategies Go Wrong?

When companies fail to deliver on their
promises, who or what made the mistake?

Was it the CEO?

Marketing VP?
Sales VP?
Who caused it? What happened?

Often, it is because the strategy was not

executed well.

Have you ever wanted to coach a sports

team?
How about a baseball, basketball, hockey,
soccer, field hockey, or football team?
Managing a B2B Marketing team is like
being a B2B coach!

The CEO is like being the head manager a football team.

The marketing manager is the team coach.

The sales manager is the offensive coach.

The salesperson is the quarterback.

The rest of the players are part of the team.

Implementing a marketing program is like executing a play book.

Implementing a strategy is like implementing a series of downs.

Implementing a tactic is like implementing a play.

Sports Analogy (cont)

The challenge is to select the correct strategy such

as Should we focus on running or passing?

What are the other teams strengths and
weaknesses and what are our strengths and
weaknesses?
What plays should we employ to exploit the
oppositions weaknesses and check their strengths?
Business marketers do this same type of thinking

when responding to customer needs and dealing

with competitive influences.
6

Half the job is developing & implementing the

strategies.

The other half is assessing whether or not the

strategy(s) worked!

In order to find out, it is imperative that a reporting

and marketing control system be part of the plan.

According to James Harrington, Quality

advisor of Ernst & Young:
Measurement is the first step that leads to
control, and eventually to improvement.
If you cant measure something, you cant
understand it!
If you cant understand it, you cant control
it!
If you cant control it, you cant improve it.

Chief Marketing Officer (CMO) Council

CEOs & Boards of Directors demand that CMOs

improve:
Relevance
Accountability
Performance of their marketing organizations
Key Importance: To prove marketings value there

needs to be a measuring tool that provides key

measures of performance. This can help:
1. Improve marketings efficiency.
2. Improve marketings effectiveness.
This ranks among top challenges for CMOs.

Marketing Control Systems should provide information for:

1. Assessing and/or revising current strategy
2. Formulation of a new strategy
3. Allocating funds

A control system needs to:

1. Continuously collect data about appropriate
performance measures
2. Monitor the quality of strategy implementation

Checks actual against planned performance by

evaluating profitability of products, customer
segments, and territories.
1.
2.
3.
4.

Develop the strategy

Implement it
Control it
Understand the whole process
Its a necessary but very difficult task.

Again,

Lets

this is a difficult task!

see how its done!

One way to understand the nature of a strategy

is to understand the Balanced Scorecard
because it focuses on 4 important areas:

1. Financial

Perspective
2. Customer Perspective
3. Internal Perspective
4. Learning and Growth Perspective

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

This section describes financial growth & productivity outcomes

for a certain purpose:
This pinpoints the chain of logic by which intangible assets will
be transformed into tangible value.

I.

Purpose

Increase Shareholder Value

II. Financial growth outcomes, to name a few, include:

a. % Profit from sales
b. Sales growth
III.Productivity outcomes, to name a few, include:
a. Lower operating costs
b. Inventory turns

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

Defines the strategies on how the firm proposes to

deliver a competitively superior value proposition to
the targeted customer.
Clarifies the conditions that create value for the
customer.

It could include:
a. Moving product image from commodity to branded
product
b. Personalized customer service
c. Utilize Partners (Distributors or manufacturing reps)

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

3. Internal Perspective
This describes the business processes that directly

affect the chosen strategies.

This level transforms intangibles assets into customer
and financial outcomes such as:
Customer Relationship Management
Innovation Management
Operations Management
Supply Chain Management
Regulatory & Social Processes Management

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

4. LEARNING & GROWTH PERSPECTIVE

This describes the human, information

and organizational capital to support
value creating internal processes.

This defines the intangible assets that

must be aligned and integrated to create
value.

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

DEVELOPING THE STRATEGY

STEP 1: FINANCIAL AND GROWTH GOALS

The ultimate goal is to build shareholder value.

We might start with setting two major goals:

Financial & Productivity

a. Long term financial goals
b. Long Term productivity goals

Next, we establish short-term goals for each area

to form a value gap, which is the difference
between a future desired state and the present
reality state.

Step 1: Financial & Productivity Growth Goals

The difference between long and short term goals must

be realistically analyzed because if its too much, itll

discourage the organization from achieving it.
The goals must be functionally related and logical. For

example, if you increase sales productivity, does it

directly relate to more units sold and an increase in
sales?
To achieve the large goals, set a number of smaller goals

on a time line that work towards achieving the larger

ones.

Step 1: Financial & Productivity Growth Goals

Financial Goals:
1.

2.

a.
b.

Large goal: Increase net worth 30% over 3

yrs.
Smaller goal: Increase net worth by 10%/yr.
Large: Increase sales by $2.1M within 3 yrs.
Smaller: Increase sales by $700K/yr.

Step 1: Financial & Productivity Growth Goals

Productivity Goals:
Large: Reduce operating costs by 15% in 3yrs.
Small: Reduce operating costs by 5% per/yr.

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

From
Commodity
to Solution

Image

Internal
Perspective

Relationship

Improve Customer Experience

Relationship
Marketing

Mass
Customization

Personalized
Customer
Service

Trusted
Partner

Innovation

Learning and
Growth
Perspective

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

If you want to achieve increased sales

(Step 1: $700K/yr) youll need to:

Get new customers or

Increase the business from customers
you already have.

To do that, you need to clearly and

explicitly develop or promote your core
Customer Value Proposition (CVP).

 Four key customer value propositions

( recall from Ch. 7):

1. Low Total Costs
2. Product Leadership Innovation
3. Complete Customer Solutions
4. Lock In (once a prospect is a customer, the

strategy is to keep him a customer)

 Say

we adopt Low Total Costs.

What
It
a.
b.
c.
d.

does that mean to the customer?

means our strategy will offer:

Attractive prices
Excellent & consistent quality at same or lower prices
Ease of purchase
Responsive service and more around reducing costs
for the customer!

Step 3: Establish Time Line for Results

To coordinate the plan, start with long-term financial

goals and break them into short term time frames.
The marketing plan might present them in weekly,
monthly and annual terms.

Break down the short term financial goals in terms of

activity. What does increased sales mean in terms of
activity? Does it mean:
a.
Add more sales people?
b.
Develop more customers with present sales
people?
c.
Do more business with present customers?

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

STEP 4: IDENTIFY CRITICAL STRATEGIC THEMES

Each customer value proposition is interpreted into

the companys internal process objectives:

Internal process objectives support two critical

elements of a companys strategy:
1. To create and deliver the customer value
proposition to the customer.
2. To improve various internal operating processes
to reduce costs and enrich the productivity
component from a financial perspective.

Step 4: Identify Critical Strategic Themes

Internal Business Processes include:

1. Innovation

Management
2. Customer Management
3. Operations Management

Balanced Scorecard: Boise Office Solutions Strategy Map

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

Recall From Step 2 above:

Customer Value Proposition
Four Key Customer Value Propositions
(Ch. 7)
1.Low Total Costs
2.Product Leadership Innovation
3.Complete Customer Solutions
4.Lock In (once a prospect is a
customer, the
strategy is to keep him a customer)

CVP Strategy

The Focus of Internal Business Processes

Operations Management Customer Relationship Management

Innovation Management

Low Total Cost Strategy

Highly Efficient Operating

Processes
Efficient, Timely Distribution

Ease of Customer Access

Superb Post-Sales Service

Seek Process Innovations

Gain Scale Economies

Product Leadership
Strategy

Flexible Manufacturing
Processes
Rapid Introduction of
New Products

Capture Customer Ideas for

New Offering
Educate Customers about Complex
New Products/Services

Disciplined, High-Performance
Product Development
First-to-Market

Complete Customer
Solutions Strategy

Deliver Broad Product/

Service Line
Create Network of Suppliers
for Extended Product/
Service Capabilities

Create Customized Solutions

for Customers
Build Strong Customer
Relationships
Develop Customer Knowledge

Identify New Opportunities

to Serve Customers
Anticipate Future Customer
Needs

Lock-in
Strategies

Provide Capacity for

Proprietary Product/
Service
Reliable Access and
Ease of Use

Create Awareness
Influence Switching Costs of
Existing and Potential
Customers

Develop and Enhance

Proprietary Product
Increase Breadth/
Applications of Standard

Source: Adapted from Robert S. Kaplan and David P. Norton, Strategy Maps: Converting Intangible Assets into Tangible Outcomes (Boston: Harvard
Business School Publishing Corporation, 2004), pp. 322-344.

Step 5: Identify Human, Informational and

Organizational Resources to Support Strategy

Step 5 is concerned with the learning &

growth level of the Balanced Scorecard.
The three principal drivers are:
1.Human Capital
2.Information Capital
3.Organizational Capital

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Human Capital
Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Information Capital
Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Organizational Capital
Align Organization

Communicate customer vision

Align incentives to vision

Step 5: Identify Human, Informational and

Organizational Resources to Support Strategy
Step 5 addresses the issue:
How ready is the organization to support the

internal processes that drive the strategies?

This step makes sure that everyone is aligned with

the strategy by assuring they are trained and have

the necessary information technology and
incentives in place to implement it.

Step 6: Develop an Action Plan

Develop an action plan that provides funding for

each strategic initiative.

By doing so, this supports the overall strategy in

a coordinated fashion.

The outcome will result in an integrated bundle

of investments. This idea is similar to a concept
called Zero Based Budgeting

Translating the 6 Steps

Using this strategy MAP coupled with
measurements of both activity and financial
measures throughout each level
1. Clearly describes the strategy

2. Details objectives at critical internal

processes that creates value

3. Provides resources to implement the
strategy in an integrated way
to achieve financial and productivity goals.

Productivity
Strategy

Growth Strategy

Financial
Perspective

Increase
Shareholder
Value

Create Profitable
Customer
Revenues

Lower
Operating
Costs

Create Distinctive Customer Value by Enhancing the Customer Relationship

Customer
Perspective

Internal
Perspective

From
Commodity
to Solution

Trusted
Partner

Image

Relationship

Improve Customer Experience

Mass
Customization

Relationship
Marketing

Innovation

Learning and
Growth
Perspective

Personalized
Customer
Service

Seamless
Access

Service

Leverage Customer Service

Personalized,
Proactive
Service

First Time
Right

Customer Management

Functionality

Rationalize Operations
Migrate to
Appropriate
Channels

Streamline
Processes,
Business,
and Brands

Operational Excellence

Manage Organizational Change

Enhance Our
People

Develop new capabilities

Identify new roles and responsibilities

Integrate Key
Technologies

Create CRM platform

Build management and customer reporting

Align
Organization

Communicate customer vision

Align incentives to vision

Marketing Strategy: Allocating Resources

The purpose of a marketing

strategy is to yield results from
invested resources. Results
might include:
1.

2.
3.
4.
5.

6.

Profit contribution
% Market share
Increase new customers
Cost to serve customers
Sales
increase/customer
Various other goals

Interrelated Evaluations

In order to do this, there

are four interrelated
evaluations which are
required to design a
marketing strategy!

They are

1
3

How much should we

spend on marketing in
the planned period?

Within each marketing

strategy element, how should
we best allocate dollars to
best achieve our marketing
objectives? (E.g., Advertising
media choices?)

How should we allocate

marketing dollars?
(E.g., Advertising,
personal selling, both?)

Which market
segments, products,
and geographic areas
will be most profitable?

 After

allocating resources, it is important to

compare actual to planned and analyze the
differences.

Performance
Address
What

is measured in $$$ & in activity.

deviations above/below planned.

caused the difference?

Level of Marketing Controls

Table 17.1

Control process is universal--can be applied to any level of marketing analysis.

Further, management must evaluate resource allocation within each particular element.

Strategic control is based on a comprehensive evaluation of whether or

not the firm is headed in the right direction.

Are we achieving our planned goals?

One way to assess success is to do a marketing audit. It should be:

Comprehensive
Periodic
Systematic evaluation of marketing operations

It considers both the marketing environment & internal marketing

activities
Environment includes company image, customer characteristics,
competitive activities, regulatory constraints & economic trends
Internal Marketing activities includes marketing objectives,
organization and implementation

Is a business strategy that provides performance

feedback regarding the results of marketing
efforts.

Companies with strong MPM programs

outperformed competitors.
They had a positive influence on return on assets
(ROA).
CEOs were pleased with the results.

A list of key metrics that provides

management with information to track
progress on marketing performance to
business outcomes.
Example: Track no. of letters sent out and
measure the number of qualified leads it
generated.
How many of these leads actually resulted in
new sales? Repeat sales?

The metrics will vary depending upon the organization.

Company must try to understand what are:

True Business Drivers, and
Ones that can be manipulated

Drives might be:

Share of wallet to measure performance relative to
competition
Customer average expenditure to measure lifetime value
Customer loyalty to measure how customer feels about
relationship

Marketers need to:

Define key performance drivers
Know where to find the data

Information will come from:

Accounting
CRM programs
Specific collection of information

Information needs to be relevant and related to what

the marketing strategy is trying to accomplish.

1.
2.
3.
4.

Foster decision making the metric should

suggest a course of action to be followed.
Provide a unified view of marketings value
to the business.
Enable better alignment between marketing
and business.
Translate complex measures in to a
meaningful and coherent set of information.

Table 17.2 Examples of Macrosegmentation:

Aircraft Industry

Dashboard Metrics: Operation and Execution

Operation metrics include:
Marketing budget ratio: Marketing costs/Sales
Program: Program (personal selling-ad costs)/Sales
Awareness to Demand ratio:

% of Marketing costs to awareness building vs. demand

generation

Execution metrics determine how effectively the

marketing strategy is being executed

Are we building awareness?
Are we creating and attaining new business?
Are we keeping our old customers satisfied?
Are we closing deals?

 Sales by market segments

Contribution margin

Sales relative to potential

Percentage of total profits

Sales growth rates

Return on investment

Market share

Table 17.3

 Sales, expenses, and contribution by channel type

Sales and contribution margin by intermediary type and

individual intermediaries
Sales relative to market potential by channel, intermediary

type, and specific intermediaries

Expense-to-sales ratio by channel
Logistics cost by logistics activity by channel

Table 17.3

Advertising effectiveness by media type

Actual audience/target audience ratio

Cost per contact

Number of calls, inquiries, and information requests by media type

Dollar sales per sales call

Sales per territory relative to potential sales

Selling expenses to sales ratios

New accounts per time period

Table 17.3

Price changes relative to sales volume

Discount structure related to sales volume

Bid strategy related to new contracts

Margin structure related to marketing expenses

General price policy related to sales volume

Margins related to channel member performance

Table 17.3

Activity & Profitability Control

Activity-Based Costing (ABC method)

Its an accounting system that links costs with

various activities.

This method allocates costs to particular

activities, customers, market segments.

Example:
a. How much sales ($$$ & units)/customer.
b. How much does it cost to service a customer?
c. What is the right mix?

PROFITABILITY CONTROL:
BENEFITS OF ABC
The

ABC method allows the business

manager to focus on increasing
profitability by:

a.

b.

Understanding the sources of cost

variability
Developing strategies to:
1. Reduce resource commitment
2. Enhance resource productivity

 Q:

If it is too expensive to service a

customer, how can we reduce that cost,
make the salesperson more effective, and
still have a profitable customer?

A:

One way is to set up internal systems to

recognize the problem and train the
salesperson to handle this situation so
he/she can get the customer to increase his
weekly order to a profitable order size.

Implementing the Marketing

Strategy

Marketing plans fail, not because they were not good, but
because management implemented them poorly.

Implementation is the link between strategy formulation

and performance!

Implementation is the process that translate plans into

action!

Good marketing implementation is the process that

assures that functional assignments are in line with the
overall marketing strategy.

Politics: The Ultimate Problem

Often times, politics creates challenges for

even the best plans.

Because of diverse functional areas that

participate in the planning and

implementation process, certain challenges
emerge.
Thomas Bonoma asserts that there are four

implementation skills that effective

marketing managers should employ to
lessen these concerns.

Interacting

Allocating

Monitoring

Organizing

#1 Interacting

#2 Allocating

Marketing managers

Allocating skills include

interact with internal and

external peers.
Best people have:

Good bargaining skills

Referent power skills

controlling time,
resources and people to
get the marketing job
done.

Monitoring & Organizing

#3 Monitoring

#4 Organizing

Marketing managers who

demonstrate flexibility,
understand the firms
information & control
systems (manage by
numbers) can manage
with/without formal
control systems
inadequacies.

Best managers know

how to organize and
motivate both:
Formal and
Informal groups

Marketing Strategy Implementation Guide

The following chart views interrelationships

between various functional groups within an
organization.

Marketing Specialists understand marketing.

Other functional specialists understand the nuts

and bolts of their areas.

The objective is to bring them together to form a

synergistic pooling of knowledge.

Table 17.4
Decision
Area

Marketing

Sales

Manufacturing

R&D

Purchasing

Physical
Distribution

Technical
Service

S B Us

Product/
Service
Quality
Technical
Support

Physical
Distribution

National
Account
Management
Channel
Relations

Sales Support

Product /
Service
Innovation

Abbreviations to indicate decision roles: R = Responsible; A = Approval;

C = Consult; M = Implement; I = Inform; X = No role in decision

Corp. Level
Planner

Marketers Role is to:

1. Insure maximum customer satisfaction.
2. Develop strategies to facilitate a desired

market response (facilitate exchange).

To do this, marketers:
A. Assume an active role in creating strategy
B. Coordinate strategies with other functional
members
C. Are the ones who integrate the collective
strength of the enterprise to satisfy
customer needs profitably!

Recap
Once the marketing strategy is formulated,

manager needs to evaluate responses from

target markets.
The marketer will look for discrepancies between

planned and actual performance.

The marketing control system facilitates this task

and enables the marketer to reassess business

opportunities and make adjustments as needed
in either strategy and/or execution.

The Big Picture

The next frame (fig. 17.2) synthesizes the material discussed

in this book.
I.
II.
III.

IV.

V.

Part 1 introduced major customer classifications.

Part 2 focused on organizational buying behavior &
customer relationship management.
Part 3 discussed assessing marketing opportunities to
include identifying, measuring and forecasting sales by
market segments.
Part 4 paid attention to challenges and opportunities that
rapidly developing economies (RDEs) present to B2B
firms.
Part 5 explored various dimensions of the marketing
control process.

Fig. 17.2

Chapter 17:
Marketing Performance Measurement

Business Marketing Management B2B 10e

Michael D. Hutt
Arizona State University

Thomas W. Speh
Miami University

PowerPoint presentation by
Ray A. DeCormier, Ph.D.
Central Connecticut State University