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Chapter 18 Themes Chapter 18 Themes for Class Discussionfor Class Discussion

Measuring and Delivering Measuring and Delivering

Marketing PerformanceMarketing Performance

Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

18-2Planning and Planning and implementation are implementation are

important, but important, but resultsresults are are what count. So, what what count. So, what

systems should marketing systems should marketing managers put into place to managers put into place to ensure that planned results ensure that planned results

are actually delivered? are actually delivered?

What’s their purpose?What’s their purpose?

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Five Key Questions For Five Key Questions For Designing Control Systems to Designing Control Systems to Manage Marketing Manage Marketing PerformancePerformance

• Who needs what information?Who needs what information?

• When and how often is it needed?When and how often is it needed?

• In what media and in what formats In what media and in what formats should it be provided?should it be provided?

• Does you system of marketing metrics Does you system of marketing metrics measure up?measure up?

• What contingencies should be planned What contingencies should be planned for?for?

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Q1: The Heart of the Q1: The Heart of the Control System: Control System: WhoWho

needs needs whatwhat information?information?

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In most In most organizations,organizations,what what

sort of informationsort of information is is needed about needed about

marketing marketing performance?performance?

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In most In most organizations,organizations,who who needs information needs information about marketing about marketing

performance?performance?

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Q2: Q2: WhenWhen and and how how oftenoften is the is the

information needed?information needed?

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Q3: In what media and in what Q3: In what media and in what formats should information be formats should information be provided? Three key issues provided? Three key issues here:here:

• Printed or electronic?Printed or electronic?

• Available in the office or anywhere?Available in the office or anywhere?

• Format and level of aggregation Format and level of aggregation – In what sequence should data be reported, In what sequence should data be reported,

to call attention to that requiring action? to call attention to that requiring action? – What summaries do the decision makers What summaries do the decision makers

need?need?

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Q4: Does your system Q4: Does your system of marketing metrics of marketing metrics

measure up?measure up?

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Q5: What Q5: What contingencies should contingencies should

be planned for?be planned for?

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Exhibit 18.2Exhibit 18.2

The Control ProcessThe Control Process

Setting standards of performanceSetting standards of performance

Specifying the necessary feedback dataSpecifying the necessary feedback data

Obtaining the needed control dataObtaining the needed control data

Evaluating feedback data -- explaining gapEvaluating feedback data -- explaining gapbetween actual and given standards of performancebetween actual and given standards of performance

Taking corrective actionTaking corrective action

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Exhibit 18.14Exhibit 18.14

The Contingency Planning ProcessThe Contingency Planning Process

Identifying critical assumptions about the futureIdentifying critical assumptions about the future

Measuring probability of each critical assumption’s Measuring probability of each critical assumption’s being rightbeing right

Rank ordering of critical assumptionsRank ordering of critical assumptions

Tracking/monitoring of action planTracking/monitoring of action plan

Setting triggers to activate contingency planSetting triggers to activate contingency plan

Specifying alternative response optionsSpecifying alternative response options

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Finally, what are the Finally, what are the merits of continuous merits of continuous performance performance measurement systems measurement systems versus periodic versus periodic marketing audits? marketing audits?

Are both needed? Are both needed?

Why or why not?Why or why not?

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Some Advice on Designing Some Advice on Designing Control Systems for Control Systems for Managing Marketing Managing Marketing PerformancePerformance• A well-designed control system can provide A well-designed control system can provide

competitive advantage. Ask yourself, “What competitive advantage. Ask yourself, “What critical data do my competitors have, and critical data do my competitors have, and when?” Can I compete based on better or when?” Can I compete based on better or more timely information? more timely information?

• ““What gets measured gets done.” Measure What gets measured gets done.” Measure the things you want your people to pay the things you want your people to pay attention to.attention to.