Process: Implementing, monitoring, and controlling developing a financial forecast; comparing actual and planned results, revising the marketing strategy Flashcards
What is implementation?
Implementation is the process of putting the marketing strategies into operation.
What is monitoring?
Monitoring is checking and observing the actual progress of the marketing plan. This requires gathering information and reporting on any changes, problems or opportunities.
What is controlling?
Controlling involves the comparison of planned performance against actual performance and taking corrective action to make sure the objectives are attained.
Outline what is to be accomplished: establish a key performance indicator (KPI). A KPI is a forecast level of performance against which actual performance can be compared. E.g, a KPI could be to increase monthly sales by 5%
Compare or evaluate actual performance against the KPI. Budgets, sales statistics and cost analyses can be used to evaluate results.
Comparing actual vs planned results
Three performance indicators used to measure the success of the marketing plan are
Sales analysis: Uses sales data to evaluate a business current performance and show the effectiveness of a a marketing strategy
Market share analysis: By undertaking a market share analysis, a business is able to evaluate its marketing strategies as compared with those of its competitors.
This evaluation can reveal whether changes in total sales, either increases or decreases, have resulted from the business’s marketing strategies or have been due to some uncontrollable external factor.
Businesses place a great deal of importance on analysing market share statistics — a 1 per cent fall in market share can represent millions of dollars in lost sales.
Marketing provability analysis: The business breaks down total market cost into specific marketing activities with the results achieved, a marketer can decide how successful each strategy is.
Revising the market strategy
Product modification - No product is perfect. Businesses that continually upgrade their products will be able to maintain a competitive advantage.
Price modification - Prices fluctuate due to a variety of reasons. Therefore, the price component of the marketing mix will need to be revised in response to changes in the external business environment.
Promotion modification - Promotion costs will be high when a new product is first launched onto the market. During the later stages of the product’s life cycle, promotion costs may stabilise and even fall during the decline stage.
Place modification - As a product’s success increases, distribution channels need to be expanded. New global markets may be tapped into.
New product deletion - All products have a lifespan of somewhere between 5 to 10 years. Therefore, if a business wants to achieve long-term growth, it must continually introduce new products.
Product deletion - To maintain an effective product mix, a business will have to eliminate some lines of products. This is called product deletion. Out-dated products may create an unfavourable image and this negativity may spread to other products sold by the business.
Ikea Case study: revising the marketing strategy
Product modification
E.g. tundra has terrible breaks so buyers can replace them at toyota dealership
Price modification
Toyota bases price off of the market - prices were lowered from covid
Place modification
Cost of production in Australia to high plus lack of employee willing to work in manufacturing
Promotion modification
the All-Electric bZ4X is being promoted through YouTube car reviews and through online articles reporting about it’s futuristic model
New product development
All-New, All-Electric bZ4X ( an electric SUV )
All-New C-HR (Hybrid SUV)
Product deletion
The MR2, Carina, Brevis, Starlet, Supra, FJ cruiser
