Marketing implementation is the process of executing marketing strategies. Although implementation is often neglected in favor of strategic planning, the implementation process itself can determine whether a marketing strategy succeeds. It is also important to recognize that marketing strategies almost always turn out differently than expected. In essence, all organizations have two types of strategy: intended strategy and realized strategy.38 The intended strategy is the strategy the organization decided on during the planning phase and wants to use, whereas the realized strategy is the strategy that actually takes place. The difference between the two is often the result of how the intended strategy is implemented. For example, Chrysler’s PT Cruiser was marketed originally to young drivers, but the retro-styled vehicle ultimately proved more popular with their nostalgic baby boomer parents. Just 4 percent of the PT Cruiser’s buyers were from the car’s intended target market of drivers under age 25.39 The realized strategy, though not necessarily any better or worse than the intended strategy, often does not live up to planners’ expectations
Approaches to Marketing Implementation
Just as organizations can achieve their goals by using different marketing strategies, they can implement their marketing strategies by using different approaches. In this section we discuss two general approaches to marketing implementation: internal marketing and total quality management. Both approaches represent mindsets that marketing managers may adopt when organizing and planning marketing activities. These approaches are not mutually exclusive; indeed, many companies adopt both when designing marketing activities.
Internal Marketing External customers are the individuals who patronize a business the familiar definition of customers whereas internal customers are the company’s employees. For implementation to succeed, the needs of both groups of customers must be addressed. If internal customers are not satisfied, it is likely that external customers will not be either. Thus, in addition to targeting marketing activities at external customers, a firm uses internal marketing to attract, motivate, and retain qualified internal customers by designing internal products (jobs) that
Approaches to Marketing Implementation
Just as organizations can achieve their goals by using different marketing strategies, they can implement their marketing strategies by using different approaches. In this section we discuss two general approaches to marketing implementation: internal marketing and total quality management. Both approaches represent mindsets that marketing managers may adopt when organizing and planning marketing activities. These approaches are not mutually exclusive; indeed, many companies adopt both when designing marketing activities.
Internal Marketing External customers are the individuals who patronize a business the familiar definition of customers whereas internal customers are the company’s employees. For implementation to succeed, the needs of both groups of customers must be addressed. If internal customers are not satisfied, it is likely that external customers will not be either. Thus, in addition to targeting marketing activities at external customers, a firm uses internal marketing to attract, motivate, and retain qualified internal customers by designing internal products (jobs) that
satisfy their wants and needs. Internal marketing is a management philosophy that coordinates internal exchanges between the organization and its employees toachieve successful external exchanges between the organization and its customers. Generally speaking, internal marketing refers to the managerial actions necessary to make all members of the marketing organization understand and accept their respective roles in implementing the marketing strategy. Thus marketing managers need to focus internally on employees as well as externally on customers. This means that everyone, from the president of the company down to the hourly workers on the shop floor, must understand the role they play in carrying out their jobs and implementing the marketing strategy. At Starbucks, all employees get training and support, including health care benefits, and this fosters an organizational culture founded on product quality and environmental concern. In short, anyone invested in the firm, both marketers and those who perform other functions, must recognize the tenet of customer orientation and service that underlies the marketing concept.
As with external marketing activities, internal marketing may involve market segmentation, product development, research, distribution, and even public relations and sales promotion.For instance, an organization may sponsor sales contests to inspire sales personnel to boost their selling efforts. Motorola, for example, took its MotoZone mobile consumer promotional tour to eight corporate campuses to permit employees to tour the demo areas, experience the products, and play games for prizes. Such efforts help employees (and ultimately the company) to understand customers’ needs and problems, teach them valuable new skills, and heighten their enthusiasm for their regular jobs. In addition, many companies use planning sessions, websites, workshops, letters, formal reports, and personal conversations to ensure that employees comprehend thecorporate mission, the organization’s goals, and the marketing strategy. The ultimate results are more satisfied employees and improved customer relations.
Total Quality Management Quality has become a major concern in many organizations, particularly in light of intense foreign competition, more demanding customers, and poorer profit performance owing to reduced market share and higher costs. To regain a competitive edge, a number of firms have adopted a total quality management approach. Total quality management (TQM) is a philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers’ perceptions of quality. Indeed, research has shown that both quality orientation and marketing orientation are sources of superior performance.44 TQM involves coordinating efforts to improve customer satisfaction, increase employee participation and empowerment, form and strengthen supplier partnerships, and facilitate an organizational culture of continuous quality improvement. TQM requires continuous quality improvement and employee empowerment.
Continuous improvement of an organization’s goods and services is built around the notion that quality is free; by contrast, not having high-quality goods and servicescan be very expensive, especially in terms of dissatisfied customers. A primary tool of the continuous improvement process is benchmarking, the measuring and evaluating of the quality of the organization’s goods, services, or processes as compared with the quality produced by the best-performing companies in the industry. Benchmarking fosters organizational “learning” by helping firms to identify and enhance valuable marketing capabilities. It also helps an organization to assess where it stands competitively in its industry, thus giving it a goal to aim for over time.
Total Quality Management Quality has become a major concern in many organizations, particularly in light of intense foreign competition, more demanding customers, and poorer profit performance owing to reduced market share and higher costs. To regain a competitive edge, a number of firms have adopted a total quality management approach. Total quality management (TQM) is a philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers’ perceptions of quality. Indeed, research has shown that both quality orientation and marketing orientation are sources of superior performance.44 TQM involves coordinating efforts to improve customer satisfaction, increase employee participation and empowerment, form and strengthen supplier partnerships, and facilitate an organizational culture of continuous quality improvement. TQM requires continuous quality improvement and employee empowerment.
Continuous improvement of an organization’s goods and services is built around the notion that quality is free; by contrast, not having high-quality goods and servicescan be very expensive, especially in terms of dissatisfied customers. A primary tool of the continuous improvement process is benchmarking, the measuring and evaluating of the quality of the organization’s goods, services, or processes as compared with the quality produced by the best-performing companies in the industry. Benchmarking fosters organizational “learning” by helping firms to identify and enhance valuable marketing capabilities. It also helps an organization to assess where it stands competitively in its industry, thus giving it a goal to aim for over time.
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