Does It Pay to Advertise in Print?
9 Ways to Improve Results
By Vanessa Richardson
June 12, 2008
You don't need to run big ads
Tout your achievements
Your pay-off may take a while
For the full article
http://www.financial-planning.com/asset/article/606811/does-pay-advertise-print.html?pg=
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Sunday, August 31, 2008
Saturday, August 30, 2008
Relationship Manager Compared to Salesman
Salesmen are oriented to transaction selling. Transaction selling refers to focus on a single transaction. Salesman identifies a prospect, approaches him and motivates him to complete the buying process. The emphasis is in on the need or want for the product and the fulfillment of the want through the salesman and the product that he is offering.
Relationship selling or relationship marketing or relationship management focuses on the customer for establishing a long-term relationship. In acquiring the customer, the company would like to demonstrate to the account that it has the capabilities observe the account’s needs in a superior way, if the two parties can for a committed relationship. Kotler (1997) identified SPIN selling as technique to be used in relationship development.
As companies offer multiple products and services, the emphasis is moving from transaction marketing or selling to relationship marketing. Customers prefer suppliers who can sell and deliver a coordinated set of products and services to many locations if required. Relationship managers are given the responsibility to manage the sales of variety of products to customers on a long-term relationship basis. Relationship managers have to understand the needs of the customers on a long-term basis, make useful suggestions to them in respect of the product that their company is selling, and then monitor these accounts to make sure that their needs are being met with the products/services supplied to them and be ready to provide the after-sale-service as required. Losing a customer is very costly to the company. Relationship manager is entrusted with the responsibility of maintaining the long-term relationship.
Relationship manager is no doubt a salesman but with a different outlook and attitude. He needs a different training. He is responsible for the client, is the focal point of all the information about the client, is the provider of all the company information to the client, and he is the mobilizer of all the company services for satisfying the client.
In a properly implemented relationship management system, the organization will focus as much on managing its customers as on managing its products to fulfill the revenue targets.
References
Kotler, Philip (1997), Marketing Management, 9th Ed., Prentice Hall, New Jersey.
Relationship selling or relationship marketing or relationship management focuses on the customer for establishing a long-term relationship. In acquiring the customer, the company would like to demonstrate to the account that it has the capabilities observe the account’s needs in a superior way, if the two parties can for a committed relationship. Kotler (1997) identified SPIN selling as technique to be used in relationship development.
As companies offer multiple products and services, the emphasis is moving from transaction marketing or selling to relationship marketing. Customers prefer suppliers who can sell and deliver a coordinated set of products and services to many locations if required. Relationship managers are given the responsibility to manage the sales of variety of products to customers on a long-term relationship basis. Relationship managers have to understand the needs of the customers on a long-term basis, make useful suggestions to them in respect of the product that their company is selling, and then monitor these accounts to make sure that their needs are being met with the products/services supplied to them and be ready to provide the after-sale-service as required. Losing a customer is very costly to the company. Relationship manager is entrusted with the responsibility of maintaining the long-term relationship.
Relationship manager is no doubt a salesman but with a different outlook and attitude. He needs a different training. He is responsible for the client, is the focal point of all the information about the client, is the provider of all the company information to the client, and he is the mobilizer of all the company services for satisfying the client.
In a properly implemented relationship management system, the organization will focus as much on managing its customers as on managing its products to fulfill the revenue targets.
References
Kotler, Philip (1997), Marketing Management, 9th Ed., Prentice Hall, New Jersey.
Marketing Strategies for Challenger Firms
Introduction
Firms that are not market leaders in their industry or product category are trailing firms. One or two of them could be close competitors to the market leader and they can be termed as runner-up firms. These firms can take the role of challengers when they make aggressive efforts to further their market share or they can be termed followers when they keep quiet and maintain their market share.
There are successful trailing firms which challenged and became industry No. 1 firms. Canon is one such example in copiers. Toyota is now the world No. 1 company in automobiles; it displaced General Motors.
The challenger companies have to attack the leader, other comparable firms, and smaller firms in their bid to gain market share.
Attack has a greater probability of success when there customer dissatisfaction with the current leader. There is a gap in the market which the leader is not serving. Comparable firms can be successfully attacked when they are underfinanced and are charging excessive prices and customers are showing dissatisfaction. Similarly, underfinanced smaller firms can be attacked to gain market share.
With each attack, the challenger may hope to gain a reasonable increase in its market share.
The following attack strategies are possible.
Frontal Attack
An attack is called a frontal attack when the opponent’s strength is challenged head on. In marketing, the fight is done all fronts in market segments and areas where the opponent is currently strong. The general idea is that to win in a frontal attack, the challenger requires three times the fire power of the opposite side. What is fire power in marketing? Price of the product, quality of the product, sales effort, advertising effort, and service effort etc. are the various types of fire power in marketing. The challenger must be able to deploy superior fire power in the markets he is challenging.
Modified Frontal Attack
A modified frontal attack uses price as the challenging dimension. The challenger matches the opponent in other dimensions but will charge a lower price over an extended period.
Flank Attack
Attacking a weak position in the opponent’s force is flank attack. Challenger identifies the weak areas in the offering as well as marketing territories of the opponent and attacks those areas. A front attack may also be launched simultaneously, but the frontal attack is only to engage the opponent. But the real victory is won in the flanks. Market share gain in weak territories is the objective, but the opponent is forced to defend his share even in his strong territories and products.
Encirclement Attack
In this attack both strong areas and weak areas attacked simultaneously. This type of attack is more often done by a leader when challenged. When the leader makes an aggressive attack to gain market share from the trailing firms, he can use this strategy. Even other firms, can use this strategy when they are attacking a much smaller firm’s market share.
Guerilla Attack
Guerilla attacks consist of waging small, intermittent attacks on different marketing territories of the opposing firm. The aim is to harass and demoralize the opponent initially before launching the main attack.
Bypass Attack
In a bypass attack to gain market share, a firm identifies segments not served by the existing firms and makes efforts to gain market share.
The Marketing Firepower
Price discounts: The challenger can sell a comparable product at a lower price.
Cheaper goods: The challenger can come out with economy goods with lesser number of features. The strategy will succeed when there is significant number of buyers in need of lower priced product.
Prestige goods: A challenger can launch a higher quality product with more features.
Product proliferation: The challenger can offer a greater product variety.
Product innovation: the challenger can come out with an improve product.
Service innovation: Improvement in service offered to the buyers.
Distribution innovation: a new distribution outlet that offers additional convenience to buyers.
Process innovations: The challenger may have done a process innovation that gives better quality or lower cost and it is passed on to buyers.
Advertising innovation: The challenger may have innovative communications strategy that reaches and motivates larger number of potential customers resulting in higher sales.
Challenger needs to have a product-service offer or marketing mix advantage that is of value in the market place. Then he can use that advantage to gain market share by employing a suitable attack strategy.
References
Kotler, Philip (1997), Marketing Management, 9th Ed., Prentice Hall, New Jersey.
Firms that are not market leaders in their industry or product category are trailing firms. One or two of them could be close competitors to the market leader and they can be termed as runner-up firms. These firms can take the role of challengers when they make aggressive efforts to further their market share or they can be termed followers when they keep quiet and maintain their market share.
There are successful trailing firms which challenged and became industry No. 1 firms. Canon is one such example in copiers. Toyota is now the world No. 1 company in automobiles; it displaced General Motors.
The challenger companies have to attack the leader, other comparable firms, and smaller firms in their bid to gain market share.
Attack has a greater probability of success when there customer dissatisfaction with the current leader. There is a gap in the market which the leader is not serving. Comparable firms can be successfully attacked when they are underfinanced and are charging excessive prices and customers are showing dissatisfaction. Similarly, underfinanced smaller firms can be attacked to gain market share.
With each attack, the challenger may hope to gain a reasonable increase in its market share.
The following attack strategies are possible.
Frontal Attack
An attack is called a frontal attack when the opponent’s strength is challenged head on. In marketing, the fight is done all fronts in market segments and areas where the opponent is currently strong. The general idea is that to win in a frontal attack, the challenger requires three times the fire power of the opposite side. What is fire power in marketing? Price of the product, quality of the product, sales effort, advertising effort, and service effort etc. are the various types of fire power in marketing. The challenger must be able to deploy superior fire power in the markets he is challenging.
Modified Frontal Attack
A modified frontal attack uses price as the challenging dimension. The challenger matches the opponent in other dimensions but will charge a lower price over an extended period.
Flank Attack
Attacking a weak position in the opponent’s force is flank attack. Challenger identifies the weak areas in the offering as well as marketing territories of the opponent and attacks those areas. A front attack may also be launched simultaneously, but the frontal attack is only to engage the opponent. But the real victory is won in the flanks. Market share gain in weak territories is the objective, but the opponent is forced to defend his share even in his strong territories and products.
Encirclement Attack
In this attack both strong areas and weak areas attacked simultaneously. This type of attack is more often done by a leader when challenged. When the leader makes an aggressive attack to gain market share from the trailing firms, he can use this strategy. Even other firms, can use this strategy when they are attacking a much smaller firm’s market share.
Guerilla Attack
Guerilla attacks consist of waging small, intermittent attacks on different marketing territories of the opposing firm. The aim is to harass and demoralize the opponent initially before launching the main attack.
Bypass Attack
In a bypass attack to gain market share, a firm identifies segments not served by the existing firms and makes efforts to gain market share.
The Marketing Firepower
Price discounts: The challenger can sell a comparable product at a lower price.
Cheaper goods: The challenger can come out with economy goods with lesser number of features. The strategy will succeed when there is significant number of buyers in need of lower priced product.
Prestige goods: A challenger can launch a higher quality product with more features.
Product proliferation: The challenger can offer a greater product variety.
Product innovation: the challenger can come out with an improve product.
Service innovation: Improvement in service offered to the buyers.
Distribution innovation: a new distribution outlet that offers additional convenience to buyers.
Process innovations: The challenger may have done a process innovation that gives better quality or lower cost and it is passed on to buyers.
Advertising innovation: The challenger may have innovative communications strategy that reaches and motivates larger number of potential customers resulting in higher sales.
Challenger needs to have a product-service offer or marketing mix advantage that is of value in the market place. Then he can use that advantage to gain market share by employing a suitable attack strategy.
References
Kotler, Philip (1997), Marketing Management, 9th Ed., Prentice Hall, New Jersey.
Friday, August 29, 2008
Brand Score Card
Article in the latest issue of marketing management, American Marketng Association
http://www.marketingpower.com/ResourceLibrary/Publications/MarketingManagement/2008/17/3/MMMayJune08Crosby.pdf
http://www.marketingpower.com/ResourceLibrary/Publications/MarketingManagement/2008/17/3/MMMayJune08Crosby.pdf
Ethical Norms and Values for Marketers
Kotler discussed ethics and social responsibility marketing in the last chapter of his book 'Marketing Management.'He gave the code or the statement of American marketing association. The recent code and reference to the proposed code are given here.
2004 statement
PREAMBLE
The American Marketing Association commits itself to promoting the highest standard of professional ethical norms and values for its members. Norms are established standards of conduct that are expected and maintained by society and/or professional organizations. Values represent the collective conception of what people find desirable, important and morally proper. Values serve as the criteria for evaluating the actions of others. Marketing practitioners must recognize that they not only serve their enterprises but also act as stewards of society in creating, facilitating and executing the efficient and effective transactions that are part of the greater economy. In this role, marketers should embrace the highest ethical norms of practicing professionals and the ethical values implied by their responsibility toward stakeholders (e.g., customers, employees, investors, channel members, regulators and the host community).
GENERAL NORMS
Marketers must do no harm. This means doing work for which they are appropriately trained or experienced so that they can actively add value to their organizations and customers. It also means adhering to all applicable laws and regulations and embodying high ethical standards in the choices they make.
Marketers must foster trust in the marketing system. This means that products are appropriate for their intended and promoted uses. It requires that marketing communications about goods and services are not intentionally deceptive or misleading. It suggests building relationships that provide for the equitable adjustment and/or redress of customer grievances. It implies striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process.
Marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. These basic values are intentionally aspirational and include honesty, responsibility, fairness, respect, openness and citizenship.
ETHICAL VALUES
Honesty— to be truthful and forthright in our dealings with customers and stakeholders.
· We will tell the truth in all situations and at all times.
· We will offer products of value that do what we claim in our communications.
· We will stand behind our products if they fail to deliver their claimed benefits.
· We will honor our explicit and implicit commitments and promises.
Responsibility—to accept the consequences of our marketing decisions and strategies.
· We will make strenuous efforts to serve the needs of our customers.
· We will avoid using coercion with all stakeholders.
· We will acknowledge the social obligations to stakeholders that come with increased marketing and economic power.
· We will recognize our special commitments to economically vulnerable segments of the market such as children, the elderly and others who may be substantially disadvantaged.
Fairness—to try to balance justly the needs of the buyer with the interests of the seller.
· We will represent our products in a clear way in selling, advertising and other forms of communication; this includes the avoidance of false, misleading and deceptive promotion.
· We will reject manipulations and sales tactics that harm customer trust.
· We will not engage in price fixing, predatory pricing, price gouging or “bait-and-switch” tactics.
· We will not knowingly participate in material conflicts of interest.
Respect—to acknowledge the basic human dignity of all stakeholders.
· We will value individual differences even as we avoid stereotyping customers or depicting demographic groups (e.g., gender, race, sexual orientation) in a negative or dehumanizing way in our promotions.
· We will listen to the needs of our customers and make all reasonable efforts to monitor and improve their satisfaction on an ongoing basis.
· We will make a special effort to understand suppliers, intermediaries and distributors from other cultures.
· We will appropriately acknowledge the contributions of others, such as consultants, employees and coworkers, to our marketing endeavors.
Openness—to create transparency in our marketing operations.
· We will strive to communicate clearly with all our constituencies.
· We will accept constructive criticism from our customers and other stakeholders.
· We will explain significant product or service risks, component substitutions or other foreseeable eventualities that could affect customers or their perception of the purchase decision.
· We will fully disclose list prices and terms of financing as well as available price deals and adjustments.
Citizenship—to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner.
· We will strive to protect the natural environment in the execution of marketing campaigns.
· We will give back to the community through volunteerism and charitable donations.
· We will work to contribute to the overall betterment of marketing and its reputation.
· We will encourage supply chain members to ensure that trade is fair for all participants, including producers in developing countries.
IMPLEMENTATION
Finally, we recognize that every industry and marketing subdiscipline (e.g., marketing research, e-commerce, direct selling, direct marketing, advertising) has its own specific ethical issues that require policies and commentary. An array of such codes can be accessed through links on the AMA web site. We encourage all such groups to develop and/or refine their industry and discipline-specific codes of ethics to supplement general norms and values.
http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx
2008 proposed statement
http://www.marketingpower.com/AboutAMA/Pages/AMA%20Statement%20of%20Ethics%20revised%202008.pdf
2004 statement
PREAMBLE
The American Marketing Association commits itself to promoting the highest standard of professional ethical norms and values for its members. Norms are established standards of conduct that are expected and maintained by society and/or professional organizations. Values represent the collective conception of what people find desirable, important and morally proper. Values serve as the criteria for evaluating the actions of others. Marketing practitioners must recognize that they not only serve their enterprises but also act as stewards of society in creating, facilitating and executing the efficient and effective transactions that are part of the greater economy. In this role, marketers should embrace the highest ethical norms of practicing professionals and the ethical values implied by their responsibility toward stakeholders (e.g., customers, employees, investors, channel members, regulators and the host community).
GENERAL NORMS
Marketers must do no harm. This means doing work for which they are appropriately trained or experienced so that they can actively add value to their organizations and customers. It also means adhering to all applicable laws and regulations and embodying high ethical standards in the choices they make.
Marketers must foster trust in the marketing system. This means that products are appropriate for their intended and promoted uses. It requires that marketing communications about goods and services are not intentionally deceptive or misleading. It suggests building relationships that provide for the equitable adjustment and/or redress of customer grievances. It implies striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process.
Marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. These basic values are intentionally aspirational and include honesty, responsibility, fairness, respect, openness and citizenship.
ETHICAL VALUES
Honesty— to be truthful and forthright in our dealings with customers and stakeholders.
· We will tell the truth in all situations and at all times.
· We will offer products of value that do what we claim in our communications.
· We will stand behind our products if they fail to deliver their claimed benefits.
· We will honor our explicit and implicit commitments and promises.
Responsibility—to accept the consequences of our marketing decisions and strategies.
· We will make strenuous efforts to serve the needs of our customers.
· We will avoid using coercion with all stakeholders.
· We will acknowledge the social obligations to stakeholders that come with increased marketing and economic power.
· We will recognize our special commitments to economically vulnerable segments of the market such as children, the elderly and others who may be substantially disadvantaged.
Fairness—to try to balance justly the needs of the buyer with the interests of the seller.
· We will represent our products in a clear way in selling, advertising and other forms of communication; this includes the avoidance of false, misleading and deceptive promotion.
· We will reject manipulations and sales tactics that harm customer trust.
· We will not engage in price fixing, predatory pricing, price gouging or “bait-and-switch” tactics.
· We will not knowingly participate in material conflicts of interest.
Respect—to acknowledge the basic human dignity of all stakeholders.
· We will value individual differences even as we avoid stereotyping customers or depicting demographic groups (e.g., gender, race, sexual orientation) in a negative or dehumanizing way in our promotions.
· We will listen to the needs of our customers and make all reasonable efforts to monitor and improve their satisfaction on an ongoing basis.
· We will make a special effort to understand suppliers, intermediaries and distributors from other cultures.
· We will appropriately acknowledge the contributions of others, such as consultants, employees and coworkers, to our marketing endeavors.
Openness—to create transparency in our marketing operations.
· We will strive to communicate clearly with all our constituencies.
· We will accept constructive criticism from our customers and other stakeholders.
· We will explain significant product or service risks, component substitutions or other foreseeable eventualities that could affect customers or their perception of the purchase decision.
· We will fully disclose list prices and terms of financing as well as available price deals and adjustments.
Citizenship—to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner.
· We will strive to protect the natural environment in the execution of marketing campaigns.
· We will give back to the community through volunteerism and charitable donations.
· We will work to contribute to the overall betterment of marketing and its reputation.
· We will encourage supply chain members to ensure that trade is fair for all participants, including producers in developing countries.
IMPLEMENTATION
Finally, we recognize that every industry and marketing subdiscipline (e.g., marketing research, e-commerce, direct selling, direct marketing, advertising) has its own specific ethical issues that require policies and commentary. An array of such codes can be accessed through links on the AMA web site. We encourage all such groups to develop and/or refine their industry and discipline-specific codes of ethics to supplement general norms and values.
http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx
2008 proposed statement
http://www.marketingpower.com/AboutAMA/Pages/AMA%20Statement%20of%20Ethics%20revised%202008.pdf
Strategic Control of Marketing
Each company has to periodically assess its marketing strategy or strategic approach to the market. Market effectiveness review and then a more detailed marketing audit are the tools available to help in strategic control of marketing.
Marketing Effectiveness
A company’s or a division’s marketing effectiveness is evaluated based on the degree to which it exhibits the five major attributes of marketing orientation of the company or division. The attributes are:
1. Customer philosophy
2. Integrated marketing organization
3. Adequate marketing information
4. Strategic orientation
5. Operational efficiency
Philip Kotler gave a questionnaire to assess marketing effectiveness in his book Marketing Management.
The questions employed in the instrument are:
1. Does management recognize the importance of designing the company to serve the needs and wants of chose markets?
2. Does management develop different offerings and marketing plans for different segments of the market?
3. Does management take a whole marketing system view (suppliers, channels, competitors, customers, and environment) in planning its business?
4. Is there high-level marketing integration and control of the major marketing functions?
5. Does marketing management work well with management in research, manufacturing, purchasing, logistics, and finance?
6. How well organized is the new-product development process?
7. When were the latest marketing research studies of customers, buying influences, channels and competitors conducted?
8. How well does management know the sales potential and profitability of different market segments, customers, territories, products, channels and order sizes?
9. What effort is expended to measure and improve the cost effectiveness of different marketing expenditures?
10. What is the extent of formal market planning?
11. How impressive is the current marketing strategy?
12. What is the extent of contingency thinking and planning?
13. How well is the marketing strategy communicated and implemented?
14. Is management doing an effective job with its marketing resources?
15. Does management show a good capacity to react quickly and effectively to on-the-spot developments?
In his instrument, Kotler gave a 3 point scale from 0 to 2. This gives maximum of 30 points for a company or division. Score above 16 is rated as good.
Marketing audit
Marketing audit is a more detailed review which is undertaken periodically and is a supplement to the effectiveness review.
Marketing review is a comprehensive, systematic, independent and periodic examination of a company’s or division’s marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending plan of action to improve the company’s marketing performance.
Comprehensiveness indicates that all activities of marketing are audited and not trouble spots. Kotler defines auditing of specific activities as functional audit. Systematic audit indicates that well laid out audit plan is followed and the process is not done in an ad hoc manner. Independent auditor is carried out by persons from internal audit department with marketing expertise or external auditors with marketing expertise. Periodic auditing implies that it is done routinely and periodically and not in response to a problem. Management should not wail till the problem to set things in proper shape.
Marketing auditors have to meet customers, dealers and other outside groups also to find their assessment of the company and its marketing activities. The audit covers six major areas:
1. Marketing Environment
Macroenvironment
Task environment
2. Marketing Strategy Audit
Mission
Marketing objectives and goals
Strategies
3. Marketing Organization Audit
Formal structure
Functional efficiency
Interface mechanism
4. Marketing Systems Audit
Marketing information system
Marketing planning system
Marketing control system
New product development system
Sales system
5. Marketing Productivity Audit
Profitability analysis
Cost effectiveness analysis
6. Marketing Function Audits
Products
Price
Distribution
Advertising and Other communications
Sales promotion
Sales force
For further reading
Philip Kotler, "From Sales obsession to Marketing Effectiveness," Harvard Business Review, November-December 1977, pp.67-75.
Marketing Effectiveness
A company’s or a division’s marketing effectiveness is evaluated based on the degree to which it exhibits the five major attributes of marketing orientation of the company or division. The attributes are:
1. Customer philosophy
2. Integrated marketing organization
3. Adequate marketing information
4. Strategic orientation
5. Operational efficiency
Philip Kotler gave a questionnaire to assess marketing effectiveness in his book Marketing Management.
The questions employed in the instrument are:
1. Does management recognize the importance of designing the company to serve the needs and wants of chose markets?
2. Does management develop different offerings and marketing plans for different segments of the market?
3. Does management take a whole marketing system view (suppliers, channels, competitors, customers, and environment) in planning its business?
4. Is there high-level marketing integration and control of the major marketing functions?
5. Does marketing management work well with management in research, manufacturing, purchasing, logistics, and finance?
6. How well organized is the new-product development process?
7. When were the latest marketing research studies of customers, buying influences, channels and competitors conducted?
8. How well does management know the sales potential and profitability of different market segments, customers, territories, products, channels and order sizes?
9. What effort is expended to measure and improve the cost effectiveness of different marketing expenditures?
10. What is the extent of formal market planning?
11. How impressive is the current marketing strategy?
12. What is the extent of contingency thinking and planning?
13. How well is the marketing strategy communicated and implemented?
14. Is management doing an effective job with its marketing resources?
15. Does management show a good capacity to react quickly and effectively to on-the-spot developments?
In his instrument, Kotler gave a 3 point scale from 0 to 2. This gives maximum of 30 points for a company or division. Score above 16 is rated as good.
Marketing audit
Marketing audit is a more detailed review which is undertaken periodically and is a supplement to the effectiveness review.
Marketing review is a comprehensive, systematic, independent and periodic examination of a company’s or division’s marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending plan of action to improve the company’s marketing performance.
Comprehensiveness indicates that all activities of marketing are audited and not trouble spots. Kotler defines auditing of specific activities as functional audit. Systematic audit indicates that well laid out audit plan is followed and the process is not done in an ad hoc manner. Independent auditor is carried out by persons from internal audit department with marketing expertise or external auditors with marketing expertise. Periodic auditing implies that it is done routinely and periodically and not in response to a problem. Management should not wail till the problem to set things in proper shape.
Marketing auditors have to meet customers, dealers and other outside groups also to find their assessment of the company and its marketing activities. The audit covers six major areas:
1. Marketing Environment
Macroenvironment
Task environment
2. Marketing Strategy Audit
Mission
Marketing objectives and goals
Strategies
3. Marketing Organization Audit
Formal structure
Functional efficiency
Interface mechanism
4. Marketing Systems Audit
Marketing information system
Marketing planning system
Marketing control system
New product development system
Sales system
5. Marketing Productivity Audit
Profitability analysis
Cost effectiveness analysis
6. Marketing Function Audits
Products
Price
Distribution
Advertising and Other communications
Sales promotion
Sales force
For further reading
Philip Kotler, "From Sales obsession to Marketing Effectiveness," Harvard Business Review, November-December 1977, pp.67-75.
Thursday, August 28, 2008
Performance Management Program
PERFORMANCE PLANNING
Performance planning is the first stage of the performance management process. During
performance planning, supervisors are expected to clarify performance expectations and clearly establish agreed upon goals/work priorities with each employee he/she supervises. This is also the time for job description review with the employee, especially if any changes have occurred since last reviewed.
Procedure for Performance Planning:
1. Supervisor meets with the employee.
2. Establish 3-8, collaboratively agreed upon goals/work priorities.
3. Establish criteria for successful performance of each goal/work priority.
4. Record goals/work priorities on Performance Planning Worksheet.
Policies Regarding Performance Planning:
If a supervisor does not initiate goal and/or work priority setting the employee
may develop his/her goals/work priorities and ask the supervisor to review them.
If the supervisor does not respond to either the employee’s proposed goals/work
priorities or the employee’s request for a meeting, after 90 days, the goals/work
priorities proposed by the employee become the goals/work priorities for the
current evaluation period.
If the supervisor and the employee cannot agree upon goals/work priorities, the
supervisor, after discussion with the employee, shall determine the goals/work
priorities.
PERFORMANCE DOCUMENTATION, COACHING, AND FEEDBACK
Regular communication about performance and coaching employees for improved performance are integral parts of performance management. These communications insure that the supervisor and the employee are working in agreed upon directions.
Coaching and feedback may take various forms; this includes observations, informal discussions, formal meetings and written documentation. Coaching and feedback are expected to occur on a regular basis throughout the performance management cycle. It is especially important for supervisors to provide feedback on performance issues in a timely manner and to discuss performance improvements and progress towards agreed upon goals/work priorities.
Policies Regarding Performance Documentation, and Feedback
It is expected that at least one communication (meeting, phone discussion, e-mail, written
review) will occur during the performance period, preferably during the middle six months. The Interim Review Form may be used to document discussion.
PERFORMANCE REVIEW AND DEVELOPMENT
The Review and Development phase consists of evaluating the employee’s performance,
completing a written review, and conducting a two-way conversation focusing on results
achieved, areas of success and/or areas for improvement, future goals/work priorities and any developmental needs of the employee.
http://www.umass.edu/humres/library/PMPGuide.pdf
A McKinsey Study suggests that only 30 percent of employees say they receive feedback of real value in improving their performance. While the company handbooks or other descriptions often state the right goal for the performance process as improvement of performance, in practice in many companies performance appraisal is the order of the day.
There is a need to focus on performance improvement and the required coaching from the superior.
The performance goals have to be derived from the company goals. The superior and subordinate combination must have a deep understanding of how the company makes money, how the company’s customers make money, now the company can help its customers make money and what customers need to remain loyal.
Based on the agreed upon performance goals for the coming period, the superior has to determine the coaching requirements for his subordinate. Every superior has to remember that as a superior he has a coaching role. He has to set apart a certain amount of his time for coaching his team members. It will be a good idea if every supervisor is asked to prepare a coaching plan for his department as well as for each of his subordinates.
For further reading
Shekhar Purohit, The Performance Quest, The Economic Times, Corporate Dossier, 29 August, 2008, p. 2
Shekhar Purohit is Asia Pacific Leader for Executive Compensation and Corporate Governance, Hewitt Associates
Performance planning is the first stage of the performance management process. During
performance planning, supervisors are expected to clarify performance expectations and clearly establish agreed upon goals/work priorities with each employee he/she supervises. This is also the time for job description review with the employee, especially if any changes have occurred since last reviewed.
Procedure for Performance Planning:
1. Supervisor meets with the employee.
2. Establish 3-8, collaboratively agreed upon goals/work priorities.
3. Establish criteria for successful performance of each goal/work priority.
4. Record goals/work priorities on Performance Planning Worksheet.
Policies Regarding Performance Planning:
If a supervisor does not initiate goal and/or work priority setting the employee
may develop his/her goals/work priorities and ask the supervisor to review them.
If the supervisor does not respond to either the employee’s proposed goals/work
priorities or the employee’s request for a meeting, after 90 days, the goals/work
priorities proposed by the employee become the goals/work priorities for the
current evaluation period.
If the supervisor and the employee cannot agree upon goals/work priorities, the
supervisor, after discussion with the employee, shall determine the goals/work
priorities.
PERFORMANCE DOCUMENTATION, COACHING, AND FEEDBACK
Regular communication about performance and coaching employees for improved performance are integral parts of performance management. These communications insure that the supervisor and the employee are working in agreed upon directions.
Coaching and feedback may take various forms; this includes observations, informal discussions, formal meetings and written documentation. Coaching and feedback are expected to occur on a regular basis throughout the performance management cycle. It is especially important for supervisors to provide feedback on performance issues in a timely manner and to discuss performance improvements and progress towards agreed upon goals/work priorities.
Policies Regarding Performance Documentation, and Feedback
It is expected that at least one communication (meeting, phone discussion, e-mail, written
review) will occur during the performance period, preferably during the middle six months. The Interim Review Form may be used to document discussion.
PERFORMANCE REVIEW AND DEVELOPMENT
The Review and Development phase consists of evaluating the employee’s performance,
completing a written review, and conducting a two-way conversation focusing on results
achieved, areas of success and/or areas for improvement, future goals/work priorities and any developmental needs of the employee.
http://www.umass.edu/humres/library/PMPGuide.pdf
A McKinsey Study suggests that only 30 percent of employees say they receive feedback of real value in improving their performance. While the company handbooks or other descriptions often state the right goal for the performance process as improvement of performance, in practice in many companies performance appraisal is the order of the day.
There is a need to focus on performance improvement and the required coaching from the superior.
The performance goals have to be derived from the company goals. The superior and subordinate combination must have a deep understanding of how the company makes money, how the company’s customers make money, now the company can help its customers make money and what customers need to remain loyal.
Based on the agreed upon performance goals for the coming period, the superior has to determine the coaching requirements for his subordinate. Every superior has to remember that as a superior he has a coaching role. He has to set apart a certain amount of his time for coaching his team members. It will be a good idea if every supervisor is asked to prepare a coaching plan for his department as well as for each of his subordinates.
For further reading
Shekhar Purohit, The Performance Quest, The Economic Times, Corporate Dossier, 29 August, 2008, p. 2
Shekhar Purohit is Asia Pacific Leader for Executive Compensation and Corporate Governance, Hewitt Associates
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