Lecture 11 Strategy Implementation BB.pdf

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STRATEGY IMPLEMENTATION
LECTURE 11
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2. CourseProgram
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Resources
(assets,
capabilities)
Customer
Interface
Customer
Value
Profit
Costs Sales
Revenue model
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WEEK 6

3. How to make marketing strategy work?
Execution and
implementation
Control (Return on
Marketing Investment -
ROMI)
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situation analysis
formulating alternative
marketing strategies
evaluating alternative
marketing strategies
selecting a marketing
strategy
implementing and
controlling

4. Learningobjectives
Understandthe elementsof marketing strategy
implementation
Understandthe driversof marketing strategy
implementationsuccess

Understandthe driversof successfulmarketing
implementationat the interface betweenthe
employee and the customer
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5. What is implementation?
..final stage in marketing strategy process (Wind &
Robertson 1983)
..application of resources to a strategy (Day & Wensley
1983)
..the process that turns plans into action (Kotler 1997)
..the “how-to-do-it” aspects of marketing (organizational
issues; development and execution of marketing plans); iterative with
strategy formulation (Cespedes 1991)
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6. “it is suggested that many of the problems faced in marketing
implementation arise not simply from practical problems in
management execution skills, but because conventional
approaches to strategy development in marketing are based
on the view that strategy development or formulation and
marketing implementation are distinct and sequential activities”
(Piercy 1998)
Potential Gaps:
Analysis(strategists) versus execution(marketers)
Designof the marketing program versus implementationof the
strategy/program
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7. Successful implementation
Contents (design marketing program)
Give meaning to the value proposition using
marketing instruments
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8. Contents
Operationalize value proposition by means of
marketing instruments
Choice of target customers
Define value proposition (key distinction of positioning)
Identify value delivery drivers
Formulate a program for each value driver (=for each
relevant marketing instrument)
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9. Successful implementation
Contents (design marketing program)
Give meaning to the value proposition using
marketing instruments
Organization (implement/execute program)
“Make it work” (=organization)
“Make it happen” (=activity plan)
Conditions
Financial implications
Evaluation and control
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10. Organization
Allocate resources to activities
What (new) activities?
What (new) resources?
How to integrate?
⇒create a new Activity System
Organizational implementation
Changes in organization structure?
How to gain internal acceptance?
How to make things work?
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11. Different perspectives on implementation
Structural view
Effect of organization structure and control systems on
implementation
Interpersonal process view
Communication
Individual level process view
Cognition, role and commitment of individuals
Noble & Mokwa (1999) propose an integrated perspective
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12. Drivers of successful marketing strategy
implementation
(Noble & Mokwa 1999)
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Strategy
factors
-fit with vision
-importance
-scope
-championing
-senior mgt
support
-buy-in
Dimensions of
commitment
Organizational
commitment
Strategy
commitment
Role
commitment
Role factors
-involvement
-autonomy
-significance
Individual-and organizational-
level outcomes
Role
performance
Implement.
success

13. Drivers of implementation success
Noble & Mokwa 1999
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14. Making things work at the employee-
customer interface
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Homburg, Wieseke& Bornemann(2009)

15. Summary
Marketing strategyimplementationrequiresattentionfor
contents (marketing program), organization, and conditions
Implementation success is directly affected by buy- in and role
performance
Implementation success is indirectly affected by other drivers,
such as role commitment, strategy commitment

CNK is important forsuccessfullyimplementingthe marketing
concept
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