Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

19. Implementing and
    Controlling Marketing
    Plans: Evolution and
    Revolution

Text © The McGraw−Hill

Companies, 2002

564 Chapter 19

Performance analysis helps a marketing manager see if the firm’s marketing plans

are working properly—and, if they aren’t, it can lead to problem solving. But a mar-

keting manager may need a series of performance analyses, as shown in the following

example.

To get a feel for how performance analysis can be part of a problem-solving

process, follow this example carefully—one exhibit at a time. Try to anticipate the

marketing manager’s decision.

Stereo’s sales manager finds that sales for the Pacific Coast region are $130,000

below the quota of $14,500,000 (that is, actual sales are $14,370,000) for the

January through June period. The quota is based on forecast sales of the various

types of stereo equipment the company sells. Specifically, the quota is based on fore-

casts for each product type in each store in each sales rep’s territory.

Pam Dexter, the sales manager, thinks this difference isn’t too large (1.52 percent)

and is inclined to forget the matter—especially since forecasts usually err to some

extent. But she thinks about sending an e-mail message to all sales reps and district

supervisors in the region—a message aimed at stimulating sales effort.

A Series of Performance Analyses May Find the Real Problem

Sales ($000)

Quota

Actual

Los

Angeles

102%

San

Francisco

101%

Portland

93%

Seattle

98%

District:

Performance

to quota:

4,765

3,675

2,800

3,130

5,000

4,000

3,000

2,000

4,675

3,625

3,000

3,200

Exhibit 19-7
Sales Performance—Pacific
Coast Region, January–June
($000)

The case of Stereo, Inc.

measuring expected sales (an important if), the poor sales performance should be

analyzed further. Perhaps sales reps in the Western region aren’t working as hard as

they should. Perhaps promotion there isn’t as effective as elsewhere. Or competi-

tive products may have entered the market.

Whatever the cause, it’s clear that performance analysis does not solve problems.

Managers do that. But performance analysis does point out potential problems—

and it does this well.

Internet

Internet Exercise SPSS sells software that can be used for a variety of

purposes, including analyses of sales, cost, and customer data. Browse the

SPSS website (www.spss.com) and identify three ways that SPSS could

make it easier for a manager to do a performance analysis.