Strategic Marketing: Planning and Control, Third Edition

sales was 1 in 20 and we achieve 1 in 25, what does this say about our

sales process?

The process of benchmarking

Benchmarking comprises a four-stage approach. This is illustrated using
the ‘Deming Cycle’ (Watson, 1993): plan, do, check and act (see Figure
14.7). The planning stage involves identifying what to study and who or
what should act as the benchmark. Common areas to benchmark are: cus-
tomer service levels, logistic and distribution methods, product quality
and ‘time-to-market’ cycles. Organisations will benchmark against com-
petitors, acknowledged leaders or successful internal activities. Next, con-
duct research. This may involve co-operation and direct contact with the
benchmark. Alternatively, secondary data may be used to establish stand-
ards and actions. The data is then analysed. This involves establishing the
extent of performance gaps and identifying assignable causes for such
gaps. Finally, the lessons learned are adapted, as appropriate, and applied
in order to generate improvement in performance.

Control 287

Act Plan

Adapt, implement

and monitor

What and who

Act Plan

Do

Check Do

Analyse findings

and assign cause

Direct contact and

secondary data

Check Figure 14.7

The Deming

Cycle applied to

Benchmarking

(Source: Watson,

1993, p. 4)

■ Controlling marketing

performance

In contrast to mechanical systems, marketing activities are inherently
more volatile. This is due to a constantly changing business environment
driven by the needs and wants of the market. Measuring marketing per-
formance is a process of determining appropriate criteria by which to
judge activity. Kotler (1997) identifies four main areas associated with the
control of marketing activity (see Figure 14.8).