{"id":3973,"date":"2014-05-08T18:21:26","date_gmt":"2014-05-08T18:21:26","guid":{"rendered":"http:\/\/www.marketingteacher.com\/benchmarking\/"},"modified":"2014-05-08T18:36:15","modified_gmt":"2014-05-08T18:36:15","slug":"benchmarking","status":"publish","type":"post","link":"https:\/\/marketingteacher.com\/staging\/5483\/benchmarking\/","title":{"rendered":"Benchmarking"},"content":{"rendered":"<h1>Benchmarking<\/h1>\n<h2>Introduction to Benchmarking<\/h2>\n<p>Benchmarking relies upon a comparison between the activities of your   own organization and those of another. Originally benchmarking was used   in manufacturing operations where one process could be compared and   contrasted with another.<\/p>\n<h2>Benefits of benchmarking (Gift 1996)<\/h2>\n<ul>\n<li>It is an effective approach for achieving operational change.   Benchmarks are the catalyst that moves an organization to higher levels   of performance.<\/li>\n<li>Since customer requirements are so rigorously defined, benchmarking   improves customer orientation.<\/li>\n<li>It focuses upon the processes that improve results &#8211; not simply   results.<\/li>\n<li>Performance measures are often improved as a result of benchmarking.<\/li>\n<li>Decision making improves because the organization has enhanced   customer knowledge, process focus, and performance measures.<\/li>\n<li>Benchmarking improves innovation and creativity since self-imposed   barriers to success are removed.<\/li>\n<\/ul>\n<h2>Potential pitfalls with benchmarking.<\/h2>\n<ul>\n<li>Benchmarking needs to be supported and driven by senior leaders.<\/li>\n<li>Prerequisites (such as organizational structure, processes) need to   be in place.<\/li>\n<li>Conducting benchmarking for the wrong reasons can be problematic   e.g. to produce data &#8211; ignoring processes and insights gained into   practices that produce benchmarks.<\/li>\n<li>Selecting the wrong benchmarks.<\/li>\n<li>Selecting the wrong benchmark partner.<\/li>\n<li>Not gaining management support for plans resulting from benchmarks.<\/li>\n<\/ul>\n<h2>Marketing benchmarking.<\/h2>\n<p>When applying benchmarking techniques to an organization&#8217;s marketing   activities you are essentially comparing one or a number of your   company&#8217;s marketing activities to those of another part of the business,   a competitor or a business that operates in another industry. Vorhies   and Morgan (2005) used the following marketing benchmarks in their   research:<\/p>\n<ul>\n<li>Pricing<\/li>\n<li>Product Development<\/li>\n<li>Channel Management <\/li>\n<li>Marketing Communications<\/li>\n<li>Selling<\/li>\n<li>Market Information Systems<\/li>\n<li>Marketing Planning<\/li>\n<li>Marketing Implementation<\/li>\n<\/ul>\n<p>Essentially they focus upon the marketing mix, marketing information,   planning and operations. Each of these could be sub-divided and new   factors introduced e.g. Customer Relationship Management (CRM) &#8211; to suit   your own organization&#8217;s marketing strategy.<\/p>\n<h2>References.<\/h2>\n<p>Camp, R.C. (1995) Business Process Benchmarking: Finding and   Implementing Best Practises. Milwaukee: ASQC Quality Press, p18.<\/p>\n<p>Camp, R.C. (1989 Benchmarking: The Search for Best Practises that   Lead to Superior Performance. Milwaukee: ASQC Quality Press, p12.<\/p>\n<p>Gift, R.G. (1996) Today&#8217;s Management Methods, P245 &#8211; 261.<\/p>\n<p>Prasnikar, J., Debeljak Z. and Ahcan, A. (2005) Benchmarking as a   Tool for Strategic Management, Total Quality Management, Vol.16, No. 2,   257 &#8211; 275, March 2005.<\/p>\n<p>Vorhies, D.W. Morgan, N. A. (2005) Benchmarking Marketing   Capabilities for Sustainable Competitive Advantage,  Journal of   Marketing, Vol. 69, Issue 1, p80-94.<\/p>\n<p>Think about it in basic terms &#8211; you measure a piece of wood along   your bench. You keep one end of the wood level\/flush with the end of the   bench and cut a notch in the bench itself with your chisel at the other   end. Then you place other pieces of wood in the same location &#8211; the   shorter ones you reject and the longer ones you cut down. A benchmark is   a measurement tool.<\/p>\n<p>Xerox is commonly cited as the original proponent. More recently the   definition has broadened to include all business processes, competitive   advantages, performance and strategies (Prasnikar et al 2005)<\/p>\n<p>\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"\/image\/content\/benchmarking.gif\" alt=\"Benchmarking\" class=\"large yellow aligncenter\" \/><\/p>\n<h2>Basic types of benchmark.<\/h2>\n<p><em>Competitive or Industry\/sector benchmarking<\/em> enables an   organization to compare its performance with competitors trading in the   same industry or sector.<\/p>\n<p><em>Best-in-class benchmarking<\/em> is similar to industry or sector   benchmarking. However managers would compare their organization to the   market or sector leader i.e. the best-in-class.<\/p>\n<p><em>Internal or historical benchmarking<\/em> is the internal procedure   for comparing results from past performance to current or forecasted   performance.<\/p>\n<p><em>Functional or external benchmarking<\/em> involves comparing your   business activities with those of companies from other   industries\/sectors with similar processes.<\/p>\n<p><em>Collaborative benchmarking<\/em> involves two phases; firstly   between two voluntary collaborators within a sector, then secondly   between the two collaborators and a party outside the current sphere of   competition. Of course this is better suited to the public sector e.g.   hospitals, police services since commercial rivals are unlikely to   collaborate in this manner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Benchmarking relies upon a comparison between the activities of your own organization and those of another. Originally benchmarking was used in manufacturing operations where one process could be compared and contrasted with another.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-3973","post","type-post","status-publish","format-standard","hentry","category-strategy-tools"],"_links":{"self":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/3973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/comments?post=3973"}],"version-history":[{"count":0,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/posts\/3973\/revisions"}],"wp:attachment":[{"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/media?parent=3973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/categories?post=3973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketingteacher.com\/staging\/5483\/wp-json\/wp\/v2\/tags?post=3973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}