Professional Documents
Culture Documents
22-2
MARKETING CONTROL
22-3
MARKETING CONTROL PROCESS
1. Deciding on
the aspect of 2. Establishing
marketing measurement criteria
operation to be or standards
evaluated
3. Establishing
monitoring
mechanisms
22-4
Marketing Control Tools
1. Annual-Plan Control
a. Sales Analysis
• Sales variance analysis
• Microsales analysis
22-5
Evaluation and Control
b. Market-Share Analysis
• Overall market share
• Served market share
• Relative market share
c. Marketing Cost Analysis
d. Financial Analysis
e. Market-Based Scorecard Analysis
• Customer-performance scorecard
• Stakeholder-performance scorecard
22-6
Evaluation and Control
2. Profitability Control
– Marketing-Profitability Analysis
22-7
Evaluation and Control
3. Efficiency control
– Marketing Controller
– Sales-Force Efficiency
– Advertising Efficiency
– Sales-Promotion Efficiency
– Distribution Efficiency
22-8
Evaluation and Control
4. Strategic control
– The Marketing Effectiveness Review
– The Marketing Audit
– Marketing Excellence Review
– Ethical and social responsibility review .
22-9
Marketing Audit
22-10
Marketing Audit
“ It is a comprehensive, systematic,
independent, and periodic examination
of a company’s marketing environment,
with a view to determine problem areas
and recommending a plan to improve
company’s marketing performance.”
22-11
Characteristics of MA
• Comprehensive
• Systematic
• Independent
• Periodic
22-12
Components of Marketing Audit
22-13
1. Macro-environment
A. Demographic
B. Economic
C. Environmental
D. Technological
E. Political
F. Cultural
22-14
2. Task Environment
A. Markets
B. Customers
C. Competitors
D. Distribution and Dealers
E. Suppliers
F. Facilitators and Marketing Firms
G. Publics
22-15
3. Marketing Strategy Audit
A. Business mission
C. Strategy
22-16
4. Marketing Organization Audit
A. Formal structure
B. Functional efficiency
C. Interface efficiency
22-17
5. Marketing Systems Audit
22-18
6. Marketing Productivity Audit
A. Profitability analysis
22-19
7. Marketing Function Audits
A. Products
B. Price
C. Distribution
D. Advertising, Sales Promotion, Publicity
and Direct Marketing
E. Sales Force
22-20
Principles of Effective Marketing Control
• Control should be continuous and be frequent.
• Cost V/S benefit of the control system must be determined.
• Management by exception must be practiced.
• Emphasis should be on performance improvement, not on
the poor performance.
• Individuals must understand the benefits of control system.
• Performance standards must be realistic.
22-21