Marketing Control...

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The Marketing Control Process or Cycle

Marketing control process is the means by which marketing
management measures progress toward the attainment of
marketing goals so that timely actions can be taken to improve
performance or modify the goals if performance is not in
accordance with plans.
Following steps are involved in marketing control process or
cycle:

Establishment of Performance Standards

Measurement of Performance

Comparing Actual Performance with Standards

Taking Corrective Actions

Establishment
of Performance
Standards

Taking
Corrective
Actions

Marketin
g Control

Measurement
of Performance

Comparing
Actual
Performance
with Standards
Figure 13.2 : The Marketing Control Process or Cycle

1.

2.

Establishment of Performance Standards

A performance standard is an expected level of
performance against which actual performance can be
compared. Performance standards are established in the
planning process. Performance standards appear in the
form of budget constraints. That is, a marketer is expected
to achieve a certain objective without spending more than
a given amount of resources.
Measurement of Performance
Once the areas of control have been defined, the next step
in the establishment of a control system is to define the
kinds of performance measurements to be used. This is
largely determined by the variables that the control system
is intended to monitor. As with all marketing information,
the data used for measurement must be in a form that is

160... Marketing Management: Text and Cases

relevant to the task at hand. In most cases, only those

variables that can be expressed in concrete units of time,
quantity, or quality will be measured. While intangible
factors, such as sales force enthusiasm or consumer
attitudes, are often at the root of marketing success or
failure, such factors must be translated into those that can
be quantified so they can be measured.
3.
Comparing Actual Performance with Standards
In marketing control process, actual performance is
compared with performance standards to determine
whether and how much of a discrepancy exists. For
example, a salesperson's actual sales are compared with
his/her sales quota (performance standard) to determine as
to how much differences exist. If a significant discrepancy
exists, the marketing manager takes corrective action.
4.
Taking Corrective Actions
To reduce the deviations between planned performance
and actual performance, a marketing manager can take
steps to improve actual performance, can reduce or totally
change the standard performance, or do both. Changes in
the marketing environment may force a marketing
manager to change the firm's marketing objectives
completely.
Thus, above mentioned steps are the major parts of marketing
control process. The study about these steps is necessary to
make a controlling efficient, effective and productive.
Have a Look: Some Essential Factors for Effective Control1
a. Yardsticks: These are comparative standards that indicate what should happen at
strategic points in the marketing program.
b. Feedback System: This is a system for reporting the results of the program at frequent
intervals and in the units of the yardstick serving as a standard.
c. Diagnostic System: This combines the capabilities of marketing strategists with those of
data-gathering. Its purpose is to analyze and propose solutions to deviations in the
marketing plan.
d. Contingency Plans: These are the plans that hold in abeyance the pending changes in the
marketing environment make them necessary.

Mandell, M.I. and Rosenberg, L.J. (1983). Marketing. New Delhi: PrenticeHall of India Private Limited.