Marketing control refers to the process by which a company manipulates its marketing plans to reach its original goals.

This process is achieved by setting up performance standards that will ideally be reached at each step of a marketing
campaign. If these standards are not being met, corrective action needs to be taken. There are many methods of achieving
marketing control, which can include but are not limited to market research, analysis of financial signposts like market
share, sales, and cash flow, and customer relations information gleaned from customer feedback and service levels.

Few effective marketing campaigns are achieved through random action. Successful marketing is usually achieved through
a general process within which many variations are possible. The basic blueprint involves drawing up goals that the
campaign is designed to meet and then drawing up the plans and strategies that are intended to achieve those goals. If
those plans start to fall short of the desired standards, they then need to be adjusted to get the campaign once again pointed
in the right direction. Marketing control involves the analysis of where the original plans are falling short and the steps
taken to correct those problems.

At the point at which the campaign's desired and actual effect begin to diverge, strategies must be put into place to rectify
the situation. The problems need to be identified before any action can be taken, lest more damage be done. Once the
problems are identified, then the proper method of marketing control may be exerted in an effort to bring about the desired
goals

Research is the most obvious tool for identification of how well the marketing campaign is proceeding. This can be done
through customer surveys or product testing. Focus groups are another popular way of ascertaining if the product is hitting
its desired target audience or if the marketing techniques are getting across the desired message.

Measurables such as sales reports or cash flow totals are a concrete way to determine what type
of marketing control needs to take place. Marketing managers can use these numbers to figure
out whether they are receiving the desired return on their marketing investment. If not,
corrective action needs to take place. This may come in the form of pricing changes to the
product or service in an attempt to boost sales or profit, additional promotional initiatives to
increase the visibility of the product or service, or, if drastic action is necessary, a complete
overhaul of the marketing campaign

• Marketing control refers to the process by which a company manipulates its marketing plans to
reach its original goals. This process is achieved by setting up performance standards that will ideally
be reached at each step of a marketing campaign.
• Some, however, choose to start their own businesses. In such a case, an aspiring pest control
operator will usually need a business license, liability insurance, and a marketing plan.

Marketing Controls
Measuring and monitoring the marketing planning proces
There is no planning without control. Marketing control is the process of monitoring the
proposed plans as they proceed and adjusting where necessary. If an objective states where you
want to be and the plan sets out a road map to your destination, then control tells you if you are
on the right route or if you have arrived at your destination.

Control involves measurement, evaluation, and monitoring. Resources are scarce and
costly so it is important to control marketing plans. Control involves setting standards. The
marketing manager will than compare actual progress against the standards. Corrective action (if
any) is then taken. If corrective action is taken, an investigation will also need to be undertaken
to establish precisely why the difference occurred.
There are many approaches to control:
• Market share analysis.
• Sales analysis.
• Quality controls.
• Budgets.
• Ratio analysis.
• Marketing research.
• Marketing information systems (MkIS).
• Feedback from customers satisfaction surveys.
• Cash flow statements.
• Customer Relationship Management (CRM) systems.
• Sales per thousand customers, per factory, by segment.
• Location of buyers and potential buyers.
• Activities of competitors to aspects of your plan.
• Distributor support.
• Performance of any promotional activities.
• Market reaction/acceptance to pricing polices.
• Service levels.

...and many other methods of monitoring and measurement.

Marketing Control : Overview

Marketing controls are used to implement marketing
strategies and check whether the objectives of the
marketing function are achieved or not. Marketing controls
are of four types - strategic control, annual plan control,
profitability control, and efficiency and effectiveness
controls. Strategic control helps the organization to
evaluate its strategies by focusing on the outcomes of the
activities undertaken. It is further divided into four
components: premise control, implementation control,
strategic surveillance, and special alert control.

Annual plan control involves the use of annual marketing

targets as performance standards. Projected values of
sales volume, market share, and profits are some of the
typical performance standards under this type of control.
Two important techniques used for tracking results and
comparing them with standards are variance analysis and
marketing expenses-to-sales analysis.
Marketing profitability is the profitability achieved through the performance of marketing
activities and is calculated based on the investment made in these activities. Some of the
techniques used for profitability control are Strategic Profit Model, segment margin report,
and activity based costing.

Efficiency control is more of a quantitative control and deals with the efficiency with which
the marketing activities are directed toward the achievement of the goals of the marketing
function. Here, the controls mainly focus on the sales volume, the sales generated by each
salesperson, number of accounts handled by each salesperson, etc. Effectiveness control, on
the other hand, is qualitative in nature and aims at improving the effectiveness of the
marketing activities. The marketing effectiveness of any organization is reflected through its
market share, profitability, customer satisfaction, etc. It is not easy to audit, measure, or
control. It depends on attributes like customer philosophy, marketing orientation,
information about marketing, strategic orientation, and operational efficiency of the
organization.

Functional management audit of the marketing function is referred to as marketing audit. It

is used as a communication tool, an analytical framework to help take decisions, and for
framing policies. Marketing audit can be of two types: external - the factors audited are
external to the organization and cannot be controlled; and internal - the factors audited are
internal to the organization and can be controlled.

A marketing audit is a detailed and systematic analysis. It helps the senior management to
identify the strengths and weaknesses of their organization, along with the opportunities
and threats in the marketplace. An effective marketing audit is systematic, comprehensive,
independent, and periodic. The audit is conducted in three stages: extensive analysis of the
present and past marketing activities of the organization, forecast of the organization's
growth relative to the changing market conditions, and suggestions for improving the
quality of plans and the marketing performance.
Sales control is a major component of marketing control and involves the control of the
sales function as a whole and the sales force in particular. Sales control includes sales
budgets, sales quotas, reporting, credit control, performance evaluation and performance-
based compensation, and sales force automation.

There are different types of sales budgets - sales revenue budgets, selling-expense budgets,
and selling department administrative budgets. A rolling budget provides for an additional
time period apart from the actual budget period. Flexible budgets allow managers to revise
and update the targets set at the beginning of the budget period.

Selling expense budgets can be developed using different methods like the affordability
method, the percentage-of-sales method, the competitive parity method, the objective-and-
task method, and the return-oriented method. Budgeting establishes the objectives and
responsibilities of all departments and employees and in turn facilitates performance
evaluation and control. Budgets are used for achieving coordination between different
business segments that they have and for evaluating the performance of those segments.
They are also used as controlling tools to ensure that performance does not deviate
significantly from the plan.

Quotas are quantitative sales goals assigned to salespeople for a given time period; the
quotas could be specified in terms of sales volume or value, profit, expenses, or activities.
Sales quotas can be set not only for individual salespersons but also for a sales team or a
territory. Sales quotas are used to specify performance targets and standards, communicate
change of direction, and motivate the sales force.

Sales analysis involves gathering, classifying, and studying the sales data of an
organization. It is one of the means by which an organization can analyze its performance
and it helps sales managers to plan and direct the sales efforts. It helps the organization in
the overall management of its operations. Marketing cost analysis helps an organization to
identify opportunities to increase the effectiveness of its marketing expenditure. The
different types of analysis used are - sales variance analysis, market share analysis, and
marketing expense-to-sales variance analysis.

Sales reporting is used as a method of tracking and monitoring the performance of the sales
force. Information on sales, expenses, sales personnel performance, etc., is collected
through a formal reporting system. The two primary types of sales reports are - sales and
expense reports and other reports. The sales and expense reports are used by the sales
management as an evaluation tool of actual performances. The other reports include sales
forecasts and other inputs for planning.

The credit control mechanism involves two steps: analyzing the accounts receivables which
helps in finding out why some of the debts have gone bad and also the amount and type of
receivables; and credit rating of customers and channel members. Not having a proper
credit policy in place will affect the profitability of the organization. Performance evaluation
is a formal and planned system for measuring and evaluating the performance of
salespersons. Performance evaluation is generally used to assess the performance of a
salesperson; it can also be used as a tool by the management to motivate him/her.

Sales force compensation is used as way of controlling the sales force and is often
dependent on the sales volume generated. Sales force compensation is generally made up
of two components: salary and incentives. There are various factors and situations to be
considered to decide when the incentives component should be more and when the salary
component should be higher.

Sales force management audit is a cross-functional exercise that evaluates the entire selling
operation of an organization. A sales force management audit involves evaluation of the
sales management environment (both extra-organizational and intra-organizational), sales
management planning system, sales management organization, and sales management
functions Distribution control involves channel integration, channel management, evaluating
channel performance, and managing channel conflicts. Channel integration can be achieved
in two ways - through vertical marketing systems and horizontal marketing systems.
Channel management helps organizations reduce costs, reach potential customers, and
make profits. It involves four steps - selection and recruitment of channel members,
motivating channel members, evaluating the performance of channel members, and
modifying the existing channel arrangements to suit the market changes.

Evaluation is done at both the macro-level and the micro-level. At the macro-level, the
societal contributions made by the intermediaries are assessed in terms of channel
efficiency, productivity, effectiveness, and equity. The objectives of performance
management at the micro-level are profitability, goal attainment, pattern maintenance,
integration, and adaptation.

Channel conflicts can arise from either structural causes or attitudinal causes. The
commonly used conflict resolution strategies are - negotiation and bargaining, problem-
solving strategies, persuasion, political strategies, and co-optation. Apart from sales control,
marketing communications control includes control of advertising, sales promotion, direct
marketing, public relations, and brand management. Advertising effectiveness can be
measured through copy testing or message testing and by monitoring recognition, recall,
persuasion (attitude change), and purchase behavior. The effectiveness of Internet
advertising can be measured by considering four aspects - the purpose of the
advertisement, the value of the intended outcome, the number of times the purpose was
fulfilled, and the cost incurred on advertising.

The effectiveness of sales promotions can be measured in two ways - direct evaluation and
indirect evaluation. In direct evaluation, the sales volume is used as the parameter for
measurement, whereas in indirect evaluation, indicators of sales are used as the
parameters. Direct marketing involves direct communication with customers to obtain an
immediate and measurable response. The steps in direct marketing are developing the
framework for the direct marketing campaign; developing the direct marketing campaign;
implementing the campaign; and evaluating the campaign. Evaluation of the campaign is
done through evaluation of response and profitability. Response needs to be evaluated both
qualitatively and quantitatively. Profitability analysis is done by assessing the costs incurred
by and the profits generated for the organization.

Public relations (PR) is defined as any effort or measure undertaken to promote a strong
image of an organization or its products in the minds of the public. PR measurement and
evaluation involve assessment of the success or failure of PR strategies, activities, and
tactics in producing the desired outputs, outtakes, and outcomes.

Brand equity can be understood in terms of three underlying concepts: brand assets, brand
strength, and brand value. Brand measurement, which is used to evaluate the brand equity
of a brand, includes perception measurement, performance measurement, and financial
measurement. A balanced scorecard for the brand helps the organization to measure
important behavioral dynamics and compare the position of its brands against the
competitors. This helps in checking the strengths and weaknesses of the brand and, in turn,
helps the organization in strategic marketing and investment planning.

Brand portfolio management is an important activity for organizations. It can be done

through brand audit, which helps organizations to rationalize the number of brands in their
brand portfolio to achieve better profitability. The Marketing Decision Support System
(MDSS) is a set of decision models with supporting hardware and software available to
marketing managers to assist them in analyzing relevant business data and making better
marketing decisions.

Marketing intelligence offers managers with updated and precise information which helps
them to devise and execute strategies that can help the organization increase its
competitive advantage. It helps organizations assess the contribution of marketing activities
to the profits of the organization and also monitor the performance of the sales force.

Sales force automation helps in improving the relationships with the customers, and
monitoring the activities of the sales force. It helps in standardization of processes and
procedures that are used in business. Sales force automation can be used for surveillance
and control and also to increase the accountability of the salespeople. Some of the ways in
which automation is achieved are through mobile CRM and enterprise-wide applications.

Chapter 10 : Overview
Types of Marketing Controls
Strategic Control
Annual Plan Control
Profitability Control
Efficiency and Effectiveness Control

Marketing Audit
External and Internal Marketing Audits
Characteristics of an Effective Marketing Audit
Conducting a Marketing Audit

Sales Control
Sales Budgets
Sales Quotas
Sales and Cost Analysis
Sales Reporting
Credit Control
Performance Evaluation and Performance-based Compensation
Sales Force Management Audit
Distribution Control
Channel Integration
Channel Management
Evaluation of Channel Performance
Channel Conflict Management

Marketing Communications Control

Advertising
Sales Promotion
Direct Marketing
Public Relations

Marketing Control in Branding

Brand Equity and Brand Measurement
Brand Portfolio Management