Marketing Control and Its Importance in Business
Marketing
C
ontrol
Marketing
Control
•
Marketing control is the process by which firms assess
the
effects
of
their marketing activities and programs and
make
necessary changes
and
adjustments
•
Marketing control
includes:
•
Annual plan
control
•
Profitability
control
•
Efficiency
control
•
Strategic
control
Marketing Control
Process
•
Goal
setting-
What
do you want to
achieve?
•
Performance measurement-
What is
happening?
•
Performance diagnosis –
Why is it
happening?
•
Corrective action –
What should we do
about
it?
Types
of Marketing
Control
•
Annual plan
control
•
Profitability
control
•
Efficiency
control
•
Strategic
control
Annual Plan
Control
•
Sales
analysis
•
Market share
analysis
•
Expenses to sales
analysis
•
Financial
analysis
•
Market-based score
card
analysis
Profitability
control
•
Profitability control
by:
•
Product
•
Territory
•
Customer segment
•
Trade
channel
•
Order
size
Efficiency
•
Efficiency
control
•
Sales
force
•
Advertising
•
Sales
promotion
•
Distribution
Strategic
Control
•
It is exercised by
top
management
•
It consists
of:
•
Marketing
effectiveness
review
•
Marketing
audit
•
It is a review
of
•
Firm’s
marketing
objectives
•
Strategies
•
Program
Marketing
Effectiveness
Review
•
It
measures
•
Customer
orientation
•
Integrated
marketing
organization
•
Adequate
marketing information
system
•
Strategic
orientation
•
Operational
efficiency
Marketing
audit
•
A marketing audit is a comprehensive, systematic, independent, and
periodic
examination of a
company’s
or business
unit’s
marketing
environment, objectives, strategies, and activities, with a view
to
determine
problem
areas
and
opportunities
and recommending a plan
of action to improve
the
company’s
marketing
performance.
•
Philip
Kotler
Characteristics of Marketing
audit
•
Comprehensive
•
Systematic
•
Independent
•
Periodic
Components of Marketing
Audit
•
Marketing environment audit (Macro and task
environment)
•
Marketing strategy
audit
•
Marketing
organization
audit
•
Marketing system
audit
•
Marketing productivity
audit
•
Marketing function
audit
Marketing Environment
Audit
•
Macro
Environment
•
PEST
•
Task
Environment
•
Markets
•
Customers
•
Competitors
•
Distribution and
dealer
•
Suppliers
•
Facilitators
•
Publics
Marketing Strategy
Audit
•
Business
mission
•
Marketing objectives and
goals
•
Strategy
Marketing
Organization
Audit
•
Formal
structure
•
Functional
efficiency
•
Interface
efficiency
Marketing System
Audit
•
Marketing information system
•
Marketing planning
system
•
Marketing control
system
•
New-product development
system
Marketing productivity
Audit
•
Profitability
analysis
•
Cost-effectiveness
analysis
Marketing Function
Audit
•
Product
•
Price
•
Distribution
•
Marketing
communication
•
Sales
force
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Marketing control is a crucial process for firms to evaluate the impact of their marketing strategies and initiatives, making necessary adjustments for better outcomes. It involves various aspects such as annual plan control, profitability control, efficiency control, and strategic control. The process includes goal setting, performance measurement, performance diagnosis, and corrective actions to achieve desired objectives. Different types of marketing control include annual plan control, profitability control, efficiency control, and strategic control, each focusing on specific areas for assessment and improvement. Marketing effectiveness review and marketing audit help in measuring customer orientation, strategic orientation, and operational efficiency to enhance overall marketing performance.
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Presentation Transcript
Marketing Control Marketing control is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments Marketing control includes: Annual plan control Profitability control Efficiency control Strategic control
Marketing Control Process Goal setting- What do you want to achieve? Performance measurement- What is happening? Performance diagnosis Why is it happening? Corrective action What should we do about it?
Types of Marketing Control Annual plan control Profitability control Efficiency control Strategic control
Annual Plan Control Sales analysis Market share analysis Expenses to sales analysis Financial analysis Market-based score card analysis
Profitability control Profitability control by: Product Territory Customer segment Trade channel Order size
Efficiency Efficiency control Sales force Advertising Sales promotion Distribution
Strategic Control It is exercised by top management It consists of: Marketing effectiveness review Marketing audit It is a review of Firm s marketing objectives Strategies Program
Marketing Effectiveness Review It measures Customer orientation Integrated marketing organization Adequate marketing information system Strategic orientation Operational efficiency
Marketing audit A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company s or business unit s marketing environment, objectives, strategies, and activities, with a view to determine problem areas and opportunities and recommending a plan of action to improve the company s marketing performance. Philip Kotler
Characteristics of Marketing audit Comprehensive Systematic Independent Periodic
Components of MarketingAudit Marketing environment audit (Macro and task environment) Marketing strategy audit Marketing organization audit Marketing system audit Marketing productivity audit Marketing function audit
Marketing EnvironmentAudit Macro Environment PEST Task Environment Markets Customers Competitors Distribution anddealer Suppliers Facilitators Publics
Marketing StrategyAudit Business mission Marketing objectives and goals Strategy
Marketing OrganizationAudit Formal structure Functional efficiency Interface efficiency
Marketing SystemAudit Marketing information system Marketing planning system Marketing control system New-product development system
Marketing productivityAudit Profitability analysis Cost-effectiveness analysis
Marketing FunctionAudit Product Price Distribution Marketing communication Sales force
Strategic Marketing Evaluation and Control Conductstrategic marketing audit Select performance criteria, measures, andmetrics Obtain and analyze information Assess performance and take necessary action
