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Marketing

control and Audit


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MARKETING CONTROL

 Many marketing experiences


demonstrate that marketing plans do not
always work exactly as expected.
 Sometimes these may considerable
variations against the standard
performance and for it, it is necessary that
the performance should be continuously
monitored.

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MARKETING CONTROL

 Marketing control is concerned with


analyzing the performance of marketing
decisions, opportunities and taking
corrective actions to resolve the problems
or to take advantage of the opportunities.
 Marketing control includes, every thing that
ensure people in the organization are
acting so as to implement the marketing
strategy properly.

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MARKETING CONTROL PROCESS
1. Deciding on
the aspect of 2. Establishing
marketing measurement criteria
operation to be or standards
evaluated

3. Establishing
monitoring
mechanisms

5. Analyze 4. Compare results


performance to standard
improvement performance

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Marketing Control Tools

1. Annual-Plan Control
a. Sales Analysis
• Sales variance analysis
• Microsales analysis

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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
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Evaluation and Control

2. Profitability Control
– Marketing-Profitability Analysis

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Evaluation and Control
3. Efficiency control
– Marketing Controller
– Sales-Force Efficiency
– Advertising Efficiency
– Sales-Promotion Efficiency
– Distribution Efficiency

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Evaluation and Control

4. Strategic control
– The Marketing Effectiveness Review
– The Marketing Audit
– Marketing Excellence Review
– Ethical and social responsibility review .

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Marketing Audit

• The broadest control device available to


marketing management is the marketing
audit.
• This tool incorporates both financial and
non-financial reporting.
• It is a periodic, complete appraisal of the
effectiveness of the forms entire marketing
operations.

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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.”

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Characteristics of MA

• Comprehensive
• Systematic
• Independent
• Periodic

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Components of Marketing Audit

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1. Macro-environment

A. Demographic
B. Economic
C. Environmental
D. Technological
E. Political
F. Cultural

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2. Task Environment

A. Markets
B. Customers
C. Competitors
D. Distribution and Dealers
E. Suppliers
F. Facilitators and Marketing Firms
G. Publics
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3. Marketing Strategy Audit

A. Business mission

B. Marketing Objectives and goals

C. Strategy

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4. Marketing Organization Audit

A. Formal structure

B. Functional efficiency

C. Interface efficiency

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5. Marketing Systems Audit

A. Marketing information Systems

B. Marketing Planning systems

C. Marketing Control Systems

D. New product development systems

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6. Marketing Productivity Audit

A. Profitability analysis

B. Cost Effectiveness Analysis

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7. Marketing Function Audits

A. Products
B. Price
C. Distribution
D. Advertising, Sales Promotion, Publicity
and Direct Marketing
E. Sales Force

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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.

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