Slide 1: Presented by:
Rakesh Saroha Gju s&t hissar Definition : Definition Marketing control is gathering information on marketing performance and comparing the achieved performances against planned or budgeted performances using predetermined standards and yardstick. It is the process of taking steps to bring actual results and desired results closer together.
The aim of control systems is to evaluate the results of the marketing plan so that corrective action can be taken if performance does not match objectives. Significance of marketing control : Significance of marketing control It puts the unit on the progress path
It helps in locating responsibility for deeds
Keep pace with environmental changes
It absorbs organizational complexity
It brings about realistic reformulation of plans Marketing control process : Marketing control process Establishing performance standards
Appraising the performance
Reforming the plan Types of Marketing Control : Types of Marketing Control Types of Marketing Control : Types of Marketing Control Annual plan : Annual plan Annual plan control ensures the company achieves the sales, profits and other goals established in its annual plan. There are four steps in this process. What is happening Why is it happening What should we do about it what do we want to achieve Sales analysis : Sales analysis Sales analysis measures and evaluates actual sales in relationship to goals. Two specific tools make it work.
Sales variance analysis
Micro sales analysis Market share analysis : Market share analysis Company sales don’t reveal how well the company is performing relative to competitors. For this purpose, management needs to track its market share in one of three ways.
Overall market share
Served market share
Relative market share
overall market share = customer penetration * customer loyalty*customer selectivity*price selectivity : Customer penetration is the percentage of all customers who buy from the company.
Customer loyalty is the purchases from the company by its customers expressed as a percentage of their total purchases from all suppliers of the same products.
Customer selectivity is the size of the average customer purchase from the company expressed as a percentage of the size of the average customer purchase from an average company.
Price selectivity is the average price charged by the company expressed as a percentage of the average price charged by all companies. Marketing expense to-sale-analysis : Marketing expense to-sale-analysis Annual plan control requires making sure the company is not overspending to achieve sales goals. The key ratio to watch is marketing expense-to-sales. In a company this ratio was 30% and consisted of five component expense-to-sale ratios: sales force-to-sales(15%); advertising-to-sale(5%); sales promotion-to-sale(6%); marketing research-to-sale(1%); and sales advertisement-to-sale(3%). Financial analysis : Financial analysis Management uses financial analysis to identify factors that affect the company’s rate of return on net worth.
To improve its return on net worth, the company must increase its ratio of net profits to assets, or increase the ratio of assets to net worth.
The company should analysis the composition of its assets(cash, account receivable, inventory and plant & equipment) and see whether it can improve its assets management. Profitability control : Profitability control Companies can benefit from deeper financial analysis and should measure the profitability of their products, territories, customer groups, segments, trade channels, and order size. This information can help management determine whether to expend, reduce or eliminate any products or marketing activities. Process of profitability control analysis : Process of profitability control analysis Identifying functional expenses
Assigning functional expenses to marketing entities
Preparing a profit and loss statement for each marketing entities Efficiency control : Efficiency control Efficiency control involves micro-level analysis of the various elements of the marketing mix, including sales force, advertising, sales promotion, and distribution. For example, to understand its sales-force efficiency, a company may keep track of how many sales calls a representative makes each day, how long each call lasts, and how much each call costs and generates in revenue.
For example assessing channel efficiency, management needs to search for distribution economies in inventory control, warehouse location and transportation mode. It should track such measures as:
Logistic cost as a percentage of sales
Percentage of order filled correctly
Percentage of on-time delivery
Number of billing errors Strategic control : Strategic control Each company should periodically reassess its strategic approach to the market place with a good marketing audit. Companies can also perform marketing excellence reviews and ethical/social responsibility reviews. Marketing audit : Marketing audit Marketing audit is a comprehensive, systematic, independent and periodic examination of a company’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. Features of marketing audit : Features of marketing audit Comprehensive
Periodic : thanks