Marketing Control and Audit

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Marketing Marketing control and Auditcontrol and Audit

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.

MARKETING CONTROLMARKETING 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.

MARKETING CONTROLMARKETING CONTROL

MARKETING CONTROL PROCESSMARKETING CONTROL PROCESS

1. Deciding on the aspect of marketing

operation to be evaluated

2. Establishing measurement criteria

or standards

3. Establishing monitoring mechanisms

4. Compare results to standard

performance

5. Analyze performance improvement

1. Annual-Plan Controla. Sales Analysis

• Sales variance analysis

• Microsales analysis

Marketing Control ToolsMarketing Control Tools

Evaluation and ControlEvaluation and Control

b. Market-Share Analysis• Overall market share• Served market share• Relative market share

c. Marketing Cost Analysisd. Financial Analysis e. Market-Based Scorecard Analysis

• Customer-performance scorecard• Stakeholder-performance scorecard

2. Profitability Control– Marketing-Profitability Analysis

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

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

Marketing AuditMarketing 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.

Marketing AuditMarketing 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.”

Characteristics of MACharacteristics of MA

• Comprehensive• Systematic • Independent• Periodic

Components of Marketing AuditComponents of Marketing Audit

1. Macro-environment1. Macro-environment

A. Demographic

B. Economic

C. Environmental

D. Technological

E. Political

F. Cultural

2. Task Environment2. Task Environment

A. Markets

B. Customers

C. Competitors

D. Distribution and Dealers

E. Suppliers

F. Facilitators and Marketing Firms

G. Publics

3. Marketing Strategy Audit3. Marketing Strategy Audit

A. Business mission

B. Marketing Objectives and goals

C. Strategy

4. Marketing Organization Audit4. Marketing Organization Audit

A. Formal structure

B. Functional efficiency

C. Interface efficiency

5. Marketing Systems Audit5. Marketing Systems Audit

A. Marketing information Systems

B. Marketing Planning systems

C. Marketing Control Systems

D. New product development systems

6. Marketing Productivity Audit6. Marketing Productivity Audit

A. Profitability analysis

B. Cost Effectiveness Analysis

7. Marketing Function Audits7. Marketing Function Audits

A. Products

B. Price

C. Distribution

D. Advertising, Sales Promotion, Publicity and Direct Marketing

E. Sales Force

Principles of Effective Marketing ControlPrinciples 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.

Marketing Control and Audit

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