MARKETING CONTROL AND AUDIT

PRESENTED BY;SK.SAMIM REHMAN

PANKAJ CHAKRABORTY

Marketing control & audit

TOPIC TO BE DISSCUS

• Types of control• Purpose of control• Approaches• Meaning of audit• Characteristics of audit• Components of audit

Marketing control

Control means to monitor and control the marketing activities for reducing any deviation.

control

Efficiency control

Annual plan

control

Profitability control

Strategic control

ANNUAL PLAN CONTROLIt ensures the company achieves the sales,

profit, and other goals established in its annual plan. Prime responsibility TOP & MIDDLE management

Steps of annual plan control:

Goal setting

Performance measurement

Performance diagnosis

Corrective action

ANNUAL PLAN CONTROL

• Purpose of control - to examine whether the planned results

are being achieved.

• Approaches -sales analysis -market share analysis -sales to expense ratio -financial analysis and -market based analysis

Approaches of annual plan control

• Sales analysis; it has two tools -- sales variance analysis -- micro sales analysis• Market share analysis: it can be done three

ways -- overall market share -- served market share -- relative market share

PROFITABILITY CONTROL• Purpose:To examine where the company is making and losing

money.• Approaches: profitability by; -- product -- territory -- customer -- segment -- trade channel -- order size

Profitability control

Marketing profitability analysis:Step 1: identifying functional expenses.Step 2: assigning functional expenses to

marketing entities.Step 3: preparing profit & loss statement for

each marketing entity.

Profitability control• Identifying functional expenses: Expenses that are incurred to sell the product,

advertise it, pack, deliver, bill and collect.• Assigning functional expenses to marketing

entities:To measure how much functional expenses was

associated with selling through each type of channel.

• Preparing profit & loss statement for each marketing entity.

EFFICIENCY CONTROL• Prime responsibility:Line and staff management marketing controller. Purpose:To evaluate and improve the spending efficiency

and impact of marketing expenditure. Approaches: efficiency of; -- sales force -- advertising -- sales promotion -- distribution

STRATEGIC CONTROL

• Prime responsibility:Top management marketing auditor. Purpose :To examine whether the company is pursuing its

best opportunities with respect to market, products, and channels

Strategic control CONT…..

• Approaches: -- marketing effectiveness rating

instrument. -- marketing audit. -- marketing effectiveness review. -- company ethical and social

responsibility review.

MARKETING AUDITIT MEANS EXAMINING COMPANY’S OR

BUSINESSES UNIT’S --Marketing environment--objectives--strategies and--activitiesWith a view to determining problem areas and

opportunities and recommending a plan of action to improve the company’s marketing performance.

Marketing auditCHARACTERISTICS

• COMPREHENSIVE• SYSTEMATIC• INDEPENDENT• PERIODIC

COMPREHENSIVE

• The marketing audit covers all the major marketing activities of a business, not just a few trouble spots.

• A comprehensive marketing audit usually is more effective in locating the real sources of problem.

• SYSTEMATIC– examination of a environment, objectives, strategies, systems etc.

• INDEPENDENT– self audit, audit from across, audit from above, company auditing office, company task force audit and outsider audit.

• PERIODIC– it helps to face different trouble, like sales fallen, company’s are thrown into crises etc.

COMPONENTS OF MARKETING AUDIT

A. Marketing environment audit.B. Marketing strategy audit.C. Marketing organization audit.D. Marketing systems audit.E. Marketing productivity audit.F. Marketing function audit.

A) MARKETING ENVIRONMENT AUDIT

• Demographic: development & trends.• Economic: affect of income, saving, price,

credit.• Environmental: availability of natural

resources and energy.• Political: changes in laws and regulations.• Cultural: public’s attitude, lifestyle, values.

A)1) TASK ENVIRONMENT

• Market: segment, size, growth, profits.• Customers: need’s, buying process.• Competitors: objectives, strategies, etc.• Distribution: dealers, trade channel.• Suppliers: availability of key resources.• Facilitators & firms: transportation service,

warehouse facilities.

B) MARKETING STRATEGY AUDIT

• Business mission: feasibility, clarity etc.• Marketing objectives & goals:

appropriateness, guide in planning and performance.

• Strategy: PLC, competitor strategy, proper market segmentation etc.

C) MARKETING ORGANIZATION AUDIT

• Formal structure: authority, responsibility.• Functional efficiency: communication between

marketing and sales, need of training, motivation, supervision etc.

• Interface efficiency: problems between, marketing and R&D, purchasing, finance, accounting etc.

D) MARKETING SYSTEMS AUDIT

• Marketing information system: intelligence system, marketing research etc.

• Marketing planning system: availability of DSS.• Marketing control system: periodically

analyze, annual plan objective etc.• New product development system:

E) MARKETING PRODUCTIVITY AUDIT

• Profitability analysis: products, markets, territories, expand, contract etc.

• Cost effectiveness analysis: cost reduction steps.

F) MARKETING FUNCTION AUDIT

• Product: product line, quality, features, styling• Price: experience curve effect, competitor price,

policies etc.• Distribution: effectiveness of dealers, brokers,

agent, etc• Marketing communication: effectiveness of

communication mix.• Sales force: effort, ability, of the sales manager

and sales people.

CONCLUSION

The rule of marketing audit is: don’t relay solely on company managers for data and opinion.Ask customers, dealers and other outside

groups.

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