What are the tools avai lable to

help companies monitor and

improve their market ing

act iv i t ies?

By,Anurag KarB.Tech. StudentDepartment of E and ECEIIT Kharagpur

Based on Chapter 21: Managing a Holistic Marketing Organisation for the Long Run

OfMarketing Management: A South Asian

PerspectiveBy Kotler, Keller, Koshy and Jha

Marketing control

Is a process by which firms assess the effects of their marketing

activities and programs and make adjustments.

What do we want to achieve?

What is happening?

Why is it happening?

What should we do about it?

Goal setting

Performance Measurement

Performance Diagnosis

Corrective Action

TheControlProcess

Four types of Marketing Control

Annual-PlanControl

Profitability Control

Efficiency Control

Strategic Control

These are the tools which help companies monitor

and improve their marketing activities.

1.

Annual-Plan

Control

Prime Responsibility:

• Top management• Middle Management

Purpose of Control:

To examine whether the planned results are being

achieved.

Approaches:

• Sales analysis• Market share analysis• Sales to expense ratios• Financial analysis• Market based scorecard analysis

Annual plan control ensures the company achieves its

sales, profits and other goals established in its annual

plan.

This control model applies to all levels of the organization.

2.

Profitability

Control

Prime Responsibility:

• Marketing controller

Purpose of Control:

To examine where the company is making and

losing money.

Approaches:

Profitability by:

• Product• Territory• Customer• Segment• Trade Channel• Order Size

Companies should measure the profitability of their products, territories,

customer groups. Segments, trade channels, and order sizes to help

determine whether to expand, reduce or eliminate any products.

3.

Efficiency

Control

Prime Responsibility:

• Line and staff management• Marketing controller

Purpose of Control:

To evaluate and improve the spending efficiency and

impact of marketing expenditures.

Approaches:

Efficiency of:

• Sales Force• Advertising• Sales Promotion• Distribution

4.

Strategic

Control

Prime Responsibility:

• Top management• Marketing Auditor

Purpose of Control:

To examine whether the company is pursuing its best opportunities

with respect to markets, products, and channels.

Approaches:

• Marketing effectiveness rating instrument• Marketing audit• Marketing excellence review• Company ethical and social responsibility review

Strategic Control can be carried out in two ways.

The Marketing Audit

The Marketing Excellence Review

The Marketing

Audit

A marketing audit is an examination of a company’s business unit’s marketing environment, objectives, and activities, to determine problems and recommend a plan to improve the company’s performance.

The Big Four Audit Firms

Four characteristics of the marketing

audit

Comprehensive

The marketing audit covers all the major marketing

activities of a business, not just a few trouble spots.

Systematic

The marketing audit is an orderly examination of the organization’s macro- and

micromarketing environments.

Independent

Self audits lack objectivity and independence. Hence, outside consultants bring

the objectivity and independence.

PeriodicA periodic audit can benefit companies in good health as well as those in trouble.

Comprehensive

Periodic Systematic

Independent

Four characteristics of the marketing

audit

The Marketing ExcellenceReview

The market excellence review distinguishes

between poor, good and excellent business and

marketing practices.

Poor Good Excellent

• Product driven• Mass-market oriented• Product offer• Average product quality

• Market driven• Segment-oriented• Augmented product offer• Better than average

• Market driving• Customer oriented• Customer solutions offer• Legendary

Poor Good Excellent

• Product driven• Mass-market oriented• Product offer• Average product quality• Average Service Quality• End product oriented• Function oriented• Reacting to competitors

• Market driven• Segment-oriented• Augmented product offer• Better than average• Better than average• Core-product oriented• Process oriented• Benchmarking competitors

• Market driving• Customer oriented• Customer solutions offer• Legendary• Legendary• Core-competency oriented• Outcome oriented• Leapfrogging competitors

Poor Good Excellent

• Product driven• Mass-market oriented• Product offer• Average product quality• Average Service Quality• End product oriented• Function oriented• Reacting to competitors• Supplier exploitation• Dealer exploitation• Price driven• Average speed

• Market driven• Segment-oriented• Augmented product offer• Better than average• Better than average• Core-product oriented• Process oriented• Benchmarking competitors• Supplier preference• Dealer support• Quality driven• Better than average

• Market driving• Customer oriented• Customer solutions offer• Legendary• Legendary• Core-competency oriented• Outcome oriented• Leapfrogging competitors• Supplier partnership• Dealer partnership• Value driven• Legendary

Poor Good Excellent

• Product driven• Mass-market oriented• Product offer• Average product quality• Average Service Quality• End product oriented• Function oriented• Reacting to competitors• Supplier exploitation• Dealer exploitation• Price driven• Average speed• Hierarchy• Vertically integrated• Stockholder driven

• Market driven• Segment-oriented• Augmented product offer• Better than average• Better than average• Core-product oriented• Process oriented• Benchmarking competitors• Supplier preference• Dealer support• Quality driven• Better than average• Network• Flattened organization• Stakeholder driven

• Market driving• Customer oriented• Customer solutions offer• Legendary• Legendary• Core-competency oriented• Outcome oriented• Leapfrogging competitors• Supplier partnership• Dealer partnership• Value driven• Legendary• Teamwork• Strategic alliances• Societally driven

Poor Good Excellent

• Product driven• Mass-market oriented• Product offer• Average product quality• Average Service Quality• End product oriented• Function oriented• Reacting to competitors• Supplier exploitation• Dealer exploitation• Price driven• Average speed• Hierarchy• Vertically integrated• Stockholder driven

• Market driven• Segment-oriented• Augmented product offer• Better than average• Better than average• Core-product oriented• Process oriented• Benchmarking competitors• Supplier preference• Dealer support• Quality driven• Better than average• Network• Flattened organization• Stakeholder driven

• Market driving• Customer oriented• Customer solutions offer• Legendary• Legendary• Core-competency oriented• Outcome oriented• Leapfrogging competitors• Supplier partnership• Dealer partnership• Value driven• Legendary• Teamwork• Strategic alliances• Societally driven

Thank You!

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Based on “Marketing Management: A South Asian Perspective”By Kohler, Kelter, Koshy and Jha