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MARKET AUDIT & CONTROL

MARKETING CONTROL Evaluating the performance of the firm’s marketing operations so that performance can be improved.
MARKETING CONTROL PROCESS

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2 DECIDE THE ASPECT OF MARKETING OPERATIONS TO BE EVALUATED. ESTABLISH THE MANAGEMENT CRITERA OR STANDARD.

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ESTABLISH THE MONOTRING MECHANISM.

5 ANALYZE THE PERFORMANCE IMPROVEMENT

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COMPARE THE RESULTS OF STANDARD PERFORMANCE.

MARKETING CONTROL TOOLS 1. Profitability Analysis 2. Productivity Measures 3. Annual Plan Control a. Market Share Analysis b. Sales Analysis c. Marketing Cost Analysis 2. 20/80 Principle 3. Percentage Analysis 4. Efficiency Measures 5. Budgets 6. Network Diagrams Profitability Analysis is used to measure the profitability of various aspects of marketing operations such as product, customer, segment, trade size, order size etc. The profitability of each can be compared to desired level. Those falling under the desired level are then subjected to performance improvement. Productivity Measures enables a company to determine how effectively a given resource is performing. It can be any one of the following: a. Cost per sales call. b. Sales volume per sales call c. Cost per order. d. Number of interviews conducted per interviewer. Audit & Control, MM; Som; FoM; GEU Page 1

can also be prepared. profit and goals achieved in annual plan. product or territory. sales volume (in crores) 4 3 2 1 0 0 5 10 15 20 25 sales volume (in crores) Percentage Analysis is used to determine the effectiveness of a number of different marketing areas and analyzing the trend over time.000 10% 10% 10% 10% 300.8% 17. 2 .000 10% 10% 10% 10% 100.000 1. PERFORMANCE MEASUREMENT PERFORMANCE DIOAGNOSIS CORRECTIVE ACTION Efficiency Measures determines effectiveness of performance of resources.000 300. firm need to determine sales and profit by customer. In order to function effectively. Number of inquiries per advertisement f. Distribution.000 180.000 600. Separate budgets for Advertising.000.000 100% 100% 100% 100% 200.000 200. Annual plan control purpose is to ensure that company achieves the sales.3% 40% 100.000.000 2.000 180.000 300.000 20% 26.000 300.000 300.5% Total Marketing Expenditures Advertising Marketing Research Packaging Physical distribution Personnel Selling Budgets are monetary allocation to the specific marketing activities for the future period.000 30% 20% 17. Then marketing efforts can allocate accordingly.7% 22.800.e.000 1.000 300. Research.000 30% 33% 27.000 800.000 300. The reverse is also true.7% 33.000 200. Number of customer complaints per product. GOAL SETTING 20/80 Principle means that small percentage of a firm’s items generally account for a large percentage of its sales volume and profit.500. AN EXAMPLE OF PERCENTAGE ANALYSIS ITEM AMOUNT IN Rs & % AGE 2002 2003 2004 2005 1.000 400.000 150.5% 300.000 150.

not poor performance. Obtain inputs from individuals whose performance is to be observed. product. etc. Benefit of the marketing control system must be determined.Marketing Budgets are developed in relation to the company’s objectives. Responsibility must be assigned for marketing control systems. Budgets are very effective control device because they guard us against the possibility of expenditures. customers. Management by exception must be practiced. 4. 5. 8. Cost vs. 6. Show individuals how they can benefit from control systems. 3. Control should be continuous and be frequent. Performance standards must reflect difference according to the different territories. 3 . 2. 7. Emphasize on performance improvement. MAKING CONTROLLING EFFECTIVE 1.