CHAPTER 41

Marketing Control

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 Chapter 41: Marketing Control

At the end of this chapter, you should be able to:

⮚ Understand the Role and Scope of Marketing Control

⮚ Comprehend that Marketing Control Must Monitor All Key Result Areas
of Marketing

⮚ Gain an idea about the Various Tools and Techniques of Marketing

Control

⮚ Appreciate the Need for Fixing Metrics for Evaluating Various Marketing
Activities/Programmes

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 Chapter 41: Marketing Control

⮚ It is the tool for ensuring that the firm’s marketing programs are
directed towards its marketing objectives
⮚ Acts as a radar system for marketing
■ Designing a Marketing Control System
Chart 41.1 Steps in Designing a Marketing Control System (Pg 776)

⮚ Fast feedback, the differentiator of good marketing control

■ Marketing Control Must Monitor All Key Result Areas of Marketing:
• Sales volume/value • Marketing costs
• Market share • Profits
• Market standing • Productivity in each marketing activity

Tools and Techniques of Marketing Control

Chart 41.2 Tools and Techniques of Marketing Control (Pg 777)
(1) Marketing Audit
⮚ Wide-ranging scope of marketing audit
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 Chapter 41: Marketing Control
Tools and Techniques (…contd)
(2) Marketing Cost Analysis Chart 41.3 Benefits of Marketing Cost Analysis (Pg 777)
⮚ Benefits of marketing cost analysis
⮚ Components of marketing costs Ch 41.4 Components of Marketing Costs ( 777)
⮚ Steps involved in marketing cost analysis
• Analysing the costs by function
• Analysing the costs by marketing entities
• Cost-benefit analysis
Ch 41.5 Steps in Marketing Cost Analysis (Pg 777)
• Comparison with standard costs
Ch 41.6 Lines on which Marketing
(3) Credit control Costs are Analysed ( 779)

• Lack of credit control drains away profit

• Analysis of accounts receivable and bad debts; Eg: Asian Paints
• Credit rating of customers and dealers
(4) Control on Price Cuts Chart 41.7 Aspects Covered in
Credit Rating of a Dealer (Pg 780)
(5) Market Share Analysis
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 Chapter 41: Marketing Control
Tools and Techniques (…contd)
(6) Budgetary Control
(7) Ratio Analysis
● ROI • Turnover to working capital
● RONW • Inventory to turnover
● Gross profit to sales • Turnover to distribution expenses
● Net profit to sales • Turnover to promotion expenses
● Sales to capital employed • Turnover to bad debts
(8) Contribution Margin Analysis
(9) Using Marketing Information for Marketing Control
■ Integrating Marketing Controls and Financial Controls

Fixing Measures / Metrics for Evaluating Various

Marketing Activities/Programmes
⮚ ‘If you can’t measure it, you can’t manage it’
⮚ The need to look beyond traditional control measures
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