Marketing organization and

control
 Types of Marketing organization
Structures
 Functional organization

 Geographic organization

 Product/Brand management organization

 Category management organization

 Market management organization

 Matrix organization
 Marketing control
 Marketing control is the process of
measuring and evaluating the results of
marketing strategies and plans and taking
corrective actions to ensure the
achievement of marketing objectives
 Marketing control process :

 Establishing performance standards

 Appraising the performance

 Correcting deviation

 Reforming the plan

 Types of Marketing Control
 Annual plan

 Profitability control

 Efficiency control

 Strategic control

 Marketing audit
 Annual plan :
 Annual plan Annual plan control ensures the company
achieves the sales, profits and other goals established in its
annual plan. There are four steps in this process.

 What is happening
 Why is it happening
 What should we do about it
 what do we want to achieve

Sales analysis :
 Sales analysis Sales analysis measures and evaluates actual
sales in relationship to goals. Two specific tools make it work.

 Sales variance analysis

 Micro sales analysis
 Market share analysis :
 Market share analysis Company sales don’t reveal how well the
company is performing relative to competitors. For this purpose,
management needs to track its market share in one of three ways.

 Overall market share

 Served market share
 Relative market share

 overall market share = customer penetration * customer

loyalty*customer selectivity*price selectivity
 Marketing expense to-sale-
analysis :
 Marketing expense to-sale-analysis Annual plan
control requires making sure the company is not
overspending to achieve sales goals. The key
ratio to watch is marketing expense-to-sales. In
a company this ratio was 30% and consisted of
five component expense-to-sale ratios: sales
force-to-sales(15%); advertising-to-sale(5%);
sales promotion-to-sale(6%); marketing
research-to-sale(1%); and sales advertisement-
to-sale(3%).
 Financial analysis :

 Financial analysis Management uses financial

analysis to identify factors that affect the
company’s rate of return on net worth.
 To improve its return on net worth, the company
must increase its ratio of net profits to assets, or
increase the ratio of assets to net worth.
 The company should analysis the composition
of its assets (cash, account receivable, inventory
and plant & equipment) and see whether it can
improve its assets management.
 Profitability control :

 Companies can benefit from deeper financial

analysis and should measure the profitability of
their products, territories, customer groups,
segments, trade channels, and order size. This
information can help management determine
whether to expend, reduce or eliminate any
products or marketing activities.
Process of profitability control
analysis
 Identifying functional expenses

 Assigning functional expenses to marketing

entities

 Preparing a profit and loss statement for each

marketing entities
 Efficiency control :
 Efficiency control involves micro-level analysis of the various
elements of the marketing mix, including sales force, advertising,
sales promotion, and distribution. For example, to understand its
sales-force efficiency, a company may keep track of how many sales
calls a representative makes each day, how long each call lasts, and
how much each call costs and generates in revenue.

 For example assessing channel efficiency, management needs to

search for distribution economies in inventory control, warehouse
location and transportation mode. It should track such measures as:

 Logistic cost as a percentage of sales

 Percentage of order filled correctly
 Percentage of on-time delivery
 Number of billing errors
 Customer penetration is the percentage of all
customers who buy from the company.
 Customer loyalty is the purchases from the company
by its customers expressed as a percentage of their total
purchases from all suppliers of the same products.
 Customer selectivity is the size of the average
customer purchase from the company expressed as a
percentage of the size of the average customer purchase
from an average company.
 Price selectivity is the average price charged by the
company expressed as a percentage of the average price
charged by all companies.
 Strategic control :

 Strategic control Each company should

periodically reassess its strategic approach
to the market place with a good marketing
audit. Companies can also perform
marketing excellence reviews and
ethical/social responsibility reviews.
 Marketing audit

 Marketing audit Marketing audit is a

comprehensive, systematic, independent and
periodic examination of a company’s marketing
environment, objectives, strategies and
activities, with a view to determine problem
areas and opportunities and recommending a
plan of action to improve the company’s
marketing performance.
 Features of marketing audit :

 Comprehensive
 Systematic
 Independent
 Periodic
Factors affecting Global Marketing