Marketing Evaluation and Control

1. Marketing Evaluation and Control Marketing Evaluation and Control

2. Introduction • Marketing Control is a tool for ensuring that the marketing plans of the firm are always directed towards their objectives. • It provides means to test whether the desired goals and results are achieved or not. • They compare the ‘expected’ performance of the marketing plan with, the ‘actual’ performance. • As a result deviations are obtained, which are to be corrected. • If marketing plan is the first activity then controlling also goes side-by-side. Marketing Evaluation and Control

3. Role and Scope of Marketing Control • Marketing Control involves gathering information on marketing performance and comparing achieved performance against planned or budgeted performance. • This is done using pre-determined standards or yardstics. • These standards can check the various characteristics of the plan. • Marketing Control acts as a feedback system for marketing planning. Marketing Evaluation and Control

4. The Basic Control Process Marketing Evaluation and Control

5. Steps involved in Designing a Marketing Control Syetem Marketing Evaluation and Control

6. What all can a Marketing Control System monitor ? • The following are the areas where a Marketing Control System can generate feedback : • Sales Volume • Market Share • Market Standing • Marketing Costs • Profits • Productivity • Capital Invested • ROI • Productivity • Timeliness • Quantity of Output produced etc. Marketing Evaluation and Control

7. The Different kinds of ‘Standards’ used to measure Performance • Physical Standards: • They are the checks set on the measurement of amount of resources used, number of labor employed etc. • Cost Standards: • They are the monetary measurements, and measure the direct and indirect costs involved in production of a unit product, they cover the operating costs involved. • Capital Standards: • They deal with capital invested by the firm, they are not the operating costs. Marketing Evaluation and Control

8. The Different kinds of ‘Standards’ used to measure Performance • Revenue Standards: • They talk about the monetary value attached to the sale of products. They calculate the ROI for a product. • Program Standards: • It checks the timeliness of a plan, whether the program was finished on time or not. • Intangible Standards: • They evaluate the intangible aspects of the plan like competitive advantage etc. • Goals as Standards: • What percent of goals achieved. Marketing Evaluation and Control

9. Tools and Techniques of Marketing Control • Marketing Audit • Market Share Analysis • Marketing Cost Analysis • Credit Control • Budgetary Control • Ratio Analysis • Contribution Margin Analysis Marketing Evaluation and Control

10. Tools and Techniques of Marketing Control • Marketing Audit: • This method tests the total marketing efficiency of the firm. • It is done on a regular basis. • It is aimed at critically evaluating the various marketing functions. • It has the most widest scope, where it tests not only the quantitative and financial part of a plan but also the qualitative and other strategic issues relevant to the plan. • Marketing Cost Analysis: • Identifies the cost of performing a specific marketing function. • This function can be : Distribution, Promotion, Production, Sales Administration costs, Inventory Management costs, Cost of Marketing Research etc. • It helps in controlling the expenses and thereby helps augment savings and surpluses. Marketing Evaluation and Control

11. Tools and Techniques of Marketing Control • Credit Control: • Business firms are often forced to extend credit facilities to increase sales. • At times, the entire sales may take place on credit. • Hence, the Credit Control keeps a check on such credit facilities, so that channels do not exploit the facility. • Market Share Analysis: • It helps in evaluation the performance of the firm in the real market. • It helps in setting objectives and allocation of resources (BCG Matrix). • If not interpreted properly, it may mislead the entire marketing plan. Marketing Evaluation and Control

12. Tools and Techniques of Marketing Control • Budgetary Control: • It gives the financial statements related to the marketing plan. • It may involve and analyze various marketing functions like: Sales Forecast, Sales Budgeting, Sales Expenses etc. • It contains control statements to counter the variance from expected to achieved value. • Ration Analysis: • Ratio Analysis seeks to measure the effectiveness and profitability of various marketing functions. • While Budgetary Control deals with actual figures, Ratio Analysis plays with relative values. • Some important ratios are: ROI, RONW (Return on Net profit to Net Worth), Gross Profit to Sales Ratio, Net Profit to Sales Ratio, Sales to Capital Employed Ratio etc. Marketing Evaluation and Control

13. Tools and Techniques of Marketing Control • Contribution Margin Analysis: • Here the costs incurred by a product are analyzed. • They give an idea about continuation or discontinuation of the product in the market. • They study the contribution made by a particular product in net profit. Marketing Evaluation and Control

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