Chapter 10

Marketing Strategy

Reformulation:

The Control Process

2

Definitions

Strategic Control: Focus on Effectiveness

assesses the direction of the organization by its goals, objectives,

strategies, and capacity to perform in the context of changing

environments and competitor actions.

Operations Control: Focus on Efficiency

assesses how well the organization performs marketing activities as it

seeks to achieve planned outcomes.

3

Strategic Change

...change in the environment that will affect

the long-run well-being of the organization.

Change can be a threat or opportunity

Sources of Strategic Change:

market evolution market redefinition change in marketing channels

4

Operations Control: Marketing-Cost

Analysis

How should costs be allocated to marketing segments?

What costs should be allocated?

Should all costs be allocated to marketing segments?

Purpose is to assign costs to marketing activities or

segments to accurately reflect their financial contribution

to the organization

5

Operations Control: Product-Service Mix

Control

Involves two tasks:

assessment of the performance of offerings in the

relevant markets - including assessing sales volume and

market share

an appraisal of the financial worth of product-service

offerings - using a contribution margin approach

6

Operations Control: Sales Control

behavioral element consists of sales effort and

allocation of selling time

cost aspect consists of expenses arising from the

performance and administration of the sales

function

Directs attention to the behavioral and cost

aspects of sales activity

7

Operations Control: Marketing Channel

Control

Consists of two processes:

assessment of environmental and organizational

factors that may affect marketing channels

evaluation of the profitability of marketing channels order-getting costs

order-servicing expenditures

8

Considerations in Marketing Control

Managers must be aware of difference between:

Problems and Symptoms

Effectiveness and Efficiency

Data and Information