marketing control and audit
TRANSCRIPT
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MARKETING CONTROL AND AUDIT
PRESENTED BY;SK.SAMIM REHMAN
PANKAJ CHAKRABORTY
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Marketing control & audit
TOPIC TO BE DISSCUS
• Types of control• Purpose of control• Approaches• Meaning of audit• Characteristics of audit• Components of audit
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Marketing control
Control means to monitor and control the marketing activities for reducing any deviation.
control
Efficiency control
Annual plan
control
Profitability control
Strategic control
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ANNUAL PLAN CONTROLIt ensures the company achieves the sales,
profit, and other goals established in its annual plan. Prime responsibility TOP & MIDDLE management
Steps of annual plan control:
Goal setting
Performance measurement
Performance diagnosis
Corrective action
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ANNUAL PLAN CONTROL
• Purpose of control - to examine whether the planned results
are being achieved.
• Approaches -sales analysis -market share analysis -sales to expense ratio -financial analysis and -market based analysis
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Approaches of annual plan control
• Sales analysis; it has two tools -- sales variance analysis -- micro sales analysis• Market share analysis: it can be done three
ways -- overall market share -- served market share -- relative market share
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PROFITABILITY CONTROL• Purpose:To examine where the company is making and losing
money.• Approaches: profitability by; -- product -- territory -- customer -- segment -- trade channel -- order size
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Profitability control
Marketing profitability analysis:Step 1: identifying functional expenses.Step 2: assigning functional expenses to
marketing entities.Step 3: preparing profit & loss statement for
each marketing entity.
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Profitability control• Identifying functional expenses: Expenses that are incurred to sell the product,
advertise it, pack, deliver, bill and collect.• Assigning functional expenses to marketing
entities:To measure how much functional expenses was
associated with selling through each type of channel.
• Preparing profit & loss statement for each marketing entity.
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EFFICIENCY CONTROL• Prime responsibility:Line and staff management marketing controller. Purpose:To evaluate and improve the spending efficiency
and impact of marketing expenditure. Approaches: efficiency of; -- sales force -- advertising -- sales promotion -- distribution
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STRATEGIC CONTROL
• Prime responsibility:Top management marketing auditor. Purpose :To examine whether the company is pursuing its
best opportunities with respect to market, products, and channels
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Strategic control CONT…..
• Approaches: -- marketing effectiveness rating
instrument. -- marketing audit. -- marketing effectiveness review. -- company ethical and social
responsibility review.
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MARKETING AUDITIT MEANS EXAMINING COMPANY’S OR
BUSINESSES UNIT’S --Marketing environment--objectives--strategies and--activitiesWith a view to determining problem areas and
opportunities and recommending a plan of action to improve the company’s marketing performance.
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Marketing auditCHARACTERISTICS
• COMPREHENSIVE• SYSTEMATIC• INDEPENDENT• PERIODIC
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COMPREHENSIVE
• The marketing audit covers all the major marketing activities of a business, not just a few trouble spots.
• A comprehensive marketing audit usually is more effective in locating the real sources of problem.
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• SYSTEMATIC– examination of a environment, objectives, strategies, systems etc.
• INDEPENDENT– self audit, audit from across, audit from above, company auditing office, company task force audit and outsider audit.
• PERIODIC– it helps to face different trouble, like sales fallen, company’s are thrown into crises etc.
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COMPONENTS OF MARKETING AUDIT
A. Marketing environment audit.B. Marketing strategy audit.C. Marketing organization audit.D. Marketing systems audit.E. Marketing productivity audit.F. Marketing function audit.
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A) MARKETING ENVIRONMENT AUDIT
• Demographic: development & trends.• Economic: affect of income, saving, price,
credit.• Environmental: availability of natural
resources and energy.• Political: changes in laws and regulations.• Cultural: public’s attitude, lifestyle, values.
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A)1) TASK ENVIRONMENT
• Market: segment, size, growth, profits.• Customers: need’s, buying process.• Competitors: objectives, strategies, etc.• Distribution: dealers, trade channel.• Suppliers: availability of key resources.• Facilitators & firms: transportation service,
warehouse facilities.
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B) MARKETING STRATEGY AUDIT
• Business mission: feasibility, clarity etc.• Marketing objectives & goals:
appropriateness, guide in planning and performance.
• Strategy: PLC, competitor strategy, proper market segmentation etc.
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C) MARKETING ORGANIZATION AUDIT
• Formal structure: authority, responsibility.• Functional efficiency: communication between
marketing and sales, need of training, motivation, supervision etc.
• Interface efficiency: problems between, marketing and R&D, purchasing, finance, accounting etc.
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D) MARKETING SYSTEMS AUDIT
• Marketing information system: intelligence system, marketing research etc.
• Marketing planning system: availability of DSS.• Marketing control system: periodically
analyze, annual plan objective etc.• New product development system:
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E) MARKETING PRODUCTIVITY AUDIT
• Profitability analysis: products, markets, territories, expand, contract etc.
• Cost effectiveness analysis: cost reduction steps.
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F) MARKETING FUNCTION AUDIT
• Product: product line, quality, features, styling• Price: experience curve effect, competitor price,
policies etc.• Distribution: effectiveness of dealers, brokers,
agent, etc• Marketing communication: effectiveness of
communication mix.• Sales force: effort, ability, of the sales manager
and sales people.
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CONCLUSION
The rule of marketing audit is: don’t relay solely on company managers for data and opinion.Ask customers, dealers and other outside
groups.
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queries