marketing management 081111

8/3/2019 Marketing Management 081111

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MARKETING MANAGEMENT


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Subject Code : 105

Credit : Full

Marks : 100


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Written Exam End Semester :60Marks

(Min-28Marks)

Written Exam Mid Semester :20Marks

Internal Assessment :20Marks


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Role Play


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Syllabus

1. Introduction to Marketing: Definition & Functions of Marketing. Core conceptsof marketing a) Need, Want, Desire, Benefits, Demand, Value, Exchange, b)

Goods Services Continuum, Product, Market c) Customer Satisfaction,

Customer Delight. d) Approaches to Marketing ProductProduction - Sales

Marketing Societal Relational. Concept of Marketing Myopia. Selling versus

marketing. e) Holistic Marketing Orientation & Customer Value.

2. Consumer Behavior: Concept, Characteristics of consumer and organizational

markets, 5 step Buyer decision process.

3. Marketing Environment: Analyzing needs and trends Macro Environment -

Political , Economic, Socio-cultural and Technical EnvironmentPEST analysis.

Micro Environment Industry & Competition. Concept of Market Potential &Market Share.

4. Market segmentation: Definition, Need & Benefits. Bases for market

segmentation of consumer goods, industrial goods and services. Segment, Niche

& Local Marketing, Effective segmentation criteria, Evaluating & Selecting Target

Markets, Concept of Target Market and Concept of positioning Value

Proposition & USP.


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Contd..

5. Marketing Mix: Definition of each of the Four P's. Components of each P.

Extended 7Ps for services. Significance in the competitive environment.

6. Marketing Planning: Contents of Marketing Plan - Developing Marketing Plan

for variety of goods and services.

7. Marketing organization: Concept, Types - Functional organization, Product

Focused organization, Geographic Organization, Customer Based Organization,

Matrix organization. Organization structure for a wide customer orientation.

8. Market Evaluation and Controls: Generic Process, Need and Significance ofmarketing control. Marketing Audit.

9. Social responsibility of marketing organizations. Sherlekar-175


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Books for Reference

Principles of Marketing 12th Edition - Philip Kotler and Gary

Armstrong

Marketing ManagementRajan Saxena

Marketing Management - V.S.Ramaswamy and S.Namakumari


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Introduction To

Marketing


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Introduction to Marketing

Meeting Needs Profitably

Marketing is an Organizational Function and a set ofprocesses for creating, communicating, and

delivering value to customers and for managing

customer and for managing customer relationships in

ways that benefit the organization and its

stakeholder


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Identifying Needs and converting those needs in

Affordable and Profitable Wants in the form of

Product/Service and Selling it to the Target Market

ensuring Social Benefits

Process in Marketing

Identification

ConversionAvailability


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What can be Marketed?????(Scope ofMarketing) Goods

Service

Events Experience

Persons

Places

Properties Organizations

Information(Just Dial)

Ideas(IP)


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Marketing

Identificationof Needs

Conceptualize

Product/Services

Pricing

Distribution

Promotion

Sales Service

Functions of Marketing:


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Core Concepts of Marketing: Need: Basic Human requirement(Mc Donalds)

Want: Needs become wants when directed to specificobjects

Demand: Wants for specific products backed by anability to pay

Desire: An inclination to want things

Benefits: Something thats aids or promotes well being

Value: Sum of the Perceived Tangible and Intangible

Benefits and Costs to Customers(Benefit/Cost) Exchange: Act of changing one thing for another(Barter

System)


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Customer Satisfaction

ServiceExpectedService

Realized


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What Effects Customer Satisfaction??


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Customer Delight:

ServiceRealized

ServiceExpected


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Production

Concept

Availability

Low CostEfficient

Approaches to Marketing


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Product

Concept

Feature

QualityPerformnc


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Selling

Concept

Branding

PromotionSelling


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Marketing Myopia(Theodore Levitt):

Myopia culture would pave way for a business to fail, due toshort sighted mindset and illusion that a firm is in so calledGrowth Industry

Kodak

Fiat


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How to Overcome Marketing Myopia(ClassroomTask):

Be more customer focused

Innovate

Be in control

Understand customer desires

Conduct marketing research programs

Marketing strategyshould be developed keeping feedback ofcustomers in mind.(Feedback Mechanism)
http://www.marketing91.com/strategy/http://www.marketing91.com/strategy/


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Selling Marketing

Emphasis on Product Emphasis on Consumer needs wants

Management is Sales volume oriented Management is Profit Oriented

Stresses needs of seller Stresses needs and wants of buyers

It is field oriented activity It is Research oriented activitySelling leads to realization of Money Marketing requires Investment of

Money(Promotion,Advertisement)


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HolisticMarketing

InternalMarketing

Two Phase

IntegratedMarketing

4Ps

PerformanceMarketing

Fin. CSR

RelationshipMarketing

Network


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Quiz on Need/Want/Demand: Im hungry, I want Food

Im hungry, I want Mc Donald's Burger

I wish to purchase BMW Car

I want to purchase shirt

I want to purchase Home

I want to purchase Armani Shirt

I want to purchase home in Lavasa project

I want to purchase Shoes

I want to purchase Woodland Shoes


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Question

Explain in detail Functions of Marketing?

Explain different Approaches to Marketing?

Short Note on:

Marketing Myopia Selling Vs Marketing

Explain following terms with suitable example: Need

Want Demand


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Consumer Behavior


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Consumer Behavior

NeedAssessment

Input

InformationGathering

Process Decision toBuy or Not

to Buy

Output


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Social Factors

Social

Roles &Status

FamilyReference

Groups


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Personal Factors

Personal

Occupation

Age

Lifestyle

Personality


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Psychological Process

Marketing

Stimuli

Other Stimuli

Products &

Service

Price

Distribution

Communications

Economic

Technological

Political

Cultural

Consumer

Psychology

Motivation

Perception

Learning

Consumer

Charact.

Cultural

Social

Personal

Purchase

Decision

Product

Choice

Brand Choice

Purchase

Time

Buying

DecisionProces

Problem Recog.

Information

Search


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Consumer Psychology Motivation

Freuds Theory

Maslows Theory

Herzbergs Theory

Perception

Selective Attention

Selective Distortion

Learning Memory


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Buyer Decision Process

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behavior


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Questionnaire

Who buys our product or service?

Who makes the decision to buy the product?

Who influences the decision to buy the product?

Where do they go or look to buy the product orservice?

When do they buy? Any seasonality factors?


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Questions

Identify and explain the various factors affecting theconsumer buying decision.

Explain with suitable example the Buying Decision

Process. Comment on Psychological Process of Consumer.


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Marketing Environment


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Internal Environment

External Environment


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Why Environment is Important Dependency on Environment

Interdependent factors

Dynamic nature

E.g.-Changing scenario of India as Democratic Nation


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Marketing Intelligence Order to payment Cycle

Sales Information System

Database, Data Warehousing, Data Mining


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Analyzing Needs and Trends Fade

Trend

Megatrend


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PopulationExplosion(D)

ResourceDepletion(N)

Laws& Rules(P-L)

Tech.Solutions(T)

Affordable(E)

Attitude &

Behavior(S-C)


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Forces

Demographic

Political Legal

Natural

Economic

Socio-Cultural

Technological

Types of Environment


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Threats from Environment Failure of Environment Analysis may lead to Marketing

Myopia


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Characteristics of Demographic Environment: Population

Age Mix

Education

Ethnic Mix

Household Patterns


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Characteristics of Economic Environment: Income Distribution

Purchasing Power


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Characteristics of Socio-Cultural Environment: Language

Customs

Social Systems

Values

Habits

Religions


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Natural Environment Union Carbide India Limited

Bhopal Gas Tragedy occurred on the night of 2-3rdDecember 1984

A leak ofmethyl isocyanate gas and other chemicals from the plant

resulted in the exposure of hundreds of thousands of people UCIL was the Indian subsidiary ofUnion Carbide Corporation

(UCC)

In June 2010, seven ex-employees, including the former UCILchairman, were convicted in Bhopal of causing death by negligence

and sentenced to two years imprisonment and a fine of about$2,000 each, the maximum punishment allowed by law. An eighthformer employee was also convicted, but died before judgmentwas passed.
http://en.wikipedia.org/wiki/Methyl_isocyanatehttp://en.wikipedia.org/wiki/Union_Carbidehttp://en.wikipedia.org/wiki/Union_Carbidehttp://en.wikipedia.org/wiki/Methyl_isocyanatehttp://en.wikipedia.org/wiki/Methyl_isocyanate


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Technological Environment Accelerating pace of change

Unlimited opportunities for innovation

Varying R&D budgets

Increased regulation of Technology change


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Political-Legal Environment Increase in Business Legislation

Growth of special interest groups


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Questions

Explain with importance why Environment scanningis important?

Explain in detail characteristics of differentenvironment?


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Market Segmentation


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Market Segmentation:Market Segmentation is sub-dividing of market intohomogeneous sub-sections of customers. Where any sub-section may conceivably be selected as a market target to be

reached with distinct marketing mix

Market Segmentation is the process of dividing a market intogroups of similar consumers and selecting the mostappropriate group(S) of individuals for the firm to serve


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Levels of Marketing Segmentation: Segment Marketing

Niche Marketing

Local Area Marketing

Individual Marketing


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Bases for Market Segmentation


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Geographic

Size ofMetropolitan

Region

Climate

PopulationDensity


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Demographic

SocialClass

Age &Lifestyle

Gender

Income


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Behavioral

UsageRate

Benefits

Occasion

UserStatus


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Questions

What are the bases for Market Segmentation? Explain any one Segmentation method with the help

of a Example.

Define and explain the different levels ofSegmentation.


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Marketing Mix


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Marketing mix refers to the primary elements that must beattended to in order to properly market a product orservice.

Marketing mix is the combination four elements: Product,

Place, Price and Promotion. They are called the FourPs of the marketing mix.

Marketing Mix is a term describing the key elements usedby an organization to help meet its marketing objectives


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To create the right marketing mix, businesses have to meetthe following conditions:

The Producthas to have the right featurese.g. it should

look good and work well.

The Priceshould be right.

The goods must be in the right Placeat the right time.

Making sure that the goods arrive when and where they are

wanted is an important operation.

The target group needs to be made aware of the existence and

availability of the product through Promotion. Successful

promotion helps a firm to spread costs over a larger output.
http://www.thetimes100.co.uk/glossary--marketing-mix-867.phphttp://www.thetimes100.co.uk/glossary--costs-313.phphttp://www.thetimes100.co.uk/glossary--output-1008.phphttp://www.thetimes100.co.uk/glossary--output-1008.phphttp://www.thetimes100.co.uk/glossary--costs-313.phphttp://www.thetimes100.co.uk/glossary--marketing-mix-867.php


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PRODUCT/SERVICE To find out what customers want & need & then develop a

product to meet the need of the potential customers.

Situation I: Why Product is placed at number one position in

Marketing Mix??

How to differentiate product from competitors??


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What can be Marketed?????(Characteristics &Classification of Products) Goods

Service

Events Experience

Persons

Places

Properties

Organizations

Information(Just Dial)

Ideas(IP)


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PotentialProduct

AugmentedProduct

ExpectedProduct

BasicProduct

CoreBenefit

Product Level/Hierarchy(Offerings)


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ProductClassifications

Durability&

Tangibility

NonDurable

Durable Services

ConsumerGoods

Convenience

Shopping Specialty Unsought

IndustrialGoods

Materials &Parts

CapitalGoods

Supplies &BusinessService

Product Classifications:


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Diffn

Performance

Conformance

Durability

Reliability

Repairability

Style

Form

Features


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PriceA product is only worth what a customer is prepared to pay for it.

Consumer Psychology & Pricing:

Reference PricingPrice-Quality Inference

Price Cues

Pricing Strategy:

Internal FactorsDirect Cost & Indirect Cost

External FactorsDemand & Environments


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Price Setting Strategy:

1 Selecting Pricing Objective

2 Determining Demand

3 Estimating Cost

4 Competition Analysis

5 Pricing Method

6 Final Price


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PricingObjective

Max.Market

Skimming

ProductQuality

Leadership

SurvivalMax.

CurrentProfit

Max.MarketShare

Pricing Objective


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Premium Pricing.

Use of high pricing where there is a uniqueness about the product or service.

This approach is used where a substantial competitive advantage exists.

Such high prices are charge for luxuries such as Cruises, Luxury Hotel rooms,

Designer products.

Penetration Pricing.

It is the strategy of entering the market with a low initial price to capture

greater market share.

Price Skimming.The practice of price skimming involves charging a

relatively high price for a short time where a new, innovative, or much-

improved product is launched into a market.The prices are set high in order

to attract least price sensitive customers to generate high profits.

Competitive pricing: If your product is sold at the lowest price regarding all

your competitors, you are practicing competitive pricing. Sometimes,

competitive pricing is essential. For instance, when the products are basically

the same, this strategy will usually succeed.


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1 Markup Pricing

2 Target-Return Pricing

3 Perceived-Value Pricing

4 Value Pricing

5 Going-Rate Pricing

6 Auction-Type Pricing

Pricing Strategy


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Promotion This is the way in which you communicate to your potential

customers about your product.

Need of Promotion??

To inform potential customer about the availability

To educate customers

To create Brand

To do Positioning

To Create Market


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It includes the various ways of communicating to the customers

of what the company has to offer. It is about communicating thefeatures/ benefits of using a particular product or service.

Advertisement: It takes many forms like TV, radio, internet,newspapers, yellow pages, Leaflets, Posters etc.

Sales Promotion: Buy One Get One Free. Others includecouponing, money-off promotions, free accessories (such asfree blades with a new razor), introductory offers (such as buydigital TV and get free installation) and so on.

Personal Selling: It is an effective way to manage personalcustomer relationships. The sales person acts on behalf of theorganization.


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PlaceIt refers to the place where the customers can buy the product

and how the product reaches out to that place. This is done

through different channels like:

Retails

Wholesale

Internet

Mail orders

Direct Sales


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Questions


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Questions

Please quote an example and mentions 4 Ps ofmarketing in correct order.


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MARKETING PLANNING


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What is a Marketing Plan ?

A marketing plan is the blueprint or the map you intend to

follow in order to achieve your goals.

If you are planning for existing programs, the plan will

incorporate the strengths of your current effort with needed

changes and improvements. If the plan is for a brand new

product or service, it will pull all the elements together for an

effective start on marketing.


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Why have a marketing plan?

To find out where you areTo know where youre going

How to get there


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Mission Statement:

Maintaining a global viewpoint, we are dedicated to

supplying products of the highest quality, yet at a

reasonable price for worldwide customer satisfaction.


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Though HMCL had entered India way back in 1984 by entering into joint

ventures with leading two-wheeler companies, the company established itswholly owned subsidiary - Honda Motorcycle and Scooters India Limited

(HMSI) in October 1999. Within a couple of years after the launch of its

successful products including Activa, Dio and Eterno, HMSI had emerged

as the largest scooter company in India.

After coming out of the joint venture with KEL, HMCL planned to introduce

its own two-wheelers in the market. In October 1999, in a major strategic

initiative, HMCL established HMSI. The company made an initial

investment of Rs 3 bn to establish a plant with an annual productioncapacity of 200,000 units...

Activa

Launched in 2001, Honda Activa was the first scooter model of HMSI for theIndian market. A 102 cc scooter, Activa was specially designed keeping in

view the needs and preferences of Indian consumers who expressed that

the conventional Indian scooter was too big and difficult to handle and that

the scooterette was too small and similar to a moped...

Dio

Dio was launched in 2002 as the first motoscooter in the Indian market


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Marketing Strategy

Thanks to the success of its joint venture with Hero

Group and KEL, 'Honda' was already a household

name in India. Hence, rather than putting majorefforts into brand building, HMSI's marketing

strategy emphasized on offering innovative products

at competitive prices, novel promotional campaigns

and developing an extensive distribution network...


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Some considerations: See it as a process

Form a team

Keep it simple

Develop a time-frame

Give it a life

Get feedback

Have a simple revision process Consistent with mission statement


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What does the process involve?


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Components of a marketing plan

Mission Statement

Internal Analysis

External Analysis

Objectives

Marketing Strategies

Identify Resources

Implementation Plan

Marketing Budget

Evaluation Methods


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Mission Statement

A clear, concise description of:

The organizational identity What business is the organization really in

Results the organization wants to accomplish


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Some considerations: A mission statement describes who the organization

is and what business its really in.

Its what makes the organization goreflects its

internal and external perception.

It must be understood by everyone.

It drives the organization and dictates how things are

done.

It should be kept simple.


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Mission Statement

Googles

To organize the worlds information and make it

universally accessible and useful.

Starbucks

To inspire and nurture the human spirit one

person, one cup and one neighborhood at a time.

McDonalds Restaurants

Quality, Consistency, Cleanliness, Service.


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Internal Analysis Background

Current status

Future directions

Current resources Strengths and weaknesses


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External Analysis Economy

Demographics

Trends

Competition Target market


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The Competition Who they are

Product/service features

Pricing, packaging, promotion

Competitor strengths/weaknesses How are you different?


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Customers and Target Markets Current and potential customers

Customer requirements

Market clusters


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Marketing Strategies Customers/target markets

Programs and services

Packaging

Pricing

Promotion


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Marketing budget Advertising/media

Direct mail

Databases

Printing/production

Mailing


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Evaluating the marketing plan Success measures

Completion of action dates

Accomplishment of goals and strategies

Results

New/repeat customers

Win rate on sales

Average size of contractsRevenue


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To analyze the Business Model of Star CJ???? Branded Products @ Discounted rate

Freebies along with the product

Free Shipping Delivery

Payment on Delivery Exchange Facility available


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MARKETING ORGANIZATIONS


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Organisation is defined as a group of people workingtogether to achieve common goals and objectives ofthe business.

Marketing organization provides a vehicle formaking decisions on products, marketing channels,physical distributions, promotions and process.


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Need for the Organization: To be competitive in the market where consumer is the

king we need to satisfy the customer. So a goodmarketing organization is required to satisfy thecustomers. Marketing organization is the pillar for

success for many organizations and provides aframework for the following: Divide and fix authority among the sub ordinates To locate responsibility To establish sales routines To enforce proper supervision of sales force To avoid repetitive duties To enable the top executives to devote more time for planning policy

matters


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Factors affecting Marketing Organizations: Factors influencing marketing org can be categorized

into internal and external factors.

Internal:

Top Management Philosophy: Organizational planning and itsworking is greatly influenced by philosophy which can be goodor bad e.g.: Centralization Vs Decentralization

Product Policy: The width of product line of an org determines

its size as the product offerings become increasingly diverse.E.g: There could be a need to move away from straightfunctional approach to product group approach.


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People: The size of the organization is not an importantfactor in terms of number of people but it is importantwith respect to human values which are critical andcorrect decisions regarding people cannot be madeunless taking into consideration Number Qualifications

Capabilities

Personality

Attitude

Fear

Suspicion

Ambition


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External Factors: Business Environment: With regards to business environment threepoints are important. The type of environment in which the firm is operating in terms of

operations and size The nature of particular requirement for success in a given business

which again determines the size. The rate of change in industries being served which again decides on

its size and working.

Markets This is the factor which again affects the marketingorganizations i.e. one should note about its

SizeScope NatureLocationBased on the above we need to design the size of the organization.


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Consumer requirements and expectations: Consumershave their own set of requirements and expectationsfrom the organization. The more varied and vividservices they expect that the usual requirements as amarketer we need to increase the workload dependingupon the consumer requirements and expectations

Channels of distribution: It is the type of channel ofdistribution which a marketing firm selects based on itssize. Egg : In case the company opts for indirect channelor channels it depends on outside sales force and hencethe organization get thinner when the organizationselects direct channel its size is increased as it has its ownsales force.


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Line & Staff organization: In most business formsespecially medium size the marketing job isstructured around few line functions and few stafffunctions i.e.: Major staff functions is organized into

separate department and the line functions isresponsible for sales department. The requiredcoordination between the line and staff function ismanaged by executive at higher level.


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Merits: Provides expert advice from specialists Relives line executes of routine, specialize functions Enables young sales executive to acquire expertise Helps in achieving effective coordination Easy to operate Less Expensive

Demerits:Produce confusion arriving from undetermined authorityrelationships

Curbs the authority of expertsToo much is expected from executivesDecision making is taken by top management


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Functional: Under the orgnisation the departments arecreated on the basis of specified functions to be performed i.e.the activities related to marketing, distribution etc

Merits: Division of work base on specialization Relives line executives of routine and specialized functions Promotes application of expert knowledge Helps to increase overall efficiencyDemerits:

Leads to complex relationshipsMakes coordination ineffective

Promotes centralizationLack of proper coordinationDelay in taking decision


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Product Oriented marketing organization: Organizationsthat produce wide variety of products often organizemarketing, training and promotion with respect to aproduct. Merits:

The sales man can render better customer service as they possess goodknowledge of product and may have close contacts with customers.

It marks individual departments responsible for the promotion ofspecific products.

It facilitates effective coordination Demerits: It increases the employment of a number of managerial personal Many salesmen of same enterprise attend same customer each

representing a separate product which creates confusion in theminds of the customer.

There may be duplicate of activities


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Demerits: It makes coordination difficult

It may lead to under utilization of resources in samedepartment

There may be duplicate of activities These types of sales organizations are not suitable for small

enterprise


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Geography/ Territory: In a territory oriented marketingorganizations, the responsibilities for marketing ofvarious products rests almost entirely with lineexecutives. The territory managers are given varyingnomenclatures like depot manager, district manager,

area manager, zonal manager, Divisional manager etc. Merits It leads to economy in terms of times and money

It helps in taking knowledge of local customer

It help in effective control

Demerits:

It required employment of number of managerial personnel

It dilutes control from headquarters


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Matrix; There are some business firms that incorporate in marketing

organization combining all the above. Usually such firms aremulti product, multi market firms. At the head office level theyhave number of staff departments to take care of eachspecialized functions of marketing.


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MARKETING EVALUATION

AND CONTROL


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Marketing Control: Marketing control means monitoring, realigning the marketing

efforts. It implies adaption of plans, laying down thestandards, grids, review and analysis of performance.

Management control is a natural sequential process tomarketing planning, organizing and executing. Anymanagement which is sensitive to market will be benefited by asystem of marketing control.


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Benefits of control: Puts a unit on the progress path Locates responsibilities for deeds(Subordinates) Keeps space with environmental changes It observes orgnisational complexities It brings about realistic reformulation of plant

Role & Scope of marketing controlMarketing control is a part of management control

Helps to achieve performanceHelps in controlling wasteful expenditureHelps in maximizing sales force productivityHelps in directing the company to pursue best business opportunities

Helps in motivating sales forceDetection of deviation in performance

Assisting plan reformations.


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Types of Marketing Control: There are four types of controls in most successful

marketing firms. These controls have differentobjectives and tools. Each of these controls exists in

different levels in management. Annual Plan control

Profitability control

Efficiency control

Strategic control


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Annual Plan Control: The purpose of annual controlis to ensure that the company achieves sales, profitand other goals established in its annual plan, Thefour steps involved in annual in APC are :

Setting monthly and quarterly goals Monitoring its performance in market place

Identify the caused of serious performance deviations

Corrective actions to close the gaps between goals and

performance that can be understood through a control process


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Goal Setting Performance

Corrective

Act

Performance

Diagnosis


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Manager uses four tools to check plan performance: Sales analysis

Market share analysis

Market expense to sales analysis- which can be measured

throughAdvertising to sales ratio

Sales promotion to sales ratio

Sales force cost to sales ratio

Distribution expense to sales ratio

Sales administration to sales ratio


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Financial Analysis- with regards to return on assetsforms financial leverage

Customer attitude tracking Customer surveys

Customer panels(company uses customer panel who agree tocommunicate their attitudes periodically throughquestionnaire or over telephone)

Feedback and suggestion system


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Profitability control: It allows the company tomonitor its sales, profits and expenditure.

It demonstrates the relative profit earning capacityof the companies different products and consumer

goods. Companies are frequently surprised to findthat small percentage of the product and customercontribute to large percentage of profits.

With the increasing competition firms are findingtheir profits margins reducing and the companieslooking for profit making strategy and increasing themarkets, territories which involve three steps:


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Prepare Profit and loss statement for each marketingentity. Based on the above data the marketer can prepareprofit and loss statement for each marketing activity justfor selling activity e.g.. Total cost of selling

No. Of sales calls made in the period No. Of units sold

Expense per sold

Expense per call

Total sales revenueCost of goods sold

Gross profit contribution


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Efficiency Control: this mechanism helps the marketer determine ifthere are better ways of performing a task. They exist in determine

Sales force efficiency Average number of sales calls/person/day Average number of sales calls/sales person/customer group Average time spent per customer Average time spent on travel Return in time invested on different customer groups Number of new customers added Number of customers lost Volume of potential business lost due to competition

Advertising efficiency indicatorAdvertising cost per 1000 target customers reached by the media

No.Of enquiries generated by the advertisementCost per enquiry


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The last two are relevant to direct marketing andindustrial product advertising

Distribution Efficiency

Market reach of channel member as measured by members interms of number of customer

Sales extraction from channel members

Cost per channel member


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Strategic Control This system helps management todetermine the fit between the firms marketing andexternal environment. They specially help in resolvingthe issues of obsolescence in strategies, structure,policies, programs and systems. There are two tools that

help management Customer relationship barometer which aims to access how well the

customer is integrated to the org. It provides inputs for the followingparameters

Core value of the organization

Organizational policies Technology

Strategy of customer retention


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Features of marketing auditing: Comprehensive: The term marketing audit should be reserved

for comprehensive audit covering companies marketingenvironment, objectives, strategies etc. It should coverhorizontal and vertical audit. Horizontal audits study overall

marketing performance with emphasis on inter relationshipvariables. Vertical audit is in depth analysis of one aspect offirms marketing strategy like product planning which involvesa through audit of data protection within a particular functionor department.

Systematic: Marketing audit will normally increase to the extent thatit follows a sequence of diagnostic steps covering internal andexternal marketing system.

Independent: A marketing audit can be conducted in 6 ways:


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Self Audit Audit from across Audit from above Company auditing office Company task force audit Outsider audit

Periodic: Marketing audits are initiated only after sales have comedown sharply, sales force morale has fallen and other problems haveoccurred in the company. Whereas the irony is that the companieshave been thrown into crisis because they failed to review their

marketing operations during good times. So, a periodic marketingaudit promises the benefits for the companies that are in goodhealth as well as the companies that are in trouble, This has to bedone at periodic intervals.


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marketing management 081111

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