Marketing Control

Marketing Control

marketing control

The process of Because many surprises occur during the implementation of marketing plans, the measuring and

marketing department must engage in constant marketing control. Marketing evaluating the results of'

marketing strategic.'! and control is the process of measuring and evaluating the results of marketing strate­

plans, and Caking gies and plans and taking corrective action to ensure the achievement of corrective action to

marketing objectives. It involves the four steps shown in Figure 3.8. Management ensure that marketing

first sets specific marketing goals. It then measures its performance in the objectives are attained.

marketplace and evaluates the causes of any differences between expected ami actual performance. Finally, management takes corrective action to close the

operating control gaps between its goals and its performance. This may require changing the action Checking on­going

programmes or even changing the goals.

performance against Operating control involves checking on­going performance against the annual plans and taking

annual plan and taking corrective action when necessary. Its purpose is to ensure corrective action.

that the company achieves the sales, profits and other goals set out in its annual plan. It also involves determining the profitability of different products, territo­

strategic control ries, markets and channels. Strategic control involves looking at whether the Checking whether the

company's basic strategy company's basic strategies match its opportunities and strengths. Marketing

matches its strategies and programmes can quieldy become outdated and each company opportunities and

should periodically reassess its overall approach to the marketplace. Besides strengths.

providing the background for marketing planning, a marketing audit can also be

a positive tool for strategic control. Sometimes it is conducted by an objective and

Marketing Control • 119

Figure 3.8

The control process

experienced outside party who is independent of the marketing department. Table 3.2 shows the kind of questions the marketing auditor might ask. The find­ ings may come as a surprise ­ and sometimes as a shock ­ to management. Management then decides which actions make sense and how and when to imple­ ment them.

Implementing Marketing

Many managers think that 'doing things right' (implementation) is as important, or even more important, than 'doing the right things'(strategy):

A ­surprisingly large number of very successful large companies don't have long­term strategic plans with an obsessive preoccupation on rivalry. They concentrate on operating details and doing things well. Hustle is their style and their strategy. They move fast and they get it right ... Countless companies in all industries, young or old, mature or booming, are finally learning the limits of strategy and concentrating on tactics and execution. 19

Implementation is difficult ­ it is easier to think up good marketing strategies than it is to carry them out.

People at all levels of the marketing system must work together to implement marketing plans and strategies. Marketing implementation requires day­to­day decisions and actions by thousands of people both inside and outside the organ­ ization. Marketing managers make decisions about target segments, branding, packaging, pricing, promoting and distributing. They work with people elsewhere in the company to get support for their products and programmes. They talk to engineering about product design, with manufacturing about production and inventory levels, and with finance about funding and cash flows. They also work witli outside people. They meet with advertising agencies to plan ad campaigns and with the media to obtain publicity support. The sales force urges retailers to adver­ tise, say, Nestles products, provide ample shelf space and use company displays.

Successful implementation depends on several key elements. First, it requires an action programme that pulls all the people and activities together. The action

120 • Chapter 3 Strategic Marketing Planning