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Marketing Control The system by which a firm checks actual against planned performance, evaluating the profitability of products, customer segments, and territories.

The balanced scorecard provides managers with a comprehensive system for converting a company’s vision and strategy into a tightly-connected set of performance measures. The balanced scorecard combines financial measures of past performance with measures of the drivers of performance. The Balanced Scorecard provides a Framework to Translate a Strategy into Operational Terms

Financial Perspective—Three Stages Growth Sustain Harvest

Developing a Value Proposition Operational Excellence Customer Intimacy Product Leadership

Market-Driven Organizations Market sensing involves the processes for gathering, interpreting, and using market information. Customer-linking processes include the well-defined procedures and systems that a firm uses to achieve collaborative customer relationships.

Four Interrelated Evaluations 1 2 How much should be spent on marketing in the planning period? How are marketing dollars to be allocated? Four Interrelated Evaluations 3 4 Within each element of the marketing strategy, how should dollars be allocated to best achieve marketing objectives? Which market segments, products, and geographic areas will be most profitable?

Major Forms of Control Control over efficient allocation of marketing effort. Comparison of planned and actual performance.

Levels of Marketing Control The control process is universal in that it can be applied to any level of marketing analysis. Further, management must evaluate resource allocation within a particular element.

George Day Asserts: Reviewing Strategic Options: Seven Tough Questions “Effective business strategies are formed in a crucible of debate and dialogue between and within many levels of management. The challenge is to encourage realism in the dialogue—so critical decisions are not distorted by wishful thinking and myopic analysis—while not suppressing creativity and risk taking.” Reviewing Strategic Options: Seven Tough Questions

Illustrative Measures for Efficiency and Effectiveness Control Product Sales by market segments. Sales relative to potential. Sales growth rates. Market share. Contribution margin. Percentage of total profits. Return on investment.

Illustrative Measures for Efficiency and Effectiveness Control Distribution Sales, expenses, and contribution by channel type. Sales and contribution margin by intermediary type and individual intermediaries. Sales relative to market potential by channel, intermediary type, and specific intermediaries. Expense-to-sales ratio by channel. Logistics cost by logistics activity by channel.

Illustrative Measures for Efficiency and Effectiveness Control Communication Advertising effectiveness by type of media. Actual audience/target audience ratio. Cost per contact. Number of calls, inquiries, and information requests by type of media. Dollar sales per sales call. Sales per territory relative to potential. Selling expenses to sales ratios. New accounts per time period.

Illustrative Measures for Efficiency and Effectiveness Control Pricing Price changes relative to sales volume. Discount structure related to sales volume. Bid strategy related to new contracts. Margin structure related to marketing expenses. General price policy related to sales volume. Margins related to channel member performance.

Feedforward Control Involves continuous evaluation of plans. Monitoring the environment to detect changes. Monitors variables other than performance. Focuses on information that is prognostic.

Four Implementation Skills 1 2 Interacting Allocating Four Implementation Skills 3 4 Monitoring Organizing