Chapter 10 Marketing Strategy Reformulation: The Control Process

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.

Strategic Change Sources of 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

Operations Control: Marketing-Cost Analysis Purpose is to assign costs to marketing activities or segments to accurately reflect their financial contribution to the organization How should costs be allocated to marketing segments? What costs should be allocated? Should all costs be allocated to marketing segments?

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

Operations Control: Sales Control Directs attention to the behavioral and cost aspects of sales activity 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

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

Considerations in Marketing Control Managers must be aware of difference between: Problems and Symptoms Effectiveness and Efficiency Data and Information