19 Organization and control of the global marketing programme

Learning objectives Describe the key elements of the marketing control system List the most important measures for marketing performance Explain how a global marketing budget is established Understand the steps in developing the global marketing plan

Figure 19.9 The firm’s budget and control system Building the marketing plan; global marketing decisions Budgeting Controlling

What is this? Output control What term refers to the regular monitoring of output, like profits, sales, and expenditures? There follows an explanation of some key terms: Coordinate its marketing activities: coordinating and integrating marketing strategies and implementing them across global markets, which involves centralization, delegation, standardization and local responsiveness. Find global customer needs: this involves carrying out international marketing research and analysing market segments, as well as seeking to understand similarities and differences in customer groups across countries. Satisfy global customers: adapting products, services and elements of the marketing mix to satisfy different customer needs across countries and regions. Being better than the competition: assessing, monitoring and responding to global competition by offering better value, low prices, high quality, superior distribution, great advertising strategies or superior brand image. Output control

Figure 19.10 The marketing control system Decide objectives, strategies, plans for implementation Establish marketing performance standards Locate responsibility Alter objectives Alter standards Reward, promote, Advise, punish Evaluate Take corrective/ supportive action

Measures to control, fx Product: Sales per market/time, new products, growth rates, market share, margin etc Pricing: Relative to competitors, changes relative to sales volume, response time, margins etc. Distribution: Sales, expense and contribution margin, on-time delivery, logistics cost etc Communication: Ad effectiveness, sales per sales call, new/lost accounts, cost per contact etc.

Figure 19.11 Adjustment of global marketing strategy Change in marketing strategy Feedforward International marketing strategy Early symptoms Marketing impact Revised Marketing impact Feedback Source: Samli et al., 1993, p. 425.

Early performance indicators Sudden drop in quantities demanded Sharp change in sales volume Customer complaints Large volumes of returned merchandise Excessive requests for parts or reported repairs Sudden change in fashions or styles Source: Samli et al., 1993, p. 421.

Types of marketing control Strategic control Efficiency control Annual plan control Profit control/budget control

Figure 19.12 The hierarchy of sales and control

Figure 19.13 Marketing budget and its underlying determinants

For discussion Discuss why firms need global marketing controls. What is meant by performance indicators? Why does a firm need them?