Marketing Evaluation and Control

Five Components of Marketing Management

a. b. c. d. e. Research Implementation Control Evaluation Planning

Methods of Organizing a Marketing Department

a. Marketing and promotional mix elements b. Facilities or services c. Geography d. Customer groupings e. A combination of two of the above four criteria

Marketing Implementation
is the process that converts plans into

assignments, which after successful achievement accomplishes the plans stated objectives

Marketing Implementation
marketing programs Diagnostic skills Identification of company level Implementation skills Evaluation skills

Definition of Marketing Control

Steps that an organization takes to ensure that its marketing plans are successful.

Marketing Control
iBudget

Profitability Efficiency (Productivity) Strategic

Budget Control
Measurement of results against monthly/quarterly budgets (goals) Reasons for deviations (variances) Remedial steps to be taken to close the gaps between performance and goals Review performance in the next month/quarter and assess results

Benchmarks for Efficiency

against last year against budget against targets % growths % variances % market share

Profitability Control
80 : 20 rule Product rationalisation Customer rationalisation Costing Analysis

Efficiency Control
Sales force efficiency Advertising efficiency Sales promotion efficiency Distribution efficiency

Sales force Efficiency

No. of calls per salesperson per day Average revenue per sales call Average cost per call Average call time per call No. of new customers per period Sales force cost per unit sales

Advertising Efficiency
CPT Before and after measure of attitude towards the product No. of enquiries per ad Cost per enquiry

 % sales sold on promotion Display cost per sales rupee % coupons redeemed No. of enquiries resulting from a demonstration

Sales Promotion Efficiency

Distribution Efficiency
Time taken to execute orders % order executed service levels

Other Control Measures

Marketing Effectiveness Review - customer philosophy, integrated marketing organization, adequate marketing information, strategic orientation and operational efficiency Marketing Audit - comprehensive , systematic, independent and periodic review of a companys business environment, objectives, strategies and activities with an idea to identify areas of weaknesses and recommend a plan of action to improve on such areas.

Control Process for the Marketing Plan

a.Setting standards based on plans b.Measuring performance against standards Correcting deviations from standards and plans

Marketing Expense
Sales Force Sales Administration Advertising Sales Promotion Public Relations Direct Market Marketing Research

Definition of Marketing Evaluation

Techniques used after the marketing plan period to analyze success in achieving individual marketing objectives and to more broadly assess the entire organizations marketing efforts

Marketing Evaluation Techniques Sales analysis Market-share analysis Marketing cost and profitability analysis Efficiency ratios Marketing-effectiveness rating review Marketing audit

Evaluation and Control

Financial Analysis

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Evaluation and Control

Strategic control
The Marketing Effectiveness Review The Marketing Audit Marketing audits four characteristics: Comprehensive Systematic Independent Periodic
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Marketing Audit
Marketing audit is a comprehensive, systematic, independent, and periodic examination of a companysor business unitsmarketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the companys marketing performance Philip Kotler

Who will do the Audit When and how often

Presenting resukts to the management Implementing the audit

Areas to be audited

The Audit Process

Developing Audit Forms

The Marketing Audit Process (2)

The audit is conducted by company specialists, company division or department managers, or outside specialists. 2. It may be done at the end of a calendar year, or the annual reporting year, or when doing a physical inventory.

A horizontal audit studies the overall performance of a .firm, emphasizing the interrelationship of variables. A vertical audit is an in-depth analysis of one aspect of a firms marketing strategy. 4. Audit forms list the topics to be examined and the exact information required to evaluate each topic.

Implementation decisions include: the timing and duration, employee awareness, when and how audit is performed, and how the audit report will be prepared. 6. Findings and recommendations are given to management.
5.

Characteristics of Marketing Audit

Comprehensive
Must cover all marketing areas

Systematic
Sequential diagnostic steps

Independent
Internal & external auditors

Periodic
Performed at regular intervals

Marketing Audit Procedure

Marketing environment audit Marketing strategy audit Marketing organization audit Marketing system audit Marketing productivity audit Marketing function audit Marketing excellence review Ethical and social responsibility review

Marketing and Society: Social Responsibility and Marketing Ethics

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Ethics and Morals

Ethics

The moral principles or values that generally govern the conduct of an individual.

Morals

The rules people develop as a result of cultural values

Ethical Behavior in Business

Ethical?

Legal?

Ethical Development More Levels Selfish

Preconventional Morality Conventional Morality Postconventional Morality More
Mature

Morality and Business Preconventional Ethics

Morality Childlike level Based on what will be punished or rewarded Self-centered, calculating, selfish

Morality and Business Ethics Conventional

Morality Moves toward the expectations of society

Concerned over legality and the opinion of others

When in Rome, do as the Romans

Morality and Business Ethics Postconventional

Morality

Morality of the mature adult

Concern about how they judge themselves

Concern if it is right in the long run

Code of Ethics
A guideline to help marketing managers and other employees make better decisions.

Creating Ethical Guidelines

Help identify acceptable business practices Help control behaviour internally Reduce confusion in decision making

Facilitate discussion about right and wrong

Unethical Practices

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Corporate Social Responsibility

Philanthropic Be a good citizen.
Ethical Do what is right. Legal Obey the Law.

Economic Be profitable.

Corporate Social Responsibility (CSR)

Sustainability Must have a healthy society to sustain business. Pyramid of CSR Economic Be profitable. Must survive. Legal Obey the law. Ethical Do what is right, just and fair. Avoid harm. Philanthropic Good corporate citizen. Contribute resources to community.

Marketings Impact on Individual Consumers: Deceptive Practices

Falsely Advertising Factory or Wholesale Prices, Large Reduction From Phony High List Price
Overstatingt he Products Features, Luring Customers to the Store for Out-of-Stock Bargains, etc.
Exaggerating Package Contents, Not Filling Package to the Top, Using Misleading Labeling
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Deceptive Pricing
Deceptive Promotion Deceptive Packaging

Marketings Impact on Individual Consumers

High-Pressure Selling
Some products such

as cars and jewelry are said to be sold, not bought. Such tactics damage marketers long-run relationship with customers.

Shoddy or Unsafe Products products are not made well. products deliver little benefit. Concerns product safety.
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 Planned

Poor Service to

Disadvantaged Obsolescence Consumers Hold back May pay more attractive for inferior functional goods. features. May break, wear, rust, or rot sooner than should.
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False wants and much materialism

Mktns ae g r i s I pc m t a oS i t n oe c y a a hl s w e o

Production of too few social good

Cultural polution

Too much Political power

Marketings Impact on Other Businesses

Acquisitions of Competitors
Marketing Practices Create Barriers to Entry

Unfair Competitive Marketing Practices

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Consumerism
Consumerism is an Organized Movement of Citizens and Government Agencies to Improve the Rights and Power of Buyers in Relation to Sellers.

Buyers Rights

Sellers Rights

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Consumerism Buyers Rights

The Right Not to Buy a Product Offered for Sale

The Right to Expect the Product to be Safe The Right to Expect the Product to Perform as Claimed The Right to Be Well Informed About the Product The Right to Be Protected Against Questionable Products The Right to Be Heard About Quality of Life Issues
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Marketing Ethics
Companies Need to Develop Corporate Marketing Ethics Policies Broad Guidelines That Everyone in the Organization Must Follow and Should Address:

Distributor Relations Advertising Standards Customer Service

Pricing Product Development General Ethical Standards

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principles That Should Guide Companies and Marketing Managers On Issues of Ethics and Social Responsibility:

Marketing Ethics

Responsibility of Decided by the Free Market and Individual Legal System Companies And Managers

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Marketings Second Social Responsibility

Personal Codes of Ethics

General terms leave specific interpretation up to the implementation of marketing strategy American Marketing Association
Developed a code of ethics that marketing professionals turn to

Objective 3
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