Because many surprises occur during the implementation of marketing plans, the marketing department must practice constant marketing control. Marketing control involves evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained. The figure shows that implementation involves four steps. Management first sets specific marketing goals. It then measures its performance in the marketplace and evaluates the causes of any differences between expected and actual performance. Finally, management takes corrective action to close the gaps between its goals and its performance. This may require changing the action programs or even changing the goals.
Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary. Its purpose is to ensure 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, territories, markets, and channels.
Strategic control involves looking at whether the company's basic strategies are well matched to its opportunities. Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace. A major tool for such strategic control is a marketing audit. The marketing audit is a comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities. The audit provides good input for a plan of action to improve the company's marketing performance.
The marketing audit covers all major marketing areas of a business, not just a few trouble spots. It assesses the marketing environment, marketing strategy, marketing organization, marketing systems, marketing mix, and marketing productivity and profitability. The audit is normally conducted by an objective and experienced outside party.
The kinds of questions the marketing auditor might ask.
About Marketing Environment Audit:
Markets and customers: What is happening to marketing size, growth, geographic distribution, and profits? What are the major market segments? How do customers make their buying decisions? How do they rate the company on product quality, value, and service?
Other factors: in the marketing system: Who are the company's major competitors and what are their strategies, strengths, and weaknesses? How are the company's channels performing? What trends are affecting suppliers? What key publics provide problems or opportunities?
About Marketing Strategy Audit:
Business mission and marketing objectives: Is the mission clearly defined and market oriented? Has the company set clear objectives to guide marketing planning and performance?
Marketing strategy: Does the company have a strong marketing strategy for achieving its objectives?
Budgets: Has the company budgeted sufficient resources to segments, products, territories, and marketing mix elements?
About Marketing Organization Audit:
Formal structure: Are marketing activities optimally structured along functional, product, market, and territory lines?
Functional efficiency: Do marketing and sales communicate effectively? Is marketing staff well trained, supervised, motivated, and evaluated?
Cross-functional efficiency: Do marketing people work well with people in operations, R&D, purchasing, human resources, information technology, and other non-marketing areas?
New-product development: Does the company have an effective new-product development process? Has the company succeeded with new products?
About Marketing Productivity Audit:
Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary. Its purpose is to ensure 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, territories, markets, and channels.
Strategic control involves looking at whether the company's basic strategies are well matched to its opportunities. Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace. A major tool for such strategic control is a marketing audit. The marketing audit is a comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities. The audit provides good input for a plan of action to improve the company's marketing performance.The marketing audit covers all major marketing areas of a business, not just a few trouble spots. It assesses the marketing environment, marketing strategy, marketing organization, marketing systems, marketing mix, and marketing productivity and profitability. The audit is normally conducted by an objective and experienced outside party.
The kinds of questions the marketing auditor might ask.
About Marketing Environment Audit:
Markets and customers: What is happening to marketing size, growth, geographic distribution, and profits? What are the major market segments? How do customers make their buying decisions? How do they rate the company on product quality, value, and service?
Other factors: in the marketing system: Who are the company's major competitors and what are their strategies, strengths, and weaknesses? How are the company's channels performing? What trends are affecting suppliers? What key publics provide problems or opportunities?
About Marketing Strategy Audit:
Business mission and marketing objectives: Is the mission clearly defined and market oriented? Has the company set clear objectives to guide marketing planning and performance?
Marketing strategy: Does the company have a strong marketing strategy for achieving its objectives?
Budgets: Has the company budgeted sufficient resources to segments, products, territories, and marketing mix elements?
About Marketing Organization Audit:
Formal structure: Are marketing activities optimally structured along functional, product, market, and territory lines?
Functional efficiency: Do marketing and sales communicate effectively? Is marketing staff well trained, supervised, motivated, and evaluated?
Cross-functional efficiency: Do marketing people work well with people in operations, R&D, purchasing, human resources, information technology, and other non-marketing areas?
About Marketing Systems Audit:
Marketing information system: Is the marketing intelligence system providing accurate and timely information? Is the company using marketing research effectively?
Marketing planning system: Does the company prepare annual, long-term, and strategic plans? Are they used?
Marketing control system: Are annual plan objectives being achieved? Does management periodically analyze product, market, and channel sales and profitability?
New-product development: Does the company have an effective new-product development process? Has the company succeeded with new products?About Marketing Productivity Audit:
Profitability analysis: How profitable are the company's different products, markets, territories, and channels? Should the company enter, expand, or withdraw from any business segments?
Cost-effectiveness analysis: Do any marketing activities have excessive costs? How can costs be reduced?
About Marketing Function Audit:
The findings may come as a surprise—and sometimes as a shock—to management. Management then decides which actions make sense and how and when to implement them.
Products: What are the company's product line objectives? Should some current products be phased out or new products be added? Would some products benefit from changes in quality, features, or style?
Price: Are the company's pricing policies and procedures appropriate? Are prices in line with customers' perceived value?
Distribution: What are the company's distribution objectives and strategies? Should existing channels be changed or new ones added?
Promotion: Does the company have well-developed advertising, sales promotion, and public relations programs? Is the sales force large enough and well trained, supervised, and motivated?
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