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Principles of Marketing - Philip Kotler

marketing control

Since the implementation of marketing plans, there are many surprises, the marketing department is necessary to conduct ongoing monitoring of their progress. marketing control systems need to be confident in the efficiency and effectiveness of the firm. However, the marketing control - the concept is not unambiguous. Three types of marketing control can be identified (see. Table. 24).

TABLE 24

Types of marketing control

The purpose of monitoring the implementation of annual plans - to make sure whether the firm actually started planned for a particular year sales figures, profits, and other target parameters. Control of this type comprises four stages (see. Fig. 90). First, management must put in the annual plan targets by month or quarter. Second, management should conduct measurements of indicators of market activity of the company. Third, management should identify the causes of any serious disruption to the firm. Fourth, the management should take steps to redress the situation and bridge the gap between the objectives and the results achieved. This may require changes in the action programs and even the replacement of targets.

Fig. 90. Process Control

What is the specific techniques and methods of control over the implementation of plans to management? The four main means of control are: analysis of market opportunities, market share analysis, the relation between the costs of marketing and distribution and monitoring of the customer relationship. If you are using one of these tools, identifying gaps in the implementation of the plan, immediately take steps to remedy the situation.

Analysis of market opportunities. Analysis of sales opportunities is the measurements and the evaluation of the actual agreement to sell in comparison with the plan. The company may start with an analysis of sales statistics. For example, the annual plan was provided in the first quarter sales of 4 thousand. Knickknacks at a price of $ 1. Per piece, t. E. The amount of 4 thousand. Dollars. By the end of the quarter it sold only 3 thousand. Knickknacks at a price of $ 0.8. apiece, t. e. in the amount of $ 2,400. sales volume was at $ 1,600., or 40%, less than expected. The firm should carefully understand why it failed to reach the planned urovnya10.

At the same time the firm must verify that all concrete products, territories, and other units provided a breakdown of the execution of its share of turnover. For example, the firm sells three sales areas, selling them in 1500, 500, and 2000-brac, respectively, or a total of 4 thousand. Pieces. In fact, the volume of sales made on the territories of 1400, 525 and 1075 units respectively. Thus, one area not fulfilled the plan by 7%, exceeded his second 5 and the third - narrowly missed by as much as 45%. The third area is the greatest concern. Vice-president of sales, may specifically to study the causes of poor trade performance that territory.

ANALYSIS OF MARKET SHARE. Sales Statistics has not yet said about the firm's position in relation to competitors. Suppose that sales increases. This growth can be attributed to any improvement in economic conditions, which has a beneficial effect on all companies, or the improvement of the company's activity in comparison with competitors. Management needs to constantly monitor the performance of the market share of the company. If this share increases, the competitive position of the company is strengthened if reduced - the company begins to give way to competitors.

Analysis of the relationship between the cost of marketing and sales. Monitoring the implementation of the annual plan requires to make sure that the company does not spend too much in its bid to secure the planned sales targets. Continuous monitoring of the relationship between the cost of marketing and sales will help the company to keep marketing costs at the right level.

OBSERVATION OF ATTITUDE CLIENTS. Alert firms use different methods for tracking the attitude to them by customers, dealers and other participants in the marketing system. By identifying changes in consumer relationship, before they affect the marketing, the management is able to take the necessary measures in good time. The main methods of tracking customer relationships are the system of complaints and suggestions, and consumer panel surveys klientov11.

CORRECTIVE ACTION. When actual figures differ too much from the target setting of the annual plan, the firm taking corrective action. Consider the following case.

fertilizer large firm sales figures lagged behind the planned check digit. In this branch of activity we observed excess capacity and threatening a fall in prices. Trying to improve the situation, the company has adopted a series of measures increasingly repressive nature: 1) were ordered to reduce production; 2) began selective price reductions; 3) increased pressure on their own sales staff, all sellers have fulfilled their assigned distribution rules. Salesman began to "knock the door", forcing customers to buy more, or to make purchases before the end of the year; 4) cut appropriations for the recruitment and training of staff, advertising, activities for public opinion, charity, research and development; 5) initiated temporary and permanent layoffs and sending them to retire; 6) to create a disconcerting picture taken a number of intricate accounting operations; 7) began disinvestment for the purchase of machinery and equipment; 8) decided to sell the production of the product groups of goods to other companies; 9) began consideration of the possibilities of sale of the company as a whole or its merger with another company.

To eliminate the discrepancies with the figures of the annual plan for many companies it is sufficient to take less drastic measures.