MarketingManagement.pdf

Managing The Marketing Process 57

of total market sales. Served market share is its sales expressed as a percentage of

the total sales to its served market—all of the buyers who are able and willing to buy

the product. Relative market share can be expressed as market share in relation to

the largest competitor; a rise in relative market share means a company is gaining

on its leading competitor. A useful way to analyze market-share movements is in

terms of customer penetration, customer loyalty, customer selectivity, and price

selectivity.

➤ Marketing expense-to-sales analysis.This is a key ratio because it allows management to
be sure that the company is not overspending to achieve sales goals. Minor
fluctuations in the expense-to-sales ratio can be ignored, but major fluctuations are
cause for concern.

Type of Prime Purpose of

Control Responsibility Control Approaches

I. Annual-plan control

II. Profitability control

III. Efficiency control

IV. Strategic control

Top management

Middle management

Marketing

controller

Line and staff

management

Marketing

controller

Top management

Marketing auditor

To examine whether

the planned results

are being achieved

To examine where the

company is making

and losing money

To evaluate and

improve the spending

efficiency and impact

of marketing

expenditures

To examine whether

the company is

pursuing its best

opportunities in

markets, products, and

channels

■Sales analysis

■Market-share

analysis

■Marketing expense-

to-sales analysis

■Financial analysis

■Market-based

scorecard analysis

Profitability by:

■product

■territory

■customer

■segment

■trade channel

■order size

Efficiency of:

■sales force

■advertising

■sales promotion

■distribution

■Marketiing-

effectiveness review

■Marketing audit

■Marketing

excellence review

■Company ethical

and social

responsibility review

Table 1.1 Types of Marketing Control