Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e- Implementing and
Controlling Marketing
Plans: Evolution and
Revolution
Text © The McGraw−Hill
Companies, 2002572 Chapter 19
the planning and control period, the easier it is to correct problems before they
become emergencies.
In this example, Reve uses a modified contribution-margin approach—some of
the fixed costs can be allocated logically to particular departments. On this chart,
the balance left after direct fixed and variable costs are charged to departments is
called Contribution to Store. The idea is that each department will contribute to
covering generalstore expenses—such as top-management salaries and holiday dec-
orations—and to net profits.
In Exhibit 19-14, we see that the whole operation is brought together when Reve
computes the monthly operating profit. She totals the contribution from each of the
four departments, then subtracts general store expenses to obtain the operating profit
for each month.
As time passes, Reve can compare actual sales with what’s projected. If
actual sales were less than projected, corrective action could take either of two
courses: improving implementation efforts or developing new, more realistic
strategies.The Marketing Audit
While crises pop up,
planning and control
must go on
The analyses we’ve discussed so far are designed to help a firm plan and control
its operations. They can help a marketing manager do a better job. Often, however,
the control process tends to look at only a few critical elements, such as sales vari-
ations by product in different territories. It misses such things as the effectiveness
of present and possible marketing strategies and mixes.
The marketing manager usually is responsible for day-to-day implementing as well
as planning and control and may not have the time to evaluate the effectiveness of
the firm’s efforts. Sometimes crises pop up in several places at the same time.
Attention must focus on adjusting marketing mixes or on shifting strategies in the
short run.
To make sure that the whole marketing program is evaluated regularly,not just
in times of crisis, marketing specialists developed the marketing audit. A marketing
audit is similar to an accounting audit or a personnel audit, which businesses have
used for some time.
The marketing auditis a systematic, critical, and unbiased review and appraisal
of the basic objectives and policies of the marketing function and of the
organization, methods, procedures, and people employed to implement the
policies.^12
A marketing audit requires a detailed look at the company’s current market-
ing plans to see if they are still the best plans the firm can offer. Customers’ needs
and attitudes change—and competitors continually develop new and better
plans. Plans more than a year or two old may be out-of-date or even obsolete.
Sometimes marketing managers are so close to the trees that they can’t see the
forest. An outsider can help the firm see whether it really focuses on some unsat-
isfied needs and offers appropriate marketing mixes. Basically, the auditor uses
our strategy planning framework. But instead of developing plans, the auditor
works backward and evaluates the plans being implemented. The consultant-
auditor also evaluates the quality of the effort—looking at who is doing what
and how well. This means interviewing customers, competitors, channel mem-
bers, and employees. A marketing audit can be a big job. But if it helps ensure
that the company’s strategies are on the right track and being implemented prop-
erly, it can be well worth the effort.