The aforementioned areas of marketing control are general in nature and
specific measures of marketing performance are required. Performance
measures and standards will vary by organisation and market conditions.
A representative sample of the type of data required to successfully con-
trol marketing activities is shown in Figure 14.9. The aim is to break the
general areas (annual, plan, profitability, efficiency and strategy) into
measurable component parts to which responsibility can be assigned.
Remember, in the context of marketing a balanced view is required. No
one variable should dominate the control process. For example, marketing
strategists have been guilty of following a credo of ‘market share at any
cost’. While such a variable is important, it is not a panacea and consider-
ation needs to be given to other factors such as profitability. Additionally,
marketing control should measure only dimensions over which the organ-
isation has control. Rewards, sanctions and management actions only make
sense where influence can be exerted. Control systems should be sensitive
to local market conditions and levels of competition. For instance, develop-
ing market and mature markets may require different control mechanisms.
Control 289●Product ●Price- Market share – Profit margin
- Sales – Discount levels
- Sales by segment – Price by segment
- Number of new products – Price comparisons
- Warranty claims
- Return on capital employed
- Repeat purchase
●Place ●Promotion - Channel costs – Cost per contant
- Channel volume – Media coverage
- Channel growth – Sales per call
- Delivery time – Awareness levels
- Stock levels – Enquiries generated
■ Summary
The basic essence of control is the ability to measure and take action.
Control systems are concerned with efficiency and effectiveness and often
operate as simple feedback loops. In marketing terms, control ensures
what is supposed to happen actually happen and is a mechanism to pro-
tect strategic plans when they become operational.
Effective control systems have focus, involve people and promote action.
Management control extends to cover finance, performance appraisal
and establishing and maintaining performance benchmarks. Marketing
Figure 14.9
Control of
marketing mix