Chapter 10Marketing Strategy Reformulation: The Control Process

DefinitionsStrategic Control: Focus on Effectivenessassesses the direction of the organization by its goals, objectives, strategies, and capacity to perform in the context of changing environments and competitor actions.

Operations Control: Focus on Efficiencyassesses how well the organization performs marketing activities as it seeks to achieve planned outcomes.

Strategic Change...change in the environment that will affect the long-run well-being of the organization. Change can be a threat or opportunity

Sources of Strategic Change:market evolutionmarket redefinitionchange in marketing channels

Operations Control: Marketing-Cost AnalysisHow should costs be allocated to marketing segments?

What costs should be allocated?

Should all costs be allocated to marketing segments?Purpose is to assign costs to marketing activities or segments to accurately reflect their financial contribution to the organization

Operations Control: Product-Service Mix ControlInvolves two tasks:assessment of the performance of offerings in the relevant markets - including assessing sales volume and market share

an appraisal of the financial worth of product-service offerings - using a contribution margin approach

Operations Control: Sales Controlbehavioral element consists of sales effort and allocation of selling time

cost aspect consists of expenses arising from the performance and administration of the sales functionDirects attention to the behavioral and cost aspects of sales activity

Operations Control: Marketing Channel ControlConsists of two processes:assessment of environmental and organizational factors that may affect marketing channels

evaluation of the profitability of marketing channelsorder-getting costsorder-servicing expenditures

Considerations in Marketing ControlManagers must be aware of difference between:Problems and SymptomsEffectiveness and EfficiencyData and Information