Svend Hollensen GLOBAL MARKETING 4 th Edition 19 Organization and control of the global marketing...
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Svend Hollensen GLOBAL MARKETING 4 th Edition 19 Organization and control of the global marketing programme
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Transcript of Svend Hollensen GLOBAL MARKETING 4 th Edition 19 Organization and control of the global marketing...
Svend Hollensen
GLOBAL MARKETING4th Edition
19 Organization and control of the global marketing programme
19-2Hollensen, Global Marketing 4e, © Pearson Education 2008
Learning objectives
Describe the key elements of the marketing control system
List the most important measures for marketing performance
Explain how a global marketing budget is established
Understand the steps in developing the global marketing plan
19-3Hollensen, Global Marketing 4e, © Pearson Education 2008
Figure 19.9 The firm’s budget and control system
Building the marketing plan;
global marketing decisions
Budgeting Controlling
19-4Hollensen, Global Marketing 4e, © Pearson Education 2008
What is this?
What term refers to the regular monitoring of output, like profits, sales, and expenditures?
Output control
19-5Hollensen, Global Marketing 4e, © Pearson Education 2008
Figure 19.10 The marketing control system
Decide objectives, strategies, plans for implementation
Establish marketing performance standards
Locate responsibility
Evaluate
Take corrective/supportive action
Reward, promote,Advise, punish
Alte
r st
anda
rds
Alte
r ob
ject
ives
19-6Hollensen, Global Marketing 4e, © Pearson Education 2008
Measures to control, fx
Product: Sales per market/time, new products, growth rates, market share, margin etc
Pricing: Relative to competitors, changes relative to sales volume, response time, margins etc.
Distribution: Sales, expense and contribution margin, on-time delivery, logistics cost etc
Communication: Ad effectiveness, sales per sales call, new/lost accounts, cost per contact etc.
19-7Hollensen, Global Marketing 4e, © Pearson Education 2008
Figure 19.11 Adjustment of global marketing strategy
International marketing strategy
Early symptoms
Marketing impact
Revised Marketing
impact
Change inmarketing strategy
Feedback
Feedforward
Source: Samli et al., 1993, p. 425.
19-8Hollensen, Global Marketing 4e, © Pearson Education 2008
Early performance indicators
Sudden drop in quantities demandedSharp change in sales volumeCustomer complaintsLarge volumes of returned merchandiseExcessive requests for parts or reported
repairsSudden change in fashions or styles
Source: Samli et al., 1993, p. 421.
19-9Hollensen, Global Marketing 4e, © Pearson Education 2008
Types of marketing control
Strategic control
Efficiency control
Annual plan control
Profit control/budget control
19-10Hollensen, Global Marketing 4e, © Pearson Education 2008
Figure 19.12 The hierarchy of sales and control
19-11Hollensen, Global Marketing 4e, © Pearson Education 2008
Figure 19.13 Marketing budget and its underlying determinants
19-12Hollensen, Global Marketing 4e, © Pearson Education 2008
For discussion
Discuss why firms need global marketing controls.
What is meant by performance indicators? Why does a firm need them?
