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DBA-marketing Implementation and Control-Dr - Ben Mugerwa FCIM

This document discusses marketing control and evaluation. It states that control and evaluation are essential for managers to ensure marketing plans are implemented properly and achieving expected outcomes. Managers should regularly evaluate progress against benchmarks throughout the planning period. Control can take a short or long term perspective. The marketing control process involves setting measurable goals, tracking outcomes, comparing to goals, analyzing deviations, addressing problems or successes, and revising plans.

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Sunday Medard
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61 views24 pages

DBA-marketing Implementation and Control-Dr - Ben Mugerwa FCIM

This document discusses marketing control and evaluation. It states that control and evaluation are essential for managers to ensure marketing plans are implemented properly and achieving expected outcomes. Managers should regularly evaluate progress against benchmarks throughout the planning period. Control can take a short or long term perspective. The marketing control process involves setting measurable goals, tracking outcomes, comparing to goals, analyzing deviations, addressing problems or successes, and revising plans.

Uploaded by

Sunday Medard
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MARKETING

CONTROL
Presentation
By
Dr.Ben MugerwaFCIM
[email protected]
INTRODUCTION
 Control and evaluation are both essential if
managers are to ensure that the plans are being
implemented properly and that the outcomes
are those expected
 As part of the planning process, managers have
to specify what is being measured, when, how
and by whom.
 Although the defined marketing objectives
provide the ultimate goals against which
performance and success can be measured,
waiting until the end of the planning period to
assess whether they have been achieved is risky
CONTINUATION
 Managers should evaluate progress regularly
throughout the period against a series of
benchmarks reflecting expected performance
todate
 Eg if the overall objective is 20% increase in
volume sales over 12 months, managers
might expect after three months to see
atleast a 5% improvement on the equivalent
figure for the previous year as strategies
begin to take effect and gather momentum
CONTINUATION
 At that three-month staging post, managers
can then decide whether their strategies
appear to be well on target for achieving
objectives as planned
 Or whether the deviation from expected
performance is so great that alternative
actions are called for
 Control and evaluation can take place either
a short or longer-term perspective
CONTINUATION
 In short term, control can be monitored on a
daily basis through reviewing orders received,
sales, stock turn or cash flow for example
 Long-term strategic control focuses on
monitoring wider issues such as the emergence
of trends and ambiguities in the marketing
environment
 This has strong links with the marketing audit,
assessing the extent to which the organisation
has matched its capabilities with the
environment and the extent to which it has
correctly ”read” the environment
MARKET POTENTIAL AND SALES
FORECASTING
 The extent to which plans can be successfully
implemented depends not only on managers`
abilities in setting and implementing
strategies, but more fundamentally on their
ability to predict the market accurately
 This means two things: first, assessing the
market potential, that is working out how big
the total cake is
 Second, forecasting sales, that is calculating
how big a slice of that cake our organisation
can get for itself
MARKET AND SALES POTENTIAL
 The concept of market potential is very
simple, but in practice it is very difficult to
estimate
 Market potential is the maximum level of
demand available within the total market
over a given period, assuming a certain level
of competitive marketing activity and certain
conditions and trends in the marketing
environment
CONTINUATION
 This definition immediately raises problems
in calculating a figure for market potential,
as it involves many assumptions about
competitors and the environment, needs a
precise definition of the” market “and
requires methods of qualifying the variables
concerned
MARKET POTENTIAL
 We now look more closely at some of the
difficulties in estimating market potential:
 Maximum level of demand: the calculation of
maximum level of demand should be product
or service specific and means calculating the
demand if all possible buyers were to
purchase to their fullest realistic extent
 In terms of volume and frequency
CONTINUATION
 It is an idealised concept, that is difficult to
measure for many reasons
 Eg, any individual`s decision about whether
to purchase, how much and how often is in
practice influenced by many factors
 One factor is marketing activity, such as
campaigns encouraging product substitution
or increased consumption
CONTINUATION
 market potential is partially dependent on
marketing effort, then a range of
alternative”maximum” levels of demand
become immediately possible
 Total market: the potential total market is
readily a question of boundaries. In the same
way that calculation of profit can vary
according to the way in which an accountant
interprets the rules, total market size can
vary according to the definitions used to
mark market boundaries
CONTINUATION
 Level of competitive activity and trends in
the marketing environment

 Sales potential: even after the potential has


been estimated for the market as a whole,
an organisation will then need to determine
its own sales potential, that is the share of
the market that it could reasonably expect
to capture
CONTINUATION
 Sales potential is partly a result of the
organisation`s marketing effort and its
success in attracting and holding customers
 Although the total market potential will
create a ceiling for an organisation`s
individual sales potential, in reality sales
potential should be based on a clear
understanding of the relative success of
individual organisation`s marketing efforts
ESTIMATING MARKET AND SALES
POTENTIAL
 The methods used for estimating sales and
market potential will vary, depending on just
how new or innovative the product or service
is and how mature the market is
 The two main groups of methods are
breakdown , that is working from the
aggregate level of the whole market down
to the segment of interest and build-up, that
is starting with individual customers then
aggregating up to industry or market totals
CONTINUATION
 Break down methods:fall into two main
groups based on total market measurement
and those based on statistical series analysis
CONTROLLING MARKETING
ACTIVITIES
 Control is a vital aspect of implementing
marketing plans, whether strategic or
operational
 It helps to ensure that activities happen as
planned with proper management
 It also provides important feedback that
enables managers to determine whether or
not their decisions, actions and strategies
are working appropriately in practice
CONTINUATION
 Strategic control takes a wide, long term
view, considering whether the overall
marketing strategy is actually driving the
organisation in the desired direction
 This is normally assessed through the
marketing audit process outlined and often
conducted on annual basis, either as a
special adhoc process or as part of the
marketing planning cycle
CONTINUATION
 Operational control takes a short-term view,
checking whether detailed functional
marketing programmes are actually working
in practice
 These checks can take place on a daily basis
if necessary and certainly happen frequently
enough to determine whether areas are
developing
CONTINUATION
 Operational control needs to pick up
problems early before too much damage is
done, so that corrective action can be taken
more easily
 Designing an effective control to suit the
needs and characteristics of the organisation
is a critical part of managing marketing
effort
THE MARKETING CONTROL
PROCESS
 The marketing control phase is not an
afterthought to be bolted on the end of the
planning process but should be designed as
an important part of that process
 In setting marketing objectives, it is
important to define them in terms of
detailed time-specific goals against which
performance can be measured
CONTINUATION
 This makes the task of control more
manageable since those areas where serious
deviation is occurring can then be easily be
diagnosed
 Management effort can thus be focused on
areas of greatest need rather than being
spread too thinly
 When setting performance targets for
marketing activities, it is important to ensure
that they are realistic, that they can be
measured and that the measurement criteria
used are meaningful and relevant
CONTINUATION
 This is especially important where
managers` performance is partly judged by
their achievement of the agreed targets.
 Typical measures might be sales volume,or
value, the number of new customers
created, the number of enquiries generated,
stock turn over, satisfaction surveys or
relative market share
CONTINUATION
 The MIS system should provide the essential
flow of information that enables
performance to be measured as well as
highlighting emerging problem areas
 This flow of data must therefore be timely
and sufficiently detailed to allow deeper
analysis
 As soon as the control mechanism shows that
a gap is opening between proposed targets
and actual achievement, managers can start
to look for reasons for this happening
MARKETING CONTROL
 Marketing plan
 Action
 Outcomes goals
 Compare outcomes with goals
 Analyse deviations
 Solve problems exploit success
 Learn and revise

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