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Chapter 15 - Evaluating marketing efforts. In this chapter, students will be able to understand: Describe the importance and dimensions of information and control systems, select appropriate tools of control for specific situations, calculate tolerance ranges for marketing performance, describe how control processes contribute to other organizational processes such as reengineering and strategic planning. | McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Managing Programs and Customers Part Four Part Four Managing Programs and Customers Chapter 15 Evaluating Marketing Efforts Chapter 16 Customer Retention and Maximization Chapter 15 Evaluating Marketing Efforts THE PROCESS OF CONTROL Measure performance Compare performance to standard Replicate cause of high performance Eliminate cause of low performance Below Standard? Above Standard? Exhibit 15-1 15- THE FUNCTIONS OF A MARKETING CONTROL SYSTEM MEASURES ACTUAL PERFORMANCE AGAINST PLANNED PERFORMANCE Sensor - The Measuring Tool Standard – The Goal To Achieve MEASURES PRODUCTIVITY AND PROFITS BY Types Of Products Customers Territories MEASURES KEY MARKETING VARIABLES: Customer Satisfaction Advertising Efforts Pricing Strategies Distribution/Channel Activities 15- Measure what’s important THREE COMMON-SENSE PRINCIPLES OF CONTROL Assumptions and goals determine measures What gets measured | McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Managing Programs and Customers Part Four Part Four Managing Programs and Customers Chapter 15 Evaluating Marketing Efforts Chapter 16 Customer Retention and Maximization Chapter 15 Evaluating Marketing Efforts THE PROCESS OF CONTROL Measure performance Compare performance to standard Replicate cause of high performance Eliminate cause of low performance Below Standard? Above Standard? Exhibit 15-1 15- THE FUNCTIONS OF A MARKETING CONTROL SYSTEM MEASURES ACTUAL PERFORMANCE AGAINST PLANNED PERFORMANCE Sensor - The Measuring Tool Standard – The Goal To Achieve MEASURES PRODUCTIVITY AND PROFITS BY Types Of Products Customers Territories MEASURES KEY MARKETING VARIABLES: Customer Satisfaction Advertising Efforts Pricing Strategies Distribution/Channel Activities 15- Measure what’s important THREE COMMON-SENSE PRINCIPLES OF CONTROL Assumptions and goals determine measures What gets measured is what gets done 15- DIMENSIONS OF CONTROL Micro Macro Input Regional Sales Office Expense Trade Show Budget Product X Development Cost Total Selling Expenses Promotion Budget Total R&D Budget Output Regional Sales Office Revenue Leads from Trade Shows Sales for Product X Total Revenue Corporate Position Total Division Revenue Exhibit 15-2 15- Exhibit 15-3 INPUT VARIABLES Price Product R&D Advertising Promotion Distribution Marketing Research Marketing Administration SET BY BUDGET ACTION PHASE THE MARKETING PROGRAM MARKET REACTION THE MARKET OUTPUT VARIABLES Sales Market Share Profit Communication results Distribution results Buyer attitudes and behavior COMPARED TO PERFORMANCE STANDARDS CONTROL OF INPUT AND OUTPUT VARIABLES 15- THE COMPONENTS MEASURED BY THE BALANCED SCOREBOARD FINANCIAL RESULTS Net income Profit margin Return on investment Return on assets managed CUSTOMER RESULTS Revenue per customer Account share Customer satisfaction Intent to repurchase INTERNAL .
