Characteristics of a good Marketing company:1. Selection of proper target markets2. Customer and market minded employees and departments3. Good relationship between marketing, R&D and manufacturing4. Good working relationship between marketing, sales and customer service
5. Installed incentives to lead to the right behaviors.6. Continuous building and tracking customer loyalty and satisfaction.7. A value delivery system in partnership with the distributors.8. Skill in building brand name and image.9. Flexible in meeting customers¶ varying requirements.
Marketing Implementationy The process that turns marketing plans into action assignments and ensures they accomplish the plan¶s stated objections.y Counts for little if not implemented properly.y Strategy: What and Why of marketing activities.y Implementation: Who, Where, When and How.
y Marketing costs consists of 20 to 40 % of a company¶s total operating budget.y Marketers need better templates for marketing processes, better management of marketing assets, and better allocation of marketing resources.y MRM software provides a set of Web-based applications that automate and integrate such activities as project management, campaign management, budget management, asset management, brand management, customer relationship management and knowledge management.
Types of Marketing Controly Annual Plan Controly Profitability Controly Efficiency Controly Strategic Control
Approaches to Annual Plan Controly Annual Plan Control- Sales Analysis- Market Share Analysis- Marketing expense-to-sales Analysis- Financial Analysis
Sales Analysis:y Measures and evaluates actual sales in relationship to goals.y It has two specific tools:- Sales-variance Analysis- measures the relative contribution of different factors to a gap in sales performance.- Microsales Analysis- looks at specific products, territories and so forth that failed to produce expected sales.
Market Share Analysis:y Company sales don¶t reveal how well the company is performing relative to competitors.y Overall market share- company¶s sales as a % of total market sales.y Served market share- a % of the total sales to the market.y Relative market share- market share in relationship to the largest competitor.
Conclusions from market share analysis:y The assumption that outside forces affect all companies in the same way is often not true.y The assumption that a company¶s performance should be judged against the average performance of all companies is not always valid.y If a new firm enters the industry, every existing firm¶s market share might fall.y Sometimes a market share decline is deliberately engineered to improve profits.y Market share can fluctuate for many minor reasons.
y Overall market share= Customer Penetration*Customer loyalty*Customer selectivity*Price selectivity
Marketing expense-to-sales Analysisy To ensure that the company is not overspending to achieve sales goals.y Includes components like sales force to sales, advertising to sales, sales promotion to sales, marketing research to sales, sales administration to sales etc.y Need to monitor period to period fluctuations in each ratio on control charts.y Control charts explains whether the company has good expense control or it has lost control over its expenses.
Financial Analysisy To identify the factors that affect the company¶s rate of return on net worth.y These factors include profit margin, asset turnover which is the product of return on assets and financial leverage.y To improve its return on net worth, the company must increase its ratio of net profits to assets or the ratio of assets to net worth.y The company should also analyze the components of its assets and make the needed improvements.
Profitability Controly Marketing Profitability Analysisy Determining Corrective Actiony Direct versus Full Costing
y Marketing Profitability Analysis-y Step 1- Identifying functional Expensesy Step 2- Assigning Functional Expenses to Marketing Entitiesy Step 3- Preparing a Profit & Loss statement for each Marketing Entityy Determining Corrective Actiony Direct versus Full Costing
Strategic Controly The Marketing Audit- A comprehensive, systematic, independent and periodic examination of a company¶s or business unit¶s marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company¶s marketing performance.
Characteristics of marketing audit:y Comprehensivey Systematicy Independenty Periodic
Major Marketing Weaknesses- Insufficient market focus and customer drive.- Inadequate understanding of its target customers.- Improperly defined and monitored competitors.- No properly managed relationships with stakeholders.
- No proper R&D, lack of innovative opportunities.- Deficient marketing planning process.- Loosened product and service policies.- Weakened brand-building and communication skills.- Improperly organized efficient and effective marketing.- No optimum use of technology.
The Future of Marketingy The demise of the marketing department and rise of holistic marketingy The demise of free-spending marketing and the rise of ROI marketingy The demise of marketing intuition and the rise of marketing sciencey The demise of manual marketing and the rise of automated marketingy The demise of mass marketing and the rise of precision marketing
Skills required to accomplish the changes:y Customer Relationship Managementy Partner Relationship Managementy Database marketing and data miningy Contact center management and telemarketingy Public relations marketingy Brand building and brand-asset managementy Experiential marketingy Integrated marketing communicationsy Profitability analysis by segment, customer and channel