There are four types of marketing controls according to Professor Philip Kotler: 1. Annual plan control monitors current marketing efforts and results to ensure annual sales and profit goals are achieved through setting targets, monitoring performance, identifying deviations, and taking corrective actions. 2. Profitability control determines the actual profitability of products, territories, segments, and channels and examines whether the company is making or losing money to inform expansion and contraction decisions. 3. Efficiency control evaluates and improves spending efficiency and impact of activities like personal selling, advertising, sales promotion, and distribution by analyzing sales, advertising, promotion, and distribution efficiency. 4. Strategic control ensures marketing objectives, strategies, and systems are optimally

1. EVALUATING
MARKETING
PERFORMANCE
Part 1
UNIT – 8

2. PART 1 UNIT 8
The ways and means or the techniques and
devices that are employed to assess the
marketing performance over a given period are
classified into four broad categories by
Professor Philip Kotler

3. Types of Marketing Control Process
• There are four types of marketing controls:
Annual Plan Control
Profitability Control
Efficiency Control
Strategic Control

4. Annual Plan Control
• Annual plan control is the monitoring of
current marketing efforts and results to ensure
that the annual sales and the profit goals are
achieved.
• Annual plan control signifies continuous
ongoing performance verification against the
annual plan and taking the necessary corrective
actions.

5. Annual Plan Control Process
• Setting Monthly or quarterly targets
• Monitoring actual performance
• Identifying serious deviations
• Taking corrective actions

6. Annual Plan Control Tools
• Five tools are considered in annual plan
control process:
• Sales Analysis
• Market Share analysis
• Market expense analysis
• Financial Analysis [Ratio Analysis]
• Customer Attitude tracking [through surveys]

7. Profitability Control
• Profitability control is to determine the actual
profitability of the firm’s products, territories,
market segments and trade channels.
• Profitability control is exercised to examine
whether the company is making and losing the
money.

8. Profitability Control
• This profitability control information is so vital
to the management that it is possible to take
discerning decisions on expansion, contraction
or suspension of marketing activities.
• Profitability control or profit analysis refers to
the study of profit generated and contribution
made to it by different products, regions and
the customers.

9. Efficiency Control
• Efficiency control is the task of improving the
efficiency of such marketing activities as
personal selling, advertising, sales-promotion
and distribution.
• Efficiency control is undertaken to evaluate
and improve the spending efficiency and
impact of marketing expenditures on the
marketing operations.

10. Efficiency Control
• The responsibility rests with the marketing
controller and marketing departmental line and
staff people.
• There is close relationship between
profitability and efficiency. Poor profits mean
less efficient management of sales-force,
advertising, sales-promotion and physical
distribution.

11. Efficiency Control
• These four areas are analyzed for efficiency
control:
Sales efficiency
Advertizing efficiency
Sales promotion efficiency
Distribution efficiency

12. Strategic Control
• Strategic control is the crucial task of making
sure that the company’s marketing objectives,
strategies and systems are optimally adapted to
the current and forecasted marketing
environment.
• Strategic control refers to the in-depth study
undertaken to examine whether the company is
pursuing its best opportunities with respect to
markets, products and channels.

13. Strategic Control
• It is the responsibility of the top management
and the marketing auditor.
• Such an investigation is a must because;
marketing is an area where rapid obsolescence
of objectives, policies, strategies and
programmes is a regular possibility.