effective evaluation and control plan
Good implementation needs buy-in from those who are to carry out the plan. The best way to get their buy-in is to have them participate in the plan’s development. Thus salespeople are more likely to accept the marketing plan if a sales representative participated in its development and if the target volumes and prices are plausible. So the planner’s first need is to sell the plan inside, not outside.
Control is the way that we catch failures in implementation or strategy. The company may have implemented poorly, set the wrong marketing mix, aimed at the wrong target market, or done poor initial research. Control is not a singular thing but a host of tools for making sure that the company is on track. One of the five types of marketing control system, needed by the companies to evaluate their marketing effort. Its aim is to ensure that the company achieves the sales, profit and other goals established in the beginning of the year
Annual-plan control
The basis of annual-plan control is managerial objectives—that is to say, specific goals, such as sales and profitability, that are established on a monthly or quarterly basis. Organizations use five tools to monitor plan performance. The first is sales analysis, in which sales goals are compared with actual sales and discrepancies are explained or accounted for. It comprises at least five performance gauging tools:
I. Sales analysis (comparing sales targets to actual sales and accounting for discrepancies).
II. Market-share analysis (comparing the country's "sales" with those of its competitors). The country should also compare its own sales to the total sales in the global market and to sales within its "market segment" (neighboring countries, countries which share its political ambience, same-size countries, etc.).
III. Expense-to-sales analysis demonstrates the range of costs - both explicit and hidden (implicit) - of achieving the country's sales goals.
IV. Financial analysis calculates various performance ratios such as profits to sales (profit margin), sales to assets (asset turnover), profits to assets (return on assets), assets to worth (financial leverage), and, finally, profits to worth (return on net worth of infrastructure).
V. Customer satisfaction is the ultimate indicator of tracking goal achievement. The country should actively seek, facilitate, and encourage feedback, both positive and negative by creating friendly and ubiquitous complaint and suggestion systems.
Profitability control
Profitability control and efficiency control allow a company to closely monitor its sales, profits, and expenditures. Profitability control demonstrates the relative profit-earning capacity of a company’s different products and consumer groups. Companies are frequently surprised to find that a small percentage of their products and customers contribute to a large percentage of their profits
Efficiency control
Efficiency control involves micro-level analysis of the various elements of the marketing mix, including sales force, advertising, sales promotion, and distribution. For example, to understand its sales-force efficiency, a company may keep track of how many sales calls a representative makes each day, how long each call lasts, and how much each call costs and generates in revenue.
Strategic control
Strategic control processes allow managers to evaluate a company’s marketing program from a critical long-term perspective. This involves a detailed and objective analysis of a company’s organization and its ability to maximize its strengths and market opportunities. Companies can use two types of strategic control tools.
Marketing audit
The marketing audit is, in some respects, the raw material for the strategic control. Its role is to periodically make sure that the marketing plan emphasizes the country's strengths in ways that are compatible with shifting market sentiments, current events, fashions, preferences, needs, and priorities of relevant market players. This helps to identify marketing opportunities and new or potential markets.
Control is the way that we catch failures in implementation or strategy. The company may have implemented poorly, set the wrong marketing mix, aimed at the wrong target market, or done poor initial research. Control is not a singular thing but a host of tools for making sure that the company is on track. One of the five types of marketing control system, needed by the companies to evaluate their marketing effort. Its aim is to ensure that the company achieves the sales, profit and other goals established in the beginning of the year
Annual-plan control
The basis of annual-plan control is managerial objectives—that is to say, specific goals, such as sales and profitability, that are established on a monthly or quarterly basis. Organizations use five tools to monitor plan performance. The first is sales analysis, in which sales goals are compared with actual sales and discrepancies are explained or accounted for. It comprises at least five performance gauging tools:
I. Sales analysis (comparing sales targets to actual sales and accounting for discrepancies).
II. Market-share analysis (comparing the country's "sales" with those of its competitors). The country should also compare its own sales to the total sales in the global market and to sales within its "market segment" (neighboring countries, countries which share its political ambience, same-size countries, etc.).
III. Expense-to-sales analysis demonstrates the range of costs - both explicit and hidden (implicit) - of achieving the country's sales goals.
IV. Financial analysis calculates various performance ratios such as profits to sales (profit margin), sales to assets (asset turnover), profits to assets (return on assets), assets to worth (financial leverage), and, finally, profits to worth (return on net worth of infrastructure).
V. Customer satisfaction is the ultimate indicator of tracking goal achievement. The country should actively seek, facilitate, and encourage feedback, both positive and negative by creating friendly and ubiquitous complaint and suggestion systems.
Profitability control
Profitability control and efficiency control allow a company to closely monitor its sales, profits, and expenditures. Profitability control demonstrates the relative profit-earning capacity of a company’s different products and consumer groups. Companies are frequently surprised to find that a small percentage of their products and customers contribute to a large percentage of their profits
Efficiency control
Efficiency control involves micro-level analysis of the various elements of the marketing mix, including sales force, advertising, sales promotion, and distribution. For example, to understand its sales-force efficiency, a company may keep track of how many sales calls a representative makes each day, how long each call lasts, and how much each call costs and generates in revenue.
Strategic control
Strategic control processes allow managers to evaluate a company’s marketing program from a critical long-term perspective. This involves a detailed and objective analysis of a company’s organization and its ability to maximize its strengths and market opportunities. Companies can use two types of strategic control tools.
Marketing audit
The marketing audit is, in some respects, the raw material for the strategic control. Its role is to periodically make sure that the marketing plan emphasizes the country's strengths in ways that are compatible with shifting market sentiments, current events, fashions, preferences, needs, and priorities of relevant market players. This helps to identify marketing opportunities and new or potential markets.