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Svend Hollensen GLOBAL MARKETING 4 th Edition 19 Organization and control of the global Svend Hollensen GLOBAL MARKETING 4 th Edition 19 Organization and control of the global marketing programme

Learning objectives ¦Describe the key elements of the marketing control system ¦List the most Learning objectives ¦Describe the key elements of the marketing control system ¦List the most important measures for marketing performance ¦Explain how a global marketing budget is established ¦Understand the steps in developing the global marketing plan Hollensen, Global Marketing 4 e, © Pearson Education 2008 2

Figure 19. 9 The firm’s budget and control system Building the marketing plan; global Figure 19. 9 The firm’s budget and control system Building the marketing plan; global marketing decisions Budgeting Hollensen, Global Marketing 4 e, © Pearson Education 2008 Controlling 3

What is this? What term refers to the regular monitoring of output, like profits, What is this? What term refers to the regular monitoring of output, like profits, sales, and expenditures? Output control Hollensen, Global Marketing 4 e, © Pearson Education 2008 4

Figure 19. 10 The marketing control system Decide objectives, strategies, plans for implementation Alter Figure 19. 10 The marketing control system Decide objectives, strategies, plans for implementation Alter standards Alter objectives Establish marketing performance standards Locate responsibility Reward, promote, Advise, punish Evaluate Take corrective/ supportive action Hollensen, Global Marketing 4 e, © Pearson Education 2008 5

Measures to control, fx ¦Product: Sales per market/time, new products, growth rates, market share, Measures to control, fx ¦Product: Sales per market/time, new products, growth rates, market share, margin etc ¦Pricing: Relative to competitors, changes relative to sales volume, response time, margins etc. ¦Distribution: Sales, expense and contribution margin, on-time delivery, logistics cost etc ¦Communication: Ad effectiveness, sales per sales call, new/lost accounts, cost per contact etc. Hollensen, Global Marketing 4 e, © Pearson Education 2008 6

Figure 19. 11 Adjustment of global marketing strategy Feedforward International marketing strategy Early symptoms Figure 19. 11 Adjustment of global marketing strategy Feedforward International marketing strategy Early symptoms Change in marketing strategy Marketing impact Revised Marketing impact Feedback Source: Samli et al. , 1993, p. 425. Hollensen, Global Marketing 4 e, © Pearson Education 2008 7

Early performance indicators ¦Sudden drop in quantities demanded ¦Sharp change in sales volume ¦Customer Early performance indicators ¦Sudden drop in quantities demanded ¦Sharp change in sales volume ¦Customer complaints ¦Large volumes of returned merchandise ¦Excessive requests for parts or reported repairs ¦Sudden change in fashions or styles Source: Samli et al. , 1993, p. 421. Hollensen, Global Marketing 4 e, © Pearson Education 2008 8

Types of marketing control Strategic control Efficiency control Annual plan control Profit control/budget control Types of marketing control Strategic control Efficiency control Annual plan control Profit control/budget control Hollensen, Global Marketing 4 e, © Pearson Education 2008 9

Figure 19. 12 The hierarchy of sales and control Hollensen, Global Marketing 4 e, Figure 19. 12 The hierarchy of sales and control Hollensen, Global Marketing 4 e, © Pearson Education 2008 10

Figure 19. 13 Marketing budget and its underlying determinants Hollensen, Global Marketing 4 e, Figure 19. 13 Marketing budget and its underlying determinants Hollensen, Global Marketing 4 e, © Pearson Education 2008 11

For discussion ¦Discuss why firms need global marketing controls. ¦What is meant by performance For discussion ¦Discuss why firms need global marketing controls. ¦What is meant by performance indicators? Why does a firm need them? Hollensen, Global Marketing 4 e, © Pearson Education 2008 12