1. 19 Organization and control of the global marketing programme

2. 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

3. Figure 19.9 The firm’s budget and control system
Building the
marketing plan;
global
marketing
decisions
Budgeting
Controlling

4. What is this? Output control
What term refers to the regular monitoring of output, like profits, sales, and expenditures?
There follows an explanation of some key terms:
Coordinate its marketing activities: coordinating and integrating marketing strategies and implementing them across global markets, which involves centralization, delegation, standardization and local responsiveness.
Find global customer needs: this involves carrying out international marketing research and analysing market segments, as well as seeking to understand similarities and differences in customer groups across countries.
Satisfy global customers: adapting products, services and elements of the marketing mix to satisfy different customer needs across countries and regions.
Being better than the competition: assessing, monitoring and responding to global competition by offering better value, low prices, high quality, superior distribution, great advertising strategies or superior brand image.
Output control

5. Figure 19.10 The marketing control system
Decide objectives, strategies,
plans for implementation
Establish marketing
performance standards
Locate responsibility
Alter objectives
Alter standards
Reward, promote,
Advise, punish
Evaluate
Take corrective/
supportive action

6. 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.

7. Figure 19.11 Adjustment of global marketing strategy
Change in
marketing strategy
Feedforward
International
marketing
strategy
Early
symptoms
Marketing
impact
Revised
Marketing
impact
Feedback
Source: Samli et al., 1993, p. 425.

8. 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.

9. Types of marketing control
Strategic control
Efficiency control
Annual plan control
Profit control/budget control

10. Figure 19.12 The hierarchy of sales and control

11. Figure 19.13 Marketing budget and its underlying determinants

12. For discussion Discuss why firms need global marketing controls.
What is meant by performance indicators? Why does a firm need them?