Operating control involves checking ongoing performance against the annual plan

Operating control involves checking ongoing

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Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary o Purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan
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Strategic control involves looking at whether the company’s basic strategies are well matches to its opportunities Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace Measuring and Managing Return on Marketing Investment Marketers are being increasingly called upon to justify their activities through return on marketing investment, or marketing ROI Return on marketing investment (or marketing ROI): the net return from a marketing investment divided by the costs of the marketing investment o Measures the profits generated by investments in marketing activities Company can assess return on marketing in terms of standard marketing performance measures, such as brand awareness, sales, or market share Marketing performance measurements are called metrics o Measured and calculated using software tools, a process that has become much easier since the advent of the internet and online advertising Some of the most frequently used marketing metrics include measurements of customer satisfaction, customer retention, market share, marketing spending, revenue, website traffic, and profits Not everything can be reduced to numbers: many qualitative marketing results, including enhanced brand recognition, reputation, and customer loyalty, are difficult to measure With rise of social media, most companies today have a Facebook and Twitter presence for their brand, and are experimenting with Instagram and other forms of social and mobile marketing tools Two major challenges facing markets: o 1. How to use these tools in a way that achieves marketing goals o 2. How to measure the effects of social media programs Marketers measure social media effects through engagement, retention, and awareness levels rather than in monetary terms Key is to clearly define business, marketing, and consumer objectives
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Marketers are using customer-centered measures of marketing impact, such as customer acquisition, customer retention, customer lifetime value, and customer equity Capture not just current marketing performance but also future performance resulting from stronger customer relationships Marketing investments result in improved customer value and satisfaction, which increase customer attraction and retention o Increases individual customer lifetime values and the firm’s overall customer equity o Increased customer equity, in relation to the cost of the marketing investments, determines return on marketing investment
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