Posted in Marketing and Strategy Terms, Total Reads: 267
Definition: Market Controls
The marketing controls are many tools which are used by an organisation to monitor and regulate the objectives set in a marketing plan. The controls are required to measure, evaluate and monitor the various resources. The resources are scarce and costly so it important to have controls.
Market control helps a firm benchmark its progress against the industry standards. Based on the performance of the current market scenarios the decisions are taken to monitor the actual progress on the target.
Types of approaches for Market control
1. Sales analysis – It is the most commonly used market control in which the annual or monthly sales is measured against the set target
2. Market share analysis – It is also a widely used control to observe the company’s performance as compared to competitors. It is not just sufficient for a firm to analyse once market share, the company needs to analyse which has the higher market share and what are the reasons for the lag.
3. Budget controls – The targets should be achieved in a profitable manner then only the marketing plan is successful. The company needs to analyse its expenses to sales ratios to get a bigger picture of the financial pattern.
4. Feedback from Customer satisfaction survey- In this the satisfaction level of the customers’ are checked to make necessary changes in the plan so as to increase their satisfaction.
5. Market Information Systems- The focus of the firm should also be on understanding the market changes like new customers, product quality, services, consumers dropped, awareness about the product etc.
1. Easy to make decisions.
3. Better management
1. With volatile market difficult to predict the plan.
2. Products failure in some markets may lead to fall in sales in other markets.
3. Price controls have to change according to the market. It is difficult to maintain the standards.