Description
Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives"
International Marketing Control
• • • • • • • • International context of control Obtaining performance information Principles of a control system. Simple process of control Control techniques Effective control systems Benchmarking Balanced Scorecard
International Context of Control
• Each international market is different, so strategies and controls will vary • Distance, language differences and cultural variations cause communications problems • Resentment from subsidiaries of HQ control • Local marketing plan will need to controls appropriate for HQ and subsidiaries.
Obtaining Performance Information
• Report
• • • • Standardised to allow comparison Use common language As frequently as necessary Cover all HQ information needs
• Meetings
• Gathering of all. Take time and resources
• Information Technology
• Make control simpler and quicker
Principles of a control system.
• Aim to translate strategic plans into actions (Drummond and Ensor 2001). • Ensure that behaviour and operations conform to corporate objectives • Organisations need to measure, compare and analyse variances so that timely corrections can be made • Effective control involves the measurement of inputs as well as outputs.
• Control is important because:
1. ‘You can’t manage what you can’t measure’ adage 2. Gaining importance to measure ROI in marketing 3. Moves afoot to include branding in financial accounts.
Simple process of control
• • • • Set targets – quantified objectives and/or budgets. Determine the method(s) of measurement Measure the results at the end of each period Compare results against the targets and identify variances • Identify and implement any necessary corrective action.
Control Techniques
• Financial analysis e.g. ratio analysis, variance analysis, cash flow, monitoring capital expenditure. • Market analysis – I.e. market demand, market share, marketing resources. • Sales analysis – e.g. sales targets, selling costs. • Physical resources analysis – analysis of plant and equipment utilisation, other measures of productivity and product quality • Systems analysis – consider the effectiveness of implementation and application of marketing resources. • Others. . . . . .
Benchmarking
• ‘Benchmark’ core operational standards against the very best in business. • Process benchmarking – compare one process from within the organisation to another. • Competitor benchmarking – compares performance in key areas against that of competitors. • Others?
Balanced Scorecard
• Assesses performance across a wider dimension other than just financial performance. (tend to be backward looking) • Customer perspective – e.g. satisfaction and retention. • Internal perspective – e.g. employee behaviour, skills, quality. • Innovation and learning – e.g. idea generation, product development. • The financial perspective – traditional financial measures. Takes a shareholder’s perspective.
doc_505828395.ppt
Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives"
International Marketing Control
• • • • • • • • International context of control Obtaining performance information Principles of a control system. Simple process of control Control techniques Effective control systems Benchmarking Balanced Scorecard
International Context of Control
• Each international market is different, so strategies and controls will vary • Distance, language differences and cultural variations cause communications problems • Resentment from subsidiaries of HQ control • Local marketing plan will need to controls appropriate for HQ and subsidiaries.
Obtaining Performance Information
• Report
• • • • Standardised to allow comparison Use common language As frequently as necessary Cover all HQ information needs
• Meetings
• Gathering of all. Take time and resources
• Information Technology
• Make control simpler and quicker
Principles of a control system.
• Aim to translate strategic plans into actions (Drummond and Ensor 2001). • Ensure that behaviour and operations conform to corporate objectives • Organisations need to measure, compare and analyse variances so that timely corrections can be made • Effective control involves the measurement of inputs as well as outputs.
• Control is important because:
1. ‘You can’t manage what you can’t measure’ adage 2. Gaining importance to measure ROI in marketing 3. Moves afoot to include branding in financial accounts.
Simple process of control
• • • • Set targets – quantified objectives and/or budgets. Determine the method(s) of measurement Measure the results at the end of each period Compare results against the targets and identify variances • Identify and implement any necessary corrective action.
Control Techniques
• Financial analysis e.g. ratio analysis, variance analysis, cash flow, monitoring capital expenditure. • Market analysis – I.e. market demand, market share, marketing resources. • Sales analysis – e.g. sales targets, selling costs. • Physical resources analysis – analysis of plant and equipment utilisation, other measures of productivity and product quality • Systems analysis – consider the effectiveness of implementation and application of marketing resources. • Others. . . . . .
Benchmarking
• ‘Benchmark’ core operational standards against the very best in business. • Process benchmarking – compare one process from within the organisation to another. • Competitor benchmarking – compares performance in key areas against that of competitors. • Others?
Balanced Scorecard
• Assesses performance across a wider dimension other than just financial performance. (tend to be backward looking) • Customer perspective – e.g. satisfaction and retention. • Internal perspective – e.g. employee behaviour, skills, quality. • Innovation and learning – e.g. idea generation, product development. • The financial perspective – traditional financial measures. Takes a shareholder’s perspective.
doc_505828395.ppt