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 cant manage what you cant 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 shareholders perspective.