Controlling Sales Activity

M.B.A.-Day

Types of Sales Control Activities

Annual plan control Profitability control Efficiency control Strategic control

Annual – Plan Control

Top and middle management To examine whether the planned results

are being achieved or not

Annual plan control

Goal setting (what do we want to achieve?)

Performance measurement (what is happening?)

Performance diagnosis (why is it happening?)

Corrective action (what should we do about it?)

Tools for annual plan control

Sales analysis- is the detailed exa

Profitability Control

Marketing controller /marketing manager To examine where the Co. is making or

losing money

Methodology of marketing profitability analysis

Identifying the functional expense Assigning the functional expense to the

marketing entities (selling, advertising, packing and delivery, billing & collecting)

Determining profits in relation to products, territories or customer segments

Determining the best corrective action

Efficiency Control

Marketing controller / marketing manager To evaluate and improve the spending

efficiency and impact of marketing expenditures

Efficiency control

Sales force efficiency Advertising efficiency Sales-Promotion efficiency Distribution efficiency

Strategic Control

Top management / marketing auditor To examine whether the Co. is pursuing

the best opportunities with respect to markets, products and channels

Strategic control

The marketing audit-is a comprehensive, systematic, independent and periodic examination of a Co.’s marketing environment, objectives, strategies and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the Co.’s marketing performance

The ethical and social responsibility review

Products and services offered are safe and fit for their intended use

Communications about offered products and services are not deceptive

All parties intend to discharge their obligations, financial and otherwise in good faith

Appropriate internal methods exist for equitable adjustment and/or redress of grievances concerning purchases