12. felicia sabou - the control and evaluation of promotional activities.pdf

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    Studia Universitatis Vasile GoldiArad Economics Series Vol 22 Issue 1/2012

    109

    THE CONTROL AND EVALUATION OF

    PROMOTIONAL ACTIVITIES

    Felicia SabouVasile Goldis Western University, Faculty of Economic Science

    E-mail: [email protected]

    Abstract

    The paper focused on importance and benefits of control and evaluation of marketing

    activities. The control of efficiency review the assessment of the resources for marketing

    activity, checking also the efficiency of the human resources, advertising, promotion

    activities and distribution activities. In the analyse of human resources the most important

    ratio are: the average of costumers visits on a day, the number of custom order received

    from 100 visits, the number of new customers from a period, the number of lost customers

    from a period, the marketing human expenditures from all the sales.

    The strategic control is made to check if the objectives and the company strategy are

    adapted to the marketing environment.

    Keywords: the control of marketing activities, the evaluation of marketing activities, the

    efficiency of marketing activities.

    1. THE PLANNING OF MARKETING ACTIVITIES

    Marketing Strategy defines the market segments that the company will act,how to differentiate and market positioning and mode of action on the marketing

    mix elements, to achieve the objectives.On the marketing strategy is based on a plan allowing the optimal use of

    resources to achieve objectives.

    The marketing strategy has the following components: Market Strategy;

    Product Strategy; Pricing strategy; Distribution Strategy;

    Promotion strategy.An important part of the business plan, marketing plan is a tool for

    coordinating all marketing activities.The marketing plan is a document specifying all marketing activities which

    will achieve, and how to implement and control them.

    A marketing plan can be made for a company to a product, brand or aparticular market.

    Characteristics of the marketing plan:- Quantify the expected results;

    - To specify the resources necessary for substantiation of the budget;

    mailto:[email protected]:[email protected]
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    - To characterize the activity to achieve and to clarify responsibilities;

    - Specify how to control the plan is implemented;- To ensure implementation of marketing strategy;

    Marketing budget estimates of revenue and marketing expensesIn the control and evaluation action, is necessary to check how monitoring

    and evaluation to achieve its objectives, employment in the budget.

    Summary contains a summary of the overall marketing plan, outlining the

    main objectives and measures to be taken.Marketing objectives specify performance indicators that are to be

    achieved, their level and the time they are to be meet. Marketing objectives relatingto: sales volume, market share, launch a new product market, profitability, marketcoverage, consumer attitudes, consumer loyalty.

    Marketing Strategy identifies attractive market segments, productpositioning and brand segments and guided the company in relations with

    customers and competitors. Also in this section shall nominate the strategies usedto achieve objectives.

    Action Program highlights actions that need to be made, the time at which

    they are made, people involved and their related costs.

    The marketing budget is projected expenses, revenues and profits expected

    also specifies the necessary resources and financial implications of implementingthe marketing plan.

    Monitoring and evaluation of marketing plan shows how to record and

    measure the results, verification and monitoring achievement levels of all activities.Marketing opportunity occurs under certain conditions, when the company

    take action toward a group of consumers, an action that generates sales and profits.Analysis of these opportunities requires identifying, analyzing and selecting them.

    Selection of marketing opportunities is in terms of a number of factors:- Organization (company's objectives, financial resources, strengths and

    weaknesses, cost structure, management skills);- The environment (demographic, economic, technological, political,

    social, environmental, competitive.

    To achieve the objectives, the companies can use competitive strategiesbased on successful imply the existence of certain conditions but at the same time,entail risks.

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    Studia Universitatis Vasile GoldiArad Economics Series Vol 22 Issue 1/2012

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    Table 1. Conditions for success and competitive strategies based on risk

    Strategies Success conditions Risks

    Differentiation Differentiation MarketingSkills high

    Product InnovationFundamental and applied

    research capacity

    Quality and technologicalskills recognized

    Experience in the sector

    A very good cooperation

    with distribution channels

    High price sensitivity ofcustomers

    Consumer indifference to the

    elements of the product

    The ability to imitatecompetitors

    The cost leader Domination by the

    investment costs andaccess to financialresources

    InnovationsSupervision of

    implementation activities

    Designing to facilitate theproduction process

    Low cost distributiontechnological changes that

    undo the benefits of earlier

    Technological changes that

    undo the benefits of earlierLower costs for newcompetitors to imitate high

    capacity and knowledgeexploitation

    The impossibility of applying

    the product or marketinginnovations because the

    negative effect on costs

    The focus Focus Combining these

    policies and theirorientation towards a

    clearly defined market

    segment

    A lot of differences in costs

    for companies that operate ina broad market and those on a

    segment. Market not well

    individualized requirementsSource: F.Foltean, L.Ldar, C.Dobre, Gh.Ionescu, C.Negru, Marketing, Ed. Brumar,2000, p. 117.

    The Differentiation Marketing strategy means: differentiation skills high,

    product Innovation, fundamental and applied research capacity, quality andtechnological skills recognized, experience in the sector, a very good cooperation

    with distribution channels and also means risk like the high price of a differencebetween competing products, high price sensitivity of customers, consumer

    indifference to the elements of the product and the ability to imitate competitors.The cost leader strategy means: domination by the investment costs and

    access to financial resources, innovations, supervision of implementation activities,

    designing to facilitate the production process, low cost distribution of technologicalchanges that undo the benefits of earlier, lower costs for new competitors to imitate

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    high capacity and knowledge exploitation, the impossibility of applying the

    product or marketing innovations because the negative effect on costs.The focus strategy combining these policies and their orientation towards a

    clearly defined market segment large differences in costs for companies thatoperate in a broad market and those on a segment.

    Develop and implement marketing strategy is directly influenced by theorganization of marketing activities, concerning the achievement of objectives and

    to improve the use of resources.

    Where there has been completion of a structure of marketing activity isnecessary to take into account several factors, such as business expansion strategy,

    the number of markets where the company intends to operate, the nature ofcompany products, company size and potential Experience Company, the firm'sinternal environment, etc.

    Organization of marketing activities can be done in practice, in the formof:

    - Conduct marketing activities in traditional departments: sales, production.Such an organization is its early marketing and can be found in small firms;

    - Grouping of most marketing activities in a single compartment

    (traditional), usually in the sales;

    - Conduct marketing activities in a general compartment;

    - The focus of all marketing activities in a specialized direction, tocoordinate all marketing activity;

    The most important requirements to be met by an efficient organizational

    structure of marketing are: setting clear responsibilities, ensuring a rapid andefficient communication, coordination of all subunits of the organizational

    structure, implementation of appropriate management of human resourcesdepartment Marketing.

    In recent years the trend was found for the subordination of the seniormanagement of direct marketing department and not of intermediate links, as in the

    past.The multitude and diversity marketing department functions are

    determined by the extent of work undertaken by the firm, the profile of activity,

    geographical area in which it operates, the staff included in marketing activities.The main tasks of the marketing department are: Duties of the role of coordination and synthesis (marketing research

    document, and develop marketing programs, to base decisions); Tasks related to operational implementation process (executive tasks

    located in the area of product policy, price, promotion and distribution); Additional Tasks, activities aimed at research, product development, the

    use of information systems, marketing, services marketing, etc.;

    Relationship marketing department may be: authority relations: hierarchical, functional staff;

    cooperative relationships; relations of supervision;

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    Hierarchical relations appear in their relationships with senior staff, and are

    subordinate.Functional relationship is manifested in their relationships with other

    departments and is carried in the transmission of these provisions, information,tasks, etc.

    Staff relations appear in their relationships with senior staff and expressedby the delegation of certain powers by it, which are solved problems that affect

    other departments.

    When dealing with other departments of the company appear a series ofcooperative relations, expressing the collaboration with them, both in the

    foundation of decisions and in the performance of measures in order to achieve theoverall strategy materializes through firmei.Aceste relations a permanent contact ofthe marketing department with operational departments of the company's

    organizational structure.Relations of control are not typical marketing compartment where they are

    manifest, whether in relation to bodies at the higher hierarchical levels or withother departments, marketing section acts on behalf of management.

    Internal organization of marketing department is in the following forms:

    -Functional organization, is based on criterion functions and is up in the

    marketing department of some sectors of collective whose duties are defined by

    specific marketing activity. In this form of organizing all sectors are subordinateddirectly to the Head of Department (Expl. research, promotion, new products, etc.);

    -Organization of the products, is used when the company's business covers

    a wide range of products. In this case, it is in the marketing department, specializedsectors in developing and deploying all marketing activities specific to each

    product or product categories;-Organizing the criterion markets, is mainly intended for an adequate

    geographical areas and segments of consumers as large;-Multi-organization, combined use of several forms of organization,

    thereby eliminating the disadvantages of a single criterion. May be used as thecriterion of the product to market, achieving a better understanding and meeting the

    needs of each market segment for a particular product;

    2.MARKETING AUDITMarketing audit is a systematic and impartial evaluation of all marketing

    operations, including the objectives, strategies and their underlying assumptionsand methods, procedures, personnel and organization, used for the implementation

    thereof.Marketing audit requires detailed analysis of objectives, strategies, tactical

    action plans and procedures, performance evaluation, control and improve future

    programs.

    Establish a marketing audit can be made having regard to the following

    model:a).The analyse of external environment company

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    microenvironment: market, customers, suppliers, competition, public

    bodies, etc.economic, technological, legal, demographic, social, cultural

    macroenvironment;b).The analyse of applied strategies

    company objectives (are clear, realistic performances allowquantification);

    business strategies (strategies applied to meet environmental conditions

    and competition, the company is or is not positioned well on the market, marketingstrategy applied is clear and consistent with business objectives, how the

    distribution of resources between components company marketing mix);c).Organnizing the business and marketing compartment (check that

    marketing activity is coordinated by a director, if the company's activities are

    clearly defined functions, products and markets, etc.).d).Planning and control of marketing activities (marketing planning, sales

    forecasting mode, the information system of the company, achieving control ofmarketing).

    e).The eficiency of marketing activities (product profitability, cost

    reduction measures, etc.)

    f).Marketing mix Product; Price; Promotion;Distribution;

    3. THE CONTROL AND EVALUATION OF PROMOTIONAL

    ACTIVITIES

    The analyse of promotional activities involves two different aspects:

    Promotional budget;

    Control and evaluation of marketing activities;

    The literature mentions several methods for determinate the promotionalbudget, such us (Gh. M. Pistol):

    Percentage of turnover method;

    Method based on available resources; Alignment method to competition;

    Method based on promotional objectives;

    Method use marketing experiments;

    The most important control methods in marketing activities are : thecontrol on yearly budget, the control of profitability, the control of efficiency and

    the strategic control;

    The purpose of control on yearly budget is to identify if the objectives arerealised, using the folowing tools:

    The sales analyse;

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    The analyse of marketing quotation;

    The ratio between sales and marketing expenditures;

    Financial analyse (profitableness ratio);

    The consumers satisfaction;

    The control of profitability is realised for screening the profit or the lost of

    the activities, products or services. It is necessary to made a profitapleness analyseof product, service, costumer, market segment, distribution level and zone.

    The control of eficiency review the assessment of the resources formarketing activity, checking also the eficiency of the human resources, advertising,promotion activities and distribution activities. In the analyse of human resources

    the most important ratio are: the average of costumers visits on a day, the numberof custom order received from 100 visits, the number of new customers from a

    period, the number of lost customers from a period, the marketing human

    expenditures from all the sales (%).

    The strategic control is made to check if the objectives and the companystrategy are adapted to the marketing environment. This control means : assessmentof marketing activities efficiency, marketing analyze, marketing performance

    analyze and the analyze of social and ethical responsibilities of the companies.

    References

    1. Kotler Ph., (2002) Managementul marketingului, Teora Publishing,Bucuresti.

    2. Foltean F., (2000) Cercetari de marketing, Mirton Publishing,Timisoara.

    3. Ion, A.R.(2005) Marketing. Studii de caz i lucrri aplicative, ASEBucuretiPublishing.

    4. Manolescu, Gh. (1999) Buget abordare economica si financiara,

    Economical Publishing, Bucuresti.5. Niculescu E., (2000)Marketing modern, Polirom Publishing, Bucuresti.

    6. Olteanu, V. (2003) Management-marketing , Ecomar Publishing,Bucureti.

    7. Pop N.Al. (coordonator) (2000) Marketing strategic, Economica

    Publishing, Bucureti.

    8. Sabou, F. (2007)Marketing, Risoprint Publishing, Cluj-Napoca.