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PGDBM MARKETING MANAGEMENT Copyright © 2003 Prentice-Hall, Inc. Key Questions: • Why study Marketing Management in the PGDBM? • How does marketing “fit “ into your job and daily life? • What you should be able to do upon completion of the module are: 1. Display an understanding of designing and implementing Marketing Strategies and their application 2. in the business environment 3. Have the ability to formulate strategic planning as a primary tool in business development 4. Display conceptual skills obtained by integration of marketing knowledge and work experience. 1-2 Copyright © 2003 Prentice-Hall, Inc. Introduction CH01 Copyright © 2003 Prentice-Hall, Inc. What Is Marketing? Marketing: typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses. Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return Marketing management is the art and science of choosing target markets and building profitable relationships with them What customers will we serve? How can we best serve these customers? Copyright © 2003 Prentice-Hall, Inc. A Simple Marketing System Copyright © 2003 Prentice-Hall, Inc. The Four P’s of the Marketing Mix 1-6 Copyright © 2003 Prentice-Hall, Inc. Marketing-Mix Strategy Copyright © 2003 Prentice-Hall, Inc. Company Orientations towards the marketplace Production concept Product concept Selling concept Marketing concept Copyright © 2003 Prentice-Hall, Inc. Societal concept Holistic marketing Company Orientations Toward the Marketplace The Customer/Marketing Concept Copyright © 2003 Prentice-Hall, Inc. Marketing of today to • • • • • • Everyone does the marketing Build brands through performance, not just advertising Customer retention rather than customer acquisition From none to in-depth customer satisfaction measurement From over-promise, under-deliver to under-promise, over-deliver Marketing practices are changing: o Designing an Attractive Website o Placing Ads and Promotions Online o Building a Revenue and Profit Model o Customer Relationship Marketing Reduce rate of customer defection Increase longevity of customer relationship Enhance growth potential through cross-selling and up-selling Make low profit customers more profitable or terminate them Copyright © 2003 Prentice-Hall, Inc. Developing Marketing Strategies CH02 Copyright © 2003 Prentice-Hall, Inc. Business Unit Strategic Planning The Business Strategic-Planning Process Copyright © 2003 Prentice-Hall, Inc. The Marketing Process Steps in the Planning Process (marketing process) Analyzing Market Opportunities Developing Marketing Strategies Planning Marketing Programs Managing the Marketing Effort o Annual-plan control o Profitability control o Strategic control Copyright © 2003 Prentice-Hall, Inc. Factors Influencing Company Marketing Strategy Copyright © 2003 Prentice-Hall, Inc. Marketing Strategy Marketing strategy is a firm’s overall program for selecting and satisfying a target market through a careful balance of the elements of the marketing mix Marketing Strategy Positioning Product Management Pricing Distribution Marketing Communications Marketing Research Factors influencing marketing strategy: Organisational objectives and resources Attitude to change and risk Market structure and opportunities Competitor strategies Copyright © 2003 Prentice-Hall, Inc. Product Portfolio Analysis Copyright © 2003 Prentice-Hall, Inc. Marketing Strategy Strategic planning and analysis 1. Situation analysis a. Internal analysis i. Determine if company is production orientated (sells what it makes) or market (makes what it can sell) orientated (customer, competitor, integrated decision making) – p 90 ii. Strengths and weaknesses of organisation iii. Balance scorecard = internal abilities Vision, long term and short term objective Copyright © 2003 Prentice-Hall, Inc. Marketing Strategy A SWOT analysis is a method of studying organizational resources and capabilities to assess the firm’s strengths and weaknesses and scanning its environment to identify opportunities and threats Copyright © 2003 Prentice-Hall, Inc. Marketing Strategy Strategic planning and analysis Growth opportunities and strategies can be identified by using the Ansoff Growth Matrix Three cells: Market penetration (current products in current markets) Market development (current products in new markets) Product development (new products in current markets) Copyright © 2003 Prentice-Hall, Inc. Copyright © 2003 Prentice-Hall, Inc. Marketing Strategy Strategic planning and analysis 2. Customer analysis a. Segmentation (i.e. Geographic, demographic) b. Target (i.e. Undifferentiated, customized) c. Positioning – value hierarchy and customer satisfaction d. Competition analysis – chosen brand Copyright © 2003 Prentice-Hall, Inc. Marketing Strategy Strategic planning and analysis 3. Industry analysis a. Macroenvironment (past and future/ opportunity and treat) - PESTLE analysis b. Industry attractiveness – Porter’s 5 Forces Copyright © 2003 Prentice-Hall, Inc. Marketing Strategy Strategic planning and analysis 4. Competitor analysis a. 2 steps: i. Competitor analysis to identify, assess and select key competitors • Consider if competitor is rival or future collaboration partner ii. Determine competitive marketing strategies Copyright © 2003 Prentice-Hall, Inc. Contents of a Marketing Plan Contents of the Marketing Plan Executive Summary Current Marketing Situation Opportunity and issue analysis Objectives Marketing strategy Action programs Financial projections Implementation controls 4-24 Copyright © 2003 Prentice-Hall, Inc. Gathering information and scanning the environment CH03 Copyright © 2003 Prentice-Hall, Inc. Marketing Information System Copyright © 2003 Prentice-Hall, Inc. The Company’s Microenvironment Copyright © 2003 Prentice-Hall, Inc. The Company’s Macroenvironment Copyright © 2003 Prentice-Hall, Inc. Importance of environmental scanning • The environment is continually changing, so purposeful scanning by management is necessary to keep abreast of change • Scanning is necessary to determine which factors in the environment pose a threat to the enterprise’s present goals and strategy • Scanning is also necessary to determine which factors in the environment present opportunities for the more effective attainment of the goals of the enterprise by modifying its present strategy • Enterprises that scan the environment systematically are more successful than those that do not. Copyright © 2003 Prentice-Hall, Inc. Marketing Research and Forecasting demand CH04 Copyright © 2003 Prentice-Hall, Inc. Developing Marketing Information Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization Consists of 4 steps: Copyright © 2003 Prentice-Hall, Inc. Forecasting & demand measurement Market Demand - The marketer’s first step in evaluating marketing opportunities is to estimate total market demand. Market Forecast - Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the market forecast. Market Potential - The market forecast shows expected market demand, not maximum market demand Company Demand - is the company’s estimated share of market demand at alternative levels of company marketing effort in a given time period. Company Sales Forecast - is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment. Company Sales Potential - is the sales limit approached by company demand as the company marketing effort increases relative to that of competitors. Copyright © 2003 Prentice-Hall, Inc. Estimating current demand Total Market Potential • • • • • • • • • • Area Market Potential Market-Buildup Method Multiple-Factor Index Method Industry Sales and Market Shares Estimating Future Demand Survey of Buyers’ Intentions Composite of Sales Force Opinions Expert opinion Past Sales Analysis Market Test Method Copyright © 2003 Prentice-Hall, Inc. Creating customer value, satisfaction and loyalty CH05 Copyright © 2003 Prentice-Hall, Inc. Creating value, satisfaction & loyalty Copyright © 2003 Prentice-Hall, Inc. Analysing consumer & business markets CH06 Copyright © 2003 Prentice-Hall, Inc. Characteristics Affecting Consumer Behaviour Factors Influencing Consumer Behaviour Copyright © 2003 Prentice-Hall, Inc. The Buyer Decision Process Buyer Decision Making Process Consumer processes information to arrive at brand choices Copyright © 2003 Prentice-Hall, Inc. Consumer buys the most preferred brand due to attitudes of others or Unexpected situational factors Satisfaction or dissatisfaction due to consumer’s expectations and product’s perceived performance. Customer satisfaction is a key to building profitable relationships with consumers Purchasing/ Procurement process 8 stages: 1. Problem recognition 6. Supplier selection 7. Orderroutine specification 2. General need description 5. Proposal solicitation 8. Performance review 3. Product specification 4. Supplier search Copyright © 2003 Prentice-Hall, Inc. Business Markets vs Consumer Markets Business Markets Consumer Markets Fewer, larger buyers Multiple sales call Close supplier-customer relationship Derived demand Professional purchasing Inelastic demand Several buying influences Fluctuation demand Geographically concentrated buyers Direct purchasing Copyright © 2003 Prentice-Hall, Inc. Market Segments and Targets CH07 Copyright © 2003 Prentice-Hall, Inc. Copyright © 2003 Prentice-Hall, Inc. Market Segmentation Requirements for Effective Segmentation To be useful, market segments must be: Measurable Accessible Differentiable Copyright © 2003 Prentice-Hall, Inc. Substantial Actionable Market Segmentation Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behaviour and who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation Copyright © 2003 Prentice-Hall, Inc. Market Targeting Copyright © 2003 Prentice-Hall, Inc. Differentiation and Positioning Product position is the way the product is defined by consumers on important attributes —the place the product occupies in consumers’ minds relative to competing products Perceptions Impressions Feelings Copyright © 2003 Prentice-Hall, Inc. Differentiation and Positioning Choosing a Differentiation and Positioning Strategy Identifying a set of possible competitive advantages to build a position by providing superior value from: Product differentiation Service differentiation Channel differentiation People differentiation Image differentiation Copyright © 2003 Prentice-Hall, Inc. Marketing Mix & an Integrated Marketing Program The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program is a comprehensive plan that communicates and delivers the intended value to chosen customers. Copyright © 2003 Prentice-Hall, Inc. Branding CH08 Copyright © 2003 Prentice-Hall, Inc. Branding D E F I N E D A Brand is a promise to deliver specific benefits associated with products or services to consumers Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service Brand equity is the differential effect that the brand name has on customer response to the product and its marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 50 Branding Brand represents the consumer’s perceptions and feelings about a product and its performance. It is the company’s promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers Copyright © 2003 Prentice-Hall, Inc. Branding E X P L A I N E D For the manufacturer For the consumer Represents Ownership Delivers a Promise Distinguishes from Competitors Offers Consistency Adds Value Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Branding Strategy D E F I N E D Brand Management is the overall coordination of a brand’s equities to create long-term brand growth through overseeing marketing mix strategies This can be managed by: • Consistent brand message • Manage customer experience • Focus on long-term growth Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 8- 53 Branding Strategy: Building Strong Brands Brand Development Strategies Copyright © 2003 Prentice-Hall, Inc. Dealing with Competition CH09 Copyright © 2003 Prentice-Hall, Inc. Analyzing Competitors Strengths and Weaknesses (do a SWOT analysis) Copyright © 2003 Prentice-Hall, Inc. Competitive Forces Five Forces Determining Segment Structural Attractiveness Threat of: 1. intense segment rivalry 2. new entrants 3. substitute products buyers’ growing bargaining power suppliers’ growing bargaining power Copyright © 2003 Prentice-Hall, Inc. Designing Competitive Strategies Hypothetical Market Structure Copyright © 2003 Prentice-Hall, Inc. Designing Competitive Strategies Market-Leader Strategies Expanding the Total Market New Users Market-penetration strategy New-market segment strategy Geographical-expansion strategy New Uses More Usage Defending Market Share Copyright © 2003 Prentice-Hall, Inc. Designing Competitive Strategies Defense Strategies Position Defense Flank Defense Preemptive Defense Counteroffensive Defense Mobile Defense Market broadening Principle of the objective Principle of mass Market diversification Contraction Defense Planned contraction (Strategic withdrawal) Copyright © 2003 Prentice-Hall, Inc. Designing Competitive Strategies Market-Challenger Strategies Defining the Strategic Objective and Opponent(s) It can attack the market leader It can attack firms of its own size that are not doing the job and are underfinanced It can attack small local and regional firms Choosing a General Attack Strategy •Price-discount •Lower price goods •Prestige goods •Product proliferation •Product innovation •Improved services •Distribution innovation •Manufacturing cost reduction •Intensive advertising promotion Copyright © 2003 Prentice-Hall, Inc. Designing Competitive Strategies Market-Follower Strategies Innovative imitation or Product innovation Four Broad Strategies: Counterfeiter Cloner Imitator Adapter Market-Nicher Strategies High margin versus high volume Nicher Specialist Roles •End-user specialist •Vertical-level specialist •Customer-size specialist •Geographic specialist •Product or product-line specialist Copyright © 2003 Prentice-Hall, Inc. Product CH10 Copyright © 2003 Prentice-Hall, Inc. What Is a Product? Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want Product features are a competitive tool for differentiating a product from competitors’ products Copyright © 2003 Prentice-Hall, Inc. Product Life-Cycle Strategies Product development Sales are zero and investment costs mount Introduction Slow sales growth and profits are nonexistent Growth Rapid market acceptance and increasing profits. Maturity Slowdown in sales growth and profits level off or decline Decline Sales fall off and profits drop Copyright © 2003 Prentice-Hall, Inc. Product-market expansion growth Copyright © 2003 Prentice-Hall, Inc. Designing and managing services CH11 Copyright © 2003 Prentice-Hall, Inc. What is a Service? Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product. Three Types of Marketing Company External marketing Internal marketing Employees Cleaning/ maintenance services Financial/ banking services Interactive marketing Copyright © 2003 Prentice-Hall, Inc. Restaurant industry Customers Designing and managing services Intangibility Inseparability Services cannot be seen, tasted, felt, heard, or smelled before purchase Simultaneous production and consumption Characteristics Services Variability Perishability Quality of services depends on who provides them and when, where, and how Services cannot be stored for later sale or use Copyright © 2003 Prentice-Hall, Inc. Services Marketing Mix Extension of the 4-Ps, to 7-Ps by adding people, physical evidence and process Allows more thorough analysis of the marketing ingredients necessary for successful services marketing Copyright © 2003 Prentice-Hall, Inc. Designing and managing services SERVQUAL Instrument The SERVQUAL survey has two parts: customer expectations and customer perceptions The SERVQUAL instrument is used to perform a gap analysis. Gaps affect the perceptions of services quality. Copyright © 2003 Prentice-Hall, Inc. Designing and managing services Word-of-mouth communication Personal needs Past experience Expected service Gap 5 Perceived service CUSTOMER PROVIDER Gap 4 Service delivery Gap 3 Service quality specifications Gap 1 Gap 2 Management perceptions of customer expectations Copyright © 2003 Prentice-Hall, Inc. External communications to customers Designing and managing services Determinants of Service Quality Reliability Responsiveness Assurance Empathy Tangibles Copyright © 2003 Prentice-Hall, Inc. Designing and managing services Improving Service Quality Listening Reliability Basic service Service design Recovery Surprising customers Fair play Teamwork Employee research Servant leadership • Invest in good hiring and training procedures • Standardize the service-performance process • Monitor customer satisfaction Copyright © 2003 Prentice-Hall, Inc. Designing and managing services Developing Brand Strategies for Services Choosing brand elements Establishing image dimensions Devising branding strategy I.e. Hotels will look at segmentation from economy to luxury, pricebased strategy, Alliances and Affiliations Within the Hospitality Sector, Brand Extensions (translating their brand name into products and non-hotel-oriented products), Co-Branding with Outsourced Services Copyright © 2003 Prentice-Hall, Inc. Pricing Strategies CH12 Copyright © 2003 Prentice-Hall, Inc. Nine Price-Quality Strategies Copyright © 2003 Prentice-Hall, Inc. Setting Pricing Policy Copyright © 2003 Prentice-Hall, Inc. Marketing-Mix Alternatives Strategic Options Reasoning Consequences 1. Maintain price and perceived quality. Engage in selective customer pruning. Firm has higher customer loyalty. It is willing to lose poorer customers to competitors. Smaller market share. Lowered profitability. 2. Raise price and perceived quality. Raise price to cover rising costs. Improve quality to justify higher prices. It is cheaper to maintain price and raise perceived quality. Smaller market share. Maintained profitability. 3. Maintain price and raise perceived quality. Copyright © 2003 Prentice-Hall, Inc. Smaller market share. Short-term decline in profitability. Long-term increase in profitability. Price-Reaction Program for Meeting a Competitor’s Price Cut Copyright © 2003 Prentice-Hall, Inc. Networks, Channels and Intermediaries CH13 Copyright © 2003 Prentice-Hall, Inc. Integrated Marketing Channels Distribution is about getting the product or service to the customer as conveniently as possible; it deals with access and availability The role of distribution entails: Arranging for its sale and transfer of title Promoting the product Storing the product Assuming some risk during distribution. Intermediaries (middlemen) perform many of the distribution functions on behalf of suppliers Copyright © 2003 Prentice-Hall, Inc. Integrated Marketing Channels Channel design is a strategic marketing tool Four decisions can help a firm design a distribution channel: 1. Determine the role distribution will play in achieving its objectives; 2. Determine the type of channel needed and if intermediaries will be needed or not; 3. Determine the intensity of distribution; 4. Determine the specific intermediaries which will be used. Copyright © 2003 Prentice-Hall, Inc. Integrated Marketing Channels Selecting the Type of Channel some firms will distribute directly: o producerconsumer (direct) others will use a number of intermediaries: o o o o producerretailerconsumer producerwholesalerretailer consumer produceragentretailerconsumer produceragentwholesaleretailerconsumer Copyright © 2003 Prentice-Hall, Inc. Integrated Marketing Channels 3 channels: Consumer goods, Business goods and Services are distributed through 3 different channels. Some producers are not content to use only a single distribution channel and use multiple channels (dual distribution) multiple channels are used to reach business and consumer markets, or to carry different groups of products or may be used to reach different segments of the seller’s market; different sizes of buyers or different regions of the country Multiple channels can frustrate middlemen and cause conflicts in the channels. Copyright © 2003 Prentice-Hall, Inc. Integrated Marketing Channels Vertical Marketing Systems (VMS) a tightly coordinated distribution channel designed to improve operating efficiency and marketing effectiveness. Corporate VMS: One firm owns other firms in channel or the entire channel: Goodyear Contractual VMS: Independents work together for much greater effectiveness: IGA Administered VMS: Relies on economic power of one channel member: Kraft General Foods Copyright © 2003 Prentice-Hall, Inc. Retailing, Wholesaling & Logistics Changes in the Retail Environment New retail forms and combinations (forum shops – entertainment retailing) Competition between store-based and non-store-based retailing Growth of giant retailers Decline of middle market retailers Growing investment in technology Global profile of major retailers Copyright © 2003 Prentice-Hall, Inc. Retailing, Wholesaling & Logistics Functions of Wholesalers: Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling Copyright © 2003 Prentice-Hall, Inc. Integrated Market Communications CH14 Copyright © 2003 Prentice-Hall, Inc. The Communication Process Common Communication Platforms Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Print and broadcast ads Contests, games, sweepstakes, lotteries Press kits Sales presentation Catalogs Packagingouter Premiums and gifts Speeches Sales meetings Mailings Packaging inserts Sampling Seminars Incentive programs Telemarketing Motion pictures Fairs and trade shows Annual reports Samples Electronic shopping 19-90 Copyright © 2003 Prentice-Hall, Inc. Steps in Developing Effective Communication Copyright © 2003 Prentice-Hall, Inc. Developing and Managing an Advertising Program Setting the Advertising Objectives by using the Five Ms of Advertising Copyright © 2003 Prentice-Hall, Inc. New Market Offering CH15 Copyright © 2003 Prentice-Hall, Inc. New-Product Development Reasons for new product failure Overestimation of market size Poor design Incorrect positioning Wrong timing Priced too high Ineffective promotion Management influence High development costs Competition Copyright © 2003 Prentice-Hall, Inc. New-Product Development Process Major Stages in New-Product Development Copyright © 2003 Prentice-Hall, Inc. Managing New-Product Development New-Product Development Strategies Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer satisfying experiences Begins and ends with solving customer problems Copyright © 2003 Prentice-Hall, Inc. Managing New-Product Development New-Product Development Strategies Team-based new-product development is a development approach where company departments work closely together in crossfunctional teams, overlapping in the productdevelopment process to save time and increase effectiveness Copyright © 2003 Prentice-Hall, Inc. Managing New-Product Development New-Product Development Strategies Systematic new-product development is an innovative development approach that collects, reviews, evaluates, and manages new-product ideas Creates an innovation-oriented culture Yields a large number of newproduct ideas Copyright © 2003 Prentice-Hall, Inc. Global Marketing CH16 Copyright © 2003 Prentice-Hall, Inc. Global Marketing Today Global firms ask a number of basic questions: What market position should we try to establish in our own country, in our economic region, and globally? Who will our global competitors be, and what are their strategies and resources? Where should we produce or source our product? What strategic alliances should we form with other firms around the world? Copyright © 2003 Prentice-Hall, Inc. Competing on a Global Basis Major Decisions in International Marketing Copyright © 2003 Prentice-Hall, Inc. Factors drawing companies into the international arena: Global firms offering better products or lower prices can attack the company’s domestic market The company discovers that some foreign markets present higher profit opportunities than the domestic market The company needs a larger customer base to achieve economies of scale The company wants to reduce its dependence on any one market The company’s customers are going abroad and need servicing. Copyright © 2003 Prentice-Hall, Inc. Deciding Whether To Go Abroad: Risks The company might not understand foreign customer preferences and fail to offer a competitively attractive product The company might not understand the foreign country’s business culture or know how to deal effectively with foreign nationals The company might underestimate foreign regulations and incur unexpected costs The company might realize that it lacks managers with international experience The foreign country might change its commercial laws, devalue its currency, or undergo a political revolution and expropriate property Copyright © 2003 Prentice-Hall, Inc. Deciding How to Enter the Market Five Modes of Entry into Foreign Markets Copyright © 2003 Prentice-Hall, Inc. Deciding on the Global Marketing Program Product Copyright © 2003 Prentice-Hall, Inc. Deciding on the Global Marketing Program Price & Promotion Uniform pricing is the same price in all markets but does not consider income or wealth where the price may be too high in some or not high enough in other markets Market-based pricing is the price the market can pay but does not consider actual costs Standard markup pricing is a price based on a percentage of cost but can cause problems in countries with high costs Promotion: Companies can either adopt the same communication strategy they use at home or change it for each market Copyright © 2003 Prentice-Hall, Inc. Deciding on the Marketing Program Place (distribution channels) Seller’s international marketing headquarters Channels between nations Channels within foreign nations Whole-Channel Concept for International Marketing Copyright © 2003 Prentice-Hall, Inc. Holistic Marketing CH17 Copyright © 2003 Prentice-Hall, Inc. Holistic marketing • is the idea that “everything matters” with marketing. Copyright © 2003 Prentice-Hall, Inc. How Can CEOs Create a Marketing-Focused Company? Convince senior management of the need to become customer focused Appoint a senior marketing officer and marketing task force Get outside guidance Change the company’s reward measurement and system Hire strong marketing talent Develop strong in-house marketing training programs Install a modern marketing planning system Establish an annual marketing excellence recognition program Shift from a department focus to a process-outcome focus Empower the employees Copyright © 2003 Prentice-Hall, Inc. What is Cause-Related Marketing? Cause-related marketing is marketing that links the firm’s contributions to a designated cause to customers engaging directly or indirectly in revenueproducing transactions with the firm. Branding a cause related marketing program: Self-branded: Create Own Cause Program Co-branded: Link to Existing Cause Program Jointly branded: Link to Existing Cause Program Copyright © 2003 Prentice-Hall, Inc. Types of Marketing Control Annual plan control Sales analysis & Sales-to-expense ratios Market share analysis Financial analysis Market-based scorecard analysis Profitability control Efficiency control Logistics costs as a percentage of sales Percentage of orders filled correctly Percentage of on-time deliveries Number of billing errors Strategic control Marketing Audit Copyright © 2003 Prentice-Hall, Inc.