MONITORING AND CONTROLLING THE
MARKETING PLAN
THE CONTROLLING PROCESS
TASK: Put the following in the correct order.
Evaluate Performance
 Is what is happening good or bad?
 Why is it happening?
Establish marketing objectives
 What do we want to achieve?
Take Corrective Action
 What should be done about it?
Monitor Performance
 What is actually happening?
1.
2.
3.
4.
MONITORING AND EVALUATION TOOLS
Financial Forecasting
1. Cost estimate – How much is the marketing plan expected to cost? Ususally broken
down into the 4 p’s
2. Revenue estimate – How much is the marketing plan expected to generate?
Comparing actual and planned results
1. Sales analysis
2. Market share analysis
3. Marketing profitability analysis
1. Sales Analysis
Evaluates the business’s current performance and the effectiveness of their marketing
strategies.
They don’t reveal profit level but sales revenue.
TASK 2: You do one...
TABLE 7.2 Apollo Tracksuits Pty Ltd — product line sales, 2012
Product
Sales quota ($ millions)
Actual sales ($ millions)
Techno Tracks
2
1
Weekenders
3
1.5
Sports Plus
2
2
Image Track
2
2.5
No Sweat Tops
3
3
Difference ($) (%)
2. Market Share analysis
This evaluation can reveal whether changes in total sales, either increases or decreases,
have resulted from the business’s marketing strategies or have been due to some
uncontrollable external factor.
For example,
 if a business’s total sales revenue declined but its market share remained stable,
then the marketing manager can assume that overall industry sales have fallen,
perhaps due to a downturn in the economy.
 However, if a business’s total sales revenue and market share have declined, then
the marketing strategies need to be reviewed.
 Businesses place a great deal of importance on analysing market share statistics — a
1 per cent fall in market share can represent millions of dollars in lost sales.
TASK 3: CALCULATE AND COMMENT ON APOLLO’S MARKET SHARE
TABLE 7.1 Apollo Tracksuits Pty Ltd — company sales and total industry sales, 2012–2016
Year
Apollo sales ($ millions)
Industry sales ($ millions)
2012 5
38
2013 7
44
2014 10
81
2015 9
70
2016 12
89
Apollo market share (%)
3. Marketing Profitability Analysis
This analyses the marketing costs involved with each marketing strategy. The business
breaks down the total marketing costs into specific marketing activities such as advertising,
admin etc. The effectiveness of each activity can be determined.
REVISING THE MARKETING STRATEGY
4 P’s – Product – deletion and product development
TASK 4 : Identify which of the 4 stages of the controlling processes the following are in:
Stage of the
monitoring process
Increase in monthly sales by 5%
A business changes it pricing strategy based on the external
business environment
Determine how much consumers would be willing to buy
A business drops a product from its range
Using sales statistics to compare actual and forecasted sales
Comparison of sales results with the sales quota
Using a sales analysis to determine that the total sales revenue has
increased by $30 000
Develop an estimate of how the much product development will
cost
The businesses develops electronic communication and adopts ecommerce
Improve sales revenue per salesperson by 10% of the next six
months
Compare the actual with the projected figures
Using a budget to compare actual and forecasts
New products are developed
Determine what sales staff predict they will sell
Increase market share by 1% in the next 6 months