(12) Marketing Control

Marketing is one of the most important functions of business enterprise. Marketing managers have to evaluate current marketing performance in order to take corrective action if necessary, so that the actual and desired results would become closer. The marketing manager has to identify the customer needs and should try to satisfy them. This helps the enterprise in earning profit. There is a needs to enforce certain control in the areas of sales and marketing costs so that the marketing division of the enterprise functions well.

The sales control includes control over products, sales personnel, customers, areas and market penetration.

Sales turnover indicates the consumer acceptance of a product. This requires the marketing manager to access on a regular periodical basis the performance of sales areas in terms of units sold and total rupee sales. The sales areas may be identifies geographically by product or by customers and the marketing manager should get information on the performance of different areas and compare the results. For example, if a company sells in four areas, viz., A,B,C and D, sales in areas C and D may be higher while in areas A and B may be below the targets. The marketing manager should find out the reasons for not achieving the target in A and B areas. The reasons for not achieving the targets in A and B areas may be competition from other firms, ineffective advertisement and promotional efforts etc. The marketing manager should take appropriate steps to achieve the target that is decided. He should also try to find out whether these targets are realistic.

Market penetration which is usually expressed as percentage of company sales to total potential sales for a given area is one of the important techniques for marketing control. The market penetration of company in an area may be affected due to poor performance of the total marketing programme of the company or due to some unforeseen events. It is here the company can exercise control. The marketing manager should find out the difference between the actual and contemplated market penetration and take corrective actions.

For exercising control over marketing, the marketing manager should get data about the sales performance of specific products, so that on the basis of trends in data, he would be in a position to decide to concentrate either on only the highest profit-earning products or to continue with the existing product mix. The marketing manager should also evaluate the performance of individual salesmen budget analysing the number of orders received , potential customers contacted by them, sales area covered, number of calls made, promotional work undertaken, marketing costs incurred by them etc. For the purpose of exercising control, the manager should also analyse the percentage of sales by type of customers such as Government and non-Government, institutional and non institutional, wholesaler and retailer, home and foreign buyers etc.

(13) Quality Control

Quality of an item refers to the ability of a product to satisfy its intended purpose in relationship to the price. The function of quality control is an integral part of management control. Quality control, if it is effectively done, results in many benefits. They are: (a) it minimises waste, (b) reduces cost, (c) builds up goodwill of the product in the market, (d) facilitates advertising and (e) increases sales.

The techniques of quality control are:

(1) Inspection: Inspection involves checking the product so that it conforms to established standards in terms of appearance, packaging, performance etc. the inspection department of the company will have to take decisions relating to what to inspect, where to inspect, how much to inspect, how to inspect and when to inspect. Inspection of products may be done by testing the products or measuring them or by looking at them. Inspection helps in identifying the products which do not conform to established standards and in removing them from the inventory and also in stopping further production of imperfect products.

(2) Statistical Quality Control(SQC): SQC technique is used for the control of quality of the products by the application of theory of probability to the results of examination of samples. It is concerned with the problem how many items of larger number should be inspected to determine a probability that the quality of the total number conforms to the quality standards determined. This technique is used because in many instances, it is not possible to test each item of a total group. For example, in the case of manufacture of electric tubes, only a random sample can be tested to find out the quality of the whole lot. There is no certainty, however, that a random sample is representative of an entire lot. But a manager by means of SQC can determine the probability of the sample's reliability.

Advantages of SQC are (a) it is economical and saves cost (b) it reduces waste of time, (c) it helps in determining whether the quality of manufacture is satisfactory (d) it ensures uniformity in the quality of products manufactured.

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