Criteria for Monitoring and Controlling Marketing Strategy
Monitoring and controlling marketing strategy depend on factors that include: Promotion, Bookkeeping, Order Handling, and Return on Investment. The four measures are detailed below in detail.
This refers to the strategies that companies use to ensure that potential consumers receive information regarding new products in the market. Promotion is also done to have consumers believe that certain company products are of superior quality compared to those of competitors. The goals of promoting company products can be achieved through various means. For instance, the promoting company may choose to embark on aggressive marketing that would overshadow competitors’ products. These companies hope that consumers will end up believing there are no other better substitutes to the products being promoted. Another means of promotion is through the provision of sample products, selling of goods at low prices as well as bundling with the existing popular product line for awareness purposes.
This is meant to keep records regarding company activities. Successful companies are the ones that keep good records of their products’ past performance in the market. This is because senior management is able to understand which methods have been used to process and market company products and the accruing results. Should it appear that the methods being applied are not bearing the desired results, the management is able to devise other mechanisms that would lead to better performance. It is therefore vital for companies to maintain up-to-date records for their operations.
This refers to the company’s ability to process consumer needs efficiently and in a timely manner. Proper order handling helps in keeping customers happy and therefore has them back for return business. Indeed, serving consumers’ demands better is what makes companies enhance their position in the marketplace and thus gain bigger market share compared to competitors.
Return on Investment
This means the ability of the company to get back the money it had invested in new products. A positive return on investment means that the company is able to make a profit on the goods its producing, whereas a negative return on investment means that the company has been making losses in its production process. It is, however, normal to see companies having a negative return on investment in the initial stages of production because of the costs of starting new product lines.