Management control - Marketing Strategy

Having reviewed the basic concept of control, we can now focus on the key aspect of management control. Management control takes place at a number of different levels within the organization (see Figure ). Control criteria apply to strategic, operational and tactical levels. The control variables at one level become targets for the next level down. Effectively, this means that a ‘cascade’ system of control is in operation. Senior/strategic levels use fewer, more critical, control variables. These are predominantly financial in nature and focus on divisional or strategic business unit (SBU) targets. The operational level relates to projector departmental activities and encompasses financial and non-financial information. The tactical level relates to group or individual performance and the focus is on productivity.

Cascade control

Cascade control

Good performance means that employees (at all levels) have a clear view of what the priorities are, what they should be doing currently, how their area of responsibility contributes to overall performance and what levels of achievement are acceptable. Management control will focus on finance, performance appraisal and benchmarking. The relative importance of each may vary with the level of management. Financial measures will give both short and long term control data and are fundamental to decision making. Performance appraisal examines the personnel and human resource aspects of management. Finally, benchmarking is a means of comparison and identification of best practice. As Figure illustrates, management control is applied to marketing in order to establish marketing performance. Remember, performances a function of efficiency and effectiveness.

Management control related to marketing

Management control related to marketing


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