MARKET 1 Lecture Notes - Lecture 14: Income Statement, Longrun, Variable Cost
Document Summary
Chapter 9: marketing strategy reformulation: the control process. The marketing control process serves as the mechanism for achieving strategic adaptation to environmental change and operational adaptation to productivity needs. Although the undesirable results are identical, remedial actions under the two types of control differ: operations control needs to focus on improving efficiency, strategic control needs to focus on improving effectiveness. Strategic change: change in the environment that will affect the long-run well-being of an organization. May represent a threat or opportunity depending on the organization"s competitive posture. The severity or opportunity potential is determined by the organization"s business definition. Goal of operations control is to improve the productivity of marketing efforts. Purpose of marketing-cost analysis: to trace, assign or allocate costs to a specified marketing activity or entity (= segment) Marketing segments are defined on basis of (1) elements of the product-service offering (2) sales divisions, districts or territories (3) marketing channels (4) type or size of customers.
