CMA practice question 11 of 35

Which necessary approach to marketing control is the responsibility of senior and middle management and is directed toward achievement of planned objectives?

Full set: 1,331 questions
Answer options
A: Annual-plan control Correct answer
B: Profitability control
C: Efficiency control
D: Strategic control
Correct Answer:
A. Annual-plan control
Explanation

Kotler & Keller identify four levels of marketing‐control. “Annual-plan control” is charged to senior and middle management and compares current-year performance with the objectives set in the annual marketing plan; its sole purpose is to be certain that planned (budgeted) sales, margins, and other targets are being achieved and corrective action is taken when variances appear. Profitability, efficiency, and strategic controls involve specialist staff or top executives and focus on different, longer-term questions. Hence annual-plan control matches both the level of responsibility and the objective-oriented focus described.

Why Incorrect

B. Profitability control is normally assigned to a marketing controller and evaluates the profit contribution of products, territories, or customers, not overall plan attainment.
C. Efficiency control is conducted by functional specialists (e.g., sales-force, logistics) to fine-tune productivity, not by senior management for plan achievement.
D. Strategic control is a periodic top-management audit of long-term strategy-market fit, not routine monitoring of annual objectives.

References

1. Kotler

P. & Keller

K. L. Marketing Management

15th ed.

Pearson

2016

Chapter 22 “Managing a Holistic Marketing Organization”

pp. 687-689.

2. University of Pennsylvania – Wharton

MKTG101 Course Reader

“Marketing Control Systems”

section 2.2

pp. 4-5 (focus on annual-plan control responsibility).

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