Abstract
Purpose This paper aims to examine the relationship between control mechanisms and marketing performance based on a sample of marketing managers. To that end, this paper focuses on the relationship between the types of controls used in marketing and the market and business results. Methodology This study collected the data through a survey among marketing professionals with experience and decision-making capacity involving marketing budgets and plans, in practical terms a sample of 97 marketing managers and analyzed the data via a structural equation model using Smart PLS 3. Findings The findings confirm that marketing control mechanisms have a significant impact on business results, demonstrating the relationship of formal controls with market results and the relationship between informal controls with financial results. Likewise, the authors were able to prove that there is a relationship between formal and informal control. Practical implications The implementation of the control mechanisms should be based on the development of a detailed evaluation system of the activities carried out by the marketing employees and an analysis of their capabilities and abilities. In addition, managers should integrate formal control decisions into their marketing strategy to improve organizational results. Originality The results of this study help explain the relationship between marketing control mechanisms and organizational results and allow to understand what the level of influence is that marketing control mechanisms have on market and financial results.
Highlights
In recent years, the need to demonstrate how marketing investments help increase the value of current and future marketing performance in particular (Markovitch et al, 2020) and the value of organizations in general has become apparent (Rust et al, 2004), as company management applies increasing pressure to show how business and marketing decisions influence organizational results (Marketing Science Institute, 2014; Liang and Gao, 2020)
Because formal and informal controls are positively related to results, it will be beneficial for companies to implement high control, consisting of both high formal and informal mechanisms (Jaworski et al, 1993)
Formal and informal controls are positively related to results, it will be beneficial for companies to implement high control, consisting of both high formal and informal mechanisms
Summary
The need to demonstrate how marketing investments help increase the value of current and future marketing performance in particular (Markovitch et al, 2020) and the value of organizations in general has become apparent (Rust et al, 2004), as company management applies increasing pressure to show how business and marketing decisions influence organizational results (Marketing Science Institute, 2014; Liang and Gao, 2020) This premise has brought forth a surge in studies into the effect strategic marketing decisions have on organizational results (Edeling and Fischer, 2016; Katsikeas et al, 2016). The correct implementation of control requires marketing managers to oversee the activities involved, such as understanding organizational culture elements to meet solid criteria to explain the effects of marketing decisions in terms of organizational performance
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