1a) Identify the range of financial controls that can be used to measure the success of a marketing plan.
Key performance measures that the Tryst Sport Centre can use to measure how successful their marketing plan are: Sales, Contributions, Profits (Gross or Net), Costs and Return on Investment. They could also look their full year financial results and monitor and control their targets to ensure that they are being met.
1b) Discuss the value of these control measures in marketing planning.
The Tryst could look at sales to measure how successful their marketing plan is by comparing the projected sales with the actual sales. This is a valuable financial control as it allows them to see if their sales are above or below their projected target. This will then show if something has to be done to change their marketing plan. The Tryst could look at their profits to measure how successful their marketing plan. This is a valuable method of measuring how successful their marketing plan is as they could compare their projected profits with their actual profits to see if they are clearing their projected target. If they are making the target then their marketing plan is successful. They could also look at their costs to see if the plan is successful. Another way of measuring the success of a marketing plan is by looking at costs. This is a valuable financial control as it can show if the Tryst is spending more than what it needs to or more than it had projected. This allows the opportunity for the Tryst to identify waste in cost and become more effective at spending. The Tryst could look at return on investment as a way of measuring the success of their marketing plan. This is a valuable financial control as it indicates how successful the organization is financially. If investors receive a high return on investment, it indicates that they have a successful marketing plan and vice versa. Looking at the Trysts full year financial results is another way of measuring how successful their marketing plan is as it allows them to clarify their big picture of marketing performance, compare actual expenditure with planned budgets and also shows if actual sales and costs did compared to what was forecasted.
2) Discuss how breakeven analysis can be used to assess the economic viability for a new business or new project proposal.
Breakeven analysis can be used to assess the economic viability for a new business or new project proposal as it shows the organizations expenses against their revenue. This allows the organization to identify whether the new business or proposal will make a loss or a profit. It identifies exactly how much output the organization requires to breakeven which makes it easier to identify whether the proposal is viable or not. The margin of safety indicates how much profit the proposed project will make and also shows the margin of error an organization can afford if the project is not as successful as planned. Breakeven analysis is useful as it considers an organizations fixed costs (Rates, Rent etc) and variable costs (Raw materials etc) and compares them