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This involves exercising strategic control of marketing, and the means to apply strategic control is known as the marketing audit. Not only is the marketing audit an important aspect of marketing control, it can be used to provide much information and analysis for the corporate planning process. Exam focus point The relationship between marketing and the overall strategic plan is specified in the Study Guide. The marketing function has been highlighted by the examiner as one of particular importance for organisational success, so it is vital that you take this topic area seriously.

B) Price is influenced by demand and the product's stage in its life cycle. (i) (ii) Penetration pricing: a low price is charged to persuade as many people as possible to buy the product in its early stages. Skimming: prices are set to cream off the highest level of profits even though this restricts the number of people able to afford the product. (c) Price is also part of the image of the product: rightly or wrongly, a high-priced product is often assumed to be of better quality than a cheaply priced product.

This is achieved by a range of techniques. 5 Working capital and other matters A company's management of its working capital is vital for business success. Working capital consists of cash, accounts receivable, accounts payable and inventory. Receivables can be managed by effective credit control. Poor credit control has its own penalties. (a) (b) Irrecoverable debts. Sales revenue is not received for goods sold. In effect this is the same as giving away the goods. A company which cannot collect its debts in time might have to use bank overdraft finance to pay its bills.

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