The Budgetary Control Focus Of Marketing Costs About Cross-regional Marketing Enterprises

With the rapid development of economy, worldwide globalization has given the market new meaning and the market has been further divided. In order to expand their market shares and be more sensitive to the market changes, companies will focus on efficient marketing channels construction. Some enterprises select brokers while some other large-scale enterprises set up regional operating organizations to improve its regional capacity to respond those changes. The selection of specific marketing channels depends on the integration of marketing channels based on the weigh of the marketing costs.For many cross-regional marketing enterprises, the budget slack phenomenon is serious because of asymmetric information problem. On the other hand, the brokers will do everything possible to apply and deduct the marketing costs based on the hypothesis of economic man. Therefore, the inaccuracy of marketing cost has been one of the most difficult problems enterprises faced.Considering above ,this thesis studies cross-regional marketing enterprises , compares the right allocation between the corporate headquarters , remote marketing organizations and brokers under different marketing channels, introduces their evaluation mechanisms, advantages and disadvantages , gives a further specific examples on the basis of theoretical analysis . At the same time, this thesis gives a comprehensive description of the different types of brokers.In addition, this thesis argues that the budgetary control focus of marketing costs varies for different marketing channels. For remote branch offices, the crucial control point is to solve asymmetric information problem between headquarters and remote branch offices. This thesis designs rational budgeting process and links incentive mechanism with budget to do this. For brokers, companies are expected to restrain each other through interaction. This thesis analysis the types and the proportion of marketing cost between the enterprises and of intermediaries and proposed the corresponding control measures. Finally, this thesis would like to be helpful in resolving the problem of cross-regional enterprise marketing expenses budget, and to be a preparation to the further study of cross-regional internal control problem.