LECT 03 Marketing Audit

8/3/2019 LECT 03 Marketing Audit

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MARKETING MANAGEMENT

THE MARKETING AUDIT


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Learning outcomes

Understand the development of the concept of

the marketing audit its usefulness inmarketing strategy and marketing tactics

Understand purpose of the audit and itsimportance to performance

Explore the characteristics of the audit andlink to business needs


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CONTENTS DEFINING THE MARKETING AUDIT

PURPOSE OF THE MARKETING AUDIT 4 CHARACTERISTICS OF THE AUDIT GOAL FORMULATION STRATEGIC FORMULATION

PROGRAMME FORMULATION &IMPLEMENTATION

FEEDBACK & CONTROL


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DEFINING THE

MARKETING AUDIT Is a comprehensive ,systematic,

independent, and periodic

examination of a companys orbusiness units marketingenvironment, objectives, strategies

& activities.


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MARKETING AUDITPURPOSE

View to assessing problems areas or weaknesses, opportunities &recommending a strategic plan for action to improve thecompanys marketing performance


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4 CHARACTERISTICS OF

MARKETING AUDIT1. COMPREHENSIVE - covers ALL aspects

of the business. So not just troubleareas.

Unlike the Functional audit which wouldonly cover the sales force or pricingetc.

More effective in locating the real sourceof the problem.


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MARKETING AUDIT2. SYSTEMATIC the marketing

audit is an orderly examination of

macro marketing environmentand micro marketingenvironments. Marketing

objectives & strategies, marketingsystems and specific activities.


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Cont.Indicates the most need

improvements these are

incorporated into a correctiveaction plan include both short andlong term steps for improving all

round effectiveness.


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MARKETING AUDIT3. INDEPENDENT - ,FREE FROM

CONTROL BY OTHERS. The best

AUDITS come from outsideconsultants objective , boardexperience in various industries

or specific or some industryknowledge. Plus the time andattention to give to the audit.


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cont Audits come in 6 types

1. Self audit

2. Audit from across

3. Audit from above

4. Company auditing office5. Company task force audit

6. Outsider audit


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MARKETING AUDIT4. PERIODIC -Typically audit are after, a down

turn in sales or profits, sales force morale hasfallen, and other problems occur

A periodic marketing audit can benefitcompanies in good health as bad corporatehealth

Generally companies wait till when they are incrisis to conduct an audit


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Marketing audit Starts with:-

1.

Meetings between the companysofficers and the auditors to work outthe audits

Objectives Coverage

Depth Data Report format Time frame


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6 COMPONENTS OF

MARKETING AUDIT1. Marketing environment audit

2. Marketing strategy audit

3. Marketing organisation audit4. Marketing systems audit

5. Marketing productivity audit

6. Marketing functions audits


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PROGRAMME FORMULATION

& IMPLEMENTATION

The resulting profile exposesweakness and strengthshighlighting problems oropportunities, with a view to the

company becoming an outstandingplayer in the marketplace.


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FEEDBACK & CONTROLAs strategies are implemented a

company need to detail and

record results then monitornew developments or newopportunities


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Micro/competitive

environment

Barriers to entry

Bargaining Bargaining

power power

Competitive

rivalry

Market

entrants

Suppliers Buyers

Substitute

goods


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Macro environment

Political/legal

Economic/competitive

Socio/cultural

Technological


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Environmental types - The

Miles Framework1. What degree of complexity exists

in the environment?

2. How standardised or routine arethe organisations interactions withits environment?

3. What interconnections existbetween the various dimensions ofthe environment?


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Types of Environment

Simple/static

Dynamic

Complex


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Environmental Analysis

Audit the environment

Assess its nature

Examine specific factors

Identify own position

Assess how environment will affectorganisation

Decide future strategic position


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Types of environmental

information Market Tidings

structure, industrycompetitors,customers

Acquisition leads leads for mergers,JVs and acquisitions

Technical tidings licenses, patents,

processes etc.

Broad issues general conditions

and trends Other tidings

suppliers,resources


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Micro/competitive

environment

Barriers to entry

Bargaining Bargaining

power power

Competitive

rivalry

Market

entrants

Suppliers Buyers

Substitute

goods


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Strategic Groups Organisations within the same

industry that are pursuing

equivalent strategies. Organisations targeting groups of

consumers with similar products.

Provides basis for competitoranalysis by focusing on mostrelevant competitors.


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Attributes identifying

Strategic Groups Size

Assets and skills

Scope of operations

Breadth of product range

Choice of distribution channel Brand image

Relative product quality


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Strategic groups in the

airline industry

Regional Global

Easyjet

Ryanairetc.

Brittania

Air 2000

Monarch

KLM

British Airways

Air France

Price

Scope


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Competitor analysis

Response to challengeVulnerable areasLikely directional shiftsWhat provokes them

GoalsMotivation

Current strategy

& performance

Assumptions

How realistic?

Strengths and

weaknesses


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Thoughts of Chairman

PorterCompetition in an industry is rooted

in its underlying economic and

competitive forces that go wellbeyond the establishedcompetence in a particular

industry.


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Vulnerability

Financial factors

Market factors

Product factors

Organisational factors


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The Innovation Audit


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Conclusion DEFINING THE MARKETING AUDIT

PURPOSE OF THE MARKETING AUDIT

4 CHARACTERISTICS OF THE AUDIT GOAL FORMULATION

STRATEGIC FORMULATION

PROGRAMME FORMULATION &IMPLEMENTATION

FEEDBACK & CONTROL

Documents

LECT 03 Marketing Audit