Marketing Audit Overview

Marketing Audit Overview

BSBMKG515A Conduct a Marketing Audit

Chris ZorbasTrainer & Assessor

Marketing Terms Defined

• What is a marketing audit?• Why conduct a marketing

audit?• Tips and cautions for

preparing a marketing audit• Components of a marketing

audit

What is a Marketing Audit?

A marketing audit is an inquisitive review approach that helps reveal the strengths and

weaknesses of marketing programs, processes, and

practices

Why Conduct A Marketing Audit?

“If we fail to learn from mistakes in the past, we are doomed to repeat them in the future.”

Anonymous

Preparing A Marketing Audit

This section looks at considerations in preparing a marketing audit

Defining Your Objective

For example:• You may want to evaluate your marketing plan

for strategic capabilities and/or deficiencies• Perhaps you need to know the impact of a

specific market intervention or campaign• You may need to assess audience feedback,

market potential, or cross-market results

Defining Your Objective

Or you may want to assess:• Online strategies• Social marketing outcomes• Budget effectiveness• Call centre results• Customer-service program

Marketing Audit Rewards

• Marketers can identify problem areas• Keep abreast of changing marketing

environment• Capitalise on its strong points• Spot lack of coordination in the marketing

program• Allows marketers to determine performance

factors• Anticipates future situations

Components Of A Marketing Audit

The following is a “typical” list of components in a marketing audit

Components Of A Marketing Audit

• Executive Summary (for final written report)• Table of Contents (for final written report)• Environmental Aspects• Marketing• Conclusion

Executive Summary

• Probably the only part of the audit top management will review

• Claims you make in the summary be fully documented in the full audit – no conflicts exist between the summary & audit

• Consider:– enhancements to the marketing mix– optimization of marketing resources

Table of Contents

• Simply a list of the contents tabled in your Marketing Audit Report

Environmental Aspects

• Economics– have changes in the economy impacted the

organization or brand?– changes in interest rates, labour costs, raw materials

costs, consumer spending etc.• Demographics– have population and other demographic trends

impacted the organization or brand?– What adjustments have been made in response to

those trends?


• Markets– Has the market been expanding, contracting, or stable? – Which segments have the greatest growth potential,

and which have declining potential? • Culture– How have attitudes towards business, industry, and the

organization changed? – Have attitudes toward environmental protection had

either a positive or negative impact on the organization or brand?


• Politics– How have changes in legal and regulatory

requirements impacted the organization or brand? – Are changes in either the legal or regulatory arenas

expected? • Technology– How have changes in technology impacted the

organization or brand? – Is technology threatening to make the product

obsolete?


• Inter- changeability– Are there alternate products that can be easily

substituted for the product? – What barriers to inter-changeability exist?

• Customers– How do customers view the organization or brand? – How do they view the competition?– Is there a clear understanding of customer wants

and needs?


• Competition– Who are the companies or brands with which the

organization or brand competes? – What are their sales and market share trends?

• Direct Stakeholders– What trends have occurred among :• shareholders, suppliers, distributors, dealers, and

advertising/marketing/market research agencies that have impacted the organization or brand?

Marketing

• Objectives– Are there clearly defined marketing objectives? – Are they consistent with corporate mission

statement and objectives? – Are they measurable?

Marketing

• Strategies– Are there clear strategies to reach each objective? – Are they logical in light of both internal and

external conditions? – Do they consider strengths, weaknesses,

opportunities, and threats? – Are all significant market segments covered? – Should they be modified? Why or why not?

Marketing

• Tactics– Are there defined tactics for each strategy? – Are they innovative, or a repeat of prior tactics? – Are the tactics fully integrated? – Are there any mixed messages? – Should any of the tactics be modified? • Why or why not?

Marketing• 4 Ps - Product– Is the current product line appropriate?– Should any items be discontinued or added? – Is product research being conducted?– What changes should be made in how products

are being handled?

Marketing• 4 Ps – Price– What pricing strategy is being used? – How does pricing compare to competition? – How often is pricing evaluated or changed? – How are price and value viewed by the

distribution chain and customers? – Is profitability at, above, or below industry norms?• Should pricing policy be changed? • Why or why not?

Marketing

• 4 Ps - Place– Does the organization have a clear distribution

policy? – Is it working? – Are more retail outlets needed? – How do retailers feel about the organization or

brand?– Are additional channels of distribution needed? – Should any distribution channels be abandoned?

Marketing

• 4 Ps - Promotion– Are both advertising and promotion strategies in

place? – Are they logical? – How are they funded? – How effective have prior advertising and

promotion strategies been? – Is there a measure of return on investment (ROI)

for each strategy?

Marketing• Organisation– Does one individual have clear responsibility for all

aspects of marketing? – Are there:• clear lines of responsibility for all marketing-related

activities, including sales? • adequate communications between the marketing and

sales departments?

Marketing

• Organisation– Are responsibilities structured geographically,

functionally, by product, by segment, or in some combination?

– How does marketing interact with other areas of the organization?

– Should the organizational structure be changed? • Why or why not?

Marketing

• Sales– Does the sales force have clear and obtainable

objectives? – Is the department structured in a way that

produces optimal results? – Is sufficient training provided? – Does the compensation plan motivate the sales

force and keep top performers?

Marketing

• Marketing Information Systems– Is accurate information being obtained and

distributed in a timely fashion? – Is market research being conducted efficiently, • are research results being used for decision making?

– Is sales forecasting accurate? – Should any changes be made? • Why or why not?

Conclusion

• Conclude your Marketing Audit by offering your final recommendations to management

Questions

Chris Zorbas ConsultantsPO Box 292

Ryde NSW Australia 2112+61 2 8819 4680

[email protected]

Chris ZorbasManagement Consultant | Interim Executive

| Channel Developer | Business Architect | Trainer , Coach & Mentor

About Chris

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Marketing Audit Overview