Marketing Audit Overview

BSBMKG515A Conduct a Marketing Audit
Chris Zorbas Trainer & 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

we are doomed to repeat them in the future. Anonymous .Why Conduct A Marketing Audit? If we fail to learn from mistakes in the past.

Preparing A Marketing Audit This section looks at considerations in preparing a marketing audit .

market potential. or cross-market results .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.

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 .

labour costs.Environmental Aspects ‡ Economics ± have changes in the economy impacted the organization or brand? ± changes in interest rates. 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? . raw materials costs.

industry. contracting. and which have declining potential? ‡ Culture ± How have attitudes towards business. and the organization changed? ± Have attitudes toward environmental protection had either a positive or negative impact on the organization or brand? .Environmental Aspects ‡ Markets ± Has the market been expanding. or stable? ± Which segments have the greatest growth potential.

Environmental Aspects ‡ 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? .

Environmental Aspects ‡ 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? .

dealers. and advertising/marketing/market research agencies that have impacted the organization or brand? . distributors.Environmental Aspects ‡ 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.

Marketing ‡ Objectives ± Are there clearly defined marketing objectives? ± Are they consistent with corporate mission statement and objectives? ± Are they measurable? .

weaknesses. and threats? ± Are all significant market segments covered? ± Should they be modified? Why or why not? . opportunities.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.

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 ‡ Tactics ± Are there defined tactics for each strategy? ± Are they innovative.

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? .

above. or below industry norms? ‡ Should pricing policy be changed? ‡ Why or why not? .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.

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 ‡ 4 Ps .

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? .

or in some combination? ± How does marketing interact with other areas of the organization? ± Should the organizational structure be changed? ‡ Why or why not? . by product. functionally. by segment.Marketing ‡ Organisation ± Are responsibilities structured geographically.

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 .

About Chris Chris Zorbas Management Consultant | Interim Executive | Channel Developer | Business Architect | Trainer .com . Coach & Mentor Chris Zorbas Consultants PO Box 292 Ryde NSW Australia 2112 +61 2 8819 4680 czorbas@consultant.

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