MARKETING AUDIT –

MANAGEMENT AND
BENEFITS

Keval Savla Avadhoot Hinge Gopal Dhage

Group Nishad Patil Priyanka Gund Pranay
Shetty
Marketing
Audit
 Definition – “A marketing audit is a
comprehensive, systematic, independent &
periodic examination of a company’s – or
business unit’s – marketing environment,
objectives, strategies and activities with a
view to determining problem areas and
opportunities and recommending a plan of
action to improve the company’s marketing
performance”
Marketing
Audit
Initially internal audit covered only financial
& stores functions

However, recently, organizations have

included operational management areas
under internal audit.

Need to reorient internal audit to

maintain market position.
Methodolog
y
Step 1 – Selection of a proper team of
internal auditors.

Step 2 – Scanning the available information

within the organization.

Step 3 – Discussions with various levels of

different functions.

Step 4 – Develop questionnaires for data

collection from various branches.
Elements of Field
Work
Clear Communication

Branch

Personnel

Distributors

Customers & Competitive

Distributors Report
Marketing – Environment
Audit
 Macroenvoirnment
 Agricultural incomes
 Huge government
 expenditure Development of
 SSI & traders Introduction of
 petrol engines Legal &

Regulatory policies
Marke
ts
Rural Market
Growth
Year Growth (%)

1984-85 18.5

1985-86 17.7

1986-87 17.4

1987-88 23.3

1988-89 40.8
Market Growth of
Cars
% growth over
previous

1987 1988 1989 1988 1989

All cars 151243 159279 177409 5.3 11.38

Only Maruti 92669 106509 106509 2 12.67

Other Cars 58574 64704 70850 10.47 9.5

Growth in Tractor
Market
% growth over previous

1987 1988 1989 1988 1989

79295 85518 95302 9.22 11.32

 Task Environment -
Competitors
Enterprise Form Generic Desire
•Maruti, •Two wheeler •Any other •Do not want
•Telco, manufactures mode of to buy a
-
• (Bajaj Auto, transporta vehicle
Ford(Escort Kinetic tion
Honda), (people and
), •LCV( Ashok goods)
•Toyota Leyland,
Japanese
LCVs)
Task Environment -
Competitors
Strategies of Maruti
Gypsy
 Handouts for dealer circulation emphasizing

on negative features of Jeep

 Profile of potential buyers

 Merits of Gypsy over

 Jeep

Dealer’s guidance – list of

government employees
Task Environment -
Publics
Employees Government

Facilitators
Suppliers
Publics

Distributors and
Competitors dealers

Customers
Marketing – Strategy
Audit
 Segmentation done on basis of product –
 CJ– Rural rich, opinion leaders, village
level politicians, farmers
 CJ 540 DP – Largely authorised/

unauthorized taxis
 MM 540 DP – Higher class rural rich,

politicians, entrepreneurs, liquor merchants

 etc.

CJ 340 DP – Younger generation,

farmhouse
 Segments owners
clearly defined.
 Positioned itself as rugged,
Marketing – Organization
Audit
Functional Efficiency
o Training to sales personnel's
o Supervision of distributors
o Strict actions against irresponsible dealers
o Lack of internal communication (marketing –
dealers
– customers)
Organization Audit –
Interface Efficiency
Marketing & manufacturing –
o Does not enjoy enviable status
o Uncomfortable drive & ride
o Old technology
o Higher maintenance cost
Finance
o Low resale value
o Jeep financing treated as a low priority
area
o No particular finance company
exclusively providing finance for M&M
Marketing – Organization
Audit
R&D
o Improving the quality of product
o Understanding the perceived risks
o Finding out the acceptance of the product
after Gypsy penetration
o Analyzing on the weaknesses of Gypsy
& improvising them as an opportunity
Marketing Systems
Audit
 The marketing team should regularly
interact with customers
 Communication between the marketing
team and dealers
 Product development and new product
ideas from customers and dealers
Marketing Productivity
Audit
 The last TV ad campaign did not
generate enquiries

 Enter into SUV and MUV

Marketing Function-
Audits
 Products
• CJ, CJ-540DP, MM540DP & CJ-
• 340DP
• Attitude towards products
• To add MD-2340 engine in CJ
• XD 4.90 petrol engine in CJ- 340DP
• Some cosmetic changes
Competitors product and
strategy
Pric
e
 Efficiency of Diesel offset by high
maintenance cost

 Price higher than LCVs

Distributio
n
• Current Distribution
strategy

• Inefficiency of Dealers
Advertising, Sales promotion
& publicity
 Current advertising
strategy
o Merits of Jeep over Gypsy
o
Japanese monk’s testimonial ad in newspaper
o
Failures/problems faced experienced by Gypsy
o
owners.
Change of TV campaign from usage to the reliability
o & elegance of Jeep.

Housewives as influencing factor should be considered

• Learning from& promotional strategy.
for advertising
Rajdoot
Sales
force

• Team to visit the place in north-east

propagating the benefits of CJ-
340DP
Marketing – General Advertising
Strategies

o Inclusion of Jeep as a product with

major ancillary advertisers
o Customer & employee interaction with the
product – Contest of naming the Jeep
Models
o Discreet campaign emphasizing on the fact
of Maruti using foreign exchange.
Marketing – General Advertising
Strategies

o Association with tyre company – MRF

in demonstrations/melas.
o Less frequency of price revisions to get a
psychological advantage over its
customers.
o Strict action against irresponsible dealers.
o Direct mail campaign to government
institutes.