Mktg Audit 666ax

Marketing Audit

Marketing Evaluation & Control

Marketing Audit

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Many companies have stated their desire to become more customer focused. The first step in turning this vision into reality is to undertake an audit of the current marketing function and process, to assess the effectiveness of the same, and provide recommendations for improvement.

Philip Kotler introduced the concept of the marketing audit in his classic article, "The Marketing Audit Comes Of Age".

Marketing Audit

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The issues that are addressed as part of the marketing audit include: Present role of marketing defined? Cooperation between marketing and other functional areas? Right information gathered? Effectively used? Right processes in place? (for example: market planning, new product development, etc.) Basic marketing concepts understood? Understanding translated into practice?

The audit methodology consists of in-depth interviews with company executives and managers. In addition, interviews are conducted with other stakeholders; For example, customers, board .

Marketing Audit

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Initiatives are recommended that are designed to make the client organization more responsive to the markets and customers it wishes to serve.

Marketing Audit

Types of Marketing Control   

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Annual Plan Control Profitability Control Efficiency Control Strategic Control

Marketing Audit

Types of Marketing Control

Type of Control

Prime Responsibility

Purpose of Control

Annual Plan Control

Top Mgt. Middle Mgt.

Whether planned results are being achieved

Profitability Control

Marketing Controller

Where the co. is making/losing money

Efficiency Control

Line & Staff Mgt. Mktg. Controller

Evaluate & improve spending Efficiency

Strategic Control

Top Mgt. Mktg. Auditor

Whether co. is pursuing its best

opportunities.

Marketing Audit

The Control Process What do we want to achieve? (GOAL SETTING)

What is happening? (PERFORMANCE MEASUREMENT)

What should we do about it? (CORRECTIVE ACTION)

Why is it happening? (PERFORMANCE DIAGNOSIS)

Marketing Audit

Efficiency Control    

Sales Force Efficiency Advertising Efficiency Sales Promotion Efficiency Distribution Efficiency

Marketing Audit

Marketing Effectiveness     

Customer Philosophy Integrated Marketing Organization Adequate Marketing Organization Strategic Orientation Operational Efficiency

Marketing Audit

Audit your marketing 

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Evaluation of all aspects of marketing periodically is important to keep your brand in good shape. household penetration? awareness? the future growth map? THESE and many more questions come up during the life of a brand.

Marketing Audit

Audit your marketing 

Would you not like to know the health of your brand through a regular Brand Health check-up? Do a regular marketing audit of your brand so that the brand remains healthy and strong.

Marketing Audit

Audit your marketing 

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Marketing audit involves thorough evaluation of all elements of marketing. The assessment is enabled by a comparison with the objectives and targets, set not only in of sales but in parameters such as the ratio of advertising to sales, percentage of awareness , percentage of household penetration, performance of the sales force and promotional programmes. Qualitatively too, elements such as brand personality and the health of the brand, among others, are audited.

Marketing Audit

Audit your marketing 

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Further, there is a process audit as well as a strategy audit, which establishes whether the marketing task is being carried out right. The major components of marketing audit are done in a sequence, starting with consumer behaviour. This helps the company understand its customers, why they buy its products and services, where and how they use its products, and similar behavioural patterns.

Marketing Audit

Audit your marketing 

After the consumer behaviour audit, it is important to look at specific elements related to customer segmentation as well as the audit of target audience selection. This is important because even with the right product and communication, a company may not achieve the desired results if it targets the wrong audience. Further, segmentation needs to be clear and defined and its basis chosen well, whether it be usage segmentation, through psychographics or benefit segmentation.

Marketing Audit

Audit your marketing 

The next element of marketing audit is related to the main ingredients of a brand — the positioning strategy. After segmentation audit, it is important to evaluate the positioning stance of the brand and its relevance in the current context as well as versus competition.

Marketing Audit

Audit your marketing 

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After this, it is important to look at each element of the marketing mix. First and foremost is product portfolio audit, which is employed to assess the correctness of the product in range, as also decide on modifications to it. It is also vital to do a pricing audit, and regularly monitor its impact on sales, market share and profits and check if you are available at appropriate price points.

Marketing Audit

Audit your marketing 

Following this, a series of audits needs to be done for existing products, pricing, customer service, distribution sales, marketing research, people, physical appearances, ambience and processes. This detailed analysis is useful to measure the health of the brand. It is like a quarterly medical check-up of the brand.

Marketing Audit

Audit your marketing 

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The next stage involves a detailed audit of the communication strategy. This is significant as large sums of money will be wasted if the communication strategy is not handled well. Following this is the communication-mix audit, which covers strategies for advertising, personal selling, public relations, sales promotion, perception, relationship, direct marketing and event marketing.

Marketing Audit

Audit your marketing 

After this, it is crucial to summarize the findings and bring about the most valueadded contribution during the marketing audit process. This is the stage of interpretation of the findings, which helps in correcting the course in of structure, systems and awareness at the consumer level, trade, sales force and overall organization process.

Marketing Audit

The Marketing Audit—First Steps to Success in Raising Organizational Awareness A MARKETING AUDIT is a Comprehensive, Systematic, Independent, and 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

MARKETING AUDIT

THE PURPOSE OF THE AUDIT IS TO:  Determine what is currently being done  Evaluate what is being done  Recommend what should be done in the future

Marketing Audit

Do you…

QUICK—RATE YOUR COLLEGE’S MARKETING EFFORT

Know what your stakeholders want in of new and improved programs? Or, do you develop the programs before gathering marketing information? Have a mechanism that facilitates the flow of communication or, stated differently, know what the faculty is up to? Have programs that purposely cater to selected groups or segments of stakeholders rather than to all groups? Continually search for new and more suitable course offerings and services to current and potential stakeholders?

Marketing Audit

QUICK—RATE YOUR COLLEGE’S MARKETING EFFORT  

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Present a common brand identity? Identify causes in deviations between actual results and budget projections and make necessary adjustments in people, procedures, etc.? Audit current competitors? Promote cross-organization planning (e.g., other colleges, university relations)? Have an individual(s) responsible for marketing? Have a formal marketing planning process?

Marketing Audit

MARKETING AUDIT-- Cont.

BENEFITS

 In-depth snapshot of what is going on  Fosters awareness in faculty and staff within the college  Assists in building relationships with istration, faculty, other staff  Improves marketing efficiency and effectiveness  Gives opportunity for staff to be heard

 Provides important insight into the improvement of marketing planning CHALLENGES  Time consuming  May be costly to undertake  Can cause uncertainty and stress  May raise expectations for change and improvement

Marketing Audit

ELEMENTS OF THE MARKETING STRATEGY AND PLANNING PROCESS 

Situation Analysis

 Opportunities & Challenges  Marketing Objectives  Marketing Strategy  Marketing Programs  Implementation  Results

Marketing Audit

MARKETING STRATEGY AND THE PLANNING PROCESS

College/Univ.

Situation Analysis

Segment 1

Faculty and resources Market position Program/service portfolio

2 4 Opportunities & Problems Marketing Objectives Marketing Strategy



Stakeholders

targets + positioning

Marketing Programs marketing mix/activities marketing budgets

Implementation Marketing Results

satisfaction, number of new students, profitability, increase in net revenue, etc.

C3,C4

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C2

Comp. 1

Marketing Audit

SITUATION ANALYSIS College’s Internal Analysis

External Analysis

College Goals and Mission

Institutional Goals and Mission

Resources Financial Faculty University-wide

Macroenvironment (e.g.,technology, economic, legal/political, culture)

Reputation / market image

Market Analysis # and size of segments Market potential Barriers to entry / switching costs

Cost advantages/disadvantages

Innovator versus laggard

Competition Who are they and offerings Strengths Weaknesses / vulnerability Position in segments

Current stakeholder base/loyalty

Other academic units within Univ.

Breadth and performance of portfolio of programs

Market position Marketing program Planned and coordinated Current objectives

CHALLENGES & OPPORTUNITIES

Marketing Audit

KEY ISSUES IN PERFORMING AN AUDIT

Parameter Definition Scope of the Audit Horizontal (broad) Vertical (deep) Timeframe Participants and roles

Data Interviews

Existing databases – archival data Questionnaires Focus groups

Marketing Audit

Marketing Excellence Review 

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Another instrument to rate a company’s performance in relation to the best practices of high performing businesses. The 3 columns distinguish among poor, good and excellent business and marketing practices. Management can place a checkmark to indicate its perception of where the business stands.

Marketing Audit

Marketing Excellence Review 

The resulting profile exposes weaknesses and strengths, highlighting where the company might make changes to become a truly outstanding player in the marketplace.

Marketing Audit

The Future of Marketing???