lect 03 marketing audit
TRANSCRIPT
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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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4 CHARACTERISTICS OF
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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4 CHARACTERISTICS OF
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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4 CHARACTERISTICS OF
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