mktg audit.ppt

7/29/2019 Mktg Audit.ppt

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Marketing Audit

Marketing Audit

Marketing Audit

Marketing Evaluation& Control


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Marketing Audit

Marketing Audit

Marketing Audit

Many companies have stated their desireto become more customer focused. Thefirst step in turning this vision into realityis to undertake an audit of the current

marketing function and process, to assessthe effectiveness of the same, and providerecommendations for improvement.

Philip Kotler introduced the concept of themarketing audit in his classic article, "TheMarketing Audit Comes Of Age".


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Marketing Audit

Marketing Audit

Marketing Audit

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 andmanagers. In addition, interviews areconducted with other stakeholders; For

example, customers, board members.


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Marketing Audit

Marketing Audit

Marketing Audit

Initiatives are recommended that aredesigned to make the client organization

more responsive to the markets andcustomers it wishes to serve.


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Marketing Audit

Marketing Audit

Marketing Audit

Types of Marketing Control

Annual Plan Control

Profitability Control

Efficiency Control

Strategic Control


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Marketing Audit

Marketing Audit

Marketing Audit

Types of Marketing Control

Type of Control PrimeResponsibility

Purpose ofControl

Annual Plan

Control

Top Mgt.

Middle Mgt.

Whether plannedresults are being

achieved

ProfitabilityControl

MarketingController

Where the co. ismaking/losing money

Efficiency Control Line & Staff Mgt.

Mktg. Controller

Evaluate & improvespending Efficiency

Strategic Control Top Mgt.

Mktg. Auditor

Whether co. ispursuing its best

opportunities.


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Marketing AuditMarketing AuditMarketing Audit

The Control Process

What do we want

to achieve?

(GOAL SETTING)

What is

happening?

(PERFORMANCE

MEASUREMENT)

Why is it

happening?

(PERFORMANCEDIAGNOSIS)

What should we

do about it?(CORRECTIVE

ACTION)


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Efficiency Control

Sales Force Efficiency

Advertising Efficiency

Sales Promotion Efficiency

Distribution Efficiency


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Marketing Effectiveness

Customer Philosophy

Integrated Marketing Organization

Adequate Marketing Organization

Strategic Orientation

Operational Efficiency


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Audit your marketing

Evaluation of all aspects of marketingperiodically is important to keep your brand ingood shape.

household penetration?

awareness?

the future growth map?

THESE and many more questions come up

during the life of a brand.


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Would you not like to know the health ofyour brand through a regular Brand Health

check-up? Do a regular marketing audit ofyour brand so that the brand remainshealthy and strong.


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Audit your marketing Marketing audit involves thorough evaluation of

all elements of marketing. The assessment isenabled by a comparison with the objectives and

targets, set not only in terms of sales but inparameters such as the ratio of advertising tosales, percentage of awareness , percentage ofhousehold penetration, performance of the sales

force and promotional programmes. Qualitatively too, elements such as brand

personality and the health of the brand, amongothers, are audited.


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Further, there is a process audit as well as astrategy 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 consumerbehaviour. This helps the company understand

its customers, why they buy its products andservices, where and how they use its products,and similar behavioural patterns.


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After the consumer behaviour audit, it isimportant to look at specific elements related tocustomer segmentation as well as the audit of

target audience selection. This is importantbecause even with the right product andcommunication, a company may not achieve thedesired results if it targets the wrong audience.Further, segmentation needs to be clear anddefined and its basis chosen well, whether it beusage segmentation, through psychographics orbenefit segmentation.


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The next element of marketing audit isrelated to the main ingredients of a brand

the positioning strategy. Aftersegmentation audit, it is important toevaluate the positioning stance of the

brand and its relevance in the currentcontext as well as versus competition.


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After this, it is important to look at eachelement of the marketing mix.

First and foremost is product portfolioaudit, which is employed to assess thecorrectness of the product in range, asalso decide on modifications to it. It is alsovital to do a pricing audit, and regularlymonitor its impact on sales, market shareand profits and check if you are available

at appropriate price points.


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Following this, a series of audits needs tobe done for existing products, pricing,

customer service, distribution sales,marketing research, people, physicalappearances, ambience and processes.

This detailed analysis is useful to measurethe health of the brand. It is like aquarterly medical check-up of the brand.


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The next stage involves a detailed audit of thecommunication strategy. This is significant as

large sums of money will be wasted if thecommunication 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 andevent marketing.


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After this, it is crucial to summarize thefindings and bring about the most value-

added contribution during the marketingaudit process. This is the stage ofinterpretation of the findings, which helpsin correcting the course in terms of

structure, systems and awareness at theconsumer level, trade, sales force andoverall organization process.


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The Marketing AuditFirst Steps to Success in

Raising Organizational Awareness

A MARKETING AUDIT is a Comprehensive,

Systematic, Independent, and Periodic examinationof a companys or business units marketing

environment, objectives, strategies, and activities

with a view to determining problem areas and

opportunities and recommending a plan of action toimprove the companys marketing performance.


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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


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QUICKRATE YOUR COLLEGES

MARKETING EFFORTKnow what your stakeholders want in terms of new andimproved programs? Or, do you develop the programsbefore gathering marketing information?

Have a mechanism that facilitates the flow ofcommunication or, stated differently, know what thefaculty 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 courseofferings and services to current and potentialstakeholders?

Do you


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QUICKRATE YOUR COLLEGES MARKETING

EFFORT Present a common brand identity?

Identify causes in deviations between actualresults 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?


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BENEFITS In-depth snapshot of what is going on

Fosters awareness in faculty and staff within the college

Assists in building relationships with administration, faculty, other staff

Improves marketing efficiency and effectiveness

Gives opportunity for staff to be heard

Provides important insight into the improvement of marketing planningCHALLENGES

Time consuming

May be costly to undertake

Can cause uncertainty and stress

May raise expectations for change and improvement

MARKETING AUDIT-- Cont.


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ELEMENTS OF THE MARKETING STRATEGY ANDPLANNING PROCESS

Situation Analysis

Opportunities & Challenges

Marketing Objectives

Marketing Strategy

Marketing Programs

Implementation

Results


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Situation Analysis

MARKETING STRATEGY AND THE PLANNING PROCESS

Marketing Strategytargets + positioning

Marketing Programs

Marketing Resultssatisfaction, number of new students,

profitability, increase in net revenue, etc.

College/Univ. StakeholdersFaculty and

resourcesSegment 1

234 Comp. 1

C2

C3,C4

Implementation

Opportunities & Problems

Marketing Objectives

Market position

Program/service

portfolio

Feedback

marketing mix/activities

marketing budgets


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SITUATION ANALYSIS

Colleges Internal Analysis External AnalysisCollege Goals and Mission

Resources

Financial

Faculty

University-wide

Reputation / market image

Cost advantages/disadvantages

Breadth and performance of

portfolio of programs

Innovator versus laggard

Current stakeholder base/loyalty

Market position

Marketing program

Planned and coordinated

Current objectives

Institutional Goals and Mission

Macroenvironment (e.g.,technology,

economic, legal/political, culture)

Market Analysis

# and size of segmentsMarket potential

Barriers to entry / switching costs

Competition

Who are they and offerings

Strengths

Weaknesses / vulnerabilityPosition in segments

Other academic units within Univ.

CHALLENGES &

OPPORTUNITIES


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KEY ISSUES IN PERFORMING AN AUDIT

Parameter Definition

Scope of the Audit

Horizontal (broad)

Vertical (deep)Timeframe

Participants and roles

Data

InterviewsExisting databases archival data

Questionnaires

Focus groups


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Marketing Excellence Review

Another instrument to rate a companysperformance in relation to the best

practices of high performing businesses. The 3 columns distinguish among poor,

good and excellent business andmarketing practices.

Management can place a checkmark toindicate its perception of where thebusiness stands.


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Marketing Excellence Review

The resulting profile exposes weaknessesand strengths, highlighting where the

company might make changes to becomea truly outstanding player in themarketplace.


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The Future of

Marketing???

mktg audit.ppt

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