mktg audit.ppt
TRANSCRIPT
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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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Marketing AuditMarketing AuditMarketing Audit
Efficiency Control
Sales Force Efficiency
Advertising Efficiency
Sales Promotion Efficiency
Distribution Efficiency
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Marketing AuditMarketing AuditMarketing Audit
Marketing Effectiveness
Customer Philosophy
Integrated Marketing Organization
Adequate Marketing Organization
Strategic Orientation
Operational Efficiency
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Marketing AuditMarketing AuditMarketing Audit
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
Audit your marketing
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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Marketing AuditMarketing AuditMarketing Audit
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 AuditMarketing AuditMarketing 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
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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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Marketing AuditMarketing AuditMarketing Audit
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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Marketing AuditMarketing AuditMarketing Audit
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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Marketing AuditMarketing AuditMarketing Audit
ELEMENTS OF THE MARKETING STRATEGY ANDPLANNING PROCESS
Situation Analysis
Opportunities & Challenges
Marketing Objectives
Marketing Strategy
Marketing Programs
Implementation
Results
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Marketing AuditMarketing AuditMarketing Audit
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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Marketing AuditMarketing AuditMarketing Audit
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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Marketing AuditMarketing AuditMarketing Audit
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 AuditMarketing AuditMarketing Audit
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 AuditMarketing AuditMarketing Audit
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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Marketing AuditMarketing AuditMarketing Audit
The Future of
Marketing???