MARKETING AUDIT

CHANGING PERSPECTIVES A S S E S S M E N T O F C A PA B I L I T Y O R G A N I Z AT I O N A L A U D I T I N G

E X T E R N A L FA C T O R S

UNIT 19 MARKETING PLANNING

WHAT IS MARKETING AUDIT?

Marketing audit is the comprehensive, systematic, independent and periodic examination of a companys or business units marketing environment, objectives, strategies and activities, with a view to determine problem areas and opportunities and recommending a plan of action to improve the companys marketing performance. (Phillip Kotler ,
marketing management 13th edition 2009)

UNIT 19 MARKETING PLANNING

CHANGING PERSPECTIVES
Market led company with organize its activities around its customers , by talking to them and delivering into their requirements before setting out to design and specific product or service. create a

UNIT 19 MARKETING PLANNING

ASSESSMENT OF CAPABILITY
A new service that assesses the marketing skills and practices of your people, enabling you to improve your marketing capability and maximize your return on marketing investment. Half the problem is knowing what skills you need; the other half is knowing what skills you actually have in the business which are most critical, where are the strengths and gaps, and then how to rectify the shortfalls.
UNIT 19 MARKETING PLANNING

Organizational Auditing
Formal Structure Does the marketing vice president have adequate authority and responsibility for company activities that affect customers satisfaction? Are the marketing activities optimally structured along functional, product, segment, end user and geographical lines? Are there good communication and working relations between marketing and sales? Is the product management system working effectively? Are product managers able to plan profits or only sales volume? Are there groups that need U N I in T 1 9 marketing MARKETING PLANN ING more training, motivation, supervision and

Functional Efficiency

Interface Efficiency

Are there any problems between marketing and manufacturing, R&D, purchasing, finance, accounting, and/or legal that need attention?

UNIT 19 MARKETING PLANNING

EXTERNAL FACTORS
Social and Cultural Factors
Differences in social conditions, religion and material culture all affect consumers perception and patterns of buying behavior Especially language differences have significant impact on the way a product may be used in a market , its brand name and the advertising campaign. For eg Coca Cola in China
UNIT 19 MARKETING PLANNING

Political and legal

Political and Legal environment consists of laws, government agencies and pressure groups that influence and limits various organizations and individuals

UNIT 19 MARKETING PLANNING

Economical environment
Businesses need to be aware of economic policies and direction in which a particular market id developing economically In order to make

assessment as to whether they can satisfy market

demand and compete with firms already in the

market For eg: Population, Income distribution, savings etc
UNIT 19 MARKETING PLANNING

Technological
The impact of technological advances can be seen in all aspects of the marketing process

For example: client server technologies, internet

UNIT 19 MARKETING PLANNING

PORTERS 5 FORCES
Identifies five competitive forces which influence the state of competition in an industry, and which collectively determine the profit potential of the industry as a whole. The following diagram shows the 5 components

UNIT 19 MARKETING PLANNING

Barriers to entry Government policy Access to distribution channels

Supplier Power Supplier concentration Availability of substitute inputs Suppliers product differentiation Importance of industry

Rivalry among existing firms No of competitors Relative size of competitors Industry growth rate Threat of substitute goods Relative price of substitute Relative quality of substitute Switching cost to U N I T buyers

Buying Power No of buyers relative to sellers Product differentiation Switching cost to use other products

19 MARKETING PLANNING

COMING SOON
B A R R I E R S TO MARKETING PLANNING

UNIT 19 MARKETING PLANNING