Overview of Marketing audit example
Marketing audit example can be defined in detail after knowing what exactly the term and concept means. Therefore, how a marketing audit is done or purpose it is executed is stated below:
Definition of marketing audit
A marketing audit is termed as a systematic, comprehensive, evaluation, interpretation and analysis of the specific business’s marketing environment including both external and internal.
The main idea, goal, strategy, objectives or principle lies to ascertain the segment of problem, opportunities and suggesting an action plan to endeavour the respective firm’s marketing performance.
A marketing audit example is usually conducted by a third person and not by a member of an organisation for greater objectivity and information. It analyses past performance and present marketing activities to identify functions that need attention for the future.
Marketing audit example helps to determine which strategies are working and thrones that are wasting budget. It builds up foundations for future marketing decisions. Moreover, marketing audit example explain what the audience wants and needs to be served.
For example, kingfisher’s marketing audit report discussed below with respect to characteristics, importance and components involved.
Characteristics of Marketing Audit
- A comprehensive audit must be executed that covers all areas of the problem under consideration from identification of the need to satisfaction of desires of a customer.
- A systematic marketing audit example that explains evaluating micro and macro environments, orderly analysis, strategies, marketing principles etc that indirectly or directly influence the performance.
- An audit can be conducted in ways like audit from across, self-audit, company auditing office, an audit from above, outsider audit and company task-force audit. As a result, a marketing audit example should be independent. To remove bias, an outsider audit is considered best since the auditor is an external party to a company.
- There must be a periodical audit to rectify the issues at its source. However, it is generally preferred when a problem occurs in the marketing operations by the companies.
Importance of Marketing Audit
Apart from the formulation of marketing strategy, there are other ways in which the marketing audit example benefits which are as follows:
- Firstly, the major contribution that a marketing audit example provides is in-depth management and evaluation of business looking after effectively at the planning, implementing and managing of marketing segment.
- The company discovers the inefficiencies that they never knew existed. The marketing audit example does a SWOT analysis telling the strengths, weaknesses, threats and opportunities during the entire process. It pinpoints the perfect market activities, the practices that need improvement and the methods that are going extremely wrong.
- The findings and recommendations of the marketing audit example make the process of developing a marketing strategy easier through its systematic and structured approach.
- Before causing any serious damage, it showcases corrections to be made, catches mistakes and errors. As a result, the company can implement the desired or necessary changes and adjustments.
This must be noted that the marketing audit example majorly adds up to great function for top management which counts decision making.
Marketing Audit Components
The marketing audit components basically includes external environment, internal environment and strategical ways that affect the marketing audit example which is as follows:
the Marketing environment audit
There are two major categories under the marketing environment namely micro and macro environment.
The factors influencing the firm’s marketing performance from outside becomes part of this category. They are majorly economic, demographic, political, technological and cultural.
- Demographic factors – gender, age, status, employment etc. of the consumers.
- Economic factors- assessment of taxation policies, looking at economic indicators such as inflation levels and interest rate.
- Cultural factors- a lifestyle of consumers and consumerism figures, religion, beliefs, etc.
- Environmental factors- technology used, the evolution of the internet, new marketing and information systems etc.
- Political factors- affects the economy like tariff regulations, property laws, lack of stability, other labour legislation etc.
The micro-environment, however, covers the internal aspects of the marketing plan which the company controls. It includes staff performances, brand ambassadors, multi-channel marketing and marketing tools.
Task environment audit
The closely related factors linked to the firm like customers, markets, competitors, retailers, distributors, public, facilitators etc that hit the efficiency of the marketing programs includes in the task environment.
Marketing strategy audit:
This marketing audit example aims at focussing on the feasibility of marketing objectives, goals, business missions and strategies that directly impact the firm.
Marketing systems audit:
Planning, Updating and maintaining the marketing audit checklist system are checked. The marketing systems can be marketing planning system, marketing information system, new product development system and marketing control system.
Marketing organisation audit:
This step is related to internal management where the performance of staff is evaluated standing at different levels of hierarchy or checking formal structure, functional structure etc.
Marketing function audit:
Marketing audit example includes an eye on the core competencies or the 4P’s of the company such as price, product, marketing communication, distribution, supply chain management, promotion and sales force. However, the components exclude or include according to the type and requirement of the firm.
Marketing productivity audit:
Checking on the performance of marketing activities concerning cost-effectiveness and profitability (explains expenditure and profits on marketing).
Process for Marketing Audit
The reason to conduct a marketing audit example is different since companies have variable structures, priorities and goals. Therefore, there are no fixed guidelines for a marketing audit example. However, a general approach can be framed which are as follows including three main phrases:
Determine the person
The marketing audit example firstly determines the key person who conducts the audit which has two options either a self-audit or an audit from outside.
The management forms a marketing audit group, inside the organisation of employees. They could evaluate their department, effectiveness, and marketing activities. However, if the management is scared that it may violate the independence then the auditing team may be staffed from another unit performing related functions.
Also, they may direct the executive with higher authority over the department being audited to perform their task. Few cases form task force team composed of senior management. Large corporations might set up individual auditing unit which will perform the task of audit exclusively.
As the word suggests in this marketing audit example, the company hires an auditor from outside to perform the task. The person can either be an individual, practitioner, or agency specializing in this field.
An outside auditor considers reliable that guarantees objectivity and independence leading to an effective audit. It avoids the scope of biases and pre-judgement to hamper the results.
Determine the timing of the audit
The marketing sector is volatile and changes happen frequently. As a result, a marketing audit example must conduct regularly not just at the beginning but also at various intervals. The company should tweak its plan from time to time to ensure that the strategies are up-to-date and relevant.
Establish Objectives and Methods
To guide the members of the audit team, the objective of a marketing audit example must be known. It provides a reference in identifying the next steps and to identify stakeholders involves in the audit indirectly or directly. Further, it states the methods, tools and techniques used in data analysis and collection by the auditors.
Classifying the methodology used earlier, the main audit process includes various steps and substeps which are as follows:
It is stated as the marketing audit example time-consuming and tedious part in the entire process. Also, it can be quite expensive as well. Research work carries from various sources including standardize resources and publish data.
The next count is the historical marketing audit checklist which is termed as primary sources like marketing budget, systems, training plans, organisation structure with job descriptions etc. The auditors may also visit on-site for firsthand information or interview respondents to receive data. The data collected will pertain to the components discussed above.
Assemble an Overview
This step includes the basic terms that need to be known as company location, sales history, data established, key personnel, estimation of current awareness of the company, a chronology of company events( mergers, divestitures etc), number of employees and the perception of company on buying influencers.
Describing Market Goals and objectives
States whether the company is focusing on long term goals(6-8 things in priority to be achieved in next three years )or short term goals (1-2 to be covered in one year).
They can be achieved by concepts like differentiating from competitors, increase usage with existing customers, enhancing company visibility, increase market share or audience size or generate qualified sales leads.
This step in the marketing audit example involves knowing the size or current customer audience. The segmentation or behavioural descriptions and other demographic factors that describe their needs and desires.
This marketing audit example defines to know the type of target customers of the company. This includes behaviour to be present for retargeting, target customers are outside the usual industry or change in current internal-external environment factors causing the company to target a particular group.
Describe product or service
The marketing audit example includes looking after the company’s product features, pricing, benefits, distribution channels and sizing. Referring to the competitor’s strength and weaknesses, any PESTEL factors that affect the product, current awareness of the product and market share history or changes over time.
The competitor’s actions used to grow the business, the factors not helping the current marketing effort and the methods or strategies not yet used forms a part of marketing encounters in marketing audit example that needs to be identified.
Knowing major competitors
A company should follow the actions and activities of the major competitors from which they compare results. The strategies, campaigns, unique areas, name, location, features of product etc identified and studied.
This step involves initiating action and making a marketing audit checklist of current or future resources. Therefore, identifies the funds for new efforts, advertising routes(broadcast, print online ads etc), media relation(public relations, articles etc), analytical vehicles(databases, tracking systems etc)and promotional vehicles(collateral, interactive, direct marketing etc).
Once all the areas are watching, it uses as a roadmap to achieve marketing objectives for the following year. Therefore, the marketing audit example helps to give a bigger picture for the new ideas along with minor adjustments which might be required throughout the year.
This step of the marketing audit example defines as the core of the audit process, building a picture of a marketing program or strategies by subjecting collected data to analysis. The analysis should provide insight into performance, marketing team skills, alignment of objectives, execution and communication of marketing plan. Therefore, some tools of data analysis are as follows:
1. Swot analysis ( strengths, weaknesses, opportunities and threats) 2. Five forces analysis Competition in industry Threat from the entry of new players Customer power Supplier power The threat of substitute products 3. PEST/PESTEL analysis
Preparation of Recommendations
The final layout of the audit process documents and termed as a marketing audit report. However, the major concern of the beneficiaries or recipients is the recommendation section based on the results of the above analysis. As a result, while making recommendations, it should be present in a prioritized marketing audit checklist.
At last, the marketing audit report presents to management, used by them for decision making. The recommendations might not be easily acceptable by the company. As a result, they have to go for long discussions with all parties to make them satisfied and comfortable by making marketing strategy decisions.
Steps that Simplify Marketing Audit
Knowing the step to conduct a marketing audit example refers to paying attention while gathering data through consumer interactions and using it for the company’s advantage. Following are the steps that simply doing a marketing audit example for the company.
Inventory creation for marketing assets
The company needs to make a marketing audit checklist of efforts that it wants to analyse during the audit. The comprehensive audit would involve gathering everything like an email newsletter, social media announcements, website blog posts etc. To reduce work stress last 6 months can be a target to collect data.
Aligning audit with goals
A baseline requires to measure the success of the company’s efforts. When the company knows what to achieve, they can find out the present marketing campaigns. Their comparison with the standard and then look for the deviations. As a result, it helps to find out corrective measures in the marketing sector to achieve desire goals.
Gathering data of marketing performance
Tracking all the information about the marketing is need to be done. However, the return on investment each marketing channel is providing and the improvement requires from the marketing audit example. As a result, a marketing campaign would always add up to sales with better word of mouth and social presence giving the company brand reach.
Comparing results from goals
Sometimes the marketing campaign that the company is using can lead to failing targets. But, there is a possibility that the goals set too high or unrealistic with the marketing efforts. As a result, the company should compare the results to marketing campaigns with competitors in the same space.
Adapt and optimize
Lastly, with a vision of positive change through details of marketing audit example, the company can improve return on investment or streamline its marketing budget. Working with the sales group and marketing audit agencies give an idea of where the collection of data can be used in an actionable way. Like switching to different social media or drive employee advocacy adoption etc.