Marketing Audit

Marketing Audit

• A marketing audit is a structured approach to the

collection and analysis of information and data on
the internal and external environment, including
information on the business and economic climate,
the market, competition, major competitors and the
company’s operating performance. The audit is an
essential prerequisite to marketing strategy
formulation
• A marketing audit is a structured survey of an
organisation’s Marketing efforts. It looks at the way
Marketing is planned and managed. It asks what has
been done and what else should be done. In other
words:

• what has worked?

• and what has failed?

 Features of Marketing Audit

• A market audit builds the foundation for future

marketing decisions.
• Market audit is that you must be objective and read the
market as it actually is.
• Audit must not be structured around your product,
service, or business. Though these may be mentioned as
reference points, don’t make them central to the audit.
• The audit is based on market research activities and must
be completely independent from research on the
performance of your product, service, or business.
 Characteristics Of The
Marketing Audit
• Comprehensive – The marketing audit covers all the major marketing
issues facing an organisation, and not only one or a few marketing trouble
spots. The latter would be called a functional audit if it covered only the
sales force, or pricing, or some other marketing activity.

• Systematic – The marketing audit involves an orderly sequence of

diagnostic steps covering the organization’s marketing environment,
internal marketing system, and specific marketing activities. The diagnosis
is followed by a corrective action plan involving both short-run and long-
run proposals to improve the markets.

• Independent – The marketing audit is normally conducted by an inside or

outside party who has sufficient independence from the marketing
department to attain top management’s confidence and the needed
objectivity.

• Periodic – The marketing audit should normally be carried out periodically

instead of only when there is a crisis. It promises benefits for the
organization that is seemingly successful, as well as the one that is in deep
trouble.
 Audit, How often?

• Because of the constantly varying business environment,

marketing audit is frequently required, not only at the
beginning of the planning process, but along with the
implementation stage, providing also ground for
evaluating possible future courses of action.
• Marketing audit on a regular basis is a strong reference
point, reflecting evolution in external business
environment, internal experience and strategy
development.
• Some companies will perform a complete audit every
year. Others will conduct an audit every four years
 Process
• Pre-Audit Activities. Pre-audit activities involve determining who will conduct the
audit and when it will be performed. It also involves establishing the scope,
objectives and methodology.

• The Audit Process. The audit process includes:

• Data Collection. time consuming aspect of the marketing audit.
• Information Analysis.
• Preparing Recommendations.

• Post-Audit Activities. After the audit report is prepared it must be presented to

management and perhaps other groups within the company. The findings and
recommendations should be debated. Plans to implement recommendations
complete with time table should be drawn up.
 Who performs the audit?

• The auditor(s) must have experience, know-how, and

creative imagination if they are going to be able to
discover the problems and foresee opportunities.
• Self-audit. A company can ask the executive who is
directly in charge of an activity to appraise its strengths
and weaknesses.

• Audit from across. A company can assign persons in a

related activity on the same function level to prepare an
audit of the neighbouring activity.

• Audit from above. The audit can be conducted by the

executive to whom the manager reports.
• Company auditing office. The company can establish an
office with the responsibility for conducting all company
marketing audits.

• Company task-force audit. The company can appoint a

team of company executives with varied backgrounds
and experience to conduct the audit.

• Outside audit. The company can hire an outside

individual or agency to conduct the marketing audit.