HOW TO DO YOUR MARKETING AUDIT

The marketing audit is a study of variables in the environment of an organisation that are relevant to marketing, for the purpose of making it easier to plot a meaningful business course.

The marketing audit is a look at how the enterprise has fared over a given period of time and a forecast of what can be expected.  This makes the audit an important part of marketing planning.

    

Different organisations and individuals have given their own versions of the marketing audit. Partly, it is because there has not been any universally agreed upon format for conducting it. Nevertheless, one would probably expect all the most important aspects of the unique situation of each business to be covered. There are, however, some elements which would likely be considered natural constituents of the basic marketing audit. The framework suggested below is based largely on those components.  

A Basic framework for auditing your market

An elementary marketing audit could be typified as consisting of at least the following six main parts:

A.    Objectives and strategy audit.

B.     Macro-environment audit.  

C.     Industry environment audit. 

D.    Micro environment audit.

E.     Organisation audit.

F.     SWOT Analysis.

A.    Objectives and strategy audit.

-         What are our main objectives in the existing marketing plan? To what degree have we met them?

-         What is our strategy? How far has it been implementable?

-         Were there signs we over-looked other attractive objectives and strategies (based on what was experienced and seen in the marketplace itself?)

B.     Macro-environment audit.

This involves examining SLEPT variables, mainly the sociological, legal, economic, political and technological. SLEPT factors shape the mother environment in which businesses operate. Because enterprises basically cannot control these, the main discussion is how well they are adapted to. Key questions include:

-         What have the SLEPT factors been like and how have we responded to them?

-         How are they likely to change?

C.     Industry audit.

Michael Porter’s Five Forces model is most useful in studying the environment in the specific industry; how the organisation has positioned itself; and attempting to predict changes. While the variables examined here are part of the micro environment, the significance of the model in competitive analysis perhaps makes it deserving of separate treatment in audit.

D.    Micro-environment audit.

                                i.            Consumers (ultimate customer or user).

In addition to what is looked at in Porter’s model, the following questions are among the additional ones to be asked:

·        Where are they found?

·        What quantities do they buy?

·        What are their age groups?

·        How do they use our product?

·        What are their income patterns?

·        How much of this information have we been basing our decisions on?

·        Which direction do user characteristics appear to be going?

·        What percentage of the market are the customers (those who consume our product)?

                              ii.            Intermediaries and support organisations.

There must be a good profile of middlemen like wholesalers, retailers, agents and transporters; a determination of any areas of their requirements that have not been met; and of course, noting any emerging new trends among them that could affect business.

Essentially, understanding the middlemen is understanding the buyers looked at in Porter’s model.      In other words, this section is about shading more light on them. The assumption in this audit is that the buyers are not necessarily the users.

Details concerning suppliers and competitors also have to be available, as one would naturally expect.

   

Finally, it is necessary to be well-informed in respect of other critical business partners like banks and insurers.

                            iii.            Other micro-economic considerations.

They include the general public and special interest groups like those that campaign against obesity and global warming.

E.     Organisation audit.

                                i.            Structural and skills audit.

Both the overall and marketing structures, and available skills and experience, need evaluation in the light of the organisational objectives and strategy that were pursued.

                              ii.            Financial and physical resource audit.

What resources were deployed and how much has been achieved in areas like sales, profit or time savings? Where there resource shortfalls or over-supply?

Also to be looked at are issues like office or factory location, design, size and storage space, even though most of these are planned for long term suitability.

                            iii.            Marketing mix audit.

·  Product.

What needs or wants are the products meant to satisfy? Have there been any gaps in meeting customer expectations, or are there likely to be any?

·  Price.

This is an evaluation of how much price has been in line with the most relevant among key considerations like product life cycle pressures (such as competition), costs, required profit, and positioning.

·  Distribution.

A review is done of the range of suitable sales channels that have been accessible, including how they were employed and could evolve.

·  Promotion.

The promotion audit is a listing of the suitable marketing communications types that have been available, and assessment as regards how they have been utilised from such angles as expected sales, increase in product awareness, expense-budget comparison and combinations (mix) used. It is also an attempt to predict new ways of sending messages to the market and getting feedback.

  

F.     SWOT Analysis.

At this stage, some pattern of strengths, weaknesses, opportunities and threats will probably have surfaced. The more clearly identified they are, the more they can contribute to good marketing planning.  

The marketing audit is an important tool in marketing decision-making. It must, therefore, give a clear picture of where the organisation is and the future it is likely to face.

                 Rupert Chimfwembe   

                         3 February 2017