Assignment:
Marketing Audit Guide
The final project for Principles of Marketing is the complete audit of an existing firm. The project is designed to give the student an opportunity to demonstrate an understanding of course learning objectives to include:
1. Understand what a customer-driven or market-driven organization is and how everyone in the organization needs to work together to satisfy customer needs.
2. Have a good grasp of the process of formulating marketing strategy (from understanding customer needs to the successful marketing of the product.)
3. Understand how product, price, promotion and distribution strategies interact to make a successful marketing strategy.
4. Know how to critically evaluate marketing activity in terms of how well it accomplishes its objectives.
Marketing Audit Major Components
1) Macro Environment Assessment
a) Demographic
i) What major demographic group(s) is the company targeting?
ii) What current trends within these segments pose opportunities or threats?
iii) What actions or plans for action does the company have in place to manage trends?
b) Economic
i) Describe the economic variables affecting the companies demographic group(s). Income, savings, regional economic issues, etc.
ii) What is the general category your company is competing in? Entertainment, food and beverage, education, on line retail, technology, etc.
iii) What unique economic issues are impacting short term opportunities or threats?
2) Market Environment Assessment
a) Markets
i) What is happening to market size, growth, distribution channels and profits?
ii) What are the trends and major market segments being targeted?
b) Customers
i) How do current and potential customers view the organization?
ii) How do targeted customers make buying decisions?
c) Competitors
i) Who are the current direct and indirect competitors? What are their strengths and weaknesses?
ii) What current trends will impact direct / indirect competitors and substitutes?
d) Suppliers
i) Are there any current issues that may affect the availability of key resources?
ii) What trends are occurring on the supplier side that may impact the firm?
3) Strategic Assessment
a) Mission and Vision
i) Does the firm have an existing mission and vision statement, does it address multiple stakeholder groups?
ii) Has a SWOT assessment been completed? Does it accurately reflect the current position of the firm?
b) Objectives and Goals
i) Are the mission and vision supported by a clear set of measurable goals that are customer oriented?
ii) Are there identified trends that will impact existing goals related to suppliers, customers or competitors?
c) Leadership
i) Does a marketing strategy exist that leadership is able to articulate?
ii) Has leadership allocated appropriate budget to achieve objectives and goals?
4) Organizational Assessment
a) Structure
i) Does the responsible person / people have authority to drive activities forward affecting customer outcomes?
ii) Is the organizational structure appropriate to achieve objectives and goals?
b) Efficiency
i) Is internal communication effective?
ii) Is there effective training for new hires within the sales and marketing team?
iii) Is there friction between internal units affecting marketing outcomes?
iv) Is the firm using sound practices for projecting market trends and sales potential?
v) Is the company using analytic tools to manage marketing performance?
c) New Product Development
i) Is the company well organized to gather, generate and consider new product opportunities?
ii) Does the company invest resources in review of new product potential before investing?
iii) Does the firm conduct adequate product and market testing before launching new products?
5) Financial Assessment
a) Profitability
i) What is the profitability of the firm's current product mix, territories, customer segments and distribution systems?
ii) Are there existing or future segments, channels, products that would improve profitability by expansion or withdrawal?
iii) Do the marketing activities have excessive costs? Can you prove that additional investment in marketing expense would improve profitability?
6) Marketing Mix Assessment
a) Price
i) What are the pricing objectives, policies, strategies and procedures? To what extent are prices set on cost, demand and competitive criteria?
ii) Do the current customers see the existing pricing structure as in line with direct competitors?
iii) Do the current customers see existing pricing structure as in line with value received?
b) Products
i) What are the existing product line objectives? Is the existing product line meeting those objectives?
ii) Should the product line be stretched or contracted to increase profitability and / or market share?
c) Distribution
i) What is the current distribution objective and strategy?
ii) Is there adequate market coverage and/or service?
iii) How effective are the channel members at achieving distribution objectives?
d) Promotion
i) What is the organizations advertising objective?
ii) Is the right amount being spent on advertising to achieve the objective?
iii) Are the ad theme and copy effectively support the brand?
iv) Is the advertising and promotions team qualified to achieve the objective?
v) Is the advertising budget adequate to achieve the objective?
7) Recommendations and Action Plan
a) Recommendations
i) What are the top recommendations (low hanging fruit) that you suggest the firm consider? Are the recommendations justified by facts and data?
ii) What are the low-level recommendations? DO any second level recommendations depend on first level success?
iii) What are the high-level recommendations? Are these recommendations justified with facts and data that prove a return on investment?
b) Action Plan
i) What is the action plan for performance improvement with a timetable and budget of resources?
ii) Are measurable metrics provided to assure milestone achievement?
iii) Is an alternative plan provided for leadership to consider?