Marketing Audit Benefits for a Business
What is a marketing audit?
“a comprehensive, systematic, independent and periodic examination of a company’s or a business unit’s marketing” and it is “designed to evaluate marketing assets and activities in the context of marketing conditions, and use the resulting analysis to aid the firm in planning.” - Author Bruce Clark
Basically what Bruce Clark is saying, a marketing audit evaluates your company's current marketing plans/strategies and tells you what you are doing right and wrong. Many companies choose to get a marketing audit done by an external source to reduce biased thoughts. By using an external source, like NtwoMedia, your company will receive a formal diagnosis of your company's marketing strategies.
Why does your company need one?
A marketing audit pinpoints exactly what is and isn't working in your company. Strengths, weaknesses, opportunities, etc. The structure of a marketing audit makes the process of developing a marketing strategy much easier. A marketing audit catches mistakes before they cause serious damage to your company.
How is your company perceived?
Internal & External environments will show you
Internal Marketing Audit
Marketing organization audit: the staff or the labor force of the company is evaluated on their performance and organizational structure.
Marketing function audit: core competencies of company such as role of sales force, marketing communication, distribution channels, pricing policies, company products and this audit looks into the price points of the product and how they are compared to the price points of competitors.
Marketing systems audit: such as 1. New Product Development System, 2. Marketing Control System, and 3. Marketing Information System
Demographic factors: such as customer demographic, age, gender, employment status
Economic factors: such as assessment of taxation policies, prevailing economic indicators (inflation levels & interest rates)
Cultural factors: affecting marketing performance in how consumerism figures in that lifestyle, what kind of lifestyle they practice, religions and beliefs
Environmental factors: such as technologies and systems like development of new marketing and information systems, the adoption of mobile technologies, the evolution of internet, those that have a significant impact on marketing and those that are used and in place.
Political factors: that affect the economy and overall environment of the markets. Issues that occur like political unrest and lack of stability in leadership in government, tariff regulations, and property laws.
Current Marketing Strategy/Does the marketing plan match up with the goals of your company?
Marketing strategy audit, its marketing goals and objectives, and the marketing strategies that are formulated with a view to improve the company’s overall marketing. One of the main questions that must be answered after the audit is whether the current strategies adopted and being implemented by the company in its marketing are proper and appropriate, with respect to the resources of the company.
Marketing productivity audit, where the auditors will evaluate the effectiveness of the marketing activities that have been – or are being – performed or carried out. The most common benchmarks used are cost-effectiveness and profitability.
Performing the marketing audit?
Phase 1: Pre Audit
Determine the key persons who will conduct the audit.
Determine the timing of performance of audit.
Establish the scope and objectives of the audit
Determine and establish the methodology to be used.
Phase 2: Audit Proper
Data gathering and collection
Preparation of recommendations
Phase 3: Post Audit
The marketing report must be presented to management.
Recommendations will not be accepted easily, until all parties are satisfied the marketing strategy will not begin.