WHAT IS MARKETING AUDIT?

MAREKETING AUDIT

AUDIT IS A TOOL TO RECORD,ANALYSE AND INTERPRET INFORMATION IN ASSESSING INTERNAL RESOURCES WITH THE REQUIREMENTS OF EXTERNAL BUSINESS ENVIRONMENT

.HELPS

IS A PART OF THE OVERALL AUDIT OF THE BUSINESS.CAN NOT BE TREATED INDEPENDENT OF OTHER FUNCTIONS
AUDIT ANALYSES MKTG INFORMATION /ACTIVITIES FOR MEASURING PERFORMANCE OF PAST FOR MONITORING AND IMPROVING CAN BE USED AS A GUIDE FOR STRTEGIC DECISIONS FOR MKT POSITIONING
ANALYSIS MKTG

IT

MARKETING AUDIT ALSO HELPS IN LEARNING THE EXTERNAL MARKETING ENVIRONMENT FOR BETTER PLANING AND DECISION MAKING

MKTG AUDIT PROCESS INVOLVES THREE STAGES

1) EXTENSIVE STUDY/ANALYSIS OF PAST/PRESENT MKTG ACTIVITIES OF THE FIRM 2) FORECAST OF GROWTH RELATIVE TO THE CHANGING MKT CONDITIONS 3)SUGGESTIONS /RECOMMENDATIONS FOR IMPROVING QUALITY OF PLANS AND MKTG PERFORMANCE

BENEFITS OF MKTG AUDIT

HELPS AS A STARTING POINT FOR PLANING MKTG ACTIVITIES ANSWERS QUESTIONS ON MKTG ENVIRONMMENTINTERNAL &EXTERNAL

DOES NOT RECKON PREDETEMINED ANSWERS/ACTIVITIES. COMMITS DEEP INVOLMENT OF MANAGEMENT AND AUDITORS.

SERVES AS A VEHICLE FOR COMMUNICATION ACROSS EMPLOYEES DESIGN FRAME WORK FOR DECISION MAKING PROCESS.

MARKETING AUDIT IS EFFECTED BY MANY VARIABLES

CONTROLABLE-MOSTLY INTERNAL LIKE PRODUCTION CAPACITY,RESOURCES ,BUDGET ALLOCATION ETC NON CONTROLABLE WHICH ARE EXTERNAL LIKE MKT DEMAND,MKT CONDITION ,COMPETITION ETC.

AUDIT THEREFORE COVERS BOTH INTERNAL AND EXTERNAL ENVORONMENT

EVOLUTION OF MKTG AUDIT

THE TERM MARKETING AUDIT WAS FIRST INTRODUCED BY ABE SHUCHMAN IN

1959

EVOLUTION HAD FIVE STAGES STAGE ONE: 1950S AUDIT BASED ON o EXTENT TO WHICH MKT POSITION COULD BE IMPROVED o DESCRIPTION OF EVENT SCHEDULES AND TIME FRAMES o RESOURCES REQUIRED TO IMPLEMENT EVENTS AND ADHERE TO TIME FRAME ( THE FOCUS ON OBJECTIVES,POLICIES ,METHODS ,RESOURCES AND PROCEDURES)

SECOND STAGE1960S

o o

TREATED AS A NON ROUTINE AND SIGNIFICANT AUDIT DUE TO IMPOTANCE GIVEN TO MKTG FUNCTION IN GENERAL BECAME A PART OF THE APPRAISAL SYSTEM FOR MANAGERS PHILLIP KOTLER INTRODUCED SYSTEM LEVEL AND ACTIVITY LEVEL AUDIT DURING THIS PHASE THE FOCUS WAS ON MARKETING OPERATIONS APART FROM MKT PERFORMANCE WITHIN THE MKTG FRAME WORK OF MKTG UNIT
REGULAR AUDIT NOT ONLY FOR CRISIS

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o

SYSTEM LEVEL AUDIT HAD FOUR COMPONENTS

UNDERSTANDING MKTG OBJECTIVE DETERMINING THE EFFCTIVENESS OF MKTG PROGRAM ANALYSYING MKTG PROGRAM IMPLEMENTATION APPRASAIL OF PERSONNEL AND STRUCTURE OF ORGANISATION

ACTIVITY LEVEL AUDIT

CONSISTS OF

ANALYSING EACH ACTIVITY IN DEPTH

GAINING INSIGHTS INTO INDIVIDUAL ACTIVITIES TO ENHANCE OVERALL PERFORMANCE OF ORGANISATION

LOOKS AT THE PART OF MKTG PROGRAM IN DETAIL RATHER THAN LOOKING AT OVER ALL SYSTEMIC PERFORMANCE

THIRD STAGE1970S
MORE

EMPHASIS OM MKTG PROGRAM AND PERFORMANE RELATION SHIPS OF FUNCTIONAL DEPTS ON EACH ACTIVITY THROWN IN BY ACTIVITY LEVEL AUDIT

INTER

FROM SYSTEM AND ACTIVITY LEVEL BASED ANALYSIS IDENTIFYING LONG /SHORT TERM STRATEGIES

STAGE FOUR 1980S

FOCUS ON MKTG AUDIT AS A TOOL TO MEASURING MKTG EFFECTIVENESS OF THE ORGANISATION IN COMPARISON TO COMPETITION AUDIT WITH A CHECK LIST APPROACH OF 1) IS IT A FORMAL APPROVED PLAN?

2)IS IT COORDINATED WITH THE OPERATIONAL PLANS? 3) TIME TAKEN TO FORMULATE THE MKTG PLAN?

4 ) HOW OFTEN REVIEWED AND UPDATED?

5 ) ARE THERE QUANTITATIVE AND QUALITATIVE OBJECTIVES IN AUDIT PLAN.HOW QUALITATIVE PERFORMANCE VALIDATED AGAINST PERFORMANCE.?

STAGE FIVE1990s
FORMATION OF SBU S.AUDIT PLAN FOR EACH SBU GENERATION ACTION PLANS COMPUTERISED MARKETING AUDIT(CMA) CMA OPRATED ON 1) COMPUTERISED QUESTIONING

2) COMPUTERISED COLLECTION OF INFORMATION 3) PREPARATION AUDIT PLAN ,REVIEW BY PARTICIPANTS

COMPONENTS OF MKTG AUDITDIT

MARKETING

ENVIRONMENT AUDIT

MACRO ENVIRONMENT AUDIT TASK ENVIRONMENT AUDIT

MARKETI NG STRATEGY AUDIT

MISSION STATEMENT MKTG OBJECTIVES

MARKETING ORGANISATION AUDIT

STRUCTURE

FUNCTIONAL EFFICIENCY
INTERFACE EFFICIENCYR

MARKETING SYSTEM AUDIT

MKTG INFORMATION SYSTEM MKTG PLANING SYSTEM MKTG CONTROL SYSTEM NEW PRODUCT DEVELOPMENT SYSTEM

MKTG PRODUCTIVITY AUDIT

PROFITABILTY ANLYSIS COST EFFECTIVENESS ANALYSIS

MKTG FUNCTION AUDIT

PRODUCT PRICE DISTRIBUTION PROMOTION

PROBLEMS IN MKTG AUDIT

NO STANDARD PROCEDURES/GUIDELINS UNLIKE A/C AUDIT LACK OF CONTROL BY EXTERNAL BODIES CANT RELY ON TRACK RECORD LIKE A/C AND FINACE. OVER DEPENDENCE ON EXTERNAL AUDIT TO AVOID SUJECTIVITY