MARKETING AUDIT MANAGEMENT AND BENEFITS

Group 1

Keval Savla Dhage

Nishad Patil

Avadhoot Hinge
Priyanka Gund

Gopal
Pranay

Marketing Audit

Definition A marketing audit is a comprehensive, systematic, independent & periodic examination of a companys or business units marketing environment, objectives, strategies and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the companys marketing performance

Marketing Audit
Initially internal audit covered only financial & stores functions However, recently, organizations have included operational management areas under internal audit. Need to reorient internal audit to maintain market position.

Methodology
Step 1 Selection of a proper team of internal auditors.

Step 2 Scanning the available information within

the organization. Step 3 Discussions with various levels of different functions. Step 4 Develop questionnaires for data collection from various branches.

Elements of Field Work

Clear Communication Branch Personnel Distributors Customers & Competitive Distributors Report

Marketing Environment Audit

Macroenvoirnment
Agricultural Huge

incomes

government expenditure of SSI & traders

Development Introduction

of petrol engines

Legal

& Regulatory policies

Markets
Rural Market Growth
Year
1984-85

Growth (%)
18.5

1985-86
1986-87 1987-88 1988-89

17.7
17.4 23.3 40.8

Market Growth of Cars

% growth over previous
1987 All cars 151243 1988 1989 1988 5.3 1989 11.38

159279 177409

Only Maruti

92669

106509 106509

12.67

Other Cars

58574

64704

70850

10.47

9.5

Growth in Tractor Market

% growth over previous

1987

1988

1989

1988

1989

79295

85518

95302

9.22

11.32

Task Environment - Competitors

Enterprise Form Generic Desire

Maruti, Telco, Ford(Escort ), Toyota

Two wheeler manufactures (Bajaj Auto, Kinetic Honda), LCV( Ashok Leyland, Japanese LCVs)

Any other Do not want mode of to buy a transportation vehicle (people and goods)

Task Environment - Competitors

Strategies of Maruti Gypsy

Handouts

for dealer circulation emphasizing on negative features of Jeep Profile of potential buyers Merits of Gypsy over Jeep Dealers guidance list of government employees

Task Environment - Publics

Employees Government

Facilitators Suppliers Publics

Competitors

Distributors and dealers Customers

Marketing Strategy Audit

Segmentation done on basis of product

Rural rich, opinion leaders, village level politicians, farmers CJ 540 DP Largely authorised/ unauthorized taxis MM 540 DP Higher class rural rich, politicians, entrepreneurs, liquor merchants etc. CJ 340 DP Younger generation, farmhouse owners
CJ

Segments clearly defined. Positioned itself as rugged, sturdy,

Marketing Organization Audit

Functional Efficiency
o
o o o

Training to sales personnel's

Supervision of distributors Strict actions against irresponsible dealers Lack of internal communication (marketing dealers customers)

Organization Audit Interface Efficiency

Marketing & manufacturing
o o o o

Does not enjoy enviable status Uncomfortable drive & ride Old technology Higher maintenance cost Low resale value Jeep financing treated as a low priority area No particular finance company exclusively providing finance for M&M

Finance
o o o

Marketing Organization Audit

R&D
o o o

Improving the quality of product Understanding the perceived risks Finding out the acceptance of the product after Gypsy penetration

Analyzing on the weaknesses of Gypsy & improvising them as an opportunity

Marketing Systems Audit

The marketing team should regularly interact with customers

Communication between the marketing team and dealers

Product development and new product ideas from customers and dealers

Marketing Productivity Audit

The last TV ad campaign did not generate enquiries

Enter into SUV and MUV

Marketing Function- Audits

Products CJ, CJ-540DP, MM540DP & CJ-340DP Attitude towards products To add MD-2340 engine in CJ XD 4.90 petrol engine in CJ- 340DP Some cosmetic changes Competitors product and strategy

Price

Efficiency of Diesel offset by high maintenance cost

Price higher than LCVs

Distribution

Current Distribution strategy Inefficiency of Dealers

Advertising, Sales promotion & publicity

Current advertising strategy

o
o o o

Merits of Jeep over Gypsy

Japanese monks testimonial ad in newspaper Failures/problems faced experienced by Gypsy owners. Change of TV campaign from usage to the reliability & elegance of Jeep.

Housewives as influencing factor should be considered for

advertising & promotional strategy.

Learning from Rajdoot

Sales force

Team to visit the place in north-east

propagating the benefits of CJ-340DP

Marketing General Advertising Strategies

o

Inclusion of Jeep as a product with major

ancillary advertisers
o

Customer & employee interaction with the

product Contest of naming the Jeep Models

o

Discreet campaign emphasizing on the fact of Maruti using foreign exchange.

Marketing General Advertising Strategies

o

Association with tyre company MRF in

demonstrations/melas.
o

Less frequency of price revisions to get a

psychological advantage over its customers.

o o

Strict action against irresponsible dealers. Direct mail campaign to government institutes.