Understanding Marketing Audit

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1. The Marketing Audit
(Where are we now?)
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2. Objectives
ToUnderstandtheconceptofMarketingAudit
ToUnderstandtheCharacteristicsofEffectiveMarketing
Audits
ToUnderstandtheComponentsoftheMarketingAudit
ToUnderstandtheToolsforMarketingAudits
ToUnderstandtheUseofTOWSforMarketingAudit
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3. “The idea is to concentrate
our strength against our
competitor’s relative weakness”
Bruce Henderson
“Positive trends in the environment
breed complacency. That underscores
a basic point: in change there is both
opportunity and challenge”
Clifton Garvin
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4. What is the Marketing Audit?
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5. What is the Marketing Audit?
“A comprehensive, systematic, independent
and periodic examination of a company’s -or
business unit’s marketing environment,
objectives, strategies and activities with a
view to determining problem areas and
opportunities and recommending a plan of
action to improve the company’s
performance.” (CIM, 2012)
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6. Characteristics of Effective Audits:
Comprehensive
Systematic
Independent
Periodic
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7. Where Does the Marketing
Audit fit in?
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8. Where Does the Marketing
Audit fit in?
The
Management
Audit
Financial
Audit
Marketing
Audit
Personnel
Audit
Production
Audit
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9. Stages of the Audit:
Pre Audit Activities
The Assembly of Information
Information Analysis
Recommendations
(Grashof,1975)
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10. Components of the Audit:
The External and Internal EnvironmentAudit
INTERNAL AUDITS:
The StrategyAudit
The OrganisationAudit
The SystemsAudit
The ProductivityAudit
The FunctionsAudit
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11. Elements involved in an
Audit:
The analysis of the external environment and internal
situation.
The evaluation of past performance and present activities to
determine the companies strengths and weaknesses.
The identification of future threats and opportunities.
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12. THE“SWOT” ANALYSIS
INTERNAL
Strengths
Weaknesses
Opportunities
Threats
EXTERNAL
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13. In the Internal Analysis look out for:
Organisational Performance & Structure
Operations & Resources:
marketing objectives
marketing strategy
information systems
planning systems
functional efficiency
Inter-functional efficiency
profitability analysis
cost effectiveness analysis
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14. The Internal Analysis should
tell:
What the company is capable of doing
What it has the resources to do
This might well be different from what it is doing or what it wishes to do.
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15. THE“SWOT” ANALYSIS
INTERNAL EXTERNAL
Strengths Opportunities
Weaknesses Threats
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16. In an External Analysis look out for:
The business and economic environments
Political
Economic
Social / cultural
Technological
The market
The competition
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17. An External Analysis should tell:
What is happening in the environment, that the company cannot
control
What the company must monitor if it is to
identify opportunities and
avoid threats.
Again this may differ from what the organisation had perceived.
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18. Environmental Factors Surrounding An
Organisation
Organisation
Environment
Social / Cultural
Factors
Economic
Factors
Technological
Factors
Political /
legal
Factors
Competitors
Customers
(Current & Potential)
Demographic
Factors
Suppliers
Distributors & Intermediaries
Macro
Micro
Environment
Environment
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19. The Most Common Findings
of Marketing Audits:
A lack of knowledge of customers’ behaviour and
attitudes
A failure to segment markets effectively
The absence of marketing planning procedures
Reductions in price rather than increases in
volume.
The absence of market based procedures for
evaluating products.
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20. The Most Common Findings
of Marketing Audits (continued):
Misunderstanding company marketing strengths
(and weaknesses)
Short term views of the role of promotion.
A perception that marketing is limited just to
advertising and sales activity
Inappropriate organisational structures
Insufficient investment in the future, particularly
in the area of human resources.
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21. TOWS Analysis
TOWSAnalysisisanacronymforThreats,Opportunities,
WeaknessesandThreats.
WeuseTOWStoanalysetheexternalenvironment(threats
andopportunities),andyourinternalenvironment(weaknesses
andstrengths),youcanusethesetechniquestothinkaboutthe
strategyofyourwholeorganization.
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22. Using TOWS for Marketing
Byanalysingtheexternalenvironment(threatsand
opportunities),andyourinternalenvironment(weaknesses
andstrengths),youcanuseittothinkaboutyourmarketing
campaignandMarketingstrategy.
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23. How to Use TOWS
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24. How to Use TOWS
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25. How to Use TOWS
Step1:ConductareversedSWOTanalysisandrecordyour
findings.Thiswillhelpyoutoidentifytheopportunitiesand
threatsthatthecompanyshouldbelookingoutforaswellas
understandthestrengthsandweaknessesofthecompany.
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26. How to Use TOWS
Step2:Foreachcombinationofinternalandexternal
environmentalfactors,considerhowyoucanusethemto
creategoodstrategicoptions.
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27. Strengths and Opportunities (SO) –How can you use your
strengths to take advantage of these opportunities?
Strengths and Threats (ST) –How can you take advantage of
your strengths to avoid real and potential threats?
Weaknesses and Opportunities (WO) –How can you use
your opportunities to overcome the weaknesses you are
experiencing?
Weaknesses and Threats (WT) –How can you minimize your
weaknesses and avoid threats?
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28. Summary
Marketingauditisacomprehensive,systematic,independentandperiodic
examinationofacompany’s-orbusinessunit’smarketingenvironment,objectives,
strategiesandactivitieswithaviewtodeterminingproblemareasandopportunities
andrecommendingaplanofactiontoimprovethecompany’sperformance.”
TheTOWSMatrixisasimpletoolforgeneratingstrategicoptions.Byusingit,
youcanlookathowyoucanbesttakeadvantageoftheopportunitiesopentoyou,
andminimizetheimpactofweaknessesinordertoprotectyourselfagainstthreats.
Usethedetailedanalysisofyourthreats,opportunities,strengthandweaknessesto
considerhowyoucantakeadvantageoftheexternalenvironmentbyidentifyingthe
strategicoptionsavailabletoyou.
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29. Talent &
Skills HuB
T&S-HuBis an enabling environment that supports people
in the development of their talents and skills and in the
actualisation of their personal passions and ambitions.
We help learners and individuals sharpen and exhibit their
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You can be supported by our instructors, counsellors, and
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Book an appointment for one-to-one or group tutoring
through our website; ts-hub.com
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hub.com
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30. References and Further
Reading
CIM (2012) CIM 2 Assessing the Marketing Environment 2012,
London: BPP Learning Media, Ltd
Hiriyappa, B. (2018) Strategic Analysis, New York City: PublishDrive
Hiriyappa, B. (2018) Strategic Management and Business Policy: For
Managers and Consultant, New York City: PublishDrive

31. Further Support
AtTalentandSkillsHub,youcanbesupportedbyourinstructors,
academicskillsadvisorsandmentorsformarketingaudit.Youcanbookan
appointmentforone-to-oneorgrouptutoringthroughourwebsite;
ts-hub.com
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Copyright © 2021 Talent & Skills HuB