Marketing Audits and Its Importance to an Organisation

merchandise scrutinizes and its importance to an plaque As of I am starting to write this essay, an historic and astonishing incident happened in USStandard & Poors first time downgraded American Federal Bonds nisus AAA to AA+. Look at the messed up world sparing take c arUS is suffering from recession without separately better signs, Europe is attempt with debt crisis, only growth engine China is also slowing down.We argon facing the greatest uncertainty ever experienced before, as for economic society, walking away from this desperate situation needs to review register and come across appropriate tools, from an compositions point of view, one of the potent tools is to seek for effective and regular merchandising canvass to cope with rapidly changing economic environment. Definition and Purposes of selling Audit The concept of selling analyse dated back to 1950s and evolved through application phase of 1960s, fast 1970s, growing period of 1980s and 1990s until n ow. The followings are several definitions of selling audits A comprehensive examination of an organisations merchandising structure, programs and effect-Peter Rix, Marketing-a practical approach Systematic, critical, rigorous and unbiased study of efficiency of any trade activities at heart an organisation extending to evaluation of each and every operating(a) objective and their effective coordination-Brian Monger, Marketing in black white A periodic, comprehensive, systematic, and in accountent examination of the organisations trade environment, natural market system and specific market activities-Philip KotlerThe purposes of merchandise audit are to find marketing opportunities, locate marketing issues, seek right short bourn and long term solution, which ensure the implementation of marketing plans or the modification of unreasonable plans to improve an organisations overall marketing murder. Components of the Marketing Audit An effective and rounded marketing au dit covers six components 1/ Marketing environs Audit Through auditing marketing environment in which it operates, an organisation could find if its marketing strategy is adapt to the marketing environment, and if any changes needed.The marketing environment consists of two subclasses, one is the macro environment which entangles semipolitical/legal, economic, social/cultural and technological, and a nonher one is industry and competitive environment. In short, PEST+C. 2/ Marketing Strategy Audit It mainly visualize whether or not an organisations goals and objectives reflect market orientation, if the organisation takes right competition position, seizes market opportunities and allocates appropriate resources. 3/ Marketing makeup AuditThe marketing auditor needs to consider the decision-making ability of marketing organisation, as well as its ability of summary, planning and execution. Other factors include its strain capacity to market, and its interaction with other functi on de authorityments. 4/ Marketing Systems Audit It focusinges on whether or not an organisation has well-established and effective systems for study collection, planning and control. All these systems can be classified as internal systems, external systems, vertical and horizontal marketing systems.A vertical marketing system (VMS) is one in which the main members of a distri howeverion ductproducer, wholesaler, and retailerwork together as a unified stem in order to meet consumer needs. A horizontal marketing systems(HMS) core in which members at the same level in a convey of distribution band together in strategic alliances or peg ventures to exploit a new marketing opportunity. 5/ Marketing productiveness Audit A marketing organisation needs analyses on profits, cost-benefit, the audit covers performance examinations on sale-profit rates, costs of marketing, collection and inventory, etc.It also examines if on that point exists excessive cost expenditure and correspondi ng solutions on cost reduction. 6/ Marketing Function Audit Marketing function audit targets on marketing elements such as products, prices, places and promotions, as well as performance evaluation on marketing organisation, it consists of overall audit, sales audit, market probe audit, and advertising audit. The auditors, through marketing function audit, may spot issues within marketing management and make relevant recommendations. Main Characteristics of the Marketing AuditMarketing Audit is a process of comprehensive, systematic and independent analysis and sound judgment of companys marketing environment, objectives, strategies and activities to identify problem areas and operational strengths and weaknesses and recommends the courses of action to be taken to improve companys overall marketing performance and make marketing strategies and plan more effective and result oriented. The main characteristics can be summarised as the followings, 1/ It should be comprehensive and br oad in focus covering the entire marketing environment of the company. / It should be an objective knead and independent of the managers directly involved in making the marketing decisions. 3/ It should be a systematic and orderly sequence of diagnostic move as compared to an unstructured and random investigation. 4/ It should be carried out periodically. The marketing audit should be undertaken on a regular basis and not only when major problems arise. Main elements to be included in a marketing audit The key elements of a marketing audit are 1/ Marketing MixFor products it includes Product, Price, Place-distribution and Promotion For services it includes Product, Price, Place-distribution, Promotion, People, Processes and Physical Environment 2/ Product Life Cycle pic 3/ Competitive favour A competitive advantage is an advantage over competitors gained by pass consumers greater value, either by means of lower prices or by providing greater benefits and service that dearifies higher prices. 4/ Internal and external assessment SWOT PEST The Marketing Audit Process and Participants likely to be involvedThe marketing audit process proceeds with the following steps, Firstly, picture up the audit objectives and scope, preparing relevant documentation, deciding time period for the audit. Secondly, gathering the data, carrying interviews and inquiries. Finally, preparing the audit report, presenting conclusions and providing relevant solutions. Bearing in mind, the most valuable part if the marketing audit often lies not so much in the auditors specific recommendations but in the process that managers get off to go through to assimilate, debate, and develop their own concept of the needed marketing action. The Marketing Audit Comes of Age by Philip Kotler, William T. Gregor and William H. Rodgers III The participants likely to be involved cover all stakeholders including management levels, ordinary staff, suppliers, dealers, customers even shareholders and communities the organisation located in. Who of these stakeholders and to what extent get involved in the audit depend on the organisations specific requirements. Times when a marketing audit should be undertakenThe marketing audits could be undertaken on conventional and improper bases, which means on one hand an organisation needs to conduct regular and periodic audit and examine whether or not it and its each function unit achieve setting goals and objectives, if any changes needed to its strategy, on the other hand, if an organisations internal departments or independent units are performing poorly, it should carry a thorough marketing audit to facilitate them find reasons and improvement methods. Various forms of a marketing audit The marketing audit must be carried independently by an inside audit, onducted by a person or group inside the company but outside the operation being evaluated, or an outside audit conducted by a management consulting firm or practitioner. Why the y are considered to be one of the most practical and gainful tools available to a marketer. The marketing audits cover all major marketing areas of a business, not just a few trouble spots. It assesses the marketing environment, marketing strategy, the marketing organisation, marketing systems, the marketing mix and marketing productivity and profitability.The audit is normally conducted by an objective and experienced outside party who is independent of the marketing department. The decision can come as a surprise, and sometimes as a shock, to management. Management then decides which actions make sense and how and when to implement them. The marketing audits proceed to make marketing strategy and plan properly, are beneficial for co-ordinated a business internal resources with external resources, realise better and profitable operating results.