The Marketing Audit

What is it? A comprehensive independent and periodic examination of a company’s marketing environment, objectives, strategies and activities Done with the view of determining problem areas and a plan of action to improve company’s performance

Four characteristics Comprehensive – covers all the basic activities of the business Comprehensive – covers all the basic activities of the business Does not confine itself to a few problem areas only Does not confine itself to a few problem areas only It looks for the real source of marketing problems It looks for the real source of marketing problems Completeness in all areas is the key in this characteristic Completeness in all areas is the key in this characteristic

Systematic Its an orderly examination of the organization’s macro and micro marketing environment. Its an orderly examination of the organization’s macro and micro marketing environment. The audit will show the most needed area of improvement The audit will show the most needed area of improvement Helps to seek the best way to corrective action Helps to seek the best way to corrective action

Independent Often it is best for the audit to be independent Often it is best for the audit to be independent They may not meet the other three criteria but have one advantage and that is objectivity They may not meet the other three criteria but have one advantage and that is objectivity

Periodic Often only done periodically Often only done periodically This is usually to solve a problem that has come up like poor sales This is usually to solve a problem that has come up like poor sales This only solves part of the problem because the really reasons can be missed or not looked at completely This only solves part of the problem because the really reasons can be missed or not looked at completely

1. Macro Environment Demographics Demographics Economic Economic Technological Technological Political Political Cultural Cultural

Tasks to Look At Markets Markets Customers Customers Competitors Competitors Distributors Distributors Suppliers Suppliers

2. Marketing Audit - mission - mission -objectives and goals -strategy 3. Organization Audit - formal structure -functional efficiency - interface efficiency

4. Systems Audit - marketing information system - marketing planning system - marketing control system - new product development system 5. Productivity Audit - profitability analysis - cost-effectiveness analysis

6. Marketing Function Audit - products - price -distribution - advertising - sales force

What does this mean? You need to analysis your business and not just in the problem areas You need to analysis your business and not just in the problem areas You need to seek answers to the problems but before they even happen You need to seek answers to the problems but before they even happen Pharma Sim is based on doing a marketing audit and solving the problems in all areas Pharma Sim is based on doing a marketing audit and solving the problems in all areas