Three important steps to include when conducting a marketing audit
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- Cori Bates
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1 Three important steps to include when conducting a marketing audit 1. Assessing the environmental & macro influences in our specific industry What major demographic changes / economic trends will affect this industry / the organisation? GNP growth forecast for the country & industry? Population growth expected for the geographic territory is...? What are the emerging / new regulatory laws affecting demand? Others overall attitude to this organisation? - favourable vs...? What cultural / business practice changes affecting industry demand? What are the major industries? the biggest % of revenue is from? the second is? The change in total market UNIT sales forecast for the next year? - What % growth is that on the previous year? - maximum potential unit sales is? The change in total market UNIT sales forecast for our current biggest customer the next year is...? The change in total market UNIT sales forecast for our second biggest customer over the next year is? Who estimated this forecast, & on what core basis / assumptions? - any market research support avail? - how recent is that research? - quantitative / qualitative?
2 2. Making a broad assessment of our general marketing situation Do we have a strategic marketing plan for the current year? - Who prepared it? - When is the next one - for next financial year due? - Are we to withdraw from any specific markets soon / when? - Which new markets are we planned to penetrate / enter? Improving Profitablility through Strategic Marketing sales volume productivity Expand the market Retain existing customers market share* prices Convert non users Loyalty programmes Win competitors customers Rationalise product mix Promote new uses* Product combinations Organisation alliances Reduce costs usage rate service quality distribution Fixed Variable * eg P & A to demonstrate competitive advantages
3 What % of the potential market are aware of this product / category? - What actions are likely to improve that awareness? - What association / industry bodies plan to assist in this? What new applications / uses are forecast - to expand potential? - new niche market segments envisaged? What % new geographic coverage is planned ( & the potential units ) - What added sales force capacity can be used there? - What logistical problems other barriers are expected? - What regulatory problems other barriers are expected? To improve intensity of market penetration; are we developing new distribution arrangements / alliances?... - With whom? What % change is forecast for the total market unit prices next year? - maximum potential is? What % change is forecast for the total market unit costs next year? - maximum potential is?
4 3. Assessing the buyer decision making process How well do we know the typical selection criteria customers apply when deciding between alternatives ( & given their time constraints ) eg - product availability - reputation / agent / retailer recommendation - initial costs vs annual fees - financial assistance / delayed payment terms - convenience / safety aspects - the product s aesthetics / looked good / emotive reasons - personal preference / family decision - persuasive advertising / clear vs misleading etc - quality / perceived importance of brand / reputation of supplier - safety issues ( & environmental concerns ) - back-up service guarantees / warranties - retailer s depth of information available / person s manner etc - buyer experiences and expectations ( met vs not met & why ) a friend s advice / peer pressure / an independent recommender s / influence - brand loyalty influences
5 Core influences on Demand Opinions of our organisation Customer perceptions of our prices Customer needs & wants for products Opinions of our products & services Market Demand Awareness of choices available Experiences with customer service & the bill Competitive Offers External influences & trends Cliff Howard Copyright Falcon Writing
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