Marketing Audit Guide

Transcription

1 Marketing Audit Guide The following is an overview of what will be discussed during the Marketing Audit. Customization and personalization, based on your specific situation, will occur. 1. The Current State of Business a. Historical Performance i. The topics should be an overview of the historical performance (minimum 1 year, maximum 5 years) by target audience(s), product(s) and service(s). ii. Factors to consider include: 1. List and describe target audience(s) 2. List product(s) and service(s) offered to the audience(s) 3. List revenue (units sold, revenue by product(s) and service(s), by market/geography, by target audience(s)) 4. List expenses (units sold, revenue by product(s) and service(s), by market/geography, by target audience(s)) 5. List other key metrics such as awareness, perception, market share b. Strengths, weaknesses, opportunities, threats c. The Future i. Project any organizational changes, growth in personnel count and changes in material assets. Discuss any new product or business concepts that have some likelihood of affecting your organization. If new technologies are on the horizon that could influence your way of doing business, explain 2. General Market Description a. Target Market(s) i. Geographic local, regional, national, international etc. b. The Target Audience i. Prospect Objectives ii. Segmentation and Distribution 1. Consumer and/or Business a. Demographics b. Firmographics c. Problems, wants, needs, expectations and perceptions d. How does the buyer gather information e. What drives progress through the buying process f. At what point in the buying process do they typically contact you g. Describe each segment/group as one person age, sex, personality etc. iii. Size- Past, Present and Future 1. What is the size of each segment and can it support your growth goals in the future?

2 iv. Alternative solutions available to prospects c. Environmental Influence (PEST) i. For each target market, discuss environmental factors influencing the sale of your products or services. These might include factors such as new government regulations, fuel oil shortages, an aging population, greater health consciousness, etc. You should be very specific as to why these factors are positive or negative for your enterprise and how you expect to use that knowledge. d. The Competition i. Competitive Overview 1. Who are they 2. What products/services do they compete and is it primary, secondary or tertiary? ii. Market Share for competitors and your firm 3. Goals and Objectives a. Goals are more philosophical (leader in the industry). b. Objectives are measurable and must be achieved within a specific time frame and serve as proof that your goal has been achieved. (Increase sales from $100 to $200 by October 1 st 20XX) 4. Marketing & Sales Strategies a. Product and Service Strategies i. Product & Service Lines ii. Current Products/Services iii. Value to the purchaser 1. Detailed benefits for each segment/persona that the product/service serves iv. Opportunities for New Products and Services 1. How have these opportunities been identified and what is the plan for quantifying the size of the opportunity, competition etc. v. Specific New Products/Services vi. Value to the purchaser b. Pricing Strategy i. Premium Pricing: Use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights. ii. Penetration Pricing: The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV. iii. Economy Pricing: This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc. iv. Price Skimming: Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to

3 attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. v. Psychological Pricing: This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar. vi. Product Line Pricing: Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2; wash and wax $4 and the whole package $6. vii. Optional Product Pricing: Companies will attempt to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other. viii. Captive Product Pricing: Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor. ix. Product Bundle Pricing: Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach. x. Promotional Pricing: Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free). xi. Geographical Pricing: Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price. xii. Value Pricing: This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds. c. Distribution Strategy i. Distribution Channel Volumes d. The Sales Process i. This section should also address the process for each target audience segment. Key factors will include: 1. Process for identifying new prospects such as list and media sources 2. Qualification process to determine if the new prospect is a qualified lead

4 3. Contact strategy for initiating and managing relationship with qualified leads through first purchase 4. Contact strategy for managing relationships with existing customers/buyers including referral generation and possible up-sell, cross-sell of additional products and services with the customer/buyer ii. Ideally, this will incorporate marketing/promotional activities such as direct mail, , events along with the sales activities which may include inbound/outbound telemarketing, outside sales, etc. e. Promotional Strategy f. There are two basic promotion strategies, PUSH and PULL. i. PUSH maximizes the use of all available channels of distribution to push the product into the marketplace. This usually requires generous discounts or commissions to achieve the objective of giving the channels incentives to promote the product, this minimizing your need for advertising. ii. PULL requires direct interface with the end-user of the product. Use of channels of distribution is minimized during the first stages of product promotion and a major commitment to advertising and publicity generation is required. The objective is to pull the prospects into the various channel outlets, creating a product demand the channels cannot ignore. g. Factors to consider: i. Product price ii. Product quality iii. Relationships with channels iv. Competitors relationships with channels v. Channel discount requirement vi. Potential for publicity vii. Avenues for advertising viii. Kind of product h. This is the section where you bring together the target audiences by segment and explain how you will achieve your objectives by promoting the products and services (products and services strategy), price (pricing strategy) in order to produce the desired results for the sales and distribution channels. Specific attention should be placed on communication channels advertising (broadcast, print, online, outdoor), direct mail, electronic ( , viral marketing, corporate/product website, search engine optimization), events (trade shows, conferences), sponsorship (sports, entertainment), partner marketing (professional associations, other). 5. Company s Marketing & Sales Organization a. Organization Factors i. Marketing Organization ii. Sales Organization iii. Personnel Count Projection b. Key Personnel i. Experience & Functional Responsibility ii. Key Positions Not Filled

5 6. Key Issues for Management 7. Action Plans