Environmental factors affect the marketing audit
This is in continuation to our last post on the subject of marketing audit. While we have earlier discussed the relevance of external factors in such audit, current entry will highlight the internal factors, related to the surrounding environment.
The market environment would reflect company’s policies with regard to its marketing plans and their implementation. However, internal and external factors involving environment have certain bearing on the company’s audit.
These relate to the market segment size, its growth pattern, company products and their pricing policies, distribution channels adopted by the company, and in relation to the industry functions towards the same, feedback from consumers and policies related to the practices prevalent within the industry being used to formulate hiring policies, the data and personal profile of the marketing and sales.
Conducting the marketing audit is essential to assess the result of current marketing strategies, in relation to the demand of the industry as a whole. This would highlight the criteria regarding staffing as well as the demographic analysis of the sales performed. In addition, this would also analyze the sales figures, according to industry, customers and products. Readers would be benefited if they go through the “Marketing Audit, published by Chartered Institute of Marketing”, which could be traced here.
This audit should consider the profit margins generated by the present marketing mix and marketing plans, along with the market share of the company’s products, within the particular industry and as a whole. In addition, the marketing information and other information available to the staff as well as their effectiveness to conduct related market research for preparation of an effective marketing mix and sales plans would also affect the overall company audit.
The most important internal factor, responsible for marketing audit is the cost involved with the marketing of the company products and the cost to sales return ratios as well as the critical financial ratios, thus arrived for the company’s performance. In addition, the SWOT analysis of the firm is essential to compare the same with that of competitors and find avenues that can augment the strengths while removing the existing weaknesses in the overall system.
The above information should be digested along with the infotips given in our last post on the subject. However, readers are advised to go though other literature available on the topic of marketing audit, available over the internet. Vievers can go throuh,the checklist for Sales and Marketing Overview, available here; as well as Marketing audit overview, which can be traced here. Meanwhile, readers should also go through other infotips to gain knowledge on varied issues.
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