What a Strategic Marketing

Audit can tell you!

 Richard P Gee

Marketing strategist since 1983

Workshops, seminars, conference speaker
to over 170,000 in 26 countries.

Interactive author, 9 books & 100’s articles

Company director & owner
 Our program today:

What is a marketing Audit?

What is a brand audit?

Environments

Information

Ethics & Decisions

Creating the audit
 Our program tomorrow

Making decisions

Evaluating

Frequency

Values

Measures

Future
 The marketing audit…

A strategic approach to review marketing
environments, objectives & activities in
today’s evolving market…..

“The best way to review, evaluate and

improve the marketing function is to
undertake a marketing audit”

Kotler…
 The marketing audit

“a Comprehensive, systematic,
independent, examination of the companies
environment, objectives, strategies, and
activities to determine problem areas and
opportunities and to recommend a plan of
action to improve the companies marketing
performance” It covers all major marketing
areas, not just a few trouble spots”

Kotler.
 The marketing audit

“A systematic, critical and unbiased review
and appraisal of the basic objectives and
policies of the marketing function and of the
organisation, methods, procedures, and
people, employed to achieve the
objectives”

Stanton.
 The marketing audit

After the fact?

It is a evaluation of the effects of

alternatives before a decision is
reached!

It is the practice of preventative as well

as curative marketing medicine!
 The marketing audit

Identifies weaknesses…

Suggests ways to eliminate…

Capitalise on successful operations…

Anticipate future situations…

Covers all business areas…

Findings can surprise & shock!

Improves marketing performance…
 The marketing audit

The macro-environment

economic
demographic resources

political
technology cultural
 The marketing audit

The tasks…
markets
customers

competitors
channels
suppliers

publics
 The marketing audit

strategy
mission objectives

strategy budgets
 The marketing audit

organisation
structure

efficiency

interface
 The marketing audit

systems

planning information control

New
developments
 The marketing audit

productivity

profitability
profitability Cost
Cost
Effectiveness
Effectiveness
 The marketing audit

function
u cts
d
pro price

distribution

Sales
force
Custo advertising
mer
service
 The brand audit

Brands are built from publicity!

Brands are not advertising!

Brands are
perceptions..
 The brand audit

The power is with the brand name…

Consumer franchise=customer loyalty

 The brand audit

A brand is a name, sign, symbol or design
or combination of these to identify the
goods or services and differentiate….

A brand is a “sellers promise” to deliver to

buyers
 The brand audit

delivers
attributes

benefits

values
personality
 The brand audit

Brand equity= customer equity

Brand awareness

Brand preference

Brand loyalty

Customer lifetime value!

 Market research

Vital strategy in today’s fast changing
markets…

Decisions are made from correct information

based on research from customers &
markets…..continuously!!!!

More than quality control…

 The marketing audit

& research……

Yes it is research on your own

business….marketing …branding and
systems….& people…
 The marketing audit

Can correct mis-directed effort…

Can stop wasted effort…

Can build courage..
 2006

The marketing audit in 2006….

Communication is changing fast…

Life cycles are shorter…

R.O.I is shorter…riskier…

Performance, K.P.I. is measurement of choice….

Desire to improve all elements!!!....now!

People do business with people!

Marketing is the key!
 The marketing audit

Example: Format:

Sectional questions requiring review and action..

Identify “now”

Decide “ok” or recommend action

Set date

Can miss out questions or sections for relevancy..

Encourage discussion…

Document “now” and “action” for decision later.
 The marketing audit

Example: Format:

Can require more detail for answer

Can reference plans and documents

Will highlight success

Will highlight weakness

Will un cover errors, & people problems
 The marketing audit

Will measure marketing
effectiveness across all areas of
the business by questions!

Will highlight decisions
to be made!
 Audit: Preparation Policies

People do business with People…

Your policy:

Not personal…not a witch hunt…

Communicate benefits for business

Involve all relevant people.

Stress “Independent over view”

Time for decisions and review decisions
after audit…
 Audit :preparation

Agree don’t stop looking for answers

Agree no personal attacks, hidden agenda’s,
vendetta's.

Determine how to handle “Gross negligence”
when found.

Focus on information accuracy.

Team talk before starting, during and end.

No “half baked” decision results until finished
audit.
 Exercise

In groups discuss how you would design
your policy guideline for maximum
effectiveness for the success of the audit.
 The marketing audit:
mis-directed efforts

80-20 Pareto rule.: marketing effort follows
rather than relates to potential or actual.

Sales volume drives decisions not potential

ROI. Over time

Lack of detailed information “iceberg”

 The marketing audit:
mis-directed efforts

Lack of knowledge of marketing costs and
how much to spend to get results.

Lack of measurement e.g. customer cost of

acquisition $$$ analysis

Lack of profitability per action of selling

units, or marketing cost analysis.
 The marketing audit:
mis-directed efforts

Fighting between analysis, planning,
implementation, and control.

Goals, lack measure or evaluation of

performance and corrective actions not
taken.

Environment [external] threats &

opportunities not actioned in time.
 Macro environment

economic
demographic resources

political
technology cultural

income
 Micro Environment

Close to company that effect it’s ability to
serve customers.
Channels
Of
company suppliers distribution

Middlemen
Agents customers
agencies Publics
interest

technology
 The marketing audit;
micro/macro

[a] The economy and environment:

history, economy, government, demographics,
culture, e-commerce, technology

[e] Short/Long term: markets

Profitability, economic.

[g] Buying habits:

[j] Product Life cycle:

[ll] Marketing Control
 The marketing audit

The tasks…
markets
customers

competitors
channels
suppliers

publics
 The marketing audit

strategy
mission objectives

strategy budgets
 The marketing audit

organisation
structure

efficiency

interface
 The marketing audit

systems

planning information control

New
developments
 The marketing audit

productivity

profitability
profitability Cost
Cost
Effectiveness
Effectiveness
 The marketing audit

function
u cts
d
pro price

distribution

Sales
force
Custo advertising
mer
service
 The marketing audit
information processes

[b] Markets:

[c]Trends:

[d]Competition:

[f]Size:

[g]Buying habits:

[k]Service influences:

[r]Customers:

[w]Record keeping:

[gg]Results:

[nn]Information sources:
 The marketing audit
Objectives

[oo]Objectives: what has been set and
how is it measured…

[uu]Evaluating Results

[mm]People:

How effective is your brand?

What are your Advertising Objectives
designed to achieve?
 The marketing audit
demand

[o]Selling & Distribution

[p]Customer service:

[q]Call cycles:

[aa]Distribution:
 The market audit
advertising/promotion

[ee]Promotion

[ff]Advertising copies:

What P.R. was undertaken or is in place?

What Sponsorship do you undertake?

[gg]Results:

[hh]Promotional offers:

[ii]Direct marketing:

[jj]Preparation versus communication:
 The brand audit

How effective is your brand?

What Measures of the brand
perceptions via research are done!

When did you last examine your brand
through your customer eyes, does it
deliver?

What brands and product categories had
what expenditure on them?
 The marketing audit
products/services

[h] Products /Services

[I]Profit:

[j]Product Life cycle:

[k]Service influences:

[l]Developments over the last year:

[u]Add on lines:
 The marketing audit
competitors

[n]Competitors:

[d]Competition:
 The marketing audit
social & ethical decisions

What attitudes and feelings ?

What changes in lifestyle?

What social community effects?

What are the customer values based on?

What ethics is society demanding?

How important are ethics in 2006?

How important location?
 The marketing audit
social criticisms

High prices

Poor quality

Dangerous

Misleading advertising claims

Deceptive practices

Planned obsolescence

Poor service

High pressure selling
 The market audit
social criticisms

False wants & materialism

Cultural pollution

Politics

Consumerism!

Environmentalism!

Regulate more!
 The market audit
social strategies

Freedom of choice

Cubing potential harm

Meeting needs

Economic efficiency

Innovation

Education & Information

Consumer protection
 The marketing audit
resources

People?

Equipment?

Technology?

Systems?

Time?

Brand values?

Distribution channels?

Where are your values?

 The marketing audit
Distribution

Customer service
expectations?

Channels ?

Alternatives?

Efficiency levels?

Costs?
 The marketing audit
products/services

Core products/services?

Generic? House brands?

Niche?

Phrase out options?

New products/services
development?

Relationship to market demand?
 The market audit
pricing

How do you set pricing? cost? Demand?
competitive?

Effectiveness of promotion? Advertising?
Short term strategies?

Ability of sales process to discount?

Trading terms ?
 The marketing audit
promotional effectiveness

Program planning?

Target market media?

Relationships with PR & Sponsorship?

Cost of customer acquisition?

Measurements ?

Cause related marketing?
 The marketing audit
information

Internal records?

Market intelligence
systems?

Market research?

Quality control?

Information analysis?

Reviews planning?
 The market audit
cost evaluation

Cost models?

Cost versus competitive advantage?

Sales volume vs. profitability

Cost analysis=entire distribution cost

Costs are a function of volume!

Volume is a function of costs!

Allocating costs and timing…

The stakeholders.
 The market audit
cost strategies

Analysis of ledgers

Analysis of functional expenses

Contribution to overhead costs

Analysis of market segments

Volume vs. cost analysis
 The marketing audit

Frequency depends on depth!

Annually or at least 2-3 yearly

Continuous review or specific time.

 The marketing audit

What are your experiences with marketing
audits?

Share with us?

 What a Strategic Marketing Audit
can tell you!

What have you gained from this seminar?

Use the postcard to record 3 tasks to put

into place and your address…

12 months email support

 The Challenge

If you send me an email communicating “one”
task you have put into place,
success@geewiz.co.nz

You will receive a double CD set!

Thank you

Richard Gee

www.geewiz.co.nz

www.successful.co.nz

www.richardgeewiz.com

www.professionalspeakersnz.com
Richard Gee

Marketing Consultant

Interactive Author

Sales, Mgmt Training

Conference speaker

Seminar Leader

Ph 0800 GEEWIZ

www.geewiz.co.nz

Regular Seminars!