The Marketing Audit

and the Marketing Plan

Systematically takes stock of an

organisation’s marketing health and
plans the direction and scope of
marketing activities
Definition
 “the means by which a company can
understand how it relates to the
environment in which it operates...
 ..the means by which a company can
identify it’s own strengths and weaknesses
as they relate to opportunities and threats”
 The marketing plan serves as a roadmap
that guides the context and scope of
marketing activities
McDonald 1989
Marketing audit issues
 Internal audit (Portfolio analysis, PLC)
 Macro-environment (PEST)
 Task environment (Competition, channels,
customers)
 Markets
 Strategic issues (segmentation, positioning,
competitive advantage)
 Marketing mix (7Ps)
 Marketing organisational structure and
organisation
 Internal audit :Coca-Cola
strategic objectives
1. accelerate carbonated soft drinks growth, led by Coca-Cola

2. broaden the family of products, wherever appropriate e.g. bottled water, tea,
coffee, juices, energy drinks

3. grow system profitability & capability together with the bottlers

4. creatively serve customers (e.g. retailers) to build their businesses

5. invest intelligently in market growth

6. drive efficiency & cost effectiveness by using technology and large scale
production to control costs

7. enabling our people to achieve extraordinary results everyday.

Internal audit: how to plot
the portfolio matrix
The BCG Matrix
 Assess the general level of growth in
the product’s market
 Measure the market share relative to
the largest competitor in the industry
 Decide whether there are enough
strong products to support weak ones
 Is the portfolio balanced between
existing strength and emerging
opportunity?
Coca-Cola: product/market summary
Bottled water: size and segmentation. Look at each
Market in turn and find growth rate
 Bottled water: brand shares
Identify brand leader market shares

The CC brand Malvern has less than 1% market share. Express in terms of
Brand leader’s share.
 Portfolio analysis for CCGB

Malvern Water

8.5% market
growth

0.06
RMS
PLC questions

 Where is each product in it’s lifecycle?

 Which products are profitable?

 Should new products be added to the

portfolio?
 Which products are worth supporting?
Macro-environment: PEST
Purpose of PEST analysis
 What environmental factors are affecting
the organisation?
 Which of these are most important at the
present time?
 Which of these are most important in the
future?
 Forms the Opportunities (area of buyer
need) and Threats (unfavourable trend
requiring defensive action) of the SWOT
analysis
Political/legal factors
(including Global factors)

 Monopolies/competition legislation
 Environmental protection laws (eg “environmental
protection legislation favours hybrid technologies”)
 Taxation policy
 Foreign trade regulations
 Employment law
 Government stability
 Important political events
 Critical global markets
 Newly industrialised countries
Economic factors

 Personal savings rates

 Interest rates

 Money supply

 Inflation

 Unemployment

 Disposable income

 Energy: availability and cost

Sociocultural factors
(including Demographic factors)

 Population demographics
 Income distribution
Eg increasing concentration
 Social mobility of worlds population in
cities
 Lifestyle changes
 Attitudes to work and leisure
 Shifts in preferences regarding product and
service characteristics
 Levels of education
 Concerns about the environment
Technological factors

 Spending on research
 Focus of technological effort

 New
discoveries/developments/product
innovations
 Rates of obsolescence
Task environment:
Competitor analysis
 Identify and analyse competitors very
carefully
 Potential competitors/emerging
competition
 Emerging needs

 Competitor product range

 Competitor marketing activities

Example competitors for CCGB
Potential Key Success
Factors
Marketing and Innovation Production Finance Management
market
position
Customer Technology Resources Parent Entrepreneurial
orientation company quality
Product quality Research and Means of Cashflow Staff turnover
development production
Market Patents People Current
knowledge position
Sales
promotion
Service

Market share

Brand loyalty

Brand
awareness
 Scores on Key Success
Factors of Competitors
Characteristics Competitor A Competitor B Competitor C Group of
small
competitors

Customer 4 4 3 2
satisfaction

Strong brand 5 4 2 1
image

Sales 4 3 3 1
promotion
Product 4 3 3 3
Quality
Finance 5 3 3 2
1 = very weak, 5 = very strong
Defining our position in the
market
Competitive Benchmarking

Origin8 Delicafe
Pret a Manger
Starbucks Coffee
Customers, segmentation,
positioning
 How are markets segmented?
 Macro (demographics: age, income,
gender)
 And micro segmentation variables (lifestyle,
usage, personality)
Task environment:
Behavioural segmentation
Usage segmentation
Demographic segmentation
Psycho-demographic segmentation
Psychographic segmentation
Psychographic segmentation

Lifestyle typologies
-eg “slob” = “I do
not consider my
diet to be healthy”
Internal analysis: Marketing
mix
 Products
 Prices

 Promotional activities

 Distribution

 New product development

 Customer service
Product strategy
Summarise

 What products at what prices for what

customer segments?
 Market share of each product or line?
 Stages in PLC of each product?

 Which products account for largest

proportion of sales and profits
 What are strengths and weaknesses of
each product
Product strategy
 Opportunities for modifications or
additions in each segment
 What are weaknesses and threats to
products
 How do each products features,
benefits, branding, packaging
compare with competitive offerings
 What changes to lines and mixes will
help achieve goals
Place (channel) strategy
 How and where do customers prefer
to buy?
 Describe current distribution strategy
 Which channels perform the best?
 How does each channel contribute to
sales, profits etc?
 Channel implications of new
strategies?
Pricing strategy
 How does pricing strategy support the objective (eg
skimming, penetration?)
 How do channel decisions affect pricing
 How do promotion decisions affect pricing
 What are the products costs and how do they affect
the price?
 How do customers see relationship between price and
benefits?
 What are prices and costs of competing products?
 Are discounts an appropriate tactic?
 Is it advisable to raise prices and if so how?
Promotion strategy
 Who is the target audience and what are
appropriate promotion tools and messages?
 What do we want to achieve through
promotion?
 How will we use advertising, sales
promotion, PR, direct marketing, personal
selling?
 Message content, emotional or rational
SWOT analysis

 Strengths and weaknesses focus on

present, past, internal factors
(portfolio analysis, marketing mix):
where we are now
 Opportunities and threats focus on
present, future, external factors
(competitors, PEST): where we
want/don’t want to be
CCGB –
Strengths/Weaknesses
 STRENGTHS  WEAKNESSES
 Existing brand  Heavily dependent
names on carbonates
 Brand  Unbalanced
attractiveness to portfolio
retail partners  Market failures
 Strong distribution (Dasani, Burn)
network  Unresponsive to
 Ability to take risks consumer trends
CCGB –
Opportunities/Threats
 OPPORTUNITIES  THREATS
 Strong growth  Saturation/decline
health segments in carbonates
 Sports/energy  Growth in retailer
 Growth in brands
pub/restaurant  Health concerns
premium soft/juice  Ethical concerns
sector  Benzene in diet
drinks
Marketing objectives
 Fill the gap between “where we are
now and where we want to be”
 “How will we get there?”
 S pecific
 M easureable
 A chievable
 R elevant
 T ime bound
 Marketing objectives
Develop present Discover new Improve quality
User markets User markets
Market development Product improvement
Improve existing
Products to increase Improve
use ENLARGE INCREASE service
Product THE MARKET
development MARKET SHARE
Improve
IMPROVE Customer
Develop new PROFITABILITY service
products
Sales volumes Availability
Eliminate
Increased
Increase sales and Unprofitable Credit
efficiencies
Marketing effort Lines/activities
 Growth objectives
PRODUCT

Current New

Current MARKET PRODUCT

PENETRATION DEVELOPMENT
MARKET

New MARKET
DIVERSIFICATION
DEVELOPMENT

Ansoff’s Growth Matrix

Sample marketing objectives
 UNIT SALES: sell 1000 units in each
targeted segment during every month in
2007
 MARKET SHARE: Capture 3% of the UK
freshly squeezed orange juice market by
June 2007
 PRODUCT DEVELOPMENT: Develop and
introduce two new products targeting xyz
segments by June 2007
 ORDER FULFILMENT: Cut the order cycle
time to I day by June 2007
Marketing strategy
 Marketing strategies are the means by
which the objective will be achieved
 Generally concerned with marketing mix
elements
 Product: delete, add, modify,
designs,packaging
 Price: policy for products/segments
 Place: distribution channels, customer
service
 Promotion: advertising, sales force, sales
promotion, PR, exhibitions, direct mail
The first year implementation plan

 Specify actions to put strategy into

operation
 Describe actions in respect of each
marketing mix element individually
Product strategy
 Describe in detail your new product/service idea
 Who is the target customer and how will it meet their
needs?
 What customer benefit are you selling? Eg product
features/packaging, taste, convenience, quality
 “Mean Bean Chilli: vegetarian with nine distinctive bran
varieties, and fire roasted green chillies with a robust
blend of spices. Available in an easy to open
microwaveable sachet in individual 250g servings”
Price strategy
 Make the price point clear (you have
researched prices earlier in the marketing
audit)
 Identify the price position relative to
competitors eg higher quality higher price
 Howlin Coyote Mean Bean Vegetarian Chilli
is £2.99 for a 250g serving. The significant
taste advantage and the convenience
advantage justify the premium price position
relative to competitor x, y, z
Distribution strategy

 Howlin Coyote Mean Bean Vegetarian

Chilli will be distributed through
existing channels/new channels
 Method of distribution eg direct,
wholesalers, retailers
 Types of retailer, examples
Promotion strategy
 How will you use advertising, personal selling, direct
marketing, internet promotion, sales promotion, PR,
sponsorship?
 What are the key promotional activities
 Think about your communication message, your
choice of communications media and promotional
costs
 How will you encourage consumers to trial a new
product?
 “Instore demonstrations of Howlin Coyote Mean Bean
Chilli will be conducted to give consumers a chance to
learn about the product’s unique qualities. To generate
trial and repeat purchase money off coupons will be
distributed in-pack, via direct mail, in-store”
Which type of promotional
activity?
Advertising to create
awareness

Sales promotion and

personal selling are
interactive and
encourage trial

Advertising to encourage
repeat purchase and
loyalty
Other strategies

 People, Physical Evidence and

Process must be considered if you are
proposing a new service or if there are
key process elements in your
distribution strategy (such as Dell)
Week 2: key terms
 Marketing audit
 Marketing plan
 Marketing objectives
 PEST analysis
 SWOT analysis
 BCG matrix
 Macro segmentation variable
 Micro segmentation variable
 Market penetration
 Market development
 Product development
 Diversification