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    MARKETING AUDITMARKETING AUDIT

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    IntroductionIntroduction

    The marketing audit can be viewed as an umbrella thatThe marketing audit can be viewed as an umbrella thatcovers efforts to assess customer needs and wants and tocovers efforts to assess customer needs and wants and tounderstand community patterns.understand community patterns.

    The external environment is examined on both micro andThe external environment is examined on both micro andmacro levels, including scanning for developing trends.macro levels, including scanning for developing trends.

    In addition to this analysis of the external environment,In addition to this analysis of the external environment,the marketing audit also analyzes the internalthe marketing audit also analyzes the internalenvironment.environment.

    The marketing audit has been defined byThe marketing audit has been defined by Phillip Kotlerhillip Kotler asas a comprehensive, systematic, independent anda comp

    rehensive, systematic, independent and

    periodic examination of

    periodic examination ofactivities and resourcesactivities and resourcesin orderin orderto determineto determine problem areas

    problem areasandand opportunitiesop

    portunitiesand toand torecommend a plan of actionrecommend a p

    lan of action..

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    Characteristics of Marketing AuditCharacteristics of Marketing Audit

    According to definition of Phillip Kotler, can be identified someAccording to definition of Phillip Kotler, can be identified somecharacteristics of marketing audit.characteristics of marketing audit.

    Comprehensive.Comprehensive. The marketing audit covers all the major marketing issues facingThe marketing audit covers all the major marketing issues facing

    an organization, and not only one or a few marketing troublean organization, and not only one or a few marketing trouble

    spots.spots. The latter would be called aThe latter would be called a functional auditfunctional audit if it covered only theif it covered only the

    sales force, or pricing, or some other marketing activity.sales force, or p

    ricing, or some other marketing activity.

    Systematic.Systematic.

    The marketing audit involves an orderly sequence of diagnosticThe marketing audit involves an orderly sequence of diagnosticsteps covering the organization's marketing environment,steps covering the organization's marketing environment,internal marketing system, and specific marketing activities.internal marketing system, and specific marketing activities.

    The diagnosis is followed by a corrective action plan involvingThe diagnosis is followed by a corrective action plan involvingboth short-run and long-run proposals to improve the markets.both short-run and long-run proposals to improve the markets.

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    Independent.Independent. The marketing audit is normally conducted by an inside orThe marketing audit is normally conducted by an inside or

    outside party who has sufficient independence from theoutside party who has sufficient independence from themarketing department to attain top management'smarketing department to attain top management's

    confidence and the needed objectivity.confidence and the needed objectivity.

    Periodic.Periodic. The marketing audit should normally be carried outThe marketing audit should normally be carried out

    periodically

    periodically instead of onlyinstead of only when there is a crisiswhen there is a crisis.. It promises benefits for the organization that is seeminglyIt promises benefits for the organization that is seemingly

    successful, as well as the one that is in deep trouble.successful, as well as the one that is in deep trouble.

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    Advantages of Marketing AuditAdvantages of Marketing Audit The audit provides the marketers with an in depthThe audit provides the marketers with an in depth

    view of the marketing activities that are goingview of the marketing activities that are goingaround in the concern.around in the concern.

    It brings out a complete picture of the entireIt brings out a complete picture of the entireoperations of the concern.operations of the concern.

    While revealing the various drawbacks the auditWhile revealing the various drawbacks the audit

    process also leads to efficiency.process also leads to efficiency. This process can also be used to lay down anThis process can also be used to lay down an

    improved marketing plan.improved marketing plan. A marketing audit can help a company refine itsA marketing audit can help a company refine its

    business practices and improve its productivity andbusiness practices and improve its productivity andprofitability.profitability.

    Marketing audit helps to marketing executives, topMarketing audit helps to marketing executives, topmanagement and investors to ensure that they aremanagement and investors to ensure that they aredoing the right things to help drive growth for theirdoing the right things to help drive growth for their

    organizations.organizations.

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    COMPONENT OF THE MARKETING AUDITCOMPONENT OF THE MARKETING AUDIT

    1. Environmental Audit1. Environmental Audit

    a) Macro Environmental Audita) Macro Environmental Audit

    b) Task Environmental Auditb) Task Environmental Audit

    2. Marketing Strategy Audit2. Marketing Strategy Audit3. Marketing Organization Audit3. Marketing Organization Audit

    4. Marketing System Audit4. Marketing System Audit

    5. Marketing Productivity Audit5. Marketing Productivity Audit6. Marketing Functions Audit6. Marketing Functions Audit

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    Marketing Environment AuditMarketing Environment Audit

    The auditor is firstly started their audit byThe auditor is firstly started their audit by

    looking at the factors that affect all companieslooking at the factors that affect all companies

    operating in marketplace, and also looking atoperating in marketplace, and also looking at

    their customers and their profits.their customers and their profits. Under marketing environment audit, followingUnder marketing environment audit, following

    two environments are concerned, because thesetwo environments are concerned, because these

    are very important under the marketing audit.are very important under the marketing audit.

    The macro-environmentThe macro-environment

    The task environmentThe task environment

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    Macro-Environmental AuditMacro-Environmental Audit The Macro-environmental component examinesThe Macro-environmental component examines

    six main areas, the detail depending on thesix main areas, the detail depending on theinvolvement of the business and involvementinvolvement of the business and involvement

    required by the industry.required by the industry.

    Under marketing audit, the macro environmentUnder marketing audit, the macro environment

    covers some environmental factors, like-covers some environmental factors, like-

    DemographicsDemographics major demographic major demographic

    developments and trends pose opportunities,developments and trends pose opportunities,

    Economical factorsEconomical factors - developments in income,- developments in income,prices, savings and credit will affect theprices, savings and credit will affect the

    company under that,company under that,

    Environmental factorsEnvironmental factors,,

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    Technological factorsTechnological factors - changes occurring in- changes occurring inproduct and process technology and company'sproduct and process technology and company'sposition in these technologies.position in these technologies.

    Political factorsPolitical factors - changes in laws and regulations- changes in laws and regulationsmight affect marketing strategy and tactics andmight affect marketing strategy and tactics andthe changes in the areas of pollution control,the changes in the areas of pollution control,

    equal employment opportunity, product safety,equal employment opportunity, product safety,advertising, price control, that affects theadvertising, price control, that affects themarketing strategy of company.marketing strategy of company.

    CulturalCultural - public's attitude towards business and- public's attitude towards business andtoward the company's products and changes intoward the company's products and changes incustomer lifestyles and values might affect thecustomer lifestyles and values might affect thecompany.company.

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    Task-Environment AuditTask-Environment Audit

    How competitive is the marketplace?How competitive is the marketplace? What are competitors doing, and are they doing it well?What are competitors doing, and are they doing it well? What might they be preparing to do?What might they be preparing to do? These are all vital to understand in preparing yourselvesThese are all vital to understand in preparing yourselves

    for the battle.for the battle. The task environment audit is evaluated under Markets -The task environment audit is evaluated under Markets -

    market size, growth, geographical distribution and profitsmarket size, growth, geographical distribution and profitsand major market segments, under customers -and major market segments, under customers -

    customers' needs and buying processes and also productcustomers' needs and buying processes and also productquality, service, sales force and price, Competitors,quality, service, sales force and price, Competitors,Distribution & dealers, Suppliers, Facilitators & marketingDistribution & dealers, Suppliers, Facilitators & marketingfirms and Publics.firms and Publics.

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    Marketing Strategy AuditMarketing Strategy Audit The marketing strategy audit is vital for company, and theThe marketing strategy audit is vital for company, and the

    marketing audit is make sure that the companys marketingmarketing audit is make sure that the companys marketingstrategy is fit withstrategy is fit with companys marketing goals and objectivescompanys marketing goals and objectivesas well asas well as corporate goals and objectivescorporate goals and objectives..

    Under the marketing strategy audit, the auditor evaluateUnder the marketing strategy audit, the auditor evaluatemarketing performance by evaluating marketing goals andmarketing performance by evaluating marketing goals andobjectives, company mission the move to the strategy ofobjectives, company mission the move to the strategy of

    organization.organization. Under strategy evaluation, the auditor may concern followingUnder strategy evaluation, the auditor may concern following

    type of questions:type of questions: Has the management articulated a clear marketing strategyHas the management articulated a clear marketing strategy

    for achieving its marketing objectives?for achieving its marketing objectives?

    Is the strategy convincing?Is the strategy convincing? Is the company using the best basis for market segmentation?Is the company using the best basis for market segmentation? Does the company have clear criteria for rating the segments?Does the company have clear criteria for rating the segments? Has the company developed an effective positioning andHas the company developed an effective positioning and

    marketing mix for each target segment?marketing mix for each target segment?

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    Marketing Organization AuditMarketing Organization Audit The marketing organization audit is mainly consideredThe marketing organization audit is mainly considered

    effectiveness of the organization activities as well aseffectiveness of the organization activities as well asefficiency of operation of company.efficiency of operation of company.

    Here all the activities and main management functionsHere all the activities and main management functionsare considered such as manufacturing, purchasing,are considered such as manufacturing, purchasing,financing as well as research and development.financing as well as research and development.

    Here the marketing auditor must make sure that theHere the marketing auditor must make sure that thecompany is actually achieved the effectiveness within thecompany is actually achieved the effectiveness within theorganization and also within the marketplace.organization and also within the marketplace.

    And also following types of questions are considered byAnd also following types of questions are considered bymarketing auditors:marketing auditors:

    Are there good communications and working relationsAre there good communications and working relationsbetween marketing and sales?between marketing and sales? Is the product-management system working effectively?Is the product-management system working effectively? Are product managers able to plan profits or only salesAre product managers able to plan profits or only sales

    volumes?volumes?

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    Marketing Systems AuditMarketing Systems Audit

    Here the marketing auditor is considered whether theHere the marketing auditor is considered whether thecompany is using appropriate marketing systems tocompany is using appropriate marketing systems tocollect the information, plan the activities, control thecollect the information, plan the activities, control theoperations and to maintain smoothly their day to dayoperations and to maintain smoothly their day to dayactivities and whether these systems are properlyactivities and whether these systems are properly

    worded within the company or not.worded within the company or not. Most of the organizations are today having differentMost of the organizations are today having differenttype of marketing systems to collect the informationtype of marketing systems to collect the informationand control the operation.and control the operation.

    Such as marketing information systems, marketingSuch as marketing information systems, marketing

    planning systems, marketing control systems andplanning systems, marketing control systems andnew product development systems.new product development systems.

    These systems have its own functions.These systems have its own functions. Here the marketing auditor task is to make sureHere the marketing auditor task is to make sure

    whether the systems are properly worked or not.whether the systems are properly worked or not.

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    Marketing Productivity AuditMarketing Productivity Audit Most of the companies are operating to earn so much ofMost of the companies are operating to earn so much of

    profits.profits. The marketing productivity audit is focused on evaluate theThe marketing productivity audit is focused on evaluate the

    company profits and revenue.company profits and revenue. So the marketing productivity audit is very important toSo the marketing productivity audit is very important to

    evaluate the marketing performance.evaluate the marketing performance. The marketing auditor is used profitability analysis and costThe marketing auditor is used profitability analysis and cost

    effectiveness analysis for their evaluation process.effectiveness analysis for their evaluation process. Under the marketing productivity audit, following typeUnder the marketing productivity audit, following type

    question asked by marketing auditor:question asked by marketing auditor: What is the profitability of the company's different products,What is the profitability of the company's different products,

    markets, territories and channels of distribution?markets, territories and channels of distribution? Should the company enter, expand, contract or withdraw fromShould the company enter, expand, contract or withdraw from

    any business segments?any business segments? Do any marketing activities seem to have excessive costs?Do any marketing activities seem to have excessive costs? Can cost-reducing steps be taken?Can cost-reducing steps be taken?

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    Marketing Function AuditMarketing Function Audit Under the marketing function audit, the auditor is using marketingUnder the marketing function audit, the auditor is using marketing

    mix elements to analyze company functions such as product, price,mix elements to analyze company functions such as product, price,place and promotion.place and promotion.

    Here marketing auditor evaluates marketing performance by askingHere marketing auditor evaluates marketing performance by askingquestions under product, price, place and promotion such asquestions under product, price, place and promotion such as

    What are the company's product-line objectives?What are the company's product-line objectives? Which products should be phased out?Which products should be phased out? Which products should be added to?Which products should be added to?

    What are the company's pricing objectives, policies, strategies andWhat are the company's pricing objectives, policies, strategies andprocedures?procedures?

    To what extent are the prices set on cost, demand and competitiveTo what extent are the prices set on cost, demand and competitivecriteria?criteria?

    Do the customers see the company's prices as being in line with theDo the customers see the company's prices as being in line with thevalue of its offer?value of its offer?

    What are the organization's advertising objectives?What are the organization's advertising objectives? Is there adequate market coverage and service?Is there adequate market coverage and service? Should the company consider changing its distribution channels?Should the company consider changing its distribution channels? Is the right amount being spent on advertising?Is the right amount being spent on advertising? What do customers and the public think about the advertising?What do customers and the public think about the advertising?

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    MARKETING AUDIT TOOLS ANDMARKETING AUDIT TOOLS AND

    TECHNIQUESTECHNIQUES Marketing audit is very important and crucial part in theMarketing audit is very important and crucial part in the

    marketing planning process.marketing planning process. It is not only carried out at the beginning of theIt is not only carried out at the beginning of the

    marketing planning process but also it can bemarketing planning process but also it can beimplemented during the marketing planning process.implemented during the marketing planning process.

    The marketing audit can be influenced on marketingThe marketing audit can be influenced on marketingplanning process through various external and internalplanning process through various external and internalfactors.factors.

    Here there are number of marketing audit tools andHere there are number of marketing audit tools andtechniques that are used during the marketing planningtechniques that are used during the marketing planningprocess to evaluate the marketing performance of anprocess to evaluate the marketing performance of anorganization.organization.

    The following analysis tools are utilized during aThe following analysis tools are utilized during amarketing audit:marketing audit:

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    SWOT AnalysisSWOT Analysis The one of the most important tools in the marketing audit isThe one of the most important tools in the marketing audit is

    SWOT analysis or can be express as Strength, Weaknesses,SWOT analysis or can be express as Strength, Weaknesses,Opportunities and Treats analysis.Opportunities and Treats analysis.

    This tool is very much important to marketers and is used at theThis tool is very much important to marketers and is used at thebeginning of the marketing audit process.beginning of the marketing audit process.

    Some of disadvantage of SWOT analysis are that it is verySome of disadvantage of SWOT analysis are that it is verysubjectivesubjective and cannot be relied on too much.and cannot be relied on too much.

    However, most of the companies are used this SWOT analysis asHowever, most of the companies are used this SWOT analysis as

    tools to evaluate the marketing performance of an organization.tools to evaluate the marketing performance of an organization.

    SWOT stands for strengths, weaknesses, opportunities, andSWOT stands for strengths, weaknesses, opportunities, andthreats.threats.

    Strengths and weaknesses are internal factors.Strengths and weaknesses are internal factors. Opportunities and threats are external factors.Opportunities and threats are external factors. The SWOT analysis can be express as below:The SWOT analysis can be express as below: Strengths and weaknesses are internal factors that create valueStrengths and weaknesses are internal factors that create value

    or destroy value.or destroy value. They can include assets, skills, or resources that a company hasThey can include assets, skills, or resources that a company has

    at its disposal, compared to its competitors.at its disposal, compared to its competitors. They can be measured using internal assessments or externalThey can be measured using internal assessments or external

    benchmarking.benchmarking.

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    Some strengths of an organization are as follows:Some strengths of an organization are as follows: Your specialist marketing expertiseYour specialist marketing expertise A new, innovative product or serviceA new, innovative product or service

    Location of your businessLocation of your business Quality processes and proceduresQuality processes and procedures Any other aspect of your business that adds value to yourAny other aspect of your business that adds value to your

    product or serviceproduct or service

    Some weaknesses of an organization are as follows:Some weaknesses of an organization are as follows: Lack of marketing expertiseLack of marketing expertise Undifferentiated products or services (i.e. in relation toUndifferentiated products or services (i.e. in relation to

    competitors)competitors) Location of your businessLocation of your business Poor quality goods or servicesPoor quality goods or services Damaged reputationDamaged reputation

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    Opportunities and threats are external factors that create value orOpportunities and threats are external factors that create value ordestroy value.destroy value.

    A company cannot control them.A company cannot control them.

    Some opportunities of an organization are as follows:Some opportunities of an organization are as follows: A developing market such as the InternetA developing market such as the Internet Mergers, joint ventures or strategic alliancesMergers, joint ventures or strategic alliances Moving into new market segments that offer improved profitsMoving into new market segments that offer improved profits A new international marketA new international market A market vacated by an ineffective competitorA market vacated by an ineffective competitor

    Some threats of an organization are as follows:Some threats of an organization are as follows: A new competitor in your home market.A new competitor in your home market. Price wars with competitors.Price wars with competitors. A competitor has a new, innovative product or service.A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution.Competitors have superior access to channels of distribution. Taxation is introduced on your product or service.Taxation is introduced on your product or service.

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    PEST AnalysisPEST Analysis These environmental factors may be internal or external.These environmental factors may be internal or external. The internal factors consist of the staff and queriesThe internal factors consist of the staff and queries

    related to them.related to them. The external would be the external customer and theThe external would be the external customer and the

    various distributors and the political and economic factorsvarious distributors and the political and economic factorsare also taken into consideration.are also taken into consideration.

    The PEST analysis tool is a valuable framework forThe PEST analysis tool is a valuable framework foridentifying opportunities and threats in the macroidentifying opportunities and threats in the macro(external) environment.(external) environment.

    This analysis tool is extremely important to any marketingThis analysis tool is extremely important to any marketingaudit, simple or complex; as it drives the company toaudit, simple or complex; as it drives the company toinvestigate what factors may help or impede them toinvestigate what factors may help or impede them tocarry out business and marketing activities.carry out business and marketing activities.

    The PEST analysis can be express as follows-The PEST analysis can be express as follows-

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    Political FactorsPolitical Factors

    Political factors can have a direct impact on the wayPolitical factors can have a direct impact on the waybusiness operates.business operates.

    Decisions made by government affect the operations ofDecisions made by government affect the operations ofunits within the company to a varying degree.units within the company to a varying degree.

    Political refers to the big and small p political forces andPolitical refers to the big and small p political forces andinfluences that may affect the performance of, or theinfluences that may affect the performance of, or theoptions open to the unit concerned.options open to the unit concerned.

    The political factors have a huge influence upon theThe political factors have a huge influence upon theregulation of public and private sector businesses, andregulation of public and private sector businesses, andthe spending power of consumers and other businesses.the spending power of consumers and other businesses.

    Political factors include government regulations and legalPolitical factors include government regulations and legalissues and define both formal and informal rules.issues and define both formal and informal rules.

    Economic FactorsEconomic Factors

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    Economic FactorsEconomic Factors All businesses are affected by economical factors nationallyAll businesses are affected by economical factors nationally

    and globally.and globally. Whether an economy is in a boom, recession or recovery willWhether an economy is in a boom, recession or recovery will

    also affect consumer confidence and behavior.also affect consumer confidence and behavior. This will impact upon the nature of the competition faced byThis will impact upon the nature of the competition faced bythe company and particular units within the company, uponthe company and particular units within the company, uponservice provision, and upon the financial resources.service provision, and upon the financial resources.

    Economic factors affect the purchasing power of potentialEconomic factors affect the purchasing power of potentialcustomers, and the state of the internal/external economy incustomers, and the state of the internal/external economy in

    the short and long-term.the short and long-term. The unit may need to consider: economic growth, interestThe unit may need to consider: economic growth, interest

    rates, inflation rate and inflation rate.rates, inflation rate and inflation rate.

    Social/Cultural Factorsocial/Cultural Factors Social factors will include the demographic changes, trends inSocial factors will include the demographic changes, trends in

    the way people live, work and think and cultural aspects ofthe way people live, work and think and cultural aspects ofthe macro environment.the macro environment.

    These factors affect customer needs and the size of potentialThese factors affect customer needs and the size of potentialmarkets such as population growth rate, age distribution,markets such as population growth rate, age distribution,career attitudes, internal/external emphasis on safety andcareer attitudes, internal/external emphasis on safety andinternal/external attitudes to change.internal/external attitudes to change.

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    Technological FactorsTechnological Factors New approaches to doing new and old things and tacklingNew approaches to doing new and old things and tackling

    new and old problems do not necessarily involve technicalnew and old problems do not necessarily involve technicalfactors, however, technological factors are vital forfactors, however, technological factors are vital forcompetitive advantage, and are a major driver of change andcompetitive advantage, and are a major driver of change andefficiency.efficiency.

    Technological; factors can for example lower barriers to entry,Technological; factors can for example lower barriers to entry,reduce minimum efficient production levels, and influencereduce minimum efficient production levels, and influenceoutsourcing decisions.outsourcing decisions.

    New technology is changing the way business operates.New technology is changing the way business operates. The Internet is having a profound impact on the strategy ofThe Internet is having a profound impact on the strategy of

    organizations.organizations. Technological revolution means a faster exchange ofTechnological revolution means a faster exchange of

    information beneficial for businesses as they can react quicklyinformation beneficial for businesses as they can react quicklyto changes within their operating environment.to changes within their operating environment.

    For examples automation, technology incentives, rate ofFor examples automation, technology incentives, rate oftechnological change, perception of technological changetechnological change, perception of technological changewithin the unit and stakeholder expectation.within the unit and stakeholder expectation.

    Fi F A l iFi F A l i

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    Five Force AnalysisFive Force Analysis

    In this analysis the marketer basically goesIn this analysis the marketer basically goes

    through five basic areas of concern.through five basic areas of concern.

    The areas can be identified into five areas asThe areas can be identified into five areas as

    Threat of substitute productsThreat of substitute products

    Threat of new entrantsThreat of new entrants

    Rivalry among competitors,Rivalry among competitors,

    Bargaining power of customers andBargaining power of customers and

    Bargaining power of suppliers.Bargaining power of suppliers.

    There are some advantages in this analysis; itThere are some advantages in this analysis; itleads to economics of large scale with the helpleads to economics of large scale with the help

    of mass purchasing and sales performance of anof mass purchasing and sales performance of an

    organization.organization.

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    The existence of close substitute productsThe existence of close substitute products

    increases.increases.

    The propensity of customers to switch toThe propensity of customers to switch toalternatives in response to price increasesalternatives in response to price increases

    (high elasticity of demand)(high elasticity of demand)

    Buyer propensity (tendency, inclination) toBuyer propensity (tendency, inclination) tosubstitutesubstitute

    Relative price performance of substituteRelative price performance of substitute

    Threat of substitute products-Threat of substitute products-

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    Threat of new entrantsThreat of new entrants

    Profitable markets that yield high returns willProfitable markets that yield high returns willdraw firms.draw firms. This results in many new entrants which willThis results in many new entrants which will

    effectively decrease profitability.effectively decrease profitability. Unless the entry of new firms can be blocked byUnless the entry of new firms can be blocked by

    incumbents, the profit rate will fall towards aincumbents, the profit rate will fall towards acompetitive level (perfect competition)competitive level (perfect competition)

    The existence of barriers to entry (perfect rightsThe existence of barriers to entry (perfect rightsetc.)etc.)

    Economies of product differencesEconomies of product differences Brand equity (Product= core value + perceivedBrand equity (Product= core value + perceived

    value)value)

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    Rivalry among competitorsRivalry among competitors

    For most industries, this is the majorFor most industries, this is the major

    determinant of the competitiveness of thedeterminant of the competitiveness of the

    industry.industry.

    Sometimes rivals compete aggressively andSometimes rivals compete aggressively andsometimes rivals compete in non-pricesometimes rivals compete in non-price

    dimensions such as innovation, marketing etc.dimensions such as innovation, marketing etc.

    No. of competitorsNo. of competitors

    Rate of industry growthRate of industry growth

    Intermittent industry overcapacityIntermittent industry overcapacity

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    The bargaining power of customersThe bargaining power of customers

    The ability of customers to put the firmThe ability of customers to put the firm

    under pressure and it also affects theunder pressure and it also affects the

    customers sensitivity to price changescustomers sensitivity to price changes

    Buyer concentration to firm concentrationBuyer concentration to firm concentration

    ratioratio

    Degree of dependency upon existingDegree of dependency upon existing

    channels of distributionchannels of distribution

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    The bargaining power of suppliersThe bargaining power of suppliers

    Suppliers of raw materials, components, laborSuppliers of raw materials, components, laborand services (such as expertise) to the firm canand services (such as expertise) to the firm canbe a source of power over the firm.be a source of power over the firm.

    Suppliers may refuse to work with the firm, orSuppliers may refuse to work with the firm, ore.g., charge aggressively high prices for uniquee.g., charge aggressively high prices for unique

    resources.resources. Supplier switching costs relative to firm switchingSupplier switching costs relative to firm switching

    costscosts Degree of differentiation of inputsDegree of differentiation of inputs Presence of substitute inputsPresence of substitute inputs Supplier concentration to firm concentrationSupplier concentration to firm concentration

    ratio.ratio.