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Who Needs a Marketing Audit?

risk assessment

The aim of a marketing audit is simple: “How well the marketing department of a company works or functions.” It compares the marketing plans of a company with its actual marketing performance.

Who needs a marketing audit?

The most common reasons to conduct a marketing audit are:

  • A lack of knowledge of customer behaviour and attitudes
  • A failure to segment the markets effectively
  • Absence of formal marketing planning procedures
  • Constant reductions in price and high reliance on price competitiveness
  • Absence of market-based procedures for evaluating products and services
  • Vague to no understanding of the company’s marketing strengths
  • Short-term views of the role of promotions and high reliance on short-term and tactical steps
  • Confusing marketing with advertising and sales; those are 3 separate functions
  • Poor organizational structures
  • Insufficient investment in the future especially in human resources

Benefits of a marketing audit

  1. A detailed analysis of the external and internal situations
  2. An objective evaluation of past performance and present activities
  3. A clear identification of future opportunities and threats

A marketing audit is very beneficial for the success of a client’s business as it only identifies those existing (external and internal) factors which will have a significant impact on the future plans of a company.

An audit finds out the strengths and weaknesses of a company’s product or service and suggests measures to remove weaknesses.

It also guides a company to adapt its marketing strategies with the changing marketing environments and helps a company to update its marketing strategies and control its marketing expenses.

Although the process of marketing auditing is a fundamental underpinning for the marketing planning process, it is for many organizations still a relatively new and under-utilized activity. This is despite a substantial body of evidence which proves that a company’s performance will greatly and instantly reap invaluable gains.