What is a Marketing Audit?

A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company's marketing environment, objectives, strategies, and activities. It identifies problem areas and opportunities, recommending actions to improve marketing performance.

Characteristics of a Marketing Audit

  • Comprehensive: Covers all marketing activities, not just problem areas
  • Systematic: Follows an orderly sequence of diagnostic steps
  • Independent: Conducted by objective party (internal or external)
  • Periodic: Performed regularly, not just during crises

Components of a Marketing Audit

1. Marketing Environment Audit

  • Macro environment (PESTEL factors)
  • Task environment (markets, customers, competitors, channels)

2. Marketing Strategy Audit

  • Business mission and marketing objectives
  • Marketing strategy appropriateness
  • Resource allocation

3. Marketing Organization Audit

  • Formal structure adequacy
  • Functional efficiency
  • Interface efficiency between marketing and other functions

4. Marketing Systems Audit

  • Marketing information system
  • Marketing planning system
  • Marketing control system
  • New product development system

5. Marketing Productivity Audit

  • Profitability analysis by product, territory, customer
  • Cost-effectiveness analysis

6. Marketing Function Audit

  • Products and services
  • Pricing policies
  • Distribution channels
  • Advertising, promotion, and publicity
  • Sales force effectiveness

The Audit Process

  1. Define Scope: What will be audited and objectives
  2. Gather Data: Collect relevant information
  3. Analyze: Evaluate findings against standards
  4. Report: Present findings and recommendations
  5. Action: Implement improvements

Key Takeaways

  • Marketing audit is comprehensive, systematic, independent, and periodic
  • Six components: environment, strategy, organization, systems, productivity, functions
  • Should be conducted regularly, not just during crises
  • Results should lead to actionable improvements

Special Thanks to Mr. Kavit Kaul, JBIMS batch of 2009.