1. SMM 3rd Session

2. Topic to be covered…. Industry updates Marketing Audit
Segmentation, Productivity and ratio analysis

3. Marketing Audit

4. Marketing Auditing The organizations current market position
The process of marketing auditing is for many organizations is still a relatively new and underutilized activity. This is despite a substantial and growing body of evidence which suggests that organization’s performance in the market-place is influenced significantly and directly by the strategist’s perceptions of three factors:
The organizations current market position
The nature of environmental opportunities and threats
The organizations ability to cope with environmental demands

5. MARKETING AUDIT
A marketing audit is a comprehensive, systematic, independent and periodic examination of a company’s or business units-marketing environment, objectives, strategies and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s performance.

6. MARKETING AUDIT These definitions highlight the three major elements,
Potentials & benefits of the marketing audit:
The analysis of external environment and internal situation
The evaluation of past performance and present activities
The identification of future opportunities and threats

7. Five stages of marketing audit-cannon
Define the market (SOP, growth rate, PLC stage etc)
Determine the performance differentials (own vs industry)
Determine the differences in competitive programmes (Market n Product development)
Profile strategies of competitors
Determine the strategic planning structure

8. Marketing Audit-example

9. Research on Brand Health Indicators
This research revolves around the following strategic dimensions;
Awareness
Top of Mind Awareness
Spontaneous Brand Awareness
Aided brand Awareness
Ad Awareness
Total Brand Awareness
Usage
Brand Ever Used
Brand Used Most Often
Alternate Brand
Frequency of use
Previous brand
Length of usage
Disposition / Commitment
Category Involvement
Brand Attraction
Brand Satisfaction
Usage Future Intention
Imagery
International Brand
Good Quality
Attractive packaging
Good Value for Money
Good Taste
A brand for people like me
Brand Personality
etc.
Promotion Evaluation TV
Print
Radio
Internet
Company Representative
POS Promotion Material
Brand Activation

10. Market Segmentation
Market segmentation is the identification of who your current and potential customers are. In today's competitive world, market segmentation must include current and potential ultimate consumers of your product/service.

11. Market Segmentation
Customer characteristics and purchasing motivations provide the information needed to decide whether the firm can and should attempt to gain or maintain a sustainable competitive advantage for marketing to a particular market segment.

12. Bases for segmentation
Geographic variables:
region, population,
Demographic variables
Age, gender, income,education, family size etc
Psychographic variables
Interests, personality, self image, values & attitudes.
Behavioural variables
Usage rate, Price consciousness, occasion, user status

13. Segmental, productivity & ratio analysis
The starting point is the specification of the cost objects of interest, for example, the productivity of operating via different channels, or serving different customer groups.
Cost will be direct or indirect. Full cost needs to be determine for each cost object (i.e. segment), and the ways in which this can be done. Once this has been done the productivity can be measured and from these measurement question can be raised about the adequacy of each segment’s productivity. e.g. can effort be reallocated from segment A to segment B to improve these segments productivity?

14. Segmental, productivity & ratio analysis
In relation to the question “where are we
now?” it is useful to know that how
resources have been utilized and with
what returns. This is relevant whether the
organization is large or small,
commercial or non-commercial, engaged
in manufacturing or service rendering.

15. An illustration of segmental analysis
As discussed, a segment is any cost object which is
of interest, and is synonymous with the notion of
activity, project etc. Thus marketing segments may
be one – or a combination- of the following,
Product line or range
Channel of distribution
Sales representative or territory
Customer or customer/industry group
Size of order

16. Profit analysis by channel
Total A B C
Revenue
875
950
1,225
3,050
COGS
325
285
490
1100 GP
550
665
735
1950
Direct MC
265
245
450
960
Indirect MC
330
275
250
855
Total MC
595
520
700
1815
Net Profit
(45)
145 35
135

17. IMAGINE….. AN IMAGE SHOWING A COMPLETE OPPOSITE MEANING