MARKETING AUDIT – MANAGEMENT AND BENEFITS

Group 1

Keval Savla Avadhoot Hinge Gopal Dhage

Nishad Patil Priyanka Gund Pranay Shetty

Marketing Audit

Definition – “A marketing audit is a comprehensive, systematic, independent & periodic examination of a company’s – or business unit’s – 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 marketing performance”

Marketing Audit

Initially internal audit covered only

financial & stores functions

However, recently, organizations have

included operational management areas

under internal audit.

Need to reorient internal audit to

maintain market position.

Methodology

Step 1 – Selection of a proper team of internal

auditors.

Step 2 – Scanning the available information

within the organization.

Step 3 – Discussions with various levels of

different functions.

Step 4 – Develop questionnaires for data

collection from various branches.

Step 5 – Field Work

Elements of Field Work

Clear Communication

Branch Personnel

Distributors

Customers & Competitive Distributors

Report

Marketing – Environment Audit

Macroenvoirnment

Agricultural incomes

Huge government expenditure

Development of SSI & traders

Introduction of petrol engines

Legal & Regulatory policies

Year Growth (%)

1984-85 18.5

1985-86 17.7

1986-87 17.4

1987-88 23.3

1988-89 40.8

Markets

Rural Market Growth

% growth over previous

1987 1988 1989 1988 1989

All cars 151243 159279

177409

5.3 11.38

Only Maruti 92669 106509

106509

2 12.67

Other Cars 58574 64704 70850 10.47 9.5

Market Growth of Cars

% growth over previous

1987 1988 1989 1988 1989

79295 85518 95302 9.22 11.32

Growth in Tractor Market

Enterprise

Form Generic Desire

•Maruti,•Telco,• Ford(Escort),•Toyota

•Two wheeler manufactures - (Bajaj Auto, Kinetic Honda), •LCV( Ashok Leyland, Japanese LCVs)

•Any other mode of transportation (people and goods)

•Do not want to buy a vehicle

Task Environment - Competitors

Strategies of Maruti Gypsy Handouts for dealer circulation

emphasizing on negative features of Jeep Profile of potential buyers Merits of Gypsy over Jeep Dealer’s guidance – list of government

employees

Task Environment - Competitors

Publics

Employees Government

Suppliers

Distributors and dealers

Facilitators

Competitors

Customers

Task Environment - Publics

Marketing – Strategy Audit

Segmentation done on basis of product – CJ – Rural rich, opinion leaders, village level

politicians, farmers CJ 540 DP – Largely authorised/ unauthorized

taxis MM 540 DP – Higher class rural rich, politicians,

entrepreneurs, liquor merchants etc. CJ 340 DP – Younger generation, farmhouse

owners Segments clearly defined. Positioned itself as rugged, sturdy,

multipurpose vehicle.

Marketing – Organization Audit

Functional Efficiency

o Training to sales personnel's

o Supervision of distributors

o Strict actions against irresponsible dealers

o Lack of internal communication (marketing –

dealers – customers)

Marketing & manufacturing – o Does not enjoy enviable statuso Uncomfortable drive & rideo Old technologyo Higher maintenance cost

Financeo Low resale valueo Jeep financing treated as a low priority areao No particular finance company exclusively

providing finance for M&M

Organization Audit – Interface Efficiency

Marketing – Organization Audit

R & D

o Improving the quality of product

o Understanding the perceived risks

o Finding out the acceptance of the product

after Gypsy penetration

o Analyzing on the weaknesses of Gypsy &

improvising them as an opportunity

Marketing Systems Audit

The marketing team should regularly

interact with customers

Communication between the marketing

team and dealers

Product development and new product

ideas from customers and dealers

Marketing Productivity Audit

The last TV ad campaign did not

generate enquiries

Enter into SUV and MUV

Marketing Function- Audits

Products• CJ, CJ-540DP, MM540DP & CJ-340DP• Attitude towards products• To add MD-2340 engine in CJ• XD 4.90 petrol engine in CJ- 340DP• Some cosmetic changes• Competitors product and strategy

Price

Efficiency of Diesel offset by high

maintenance cost

Price higher than LCVs

Distribution

• Current Distribution strategy

• Inefficiency of Dealers

Advertising, Sales promotion & publicity

Current advertising strategy

o Merits of Jeep over Gypsy

o Japanese monk’s testimonial ad in newspaper

o Failures/problems faced experienced by Gypsy owners.

o Change of TV campaign from usage to the reliability &

elegance of Jeep.

o Housewives as influencing factor should be considered

for advertising & promotional strategy.

• Learning from Rajdoot

Sales force

• Team to visit the place in north-east

propagating the benefits of CJ-340DP

Marketing – General Advertising Strategies

o Inclusion of Jeep as a product with major

ancillary advertisers

o Customer & employee interaction with

the product – Contest of naming the Jeep

Models

o Discreet campaign emphasizing on the

fact of Maruti using foreign exchange.

Marketing – General Advertising Strategies

o Association with tyre company – MRF in

demonstrations/melas.

o Less frequency of price revisions to get a

psychological advantage over its

customers.

o Strict action against irresponsible dealers.

o Direct mail campaign to government

institutes.