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The internal audit

UNIT 1. MARKETING AND THE COMPANY | MARKETING AND THE COMPANY | Memos are used only inside the company. | VALUE FOR THE CUSTOMERS | Opportunities | PESTLE and SWOT ANALYSES | Company performance | Recommendation | Methods of research | Personal, face-to-face |


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All the issues examined during the internal marketing audit and the planning that follows have implications for the capability of the organization. Capability is based on four fundamental elements:

 

1. Resources their quantity, quality and appropriateness for marketing

2. Systems capable of delivering value to customers (sales, service, logistics communication etc.)

3. A structure that provides for appropriate accountability and authority to deliver customer value

4. A culture in which everyone has a customer focus and will exhibit appropriate behavior.

The internal audit should allow the company to evaluate its performance in marketing that is, how well the investment in the marketing effort (the mix variables) has succeeded in producing the appropriate output in terms of results (sales, profit, customer satisfaction etc.)

 

Financial results – sales (value/volume) and profit by:   •customer, product, industry/market segment   Non-financial results: • customer satisfaction, loyalty   Market share by: • total market • industry/market segment   Marketing organization: • organization structure • marketing control systems and data   Marketing procedures: • current marketing planning system • marketing information systems • measurement and control procedures • marketing data analysis • action planning and results feedback • marketing HR responsibilities • inter-fu notional responsibilities     Marketing mix variables   • Product range/quality/development • Pricing • Discounts and credits • Stockholding policy • Unit of sale • Distribution • Sales channels • Sales support: • advertising and promotion • point of sale • public relations • packaging • sampling • exhibitions • training and development    

To put this internal audit analysis in context, the organization should benchmark itself against each major competitor, where possible. The purpose of the marketing information about the organization's resource strengths and competitive weaknesses is to determine the best strategic fit between the organization and its environment. The main areas are:

 

financial resources (present assets, their sources and uses; liabilities; financial ratios for comparison with industry ratios; level of risk; basic sales and cost analyses)

 

• physical resources (current short and long term facilities, such as property, plant, equipment, and inventory)

 

• human resources (the talents and abilities of managers and all other human resources, including outside specialists, key suppliers and customers)

 

technological resources (IT facilities and processes, including production, databases and intellectual property)

 

• organizational resources (the organization’s structure, systems and procedures that support implementation of the strategic plan).


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UNIT 5. THE MARKETING AUDIT| The external audit

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