DISCUSSION
1. Definition of Marketing Audit
Basically, the audit is a tool for companies to understand how the company relates to the environment in which companies operate. Audit is an enterprise tool to identify strengths and weaknesses as they relate to the opportunities and threats. Audit is a way to help the management to choose a position in the environment based on known factors.
Marketing audit process for many organizations is still relatively new and is an activity that is less utilized. Although there is a substantial collection of evidence and developed by suggesting that the performance of an organization and the market is significantly affected directly by the perception strategist on 3 factors, namely:
a. Now the organization's market position;
b. The nature of environmental threats and opportunities; and
c. The ability of organizations cope with environmental developments.
Definition of the audit has been proposed by Shuchman (1950) and Kotler (1988). For example, Schucman have proposed that the audit is a systematic reviewers, critical, and impartial of the total marketing operation: from the basic objectives and policies and the assumptions that underlie them as well as methods, procedures, personnel and organization that apply to implement policies and achieve the goal.
Kotler's view is broadly similar. According to his marketing audit is a test of a comprehensive, systematic, independent, and periodic / regular basis from a company or business unit marketing environment, objectives, strategies and activities with a view to determining problem areas and opportunities and recommending an action plan to improve company performance.
When combined, these two above definition highlights three key elements and potential benefits of the marketing audit, namely:
a. Analysis of the external environment and internal situation;
b. Assessment of past performance and current activities; and
c. Identify opportunities and threats of the future.
The three elements above are useful and can be viewed against the backdrop of the comments made by Ansoff (1968) which proposes that, "regardless of the size of the organization, corporate decision must be made within the constraints of a limited total resources. By realizing this, strategist and then face the task to produce the pattern of resource allocation that will offer the best potential to meet company objectives. " Therefore, the marketing audit can be viewed as providing a sound basis for the allocation of these resources. That way, every strategy that was developed to be much more consistent, both with the demands of the environment or the right abilities and strengths of the organization.
To summarize, the audit is a structured approach to the collection and analysis of information and data in complex enterprise environments and data within a complex business environment and is an important prerequisite to solving the problem.
2. Audit Forms
Any company that does an audit will face two types of variables. First, there are variables that the company has no direct control. These variables are usually in the form of what can be described as an environment variable, and competitive market. Second, there are variables that the company has full control. These variables can we call as the operational variables. It gives us a clue, that is how we can structure an audit. This will be described in two parts, namely:
a. External audit (external audit)
b. Internal audit (internal audit)
External audits related to the variables that can not be controlled (uncontrollable Variabels), while internal audit related to the variables that can be controlled (Controllable Variabels).
External audit begins with an examination of information on the general economy and then move in view of the health and growth of markets served by the company. The purpose of internal audit is to assess the organization's resources as they relate to the environment and faced with resources from competitors.
According to Richard M.S. Wilson, et al, the structure of the marketing audit consists of 3 major diagnostic step is detailed, including reviewers from:
a. Organizational environment (opportunities and threats);
b. Marketing system (strengths and weaknesses); and
c. Marketing activities.
The first of the above are designed to define the various dimensions of the marketing environment, the possibility of how these dimensions will change and the possible impact of such changes to the organization. The second phase associated with an assessment of the extent to which the marketing system is capable of relating to environmental demands. The last phase includes a review of the individual components of the marketing mix. As already noted in advance, it was clear in conducting an audit, strategists pay attention to two types of variables. First, environmental or market variables (environmental or market variables) that strategists have little or no direct control. Second, the operational variables (operational variables) that can be controlled more or less. These differences can also be expressed in terms of environmental strength macro / macro environmental forces (political, legal, economic / demographic, social / cultural, and technological) that affect the business, and environmental factors in micro / micro environmental factors (customers, competitors, distribution , and suppliers) which then affect the organization's ability to operate profitably in the market. Regardless of which approach to categorization is used, and the purpose of the audit process is the same. He started with an external audit (external audit) which covers the macro environment and market forces and competitors who represents special interests for the company.
Internal Audit (Internal Audit) and then rely on this to assess the extent of organization, structure and resources, related to the environment and have the ability to operate effectively within the specified environmental constraints. In doing this, the marketing auditor and the results stand alone, but give full recognition to the ways, that is located on the general framework of the overall management audit and audit of management functions in addition to the other. In this way strategists can obtain a true measure, not only environmental opportunities, but also the organization's overall ability to respond effectively.
3. Venue Marketing in the Audit Management Audit
The term management audit means an audit firm as a whole (a company - wide audit) which includes an assessment of all internal resources against the external environment.
According to Richard M.S. Wilson, et al (1993), rationality to the marketing audit is a clear and a number of ways to be attributed to the idea / notion which is generally known and widely accepted from financial audit / financial audit and shared with other functional areas (such as production , personnel) are part of the overall management audit, the nature of this relationship is described as follows
4. Scope and Frequency of Marketing Audit
The frequency of audits that should be influenced by several factors, most important is the nature of the business, the level of environmental change, and planning cycle (a year, two years). So far it is possible to give a definitive clue reasonable that the organization must conduct a full audit at the beginning of each major planning cycle, coupled with a less intensive, but more often for any particular area or critical area if conditions have changed.
A different view of the frequency of audits has been put forward by the Bureau (1981), which suggested that once every 5 years in fisologis is the minimum time span between the audit. More and more audits are not only eliminate the spirit of marketing personnel, but showed that the recruitment policy of the organization require a genuine review.
Below is a checklist of areas that should be investigated as part of a marketing audit:
I. External Audit
a. Business and Economic Environment
• Economy
• Political / fiscal / legal
• Social / cultural
• Technology
• Inter-company
b. Market
• the total market size, growth and trends (value / volume)
• Characteristics of the market, development and trends:
- Products
- Price
- Physical Distribution
- Distribution Channels
- Customers / consumers
- Communication
- Practice industry
c. Competition
• The main competitor
• Size
• Market share / coverage
• Reputation of the market (market standing / Reputation)
• Product Capabilities
• Policy distribution
• marketing methods
• Wide diversification
• Personnel Issues
• International Linkages
• profitability
• Strengths and weaknesses is important
II. Internal Audit
a. Variable marketing operations
• The company itself
• Sales (total, geographic location, according to the industrial type, by customer, by product)
• Market share
• Margin of profit / cost
• marketing Procedure
• Marketing Organization
• Information / marketing research
• marketing mix variables as follows:
- Product Management
- Price
- Distribution
- Promotions
A more detailed description of the area above the audit are as follows:
I. External (opportunities and threats)
A. Business and economic environment
• Economic Inflation, unemployment, energy price "volatility", the availability of materials, and so forth. As they affect your business.
• Political / fiscal / nationalization law, labor regulation, taxation, increase in customs, regulatory constraints (labeling, product quality, packaging, trade practices, pricing and others. As they affect your business.
• Social / cultural education, immigration, emigration, religious, environmental, population distribution (eg age distribution, regional distribution and so on) changes in consumer lifestyles, and so forth. As they affect your business.
• Technology Aspects of technology products and / or production technology that can greatly affect the economics of the industry (eg new technology, cost savings, materials, components, equipment, machines, methods, systems, availability of substitute goods, etc.) as they affect your business.
B. Market
• Total Market Size, growth, and trends (value, volume)
• Development of market characteristics and trends
• Products: Main products purchased; Use of end products; product characteristics (weight, measurements, size, physical characteristics, packaging, equipment, related products, and others.
• Process: The price level; the terms and conditions of sale; general trade practices; official rules, and others.
• Physical Distribution: The main methods of physical distribution.
• Channels of distribution: the main channel, purchasing patterns (eg type of product purchased, price paid etc.); ability to purchase, geographic location, inventory, turnover, profit, demand, taste, attitudes, decision-making; base purchasing decisions ; and others.
• Communication: The main method of communication, such as salespeople, advertising, direct response, exhibitions, public relations and so forth.
• Practices: For example, trade associations, government agencies, historical attitudes, inter-company comparisons, and so forth.
C. Competition industrial structure: The composition of firms in the industry, major market reputation; wide from over-capacity; ability of the product; distribution capabilities; marketing methods; competitive setting; broad diversification into other areas by major companies in the industry, new entrants, mergers, acquisitions ; bankruptcy; significant aspects; international links; key strengths and weaknesses.
Industry profitability: financial constraints and non
finance to enter; ability industry profitability and relative performance of individual companies; pengembalin influence over the level of investment from changes in price, volume, cost of investment, source of income and other industries.
5. Marketing Audit Steps
In conducting marketing audits, both Grashof (1975) or Cannon (1968) recommend a procedure with a wise move. In this way, they argued, the approach ensures a level of consistency that allows a comparison of one period to another.
According to Grashof, the steps are:
a. Pre-audit activities (pre-audit activities), the auditor decides the proper scope and focus of the audit.
b. Information gathering (assembly of information) in areas that affect the organization's marketing performance. Such information typically involves:
• Industry;
• Market;
• The Company;
• Products
• Pricing;
• Promotion;
• Distribution
c. Information Analysis
d. Formulation of recommendations
e. Development of program implementation.
Cannon approaches are very similar and once again consists of 5 different stages as follows:
Step 1: Defining the market
Key elements
Developing:
• Statement of purpose within the meaning of benefit.
• The scope of products.
• Size, growth rate, maturity stage, the main strategy for selective strategy VS.
• Requirements for success.
• Different definitions of the above based on the competitor / competitors.
• Definition to be used by the company.
Step 2: Determine the performance differential.
• Assessing the performance of industry and company differences.
• Determine the differences in products, applications, geographies and distribution channels.
• Determine the differences according to customer collection.
Step 3: Determine the difference in the competitive program.
Identify and assess individual companies to:
• market development strategy
• Strategic product development
• financing strategies and administrative and support.
Step 4: Make history strategy of competitors.
• Make a significant history of each competitor and / or a different type of competitive strategy.
• Compare own strategy with competitors.
Step 5: Determine the structure of strategic planning.
If the size and complexity is sufficient:
• Establish planning units or cells and indicate that the main and extra dimensions.
• Conduct an organizational assignment of product managers, industrial managers, and others.
Although for many companies, the collection of information requires the most time. In the framework proposed by the Grashof, the phase 3 and to-5 often proved most probematis.
Reviewing the Effectiveness of Marketing
Marketing effectiveness is to determine how far the organization reflect the five characteristics / main attributes of a marketing orientation, namely:
a. Customer-oriented philosophy;
b. An integrated marketing organization;
c. Adequate marketing information;
d. Strategic orientation; and
e. Operational efficiency.
6. Assessment Process
Each mamanager worked his way through 15 questions to reach a figure. The number is then added together and averaged. Overall measure of marketing effectiveness then assessed with the following scale:
0-5 = No
6-10 = Poor
11-15 = Fair / feasible
16-20 = Good
21-25 = Very good
26-30 = Superior (Superior)
By the numbers 10 or less, the main question to be questioned about the organization's ability to survive in each case over a short period of time, and every serious competitive challenge seemed ny will create a significant problem. Fundamental change is needed both in the philosophy of management or organizational structure. With a number between 11 and 15, there is an opportunity to improve the management philosophy and organizational structure.
With numbers between 16 and 20, there is scope of improvement, although it appears in the sense of a series of small changes and modifications than any thing more fundamental. With numbers 26-30, required attention to ensure that mental attitude has not proactively maintained and satisfaction began to arise.
A change in strategy as a result of a view of effectiveness may have hasilmemperbaiki get better performance. Aim to examine the effectiveness of the marketing process is to identify areas where there is scope for improvement of marketing. The process to achieve the benchmark of the effectiveness of its marketing rosedur is manager of a number of departments involved and not just the marketing department. After conducting a review or marketing effectiveness, strategist may decide that the result gives a sufficient ny on organizational strengths and weaknesses.
7. Role of SWOT Analysis
Faced with a constantly changing environment; each business unit needs to develop a marketing information system to follow the trend and development. Every trend and development can then be categorized as a chance / opportunity (O = opportunity) and threats (T = Treat), and an assessment made to the kindness and and the actions needed if the organization either capitalize opportunities or minimize the impact of the threat. But in examining opportunities and threats readers have to remember the points raised by Johnson and shcoles (1988) is "Opportunities and threats have never seen one of" absolute ". What may appear at first sight time as an opportunity perhaps not so when tested against the organization's resources, culture, expectation of "stakeholders", the available strategies, or goodness menerapkan strategy. However, the risk of excessive simplification, the goal of formulating strategy is to develop a strategy that will take advantage of opportunities and overcome or evade the threat.
The basics for developing a competitive advantage
The methods to develop a sustainable competitive advantage can be divided into 3 groups:
1. Organizational Excellence
● The scope of economic
● Flexibility / flexibility
● competitive mental attitude
● Size
● The speed of response
● Past performance
● Pattern of ownership
● Reputation
2. Departmental and functional excellence
A. Marketing
● Basic subscribers
● Knowledge of customers
● a new product Skills
● Pricing
● Communication and advertansi
● Distribution
● Salesperson
● Support services
● Reputation
B. Research and development
● Technology practice
● patent
C. Production
● Technology
● Efficiency of process
● Economies of scale
● Experience
● Product Quality
● Flexibility in manufacturing
3. Excellence is based on relationships with external bodies
● Customer Loyalty
● Control channel
● Treatment of political and legislative freperensial
● Government Assistance
● Rates are useful and tariff trade barriers
● Kertel
● The relationship between organizational
Identifying strengths and weaknesses of Inter-departmental
A. Marketing
strength
● Market Development
● advertansi
● dealer development
● competitor analysis
Weakness
● long-term planning
Related to the sales ●
● associated with the product
● lucrative new product development
● identify the gaps are small, but profitable market
● Pricing
● relations with corporate management
B. Sales
Strength
● there is no identified
weakness
● pengkargaan related to delivery time
● provide market feedback
● often sell what is only made with difficulty
● awareness of a small fee
● level of training
C. Production
Strength
● Quality
Weakness
● sales staff turnover
● slow to change
● did not want to cooperate with marketing and sales
● often late in delivery
● old production
● Increased costs
● lack of strong management
● tend to make what they control
D. Personnel
Strength
● management of junior and youth training
Weakness
● have a deputy director level
● long-term junior development
● Poor negotiation skills
● desire to give up on trade union pressure
● real lack of management skills
E. Finance
Strength
● strict cost control
● credit control
● relations with corporate menejen
● access to significant financial resources
Weakness
● too much emphasis on short-term returns
● lack of vision
● did not want to cooperate with marketing and sales
● did not want to provide main finance new product development
● reporting demands are not realistic
8. Characteristics of an Effective Audit
Definition of marketing audits provided by Kotler upfront highlights 4 dimensions, which he suggested that for an audit is worth, then the audit should kompherensif, systematic, independent, periodic and significant to the points above as follows:
1. Comprehensive / holistic. A distinction can be drawn between an audit of marketing (marketing audit) and audits the functional (functional auditing) that focus more specifically on a particular element of the marketing activities, such as sales or pricing. For this example, a functional audit may well suggest that a high turnover sales force and products that are low because it sold a combination of inadequate training and poor compensation packages. However, fundamental Leih weld, may be that the company has a product line that bad or inadequate and pricing and advertising strategy that is not appropriate. Kompherensif marketing audit is designed to mengungkakan source of these factors and to highlight the basic causes of organizational problems.
2. Systematic. In conducting the audit, it is important that a diagnosis of a sequential process includes 3 areas was adopted as proposed in advance, namely: the external environment, internal marketing system, and specific marketing activities. Diagnosis process is then followed by the development and implementation, either by short-term plan or long-term plan designed to correct weaknesses identified and in this way, improve the level of marketing effectiveness.
3. Independent. As with financial audit, there are several ways of marketing audit can be conducted. These include:
a. Audit (self-audit), which managers use a checklist of questions to assess the results and methods of their own operations;
b. Audit by the managers of equal status, but drawn from different departments or divisions within the organization;
c. Audit by a more senior managers within the same department or division;
d. The use of the auditing office of the company (company auditing office);
e. A group of task force audit firm (company audit task force group);
f. Audit conducted by specialists from outside.
It is generally accepted that the audit conducted by outside specialists seem to prove the most objective and show the independence of each internal processes almost inevitably will be less independent.
This is due to that outside consultants should be used to ensure the impartial nature. It seems that proved costly when the marketing audit performed once a year, and the answer increasingly seems lies in a compromise, that is, outside consultants are used every three or four months, with line managers from different departments or divisions that are used in such period.
4. Periodical. If the company wants to benefit fully from the auditing process, it is important that the audit conducted periodic basis. Often also in the past, the company also managed to perform the audit widely as a result of poor performance. Ironically, this poor performance can often be traced to a little market in the superficiality of the view of management, derived from the failure to examine the activity with an adequate regular Dasara, something shown by Shuchman (1950) who commented: "there is no such a good marketing operation that can not be repaired . Despite the best that can definitely be better, very little of a marketing operation that can survive successfully for years by maintaining the status quo. "
Marketing audit should be done with a regular basis. Many marketing organizations do not perform the audit until there is a problem. Typically most of these are stated in terms of declining sales, loss of market share, production capacity is less used, salespeople who have lost the spirit, the margin decreases, and so forth. Faced with this problem the source of temptation management is a "firefight" and therefore, fall keperangkap crisis management. In many cases it is characterized by the launch and rapid product release, price reductions, and efforts to a drastic cost reduction. Audit is designed to avoid the need for better crisis management by identifying or defining such basic issues before they have an opportunity to influence the organization. In this case, conduct a marketing audit is a regular and in-depth in a structured situation will be a very long way to give the company a knowledge business, trends in the market, and where the value added by competitors as a basis to set goals and strategies. These grains have been highlighted in a summary of the 10 most common findings from the marketing audit, namely:
• Lack of knowledge of the behavior of each customer;
• Failure to effectively market segments;
• Lack of marketing planning procedures;
• Reduction in price than the increase in volume;
• Lack of procedures based on the market to assess the product;
• The understanding of the company's marketing strength;
• short-term view of the role of promotion;
• The perception that marketing is only limited to the advertisements and sales activity;
• An organizational structure that is not appropriate; and
• Inadequate investment in the future, especially in the field of human resources.
9. Audit Procedures
Dimuali audit process with the agreement reached between the organization's marketing director and marketing auditor-person residing in or outside the organization with regard to special purpose, breadth and depth of coverage, data sources, format of audit reports and time periods. This is covered in a plan who will be interviewed and questions to be asked.
With regard to the question of who will be asked, should be emphasized that the audit should never be limited to corporate executives, the audit also includes customer, dealer networks, and other outside groups. In this way, a picture of the company's position better and more complete and its effectiveness can be developed. For example, in terms of customers and dealers, auditors should help develop a satisfaction rating that is able to highlight areas that require attention if the information has been gathered. The findings and recommendations to be presented with emphasis given to the type of action needed to solve any problems, the time scale of improvement actions were held, and the names of who was responsible for it.
10. Audit Components
General working framework of external and internal audits. Kotler (1989) proposes six specific dimensions that are of interest for the auditor's direct marketing, namely:
1. Environmental auditing of marketing (the marketing environment audit), which includes analysis of major macro-economic forces and trends in organizational task environments. These include markets, customers, competitors, distributors, dealers and suppliers.
2. Audit marketing strategy (The marketing strategy for the audit), which focuses on a review of the organization's goals and marketing strategy, with a review to determine how to match objectives and strategies against current market environment and the forecast.
3. Audit organizations (The marketing organization audit), this auditing aspect follows from the second and gave special attention to the assessment of capability and suitability of the organizational structure to implement strategies to develop environmental dipelukan.
4. Audit marketing system (The marketing audit systems), which includes the quality of systems organization for analysis, planning and control.
5. Marketing productivity audit (The marketing productivity audit), which test the possibility that different aspects of marketing programs and cost-effectiveness of various levels of marketing expenditure.
6. Audit marketing functions (The marketing audit function), which includes a detailed assessment of each element of the marketing mix.
