Marketing audit at radiant soaps
Task 1
What items should be considered in the marketing audit at Radiant Soaps?
Cambridge dictionaries online defined marketing audit as "how to make an official examinations of the accounts of the business" (2003), these examinations consider internal environment, external environment and current marketing plan for the firm. Considering all of these factors in auditing the organisation may lead to meaningful marketing audit that can help the firm to adequate itself in the market.
Marketing audit is one of the basic sources that help the firm making its marketing plan, therefore marketing audit is significantly important for any organisation, since it indicates and accumulates all the information such as financial reports and sales data about the firm that we need to make marketing audit about.
As mentioned before marketing audit considers internal environment, external environment and current marketing plan for the firm. In order to achieve a meaningful marketing audit, there are many different audits and tools for both internal and external influences. For considering the internal influences we can use the SWOT analysis, on the other hand we can use Five Forces, and PEST analyses considering the external influences, which can be sufficient for the managers to decide any necessary change in the current plan.
It is important in making good quality of marketing audit to ask yourself, what is the situation of your current market? In order to answer this question, there are points to be considered. These pointes are mentioned below considering three keys headings:
According to (book) the main guides of marketing audit are the 4Ps (Product, Price, Place, and Promotion) and 3Cs (Company, Competitors, and Customers), where they also represent the backbone of marketing plan (book p49), in order to make these roles be affective, they should be expanded beyond the simple structure below:
The marketing audit is very constructive for providing the required information to conduct SWOT analysis; on the other hand an up-to-date SWOT analysis is useful for making a reliable marketing audit. Considering another view angle and according to (book p373), using the 4 Ps and 3 Cs framework emphasizes mainly two ideas to our mind. First one we have to cover all the rows and columns (represented by black crosses) that SWOT analysis does not cover, this makes clear idea that if SWOT analysis was selected, then it has to be derived and linked back to the 4 Ps and 3 Cs framework. The second idea is that the 4 Ps and 3 Cs framework make a clear vision that timing and luck take considerable parts in flourishing the implementation.
- The Internal Marketing Environment
- Manpower: mainly the labour of the firm.
- Money: how much does the firm have, this should includes financial reports and sales data
- Machinery: this may includes all the equipment of the firm such as factory machines.
- Minutes: this means time
The first thing can be considered in the internal environment is what are our current resources? Which mainly means the 5 Ms that includes:
To conduct an audit, according to Cambridge Dictionaries Online, is "to make an official
commonly associated with the accuracy of financial reports, it is no less important for marketing. Many businesses judge the impact of their marketing program on sales numbers. While sales may be one measure of marketing effectiveness, sales data do not tell management what worked, what didn't, and what external factors impacted the results. Interpretation of sales data does not provide "report cards" for prior marketing efforts, or direction for future efforts. Whether conducted by an outside auditor or by in-house personnel, regular examinations of all aspects of the marketing function can provide information on the external environment; the internal organizational structure; and the objectives, strategies, and tactics used by a firm or a brand.
In Chapter II, a SWOT analysis was covered. A marketing audit can provide the information needed to conduct a SWOT analysis. Conversely, in the absence of a Marketing Audit, an up-to-date SWOT analysis can provide benchmark data for a full audit.
Task 2
How should Radiant Soaps Ltd go about marketing its products to customers in general. What research and evaluation should be considered in the building of the companies marketing plan.
Quick Marketing Tips
Target the buyers and develop a product / service especially designed to appeal to them.
Determine the distribution network that most effectively gets the most product service out to the greatest number of consumers at the highest profit level.
Develop unique advertising, pricing and promotion strategies. Modify what does not work
Research and understand your market
How big is your potential market - in dollars
How big is your potential market - in units
Who are the potential customers?
Who are the competitors?
Where do the potential customers buy?
How do the potential customers buy?
Why do the potential customers buy?
When do the potential customers buy?
What the key factors for success?
What are the barriers to entry to this market?
The Marketing Planning Process
Some stages in developing a marketing plan:
- Step 1 - Define problem and set objectives.
- Step 2 - Appraisal using SWOT analysis.
- Step 3 - Determine the tasks to be accomplished and identify the means to achieve these aims.
- Step 4 - Identify alternate plans and mixes.
- Step 5 - Estimate the expected results arising from implementation of the alternative plans.
- Step 6 - Managerial review and decision.
- Step 7 - Feedback of results and post audit.
- Step 8 - Adapt program, if required.
What is it we want to achieve?
PRODUCT LIFE CYCLE
The stage of the Product Life Cycle at which your product(s) or business currently are, may have a profound effect on your Marketing Plan. Marketers have identified four distinct phases in the life of a product - its product life cycle.
cycle. Introduction is a period of slow sales growth as the product is introduced in the market.
Growth is a period of rapid market acceptance and substantial profit improvement.
Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most of the potential buyers. Profits peak in this period, and then start to decline because of increased marketing outlays to maintain the product's position against competition.
Decline is the period when sales show a strong downward drift and profits erode.
Can you identify which of these cycles your product(s) or business is currently in?
Task 3
What functions should the marketing department provide to support the business objectives of Radiant Soaps Ltd
MAJOR BUSINESS STRATEGIES and OBJECTIVES
- Objectives should be SMART -
- Specific
- Measurable
- Accurate
- Realistic
- Time based
- Market penetration
- Market development
- Product development
- Diversification
- Offer cheap, mid-range, or expensive/premium products? or products for each category?
- Offer high quality / low quality products
- New products
- Expand / contract
- Alter existing
- Positioning
- Develop branded goods / brand name?
Task 4
What are the strategic and tactical considerations in building a marketing plan for Radiant Soaps Ltd.
A Marketing Plan should be a dynamic document and not sit on the shelf after it has been finalised.
A Marketing Plan should be constantly referred to and constantly updated, taking into account the results achieved from previous campaigns, market forces and the constant change involved in most industries and consumer markets.
Marketing planning involves the following :
- Diagnosis where is the company now and why?
- Prognosis where is the company heading?
- Objectives where should the company be heading?
- Strategy what is the best way to get there?
- Tactics what specific actions should be undertaken, by whom and when?
- Control what measures should be watched to indicate whether the company is succeeding?
A successful marketing strategy needs four things:
- A market focus
- A differentiated position
- An added value for the customer
- A consistent branding
