st.mkt-chap 3-i

8/2/2019 ST.MKT-CHAP 3-I

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The Internal Environment

Internal Audit


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Factors comprising internalenvironment

Organization

Staff

Culture

Structure

Management style

MISThe internal environment is what makes the

organization and what it is and it drives from thepeople who are its members


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After going through this module youshould be able to:-

Explain the role of organization culture

Describe the ways of managing change

Explain how MIS can be constructed Show how MIS can used as effective

competitive tool

Describe the ways of monitoring andauditing strategy


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Internal audit categories

The marketing strategy audit

The Marketing organization audit

The marketing system audit The marketing productivity audit

The marketing functions audit


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What is audit ?

To uncover and provide SNAPSHOT of thecurrent state of affairs within the organization

Objective is not to criticize the staff

It is done in a transparent way by sharing theinformation that is used in the audit

May be out side consultant for feasible

It is in a way easy to perform as informationrequired is readily available with the peopleconcerned


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Beware :-

People may perceive it a threat to their job

They may give politically motivatedanswers or may avoid , modify or hide theinformation

They may perceive that it is an attempt bythe management to find faults in their work


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Marketing Strategy Audit

Mission Statement

Marketing strategy clear goals and objectives

Examine core marketing strategy

Budgeting and allocation of resources

Are the objectives appropriate?

Are the major policies and plans appropriate ?

What assumption have been used in strategyformulation? Are they confirmed ?


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Criteria for auditing the strategy forsuccess

CONSISTANCTY coordinating effectively

CONSONANCE response to PEST

ADVANTAGE core competency addition

FEASIBILITY Finance, HR motivation

Auditing the strategy is likely to be an

organizational process probably undertaken aspart of the normal planning reporting control andreward systems of the organization


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MARKETING ORGANIZATIONAUDIT

Formal and Informal structures

Both structures affect organization performance

Informal structure thrives on corporate culture

Organizations differ in their structures

Hierarchical, Mechanical or Bureaucraticstructures which is rigid

Organismic organizational structure moreadaptive and flexible to changes


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Organismic organization


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Functional efficiency audit

Is current structural systems type correct for theorganizations marketing environment and goals

Do marketing managers occupy the right level in

the structure ? Should marketers be placed in more strategic

roles?

Are people clear about their roles and level ofresponsibilities and their impact onorganizations performance ?


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Marketing organization structuredby product type


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Marketing Information Systems

To automatic flow of data of everymarketing/sales activity into databases

Used as decision support systems (DSS)

Market intelligence and research Sales reporting and analysis

Sales planning

Customer purchase behavior and trends

Customers profiling and contacts

Projections


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developing CIS

Determine what needs should the CIS serve

Determine the objectives of the system

Set parameters and limitations

What types of analytical reports it should be ableto generate

Involve direct users to determine its SW

Simplicity in terms of distribution and layout

Sorting capabilities of the system

Update function and data security


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Productivity Audit

The marketing productivity audit is concernedwith two areas: Profitability analysis &effectiveness analysis

Profitability is assessed in terms of profits madefrom each brand, product, By segment, by retailoutlet

Profitability analysis determines the worth of

marketing opportunity ( cost versus benefits) Effectiveness is measure in terms of consumerawareness, effect of promotion on sales,


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Resource and competencyaudit

Competency related to how strategic marketingobjectives are achieved the way resources arecombined and utilized

Managers need resources combined with theircompetency skills to achieve targets

Competency is defined in terms of firmsknowledge, capability and attitude in a certainarea of expertise


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Elements of resource audit

Physical Resources

Human Resources

Financial resources Intangibles Resources


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Marketing Value Chain Audit

VALUE CHAIN IS MADE OF TWO SETOF ACTIVITES

1. PRIMARY ACTIVITES

2. SUPPORT ACTIVITES


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Primary Activities

Inbound logistics

Operations

Outbound logistics Marketing communication

Before and after sales service


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Support Activities

Procurement

HRM

Finance R & D

MIS

Administration


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st.mkt-chap 3-i

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