MARKET AUDIT

FATHMATH RU’UYA
ISMAIL AZAAN
MOHAMED RIKZAAN
TABLE OF CONTENT

• Introduction
• What is market audit
• What is strategic analysis
• Purpose of market audit
• Benefits and constraints of market audit
• Conducting market audit – how
• Different approaches to
• Challenges in undertaking market audit
• Conclusion
INTRODUCTION

• Aim
- To present the critical review of the market audit and strategic analysis of
product or brand chosen by group members
• The product/ brand chosen:
- Mastercard (Rikzaan)
- HDFC loan (Ru’uya)
- Apple (Azan)
MARKET AUDIT

• Marketing Audit :
• Refers comprehensive, systematic, analysis, evaluation and the interpretation
of the business marketing environment, both internal and external, its goals,
objectives, strategies, principles to ascertain the areas of problem and
opportunities and to recommend a plan of action to enhance the firm’s
marketing performance. (Business Jargons, 2019)
STRATEGIC ANALYSIS

• Definition: Competitive Strategy can be defined as the firm’s long term action plan
that formulated by considering several external factors, that helps the company to
achieve competitive advantage, increase the share in the market and overpower
rivals. Competitive advantage is the result of the firm’s excellence in performing
activities. (Business Jargons, 2019)
• Strategic analysis is a process that involves researching an organization’s business
environment within which it operates. Strategic analysis is essential to formulate
strategic planning for decision making and smooth working of that organization.
PURPOSE OF MARKET AUDIT

• To determine current state of the business

• Detect the opportunities and threats, strengths and weakness
• Helps to understand the market environment
• Helps to determine current position in the market
• Provides information to formulate strategic plan of the business
• Formulate the tactics to achieve those targets
BENEFITS AND CONSTRAINTS OF MARKET AUDIT
BENEFITS CONSTRAINTS
• Understanding of market behavior and • Small companies have limited
knowledge resources and expertise (Gilmore et
al., 2001)
• Identification of current position
• Act as an “Agent for Change” (Mokwa, • Lack of relevant information lead to
1986) inefficiency

• Often lead to strategic marketing • Lack of common term or

change (Loya, 2011) benchmarking (Taghian and Shaw,
2006)
• Precursor to an improved marketing
plan (Loya, 2011)
• Environment changes quickly (Blythe,
2009)
CONDUCTING MARKET AUDIT - HOW
MACRO ENVIRONMENT MICRO ENVIRONMENT

• PESTLE analysis • Porter’s 5 forces

• 7 P’s
• Value Chain
• Competitor analysis
CONDUCTING MARKET AUDIT – HOW CONT.
ANALYSIS METHOD - MACRO
• PESTLE analysis • Example:
- External influences - Impact of Political and economic
- beyond control factors are high for Master Card of
BML, HDFC loans, Apple
- Adjust strategy to minimize the
impact - Impact of Environmental factors
are high in fashion and consumables
- Impact varies depend on type
of industry or firm.
CONDUCTING MARKET AUDIT – HOW CONT.
ANALYSIS METHOD - MICRO
• Porter’s five competitive forces
- Competitive forces present in the
industry
• Example:
- IT/Electronic industry (Apple) –
High level of rivalry
- BML/HDFC – Customer base and
Political factors
• Value Chain
- Identifies the activities where company creates
competitive advantage (Baker, 2000)
• Example:
- Master card of BML has Accessibility to
suppliers, Superior technology, experienced
workforce
- HDFC offers product which meets customer
need (Equity 20% in cash is accepted)
CONDUCTING MARKET AUDIT – HOW CONT.
ANALYSIS METHOD - MICRO
• & 7 P’s/ Marketing Mix • Competitor analysis
- Analyze and identify the competitors and their
- What customer offers to its customers
strategies
- Good base for future market plan - Adjust company strategy based on competition
• Example: • Example:

- Electronic industry (Apple) – Emphasis - Visa, Amex are the competitors to Master card of BML
on product and place - BML, MIB, SBI Male’ etc are the competitors to HDFC

- BML and HDFC– Emphasis on Process, - Nokia, Samsung, Huawei are the competitors to Apple

Physical evidence
DIFFERENT APPROACHES TO MARKETING AUDIT
DELPHI TECHNIQUE CHECK LIST APPROACH

• Requires experts and • Use a check list of questions

questionnaire
- Often more effective than other
technique (da Gama, 2012)
- Quality is depend on choice of
expert
- Access to right people is difficult
• Answers compared to predefined
benchmarks
- Require effective use of questions and
bench mark criteria (Brownlie, 1996)
CHALLENGES IN CONDUCTING MARKETING AUDIT
# Issues
1 Lack of information, have to rely on secondary
data (PESTLE)
2 Obtaining Internal data
3 Requirement to access of large amount of
information internal working of company (value
chain)
4 Data from secondary sources
5 Lack of time and resources
6 Difficult to map internal and external
information
7 Release only information they want promote
Outcome
- Lead to make assumptions based on news
articles, financial reports
- Reliability of secondary data
- Much more reliable and up-to-date
- Possible if working in the company
- Impossible to obtain sensitive data as it violates
company policy
- Completeness of information and relevancy
- Rely on secondary data and existing knowledge
- Unable to get real and clear picture.
- We are able to present what we have
CONCLUSION
• These challenges questions overall validity of the market audit due to:
- large amount of secondary data
- lack of benchmark available
- use of potentially inaccurate data
• Those how has previous knowledge find easy
• Strategic information are not allowed to disclose as it violates company policy
CONCLUSION CONT.

• Firms in different industry suits different approaches

• Market audit shows current position of the company
• Market audit is useful:
- to prepare marketing plan
- Update organizational strategy based on findings
REFERENCES
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Blythe, J. (2019) Key Concepts in Marketing. SAGE Publications Ltd.

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