Marketing Audit Report: Case Study of Penton Ltd

Résumé du document

This report presents an extensive study of the main components and principles of a marketing audit with specific reference to the firm ‘Penton Ltd'. Penton Ltd. is a medium sized DIY manufacturer which has been facing declining profit margins and stagnant sales in recent years. A detailed audit of the company's situation (internal and external factors) is critical to provide the essential analysis that the company needs to formulate its future marketing strategy and thereby improve its performance. Alluding to the case study, the report utilises some of the most popular analysis tools and techniques to outline the main components of the audit.

Lastly, the report makes recommendations on how the results of the marketing audit can be effectively used by a firm such as Penton Ltd. to support its marketing planning process and execution, particularly with respect to mitigating its challenges and weaknesses and capitalising on valuable opportunities and capabilities.

The marketing audit is amply described with the following definition: ‘A marketing audit is a comprehensive, systematic, independent and periodic examination of a company's marketing environment, objectives, strategies and activities with a view to determine the problem areas and opportunities and recommending a plan of action to improve the company's marketing performance'.

As such, the audit is concerned with studying the company's present situation, considering both the internal and external influences on its current and future performance, and it is a fundamental part of the marketing planning process. A number of tools and techniques such as PEST and Segmentation analysis can be used to assist the research and analysis of specific components of the audit. Marketing research is the process by which intelligence for

the analysis is obtained and this is often a significant task; utilising interviews with individuals inside and outside the company, online/desk research and, if budget permits, customer/prospect surveys.

Extraits

[...] PEST analysis is a popular way to identify these macro factors. Political factors - The actions of the government can have a major impact on business and markets, including creating or reducing demand for a particular product or service. Political influences include legislation, environmental issues, government policies, funding and pressure groups. Government policy has become increasingly strict in protecting local town centre businesses and therefore current and future retail planning legislation features restrictions on out-of- town development (Guy and Bennison, 2002). [...]

[...] Marketing research is the process by which intelligence for the analysis is obtained (Brooksbank, 1996) and this is often a significant task; utilising interviews with individuals inside and outside the company, online/desk research and, if budget permits, customer/prospect surveys. The most renowned way of presenting the marketing audit results is through a SWOT analysis. This is a distillation of both internal and external factors, drawing attention to the critical organisational Strengths and Weaknesses and the Opportunities and Threats facing the company (Kotler et al, 1999). [...]

[...] Promotion Are the marketing communications right? Penton's minimal spending on advertising and failure to capitalise on its brand name has resulted in reduced growth performance due to low brand recognition and awareness. Analysis of Resources and Capabilities Michael Porter's conceptualisation of the Value Chain is ideal for analysing resources and capabilities as it distinguishes between the company's unique primary activities (those involved with the transformation of inputs and interface with the customer) of a firm and support activities such as the firm infrastructure and technology development (See Appendix Figure 2). [...]

[...] With respect to retail channels, trends in the market show that there are likely to be new entrants from a non-DIY retailing background, crossing into the DIY retail market via acquisition and bringing with them more sophisticated retailing approaches (Leaver and Al-Zubaidi, 1996). This brings prospects for Penton to expand its present distribution network to gain broader access to its market. Analysis of Markets and Customers The audit should consider the nature of market in which it operates with customers comprising the most important element of analysis. Factors to research include: DIY market size, growth rates and trends. The nature of segmentation, targeting and positioning in the market. [...]

[...] In addition, the growing aging population presents several marketing opportunities as DIY and gardening are often a hobby for this sector. Technological factors - Developments in technology give rise to new products and market opportunities. The Internet brings wonderful selling opportunities that enable DIY manufacturers to bypass traditional retail channels but would involve the establishment of an effective delivery service Using the Results of the Marketing Audit 1. SWOT Analysis The SWOT Analysis is by far the most popular tool for summarising the results of the marketing audit. [...]