1. MARKETING AUDIT –
MANAGEMENT AND BENEFITS
Group 1
Keval Savla Avadhoot Hinge Gopal Dhage
Nishad Patil Priyanka Gund Pranay
Shetty

2. Marketing Audit
 Definition – “A marketing audit is a
comprehensive, systematic, independent &
periodic examination of a company’s – or
business unit’s – marketing environment,
objectives, strategies and activities with a view
to determining problem areas and
opportunities and recommending a plan of
action to improve the company’s marketing
performance”

3. Marketing Audit
Initially internal audit covered only financial &
stores functions
However, recently, organizations have
included operational management areas under
internal audit.
Need to reorient internal audit to maintain
market position.

4. Methodology
Step 1 – Selection of a proper team of internal
auditors.
Step 2 – Scanning the available information within
the organization.
Step 3 – Discussions with various levels of different
functions.
Step 4 – Develop questionnaires for data collection
from various branches.

5. Elements of Field Work
Clear Communication
Branch Personnel
Distributors
Customers & Competitive Distributors
Report

6. Marketing – Environment Audit
 Macroenvoirnment
 Agricultural incomes
 Huge government expenditure
 Development of SSI & traders
 Introduction of petrol engines
 Legal & Regulatory policies

7. Year Growth (%)
1984-85 18.5
1985-86 17.7
1986-87 17.4
1987-88 23.3
1988-89 40.8
Markets
Rural Market Growth

8. % growth over
previous
1987 1988 1989 1988 1989
All cars 151243 159279 177409 5.3 11.38
Only Maruti 92669 106509 106509 2 12.67
Other Cars 58574 64704 70850 10.47 9.5
Market Growth of Cars

9. % growth overprevious
1987 1988 1989 1988 1989
79295 85518 95302 9.22 11.32
Growth in Tractor Market

10. Enterprise Form Generic Desire
•Maruti,
•Telco,
•
Ford(Escort
),
•Toyota
•Two wheeler
manufactures -
(Bajaj Auto,
Kinetic Honda),
•LCV( Ashok
Leyland,
Japanese
LCVs)
•Any other
mode of
transportation
(people and
goods)
•Do not want
to buy a
vehicle
Task Environment - Competitors

11.  Strategies of Maruti Gypsy
 Handouts for dealer circulation emphasizing on
negative features of Jeep
 Profile of potential buyers
 Merits of Gypsy over Jeep
 Dealer’s guidance – list of government employees
Task Environment - Competitors

12. Publics
Employees Government
Suppliers
Distributors and
dealers
Facilitators
Competitors
Customers
Task Environment - Publics

13. Marketing – Strategy Audit
 Segmentation done on basis of product –
 CJ – Rural rich, opinion leaders, village level
politicians, farmers
 CJ 540 DP – Largely authorised/ unauthorized
taxis
 MM 540 DP – Higher class rural rich, politicians,
entrepreneurs, liquor merchants etc.
 CJ 340 DP – Younger generation, farmhouse
owners
 Segments clearly defined.
 Positioned itself as rugged, sturdy,

14. Marketing – Organization Audit
Functional Efficiency
o Training to sales personnel's
o Supervision of distributors
o Strict actions against irresponsible dealers
o Lack of internal communication (marketing – dealers
– customers)

15. Marketing & manufacturing –
o Does not enjoy enviable status
o Uncomfortable drive & ride
o Old technology
o Higher maintenance cost
Finance
o Low resale value
o Jeep financing treated as a low priority area
o No particular finance company exclusively
providing finance for M&M
Organization Audit – Interface
Efficiency

16. Marketing – Organization Audit
R & D
o Improving the quality of product
o Understanding the perceived risks
o Finding out the acceptance of the product after
Gypsy penetration
o Analyzing on the weaknesses of Gypsy &
improvising them as an opportunity

17. Marketing Systems Audit
 The marketing team should regularly interact
with customers
 Communication between the marketing team
and dealers
 Product development and new product ideas
from customers and dealers

18. Marketing Productivity Audit
 The last TV ad campaign did not generate
enquiries
 Enter into SUV and MUV

19. Marketing Function- Audits
 Products
• CJ, CJ-540DP, MM540DP & CJ-340DP
• Attitude towards products
• To add MD-2340 engine in CJ
• XD 4.90 petrol engine in CJ- 340DP
• Some cosmetic changes
• Competitors product and strategy

20. Price
 Efficiency of Diesel offset by high maintenance
cost
 Price higher than LCVs

21. Distribution
• Current Distribution strategy
• Inefficiency of Dealers

22. Advertising, Sales promotion &
publicity
 Current advertising strategy
o Merits of Jeep over Gypsy
o Japanese monk’s testimonial ad in newspaper
o Failures/problems faced experienced by Gypsy owners.
o Change of TV campaign from usage to the reliability &
elegance of Jeep.
o Housewives as influencing factor should be considered for
advertising & promotional strategy.
• Learning from Rajdoot

23. Sales force
• Team to visit the place in north-east
propagating the benefits of CJ-340DP

24. Marketing – General Advertising
Strategies
o Inclusion of Jeep as a product with major
ancillary advertisers
o Customer & employee interaction with the
product – Contest of naming the Jeep Models
o Discreet campaign emphasizing on the fact of
Maruti using foreign exchange.

25. Marketing – General Advertising
Strategies
o Association with tyre company – MRF in
demonstrations/melas.
o Less frequency of price revisions to get a
psychological advantage over its customers.
o Strict action against irresponsible dealers.
o Direct mail campaign to government institutes.