These three elements form the basis of a marketing management audit. The following sections will explain how one can use the marketing audit to uncover the information one will need to shape one's eventual marketing activities.
First point of comparison between the two is that marketing audit is a comprehensive, systematic and periodic examination of a firm's environment, objectives, strategies and activities to find problem areas and opportunities to recommend a plan of action to improve the performance of marketing strategies of the firm. Whereas an audit of financial statements is defined as the assessment by an autonomous third party of the financial statements of an organization or a company or other, ensuing in the publication of a sovereign view on whether or not those financial statements are appropriate, correct and comprehensive.
Financial audits are characteristically carried out by firms of practicing accountants, due to the expert financial reporting information they need. The financial audit is one of many declaration or evidence of tasks provided by accountancy firms, whereby the firm offers an independent view on published data. Financial audits also help investors deciding whether to invest in a firm or not. Marketing audits are also performed by independent third party with the purpose of defining the shortcomings of the present strategies of the firm.
The Market Audit Element
A market audit is an attempt to define the structure of the environment in which a company operates-the marketplace. Its function is to collect information and organize it in a fashion that alerts one to marketing needs, problems, and opportunities.
This information becomes a document that provides a detailed, accurate, and unbiased view of the marketplace.
Why Perform a Market Audit
The purpose of performing a market audit is to find out what to expect from the marketplace one are currently in or are considering entering. It provides one with data on any barriers or limitations one might encounter in entering or expanding into a market so that one can determine what it will cost to exist or compete. It also tells one what the possible return will be; in other words, what the market is worth to one (market value) or what one can expect in terms of revenue generation (sales volume/ earning potential). The market audit is the base from which one will develop tactic to get these returns. A market audit builds the foundation for future marketing decisions. The golden rule in performing a market audit is that one must be objective and read the market as it actually is. This means the audit must not be structured around one's product, service, or business. Though these may be mentioned as reference points, don't make them central to the audit. To do so could result in conclusions slanted toward one's business, giving one an inaccurate picture of the market and defeating the purpose of the exercise. The audit is based on market research activities and must be completely independent from research on the performance of one's product, se