This report uses an anonymous company which is looking at the process of conducting a complex marketing audit to provide information for corporate planning, identifying external factors influencing its commercial performance and ensuring the use of effective strategies to promote its products, markets and distribution channels in a complex and diversified market place.
This report is to help the organisation evaluate the most appropriate analysis tools.
It therefore looks at the micro and macro environment, the role of marketing information and research, critical assessments of analytical tools such as PESTEL, Porter's five force analysis, SWOT analysis and Boston Matrix.
Table of Contents
1 Introduction / Purpose
2 Marketing Environments
2.1 Micro Environment
2.2 Macro Environment
3 The role of marketing information and research
4 Critical assessments of analytical tools
4.1 PESTEL Analysis
4.2 Porter’s five force analysis
4.3 SWOT analysis
4.4 Boston Matrix
5 Appendices
Objectives and Topics
The objective of this report is to support Company X in conducting a complex marketing audit. By evaluating various analytical tools, the document aims to provide insights for corporate planning, help identify external factors influencing commercial performance, and ensure the implementation of effective strategies within a diversified marketplace.
- Analysis of the marketing environment (Micro, Macro, and Internal).
- Evaluation of critical analytical tools including PESTEL, Porter’s Five Forces, SWOT, and the Boston Matrix.
- Integration of quantitative and qualitative research to inform strategic decision-making.
- Assessment of internal and external factors affecting market position and competitive advantage.
- Strategic application of portfolio management to balance product life cycles.
Excerpt from the Book
4.4 Boston Matrix
This growth-share matrix is used for product portfolio planning, i.e. to enable and facilitate taking strategic decisions for products or product groups.
The controlling aspects the matrix is based upon are:13
• Relative market share
• Market growth
Each product or product range is being classified by its relative market share and growth rate, and then placed on the matrix as circles with a diameter proportional to their sales revenue.
Company X has to be aware of its different target markets; a product might be a problem child in one specific market, but performing as a star in another. Therefore the products have to be compared relative to the individual markets before taking strategic decisions. Additionally some products rather performing poorly are a strong motivator for customers to buy very profitable add-on products.
The information has to be gained as part of the market analyses conducted by product managers observing markets and competitors as well as by internal financial information.
Summary of Chapters
1 Introduction / Purpose: This chapter outlines the identity of Company X as a power and control specialist and defines the requirement for a marketing audit to support strategic corporate planning.
2 Marketing Environments: The section categorizes the marketing environment into internal, micro, and macro perspectives, emphasizing the necessity of understanding these factors for effective direction setting.
2.1 Micro Environment: This chapter details the stakeholders relevant to the company, including suppliers and customers, and introduces the 'Five Ms' framework for auditing the internal environment.
2.2 Macro Environment: This chapter focuses on external factors beyond management control, such as legislative changes, which require continuous monitoring and adaptation.
3 The role of marketing information and research: This section explains how gathering both quantitative and qualitative research is essential for informed decision-making and avoiding potential market-related risks.
4 Critical assessments of analytical tools: This chapter provides an overview of the tools selected for the audit and warns that they should be used in combination rather than in isolation.
4.1 PESTEL Analysis: This chapter describes the PESTEL framework as a method for monitoring external macro-environmental factors through secondary research.
4.2 Porter’s five force analysis: This chapter discusses how the five forces framework is used to evaluate competitive intensity and identify strategic responses to market threats.
4.3 SWOT analysis: This chapter introduces SWOT as a tool to bridge internal strengths and weaknesses with external opportunities and threats.
4.4 Boston Matrix: This chapter explores the use of the growth-share matrix for managing a product portfolio and making investment or divestment decisions.
5 Appendices: This section provides supplementary structured questions for PESTEL, Porter’s Five Forces, and SWOT analyses to assist in practical implementation.
Keywords
Marketing audit, Corporate planning, PESTEL analysis, Porter’s five forces, SWOT analysis, Boston Matrix, Micro environment, Macro environment, Strategic planning, Market research, Product portfolio, Competitive strategy, Stakeholders, Qualitative research, Quantitative research.
Frequently Asked Questions
What is the primary purpose of this document?
The document serves as a guide for Company X to conduct a marketing audit, evaluating various analytical tools to support corporate planning and identify external market influences.
What are the main thematic areas covered?
The report covers the internal, micro, and macro marketing environments, the importance of marketing research, and the application of specific analytical frameworks.
What is the main goal of the proposed marketing audit?
The goal is to provide the organization with information to identify external factors affecting commercial performance and to evaluate the most appropriate tools for strategic decision-making.
Which scientific methods or tools are utilized in this audit?
The audit utilizes PESTEL analysis, Porter’s Five Forces, SWOT analysis, and the Boston Matrix, supported by both qualitative and quantitative research methods.
What does the main body of the work focus on?
The main body focuses on the definition of the marketing environment, the role of data in strategic planning, and a critical assessment of the aforementioned analytical tools.
Which keywords best characterize this work?
Key terms include marketing audit, strategic planning, competitive strategy, market environment, and portfolio management tools like the Boston Matrix.
Why is the Boston Matrix considered useful for Company X?
It helps in product portfolio planning by classifying products based on relative market share and growth, enabling the company to decide whether to invest, hold, or divest.
How should the analytical tools be applied according to the author?
The author emphasizes that these tools are subjective and should not be used in isolation; they are most effective when combined as part of a comprehensive planning process.
- Quote paper
- Nicole Lorat (Author), 2005, Market audit and analysis, Munich, GRIN Verlag, https://www.grin.com/document/51413
