In the business world, many activities take place all with aim of achieving one thing for an enterprise – success in terms of production and overall profit. The market audit functions just like the financial audit in that in the marketing sector, it analyzes and carries out a review of the current market activities of a firm.
It creates room for the appraisal and review of the marketing strategies employed by a company to achieve a particular objective. This leads to assessment of previous and current performance of an enterprise while offering basic standards to determine and evaluate various courses of actions likely to occur in the future.
Types of market audit
There are two types of market audits – the internal and the external audit. Internal audits deal with all the marketing aspects with regard to the inside environment of a company. It takes a deep look into things such as market shares, sales, profit, margin, research of marketing data, costs among others. The external market audit is much broader than the internal audit and it covers the following: the economic environment, own market environment and competitive environment.
Economic environment
Here, we will take several dimensions in viewing things. To begin with, in the political aspect, it assesses the effects of various government policies, taxes, privatizations and so forth. On the economic aspect, it looks into the income level, economic growth rate, inflation rate and the rate of employment. The societal aspect looks into demographics, cultural values of people as well as their lifestyle. In addition, in other aspects such as technology and the environment, the major focus is on things such as use of internet, IT and standards that regulate impact of business to environment.
Competitive environment
In this aspect, the company mainly focuses on the level of competition in its environment. It looks at what its competitors are doing in the market and the extent of competition they pose to the industry. In that case, the company has to consider the following to know whether they are in a position to deal with competitive environment effectively. Competitors strength and weakness, use of substitute products, the price of products and services, product distribution, competitor reputation, entry of new commodities to the market and generally anything in relation to the operations of competitors that cause stiff competition.
The market environment
This is an essential aspect in that it looks into the price and quality of products and services, the characteristic of the market in terms of its trends and growth, market size, consumers and consumer feedback. With information about these factors, the final report from the market audit is useful in showing the business the best direction to take.
A good market audit report is the reason why most successful companies always come up with effective strategies of dealing with different challenges in a competitive business world. For great impact in the market, it is vital to use the market audit as a tool to devise ways and solutions that will work for the company’s benefit. If you want to know more about business management and financial abilities, check out this website: https://www.crioceras.com/.