Market Audit

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Market Analysis:
Outlining the Process and Exploring its Value to an Organisation

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1. Introduction
2. Market analysis process
2.1 Macro environment analysis
2.2 Micro environment analysis
2.3 S.W.O.T. Analysis
2.4 Critical Success Factors
3. Identification of short, medium and long term
benefits of a Market Audit
4. Identification of the challenges facing marketers
undertaking a market audit and the dangers of not doing so. 5. Conclusion
6. Bibliography

1. Introduction
Step 1 Macro Analysis
Step 2 Micro Analysis
Step 3 TOWS/SWOT
Step 4 Identification of Key or Critical Success Factors
Step 1 Macro Analysis
Step 2 Micro Analysis
Step 3 TOWS/SWOT
Step 4 Identification of Key or Critical Success Factors
A market audit is a strategic planning process that enables businesses to work out the steps needed to achieve their objectives. It can be defined as, “…a systematic process for assessing marketing opportunities, helping organisations stay in touch with marketplace trends and to keep abreast of customer needs,” (Dibb, 2002). A marketing audit helps a company to understand how it relates to the environment in which it operates. It can aid in the identification of a company’s strengths and weaknesses in relationship to external opportunities and threats (SWOT.) The structure of a market audit has four stages and includes the following: macro analysis, micro analysis, SWOT analysis and finally, identification of critical success factors. An effective market audit allows businesses to carefully watch the market environment and spot potential threats and opportunities. I will explain the step by step process of a market audit and use visual tools to illustrate the stages. The company that I will use in the explanation of the market audit process is Ford motors. The Ford motor company is a global leader in automobile industry, which is founded by Henry Ford. It is performing its business in 7 continents and 90 plants are speared worldwide. It employed 201,000 people in their business.  2. The Market Analysis Process

Company
Intermediaries
Suppliers
Competition
Customers
Technological
Socio-cultural
Economic
Political
The Micro-environment:
Specific to a particular
company and market.
Company
Intermediaries
Suppliers
Competition
Customers
Technological
Socio-cultural
Economic
Political
The Micro-environment:
Specific to a particular
company and market.
In a market audit, there is an environmental analysis process which is shown in the diagram below: The Macro – environment:
`Big’ issues affecting all
Markets: PEST
The Macro – environment:
`Big’ issues affecting all
Markets: PEST

2.1 Macro environment analysis
The first stage of the market analysis process is the analysis of the ‘Macro environment’. This can be carried out with reference to a pneumonic: PEST. Political factors, economic factors, social factors and technological factors that all affect the macro environment. ‘The macro environment is a number of broad forces that affect not only the company but also the other actors in the micro environment. Companies have no influence over the elements in the macro environment.’ (Jobber, 2007) To perform a macro analysis one needs to research the market sector and select statistics and relevant market data.

There are many political factors that could potentially affect a business, found in the macro analysis. For example; Government actions, tax levels, privatisation, employment laws, and the introduction of new business laws. The introduction of new business laws from the government will impact Ford to change its regulations making it necessary to produce high quality vehicles reaching certain criteria. An example is that recently the...
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