To: Marketing Director, X Group
From: Marketing Consultant
Date: January 4th, 2005
Purpose of report
The X Group are undertaking a complex marketing audit and require assistance in evaluating the most appropriate analysis tools.
This report will endeavour to fulfil the X Group’s requirements by critically explaining the components of micro and macro analysis. This report will also explain the role of marketing information and research in conducting and analysing the market, and finally critically assess the usefulness of four analysis tools appropriate to X GROUP’s company activities: - PESTEL analysis, SWOT analysis, Gap analysis and Porter’s five force analysis.
1. Background to the X Group
The X Group is a fully integrated presentation and communication organisation, designing, creating and producing presentation solutions globally. This involves assisting high profile corporate clients to effectively communicate to internal or external audiences, through the use of interactive solutions, incorporating video, events and multimedia. Based in Worcestershire, the company employs a team of 30 and has won several awards for business excellence and innovation.
2. An Overview of Marketing Planning
In the words of Dibb, Simkin, Pride and Ferrell (2001), p691
Marketing planning is a systematic process of assessing marketing opportunities and resources, determining marketing objectives and developing a thorough plan for implementation and control.
3. The Marketing Audit
The marketing audit is an analytical examination and appraisal specifically of a company’s internal (micro) and external (macro) environments and factors that influence business activities; it is a vital part of the marketing planning process as it provides essential analysis to assist with company and marketing decision-making.
4. Micro Analysis
Micro analysis looks at a company’s internal operating environment, evaluating what systems and personnel are in place already and what extra resources might be needed. This analysis is vitally important in order to fully understand the issues that relate specifically to your business.
The key factors are
Each factor can be broken down into multiple issues during a thorough investigation of this environment; this can take a lot of time and resources to complete. However, it’s an extremely useful tool for spotting strengths and weaknesses within a company that may be exploited, or which must be addressed and improved.
5. Macro Analysis
Macro analysis looks at the external business environment and influencers, providing the company with opportunities ‘for’ and threats ‘against’ success. Various models exist, which provide a structure to work within i.e. PESTEL, which is explained further on in this report. This analysis covers the political and legal environment, key economic factors, social and cultural issues, technological evolution and ecological or environmental factors - all influence the way business can be done, either posing a threat to be addressed and action taken, or presenting an opportunity to be exploited.
Macro analysis is extremely important to any marketing audit no matter how simple or complex. Without finding out about what is going outside the four walls of a company, marketing and corporate decisions will be made blind and consequences could be catastrophic. Changes within this environment happen frequently and it may be difficult to keep up with / find out about them all. This level of research may require assistance from an external research agency, which can cost in time and money but may be vital to the overall activity....