Professional Documents
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Marketing Audit, Marketing Management
Marketing Audit, Marketing Management
Table of Contents
.............................................................................. ............................03 ACKNOWLEDGEMENT INTRODUCTION TO AMS.... ............................................................................... ........................................04 PART 1: MARKETING ENVIRONMENT AUDIT................................................... .......................................07 MACRO ENVIRONEMENT............................................... ENVIRONEMENT..................................................................................................... ............................08 TASK ENVIRONEMENT....................................... ENVIRONEMENT........................................................................................................... .............................10 PART 2: MARKETING STRATEGY AUDIT.......................................................... ........................................14 PART 3: MARKETING ORGANIZATI ORGANIZATION AUDIT.................................................... ....................................16 PART 4: MARKETING SYSTEM AUDIT........................................................................ ..........................18 PART 5: MARKETING PRODUCTIVITY AUDIT.......................................................... ......................20 PART 6: MARKETING FUNCTION AUDIT............................................................... ...................................26 CONCLUSION.. ......................................................... ...................................32
ACKNOWLEDGEMENT
I am highly indebted to respected Sir Babar Wahab to given me this opportunity & with a deep sense and profound gratitude I convey my thanks to Logistic Manager of AMS for permission & all support.
INTRODUCTION TO AMS
MACRO ENVIRONMENT
A. Demographic
What major demographic developments and trends pose opportunities or threats to this company? What actions has the company taken in respect to these developments and trends?
AMS demographic factors are: Researcher (research Department) & People working in Quality control department of below mentioned segments. Opportunities: when new researchers start their PHD & new Qc labs establish then AMS has great chance to avail those +ve developments & trends to get in to market. Thread: PHDs retiring with high rate as compare to new enrolled PHD. B. Economic
What major developments in income, prices, savings, and credit will affect the company? What actions has the company been taking in respect to these developments and trends?
AMS deals in products having international currency. Ups & downs in currency rate effect business revenue. Gov. funding to universities highly depends on AMS business. C. Environmental
What is the outlook for the cost and availability of natural resources and energy needed by the company? What concerns have been expressed about the companys role in pollution and conservation, and what steps has the company taken?
business. Environmental factors close & open the way of AMS for busin In one case: we got order before earthquake in muzafarabad but due to disaster there all orders were canceled by them which cause a big lose to AMS. In another case: air blue plan clash opened the way to AMS to market their product of Biomedical Instrument for DNA recognition. D. Technological
What major changes are occurring in product and process technology? What is the companys position in these technologies? What major generic substitutes might replace this product?
distributor. So, basically we are selling technology. Technological As AMS is a high-tech instruments distributor advancement creates a new way to business. AMS market needs new & update technology to make their product or conduct researches to compete their competitors. When new technology technolog comes in a market ultimately old one obsolete. AMS stops to gi give service of those obsolete instruments as well. So customers have to buy updated for high tech research & development for forth progress of product one which is fruitful to AMS business Because of this advancement AMS has highest position in the market of Analytical & life sciences instruments. E. Political
What changes in laws and regulations might affect marketing strategy and tactics? What is happening in the areas of pollution contro control, l, equal employment opportunity, product safety, advertising, price control, and so forth, that affects marketing strategy?
Law & order situation can cause late delivery which impacts on AMS good will & relationship with customer. Industrial ndustrial abrupt change changes affect business in negative way. Economic growth declined & Interest rate decreases. Cost of financing reduces till 2 years it would be stable or decline more. Tax increases. It affects AMS business with high rate because AMS major markets are Government sectors. F. Culture
What is the publics attitude toward business and toward the companys products? What changes in customer lifestyles and values might affect the company?
AMS deals in expensive & high tech quality products. Public ublic attitude towards AMS products depends on their budge. If public or companies are quality conscious they buy products from AMS. But on the contrary, if public is price conscious they prefer to buy local products which are economic to them.
Task Environment
A. Markets
What is happening to market size, growth, geographical distribution, and profits? What are the major market segments?
Market Sectors include; petroleum, mining, pharmaceutical, environment, tanneries, armed forces, research organizations, izations, scientists, hospitals, universities and foreign funded projects. B. Customer
What are the customers need and buying processes? How do customers and prospects rate the company and its competitors on reputation, product quality, service, sales force, and price? How do different customer segments make their burying decisions?
Universities / Research Institutes Quaid-i-Azam Azam University, Islamabad University of Sindh, Jamshoro University of the Punjab, Lahore Bahauddin Zakariya University, Multan University of Peshawar, Peshawar University of Karachi, Karachi Chemistry, Jamshoro National Centre of Excellence in Analytical Chemistry International Center for Chemical and Biological Sciences (ICCBS) Pakistan Agricultural Research Coucnil Centre of Excellence in Molecular Biology, University of the Punjab Centre of applied Molecular Biology National Institute for Biotechnology & Genetic Engineering ( (NIBGE), ), Faislabad Mehran University of Engineering and Technology Technology, Jamshoro Pakistan Council of Scientific & Industrial Research (PCSIR), Karachi Pharmacuticals Getz pharma pakistan (pvt) ltd GlaxoSmithKlin (GSK) Abbott Laboratories Novartis Pharmaceuticals Corporation Pfizer Inc Roche Pakistan Hilton Pharma (Pvt.) Limited Clariant Pakistan Ltd
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ZAFA Pharmaceutical Barrett Hodgson Pakistan (Pvt) Ltd NABIQASIM INDUSTRIES (PVT) LTD sanofi-aventis pharmaceutical Oil and Refinary Total NRL PARCO) PAK ARAB REFINERY LTD (PARCO) Oil & gas development company limited (OGDCL) Pakistan Petroleum Limited Shell Pakistan Pakistan state oil Caltex Pakistan Byco Petroleum Pakistan Limited Attock Refinery Limited (ARL) Pakistan Refinery Limited Hydrocarbon Development Institute of Pakistan (HDIP) Sui southern gas Pvt. Ltd (SSGC) FMCG Nestl Pakistan National Foods Colgate-Palmolive Company English Biscuit Manufacturers (Private) Limited Hospitals Agha Kha university Hospital Sindh Institute of Urology and Transplantation ('SIUT') Shaukat Khanum Memorial Cancer Hospital and Research Centre (SKMCH&RC) Shifa International Hospitals Ltd National Institutes of Health (NIH) NIH) Cements Dandot Cement Company Ltd D.G Khan Cement Ltd Gharebwal Cement Ltd Lucky Cement Ltd Thatta Cement Attock Cement Pakistan Ltd Dewan Cement Ltd Cherat Cement Company ltd Fauji Cement Company Ltd Maple Leaf Cement
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Lafarge Pakistan Cement Ltd Customer buying decision depends on their requirements. E.g. universities p purchase urchase products when funds are given to them, Pharmaceuticals & other industries purchases equipment as they need.
C. Competitors
Who are the major competitors? What are their objectives, strategies, strengths, weakness, sizes, and market shares? What trends will affect future competition and substitutes for the companys products?
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H.A Shah We Brothers Technology Links Chemtech Rauf Electronics Ghulam Muhammad & sons Orion International Analytical Lab Equipments Rizvi & Sons
Strengths
Weaknesses Lack of Technical Knowledge of Products Cost of Spares is very high Vertical Growth
Well Established Company Established Brands Reliable Services Strong Install base Business Growth JICA Prices specifications Sales force
HA SHAH Sr.No 01 02 03 04 05
Strengths
Weaknesses Lack of Technical Knowledge of Products China Origin Cost of Spares is very high No engineers False Commitments
Well Established Company Established Brands Un-perfectible Prices Strong Install base Global Influence
AMS has a strong factor or to lead in the market in analytical & life sciences products that is Service (installation, calibration & service contracts). This only factor can affect future competition. D. Distribution and Dealers
What are the main trade channels for bringing products? To customers? efficiency levels and growth potentials of the different trade channels? What are the
AMS represent international business partners from all over the world world. . AMS has two distribution channels. AMS brings product to customer by using different distributors companies such as. DHL, Speedex, DCS, TCS for different cities. Locally use local vehicles. Customer arranges their own trade channel to bring product from the origin. E. Suppliers
What is the outlook for the availability of key resources used in production? What trends are occurring among suppliers?
Perkin Elmer, Sartorious, Erweka, Applied bio systems, Jeol, Stanhope Stanhope-Seta, Seta, Zeltex, Skalar, CEM, Thermofisher scientific, LECO, AB Sciex. Restek Corporation, XOS F. Facilitators and Marketing Firms
What is the cost and availability outlook for transportation services, warehousing facilities, and financial resources? How effective are the companys advertising agencies and marketing research firms?
AMS doesnt have any advertisement agencies & marketing research firms. AMS has its own warehouse & contract with transportation service companies. G. Publics
Which publics represent particular opportunities or problems for the company? What steps has the company taken to deal effectively with each public?
AMS deals in products using in research & quality control equipments. These companies can create opportunities & problems both for the company because of different factors mention above. above AMS has good relationship with customers for effective business.
A. Business Mission
Is the business mission clearly stated in market market-oriented oriented terms? It is feasible?
AMS is dedicated in providing technologically advance & innovative products to our customers in Analytical Life Sciences markets together with knowledge support to bring Pakistan at par with developed countries. It is feasible. B. Marketing Objectives and Goals
Are the company and marketing objectives and goals stated clearly enough to guide marketing objectives appropriate, given the companys competitive position, resources, and opportunities?
To Promote & raise the brand awareness of products in the market. To drive the companys revenue & growth up To build value in our products & services To retain customers Customer relationship C. Strategy
Has the management articulated a clear marketing strategy for achieving its marketing objectives? Is the strategy convincing? Is the strategy appropriate to the stage of the product life cycle, competitors strategies, and the state of the economy? Is the company using the best basis for market segmentation? Does it have clear criteria for rating the segments and choosing hoosing the best ones? Has it developed accurate profiles of each target segment? Has the company developed an effective positioning and marketing mix for each target segment? Are marketing resources allocated optimally to the major elements of the marketing eting mix? Are enough resources or too many resources budgeted to accomplish the marketing objectives?
AMS strategy is to determine professional solutions with quality equipment and support.
A.
Formal Structure
Does the marketing vice president have adequate authority and responsibility for company activities that affect customers satisfaction? Are the marketing activities optimally structured along functional, product, segment, end user, and geographical lines?
All managers have to report MD to take any step. No one has adequate authority for company activities that effects customer satisfaction. Yes Marketing Activities are structures along functional, product, segment, End user & geographically.
Managing Director
Manager Finance
Manager Logistics
Manager Services
Manager HR
B.
Functional Efficiency
Are the good communication and working Relationship between marketing and Sales? Is the product management system working effectively? Are product manager able to plan profit or only sales volume? Are there any g groups roups in marketing that need more training, Motivation, supervision, or evaluation?
There are good communication & working relationship between sales & marketing employees. There isnt any product management system. Product managers are able to plan profit margins. Marketing activity is new in AMS it needs more training & motivation. C. Interface Efficiency
Are there any problems between marketing and manufacturing, R&D, purchasing, finance, accounting, and/or legal that need attention?
AMS service base company. It doesnt need any marketing research plan to measure or forecast sales. After sale service ultimately produce accurate, sufficient & timely information about marketplace. B. Marketing Planning system
Is the marketing planning system well conceived and effectively used? Do marketers support systems available? Does the planning system result in acceptable sales targets and quotas?
Marketing planning system is using more or less effectively in AM AMS. S. Marketers dont have decision support system. Planning system is not fulfilling acceptable sales targets. C. Marketing Control System
Are the control procedures adequate to ensure that the annual annual-plan plan objectives are being achieved? Does management periodically analyze the profitability of products, markets, territories, and channels of distribution? Are marketing cost and productivity periodically examined?
AMS dont have any marketing control system. Management analyzes Profitability of products, markets, territories & channel of distributions annually. AMS doesnt bear any marketing & productivity cost. Product Development System D. New-Product
Is the company well Organized to gather, generate, and screen new new-product product ideas? Does the company do adequate con concept cept research and business analysis before investing in new ideas? Does the company carry out adequate product and market testing before launching new products?
Company does adequate concept research & business analysis before agreement to new principals.
A. Profitability Analysis
What is the profitability of the companys different products, markets, territories, and channels of distribution? Should the company enter, expand, contract, or withdraw from any business segments?
The company should not need to enter, expand, and withdraw from any business segments segments.
AMS dont have any marketing activities seem to have excessive costs. AMS has been doing E-marketing, E database marketing & telemarketing. All are cost reducing steps. E-Marketing: AMS makes different promotional flyers & use database mining to send flyers to the customer of particular products. Telemarketing: Call to existing customer to get feedback from them Call to new customer to introduce AMS in new market
Database Marketing: Send update information about new technology & innovation in products of all principals by usong customer database record of customer.
A. Product
What is the companys product line objective? Are they sound? Is the current product line meeting the objectives? Should the product line be stretched or contracted in upward, downward or both ways? Which products should be phased out? Which product should be added? What are the buyers knowledge and attitudes towards the company and the competitors quality, features, styling, brand names, and so on? What areas of product and brand strategy need improvement?
P.E ICP-MS ICP AAS UV-Vis. FT / NIT / IR / Fluorescence ence Spectroscopy Gas / Liquid Chromatography GC / Mass Spectroscopy Thermal Analyzers Elemental Analyzers LIMS Microarray Substrate Platforms Microarray Reagents and Kits for differential Gene Expression Analysis High Throughput DNA Purification SNP Detection and other Genotyping Analysis HTS Assay Platforms Benchtop Scintillation and Luminescence Counters ADME Instrumentation Radiosynthesis and Radio-labeling labeling 4- and 8- Tip Automated Sample Preparation Systems Microscopy Documentation Nucleic Acid Labeling eling & Detection Flow Scintillation Analyzer Gamma Counters Liquid Scintillation & Luminescence Counters Microplate Counters and Readers Radio-chemicals chemicals for Life Science Research ABI PCRs, Real Time PCRs Protein Analysis DNA Sequencers / Synthesizers Bio Spectrometry LC/ MS Spectrometer
JEOL Electron Optic Products include following: Transmission electron microscopes (TEM) Scanning electron microscopes (SEM) Electron probe micro analyzers (EPMA) Auger micro probe analyzers(AES) Photoelectron spectrometers ters (XPS) Scanning probe microscopes (SPM) Analytical Instruments Analytical Instrument Products Nuclear magnetic resonance Electron spin resonance Mass spectrometers Raman spectrometers X-ray fluorescent analyzers Semiconductor Equipment Semiconductor Equipment Products Electron beam lithography systems Wafer process monitors Wafer process review systems Focused beam review systems Wafer particle analyzers Cross section preparation instruments Sigma Aldrich Chemical and biochemical products and kits
Stanhope Seta Petroleum test equipment and quality control instruments CEM Microwave laboratory systems Sartorious Sartorius manufactures following equipment: OEM Weight Sets Moisture Analyzers PH meters Conductivity meters Ion meters Centrifuges Incubators Shakers Homogenizers
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Laboratory Water Purification System (from simple lab water to HPLC grade water) Erweka Hardness tester Dissolution tester Disintegration tester Friability tester Granulate tester Inhalation tester Suppository tester Tablet presses Fluid bed system Roller compactor/dry granulator Blister checker Zeltex Portable octane analyzers Seed analyzers Food/cheese analyzers Ground meat analyzers. Skalar On-Line Analyzers of: Water treatment Measuring oils Phosphates Nitrogen Cyanides Phenols Chlorophyll, etc Total Organic Carbon (TOC) and Continuous Flow Analyzers (CFA) Restek GC, HPLC and UHPLC columns Accessories Lab ware Reference standards Sample handling Chromatograms for GC and LC. XOS Sulfur Analyzers Chlorine Analyzers Multi-Element Analyzers Silicon Analyzers Phosphorous Analyzers
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X-Ray Ray Optics /Excitation Systems HD prime Analyzer All products are sound & meeting objectives AMS products dont need to stretched or contract in any way. AMS deals in branded & expenses products. Every customer who is quality conscious have great knowledge & attitude towards AMS products.
B. Price What are the companys pricing objectives, policies, strategies, and procedures? To what extent are prices set on cost, deman demand, d, and competitive criteria? Do the customers see the companys prices as being in the line with the values of its offer? What does management know about the price elasticity of demand, experience experience-curve effects, and competitors prices and pricing policies policies? To what extent are price policies compatible with the needs of distributors and dealers, suppliers and government regulation? Pricing objectives 1) 2) 3) 4) Customers Based (Penetration in Market, Market share) Cost based (New product, price skimming skimming) Competitive Based promotions (attraction 20% add on 100%) Market base (cost is Rs.10 but sold in Rs.100 as the market price was Rs.100)
AMS prices are higher than competitors because AMS deals in international currency & high tech products. C. Distribution channel
What are the companys distribution objectives and strategies? Is there adequate market coverage and service? How effective are distributors, dealers, manufacturers representatives, brokers, agents, and others? Should the company consider changing its distribution channels?
D. Marketing Communications
What is the organizations advertising objectives? Are they sound? Is the right amount being spent on advertising? Are the ad themes and copy effective? What do customers and the public think about the advertising? Are the advertising media well chosen? Is the internal advertising staff adequate? Is the sales promotion budget adequate? Is there effective and sufficient use of sales promotion tools such as samples, displays, and sales contests? Is the public relations staff competent and creative? Is the company making enough use of use of direct, online, and database marketing?
E. Sales Force
What are the sales force objectives? Is the sales force large enough to accomplish the companys objectives? Is the sales force organized along the proper principles of specialization (territory, Market, product)? Are there enough (or too many) sales managers to guide the field sales representative? Do the sales compensation level structures provide adequate incentive and reward? Do the sales force show high morale, ability, and effort? Are the procedures ocedures adequate for setting quotas and evaluating performance? How does the companys sales force compare to competitors sales forces?
Objectives To o raise the total sales numbers in each period To o increase the number of sales made to existing customers compared to first-time time buyers To o reduce inventory holding costs, reduce inventory cycle time and boost profitability objectives. AMS has organized sale force by Sales force is large enough to accomplish the companys objectives territory, , product & market wise. Only one manager heads each principle products. Yes, AMS gives rewards & incentive to employee on achieving standard sale targets targets. . AMS salesperson work with great enthusiasm. AMS compare sales forces to customer sale forces by analysis sales progress.
Conclusion
AMS doesnt have a proper marketing program & process process. AMS has started E, Database & Telemarketing. AMS doesnt invest in advertisement or marketing firms. AMs is keep on growing without any proper marketing process but I can be grown with high rate if proper marketing process & practices will be followed by marketing department. E-marketing has being giving good result to AMS to get inquiries. While tele-marketing marketing shows that AMS products are not suitable for telemarketing. However, by analyzing E-marketing marketing Result it seems that proper marketing process can give high revenue to AMS.