Marketing Audit for Adidas Australia: Objectives, Planning Process, and Philosophy
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This marketing audit for Adidas Australia covers its objectives, planning process, and philosophy. It includes a SWOT analysis, buyer decision process, and 5 gap model. The study also delves into the company's background, origin, and vision statement.
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Running head: MARKETING AUDIT MARKETING AUDIT Name of the student Name of the university Author note
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Table of contents 1.0 Introduction............................................................................................................................2 2.0 Marketing objectives..............................................................................................................2 2.1 Marketing planning process...............................................................................................3 2.2 Marketing philosophy.........................................................................................................4 3.0 Background of the organization (Adidas Australia)................................................................5 3.1 Origin of the company........................................................................................................5 3.2 The quest of the company..................................................................................................7 3.3 Vision statement.................................................................................................................7 4.0 Buyer decision process..........................................................................................................8 4.1 Followed by 1stzone purchase behavior.............................................................................8 4.2 2ndtime zone product delivery............................................................................................9 4.3 3rdtime zone post-purchase behavior.................................................................................9 5.0 5 gap model.........................................................................................................................10 6.0 SWOT analysis....................................................................................................................11 7.0 Conclusion...........................................................................................................................12 Reference list.............................................................................................................................14 MARKETING AUDIT[Name of the student]1
1.0 Introduction Marketing is an essential part of management that helps to exchange the relationship between marketers and consumers. Marketing aims to maintain customer satisfaction and innovation in the workplace. It is also true that the concept of marketing is about the process to satisfy the organizational objectives. Therefore, it can be said that marketing plays an influential role in terms of developing a strong brand image on customers' mind. The purpose of this study is to develop an effective planning process. Although the concept of marketing is easy, in the case of implementation, the marketers face different types of challenges. Different customer- centric approaches are being applied in case of developing marketing strategies. Marketing is not only about promoting a product, but it is also about the process in which an external relationship can be improved. The purpose of this study is to identify the marketing objectives of Adidas. The different planning process and marketing philosophy have been highlighted in this study. Through the marketing audit, the background of the organization and mission have been discussed. 2.0 Marketing objectives To increase the sales revenue by 12% within the coming 5yeras? To develop the customer relationship for getting loyal customers To identify the challenges in product distribution process To retain right employees in the organization To identify measurable recommendations for dealing with the challenges 3×3 matrix objectives Figure: Ansoff 3×3 matrix (Source:Wen et al. 2014) In the above diagram, 9 key components of B2B marketing process have been highlighted. In case of managing the business marketing practices, depending on the new, existing and expanded market, the business strategies of the organizations are being changed. With an existing product in a new market, the company focus on developing the market. Partial MARKETING AUDIT[Name of the student]2
diversification strategy is being adopted when the new organization enters in the market with modified products. This is also being adopted when the company enter the expended market with new product. Market Diversification strategy is being adopted in case of entering the new market with new products. Market expansion strategy is being adopted in case of expanding the business with existing products. Limited diversification strategy helps to expand the business with modified products and services. Market penetration strategy is for those organizations which develop a marketing strategy in existing market with existing products. Most of the cases the organizations which have a strong brand image, follow this strategy. Product expansion strategy is being followed by the organizations when the modified products are being developed in the existing market. Product development is being followed in case of entering with the new product in the existing market. In case of expanding its business in the Australian market, Adidas may focus on Market penetration strategy. It is an existing organization in the Australian market and products of the company is popular among the customers. In this case, it will be easier for the company to increase its business revenue. 2.1 Marketing planning process The marketing planning process can follow the typical template of the compound process. It is true that the business planning process is being considered as the internal proves of market communication. The business plan: In business planning, the mission of the organization is being clarified. Defining the operating structure of the company short term, medium term and long term goals have been set. The Well-crafted mission statements are being included in the business planning. As it is an interactive process, therefore, in the business planning the business disciplines are being discussed. The executive summary In the executive summary, the final draft of the assignment is being provided. Through the executive summary, the critical factors in the business plan are being highlighted. Purpose statement In this section, the clear statement with strategic intentions is being discussed. Through this statement, the mission of the plan is being provided using the strong key message. It also helps to understand the value of the organization and provide the guideline to understand the plan. Situational analysis In the situational analysis, an overview of the organization, the business environment and the customers are being provided. It helps to understand the overall business situation in the industry. Industry trends, sales and others factors are being clarified through the situational analysis process. Organizational nature, assets, equipment, history and trademarks of an organization can be understood through the situational analysis process. Organizational objectives It helps to identify the holistic statement, quantifiable and clear statement related to the business plan. Action plan MARKETING AUDIT[Name of the student]3
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It is true that the strategic business plan helps to set the business objectives and allocate the responsibilities to achieve the objectives. In case of an Action plan, the budgeting, timeline and step by step planning are being reflected. Through the Action plan, step by step the tasks for achieving the business objectives are being highlighted. In the planning stage, the business opportunities are being provided that helps in teams of developing the strategies for the operations. The action plan can be developed in the unpredictable condition of the organizational situation. Marketing plan A marketing plan is being considered as another important part in business planning. Here the target customers are being identified and depending on their needs and demand the further steps are being taken. In this process, the factors which can influence the business practices being identified. Ore competencies of the company, as well as the uniqueness of the products, are being examined so that large numbers of customers can be attracted. Segmentation variables In this process, the segmentation variables are being identified depending on geographic, demographic, behavioral and psychographic segmentation. Pricing In the marketing plan, the details of pricing strategies are being discussed. By outlining the value proposition, the plan helps to design the proper price for different target group. Collection of internal data In case of identifying the apocopate information, software is being used by the marketing predictors. By collecting the buyers’ history, consumption pattern and cumulative customer details, the marketing predictors do their business analysis. Income projections Depending on the income projection the product decision of the customers may vary. By summarizing the situational factors, the key considering factors of the marketing plan can be identified. Marketing Action plan It is a broad strategic document. Here the entire operational planning is being discussed. It is true that depending on the objectives and customers need; the marketing action planning is being developed. Questionnaire Does the company follows the every step in marketing process? 2.2 Marketing philosophy Appropriate marketing philosophy is needed to be selected by the organization for maintaining the strong organizational culture. Culture has higher level of contribution in case of understanding the values in the workplace. In case of exploring the marketing evolution process, the marketing philosophy is being considered as the dominant concept. It is true that marketing philosophy is being influenced by the concept of production. Unsustainability, value proposition and the cost advantages can be influenced by the marketing philosophy. In case of analyzing the productive capacity, it can be beneficial. In the current business scenario, the MARKETING AUDIT[Name of the student]4
organizations need to focus on understanding the proper business philosophy so that competitive advantage can be gained in the marketplace. As per the market predictors, the characteristics of the customers are very influential in case of increasing the sales revenue of the company. In case of examining the marketing philosophy, the market definition, evaluation process and objectives need to be clarified. It is true that society has higher level of contribution in the marketing process. In case of analyzing the marketing process in theoretical perspective, the business concepts need to be analyzed. In this study, the marketing concept has been clarified. It is true that exploration of marketing language is very important in terms of understating the market assumption. The market is being considered as the specific place in which the sellers and buyers exchange their needs. In other words, the market can be defined as the important pace for operating the product exchange process in equal value. Marketing is the face to face participation of sellers and buyers for exchanging the values. It is true that marketing plays an essential role in the case of determining the foundation knowledge of the company. The communication process is very important in marketing concept. It is true that depending on the process of collecting information analyzing and listening, the marketing gaps can be solved. In the marketing philosophy, promotion is being considered an important part of maintaining the cultural collaboration in the workplace. In the case of the classic market, the human activities are being highlighted as the important part of satisfying the needs of the customers through the exchange process. The entire human activities are being focused depending on the behavioral characteristics o the customers. In the words of Kotler, marketing is being directed to satisfying the needs of the customers. Selling concepts of marketing may differ depending on the organizations. It is discussed that depending on the knowledge of the customers, the purchasing attitude may change. In case of increasing the product knowledge of the customers, media plays an influential role. On the other hand, it cannot be denied that not only product knowledge but also product attitudes are also very important in the market. Depending on the important three component the product attitudes may differ, such as behavior, affect and cognition. Product attitude impacts the product expectation process, which indirectly influences the decision making process of the customers. In the marketing philosophy, it has been clearly mentioned that marketing is all about maintaining the differentiation between wants and needs. Wants and needs are the core concept of marketing. Needs is about the terminal and instrumental value. A product with terminal and instrumental valuecan easily convince the customers towards purchasing the products. In the marketing philosophy, the marketing needs have been discussed high highlighting its types. Depending on the understanding of the needs the company can be able to understand the importance to customers; essential, which can help the organizations in marketing. Against the expectation framework, the needs can influence the pre-purchasing behavior of the customers. On the other hand, it is also true that bring the post-purchase evaluation process, needs analysis is very important. Analyzing the different perspectives of needs, McClelland has classified needs in three categories, such as the need for affiliation, the need for achievement and the need for power. Depending on their own choice, people can search for different ways of satisfying their own needs. The need may change depending on the life experience of the people. Questionnaire Which marketing philosophy should be followed by Adidas to survive in the market? Does Adidas truly follow the product attitude philosophy in marketing? MARKETING AUDIT[Name of the student]5
3.0 Background of the organization (Adidas Australia) 3.1 Origin of the company In the year 1924 in July Adidas was founded by Adolf Dassler in Germany. The aim of the organization is to manufacture and design the best quality of clothes, shoes and sports accessories (Adidas.com.au 2018). It is true that Adidas is being considered as the largest sportswear manufacturing organization in Europe. Adidas is the holding company of Adidas group that consists of Taylormade, Reebok, Runtastic and Ashworth. In the year 2015, the total revenue of the company was € 19.29 billion. If the history of Adidas is being analyzed, it will be identified that the company was started as the Dassler brothers shoe factory. In the initial stage, the company manufactured the spiked running shoes for athletics. In the year 1949 after the break down between Dassler brothers Adidas was created by Adolf and Rudolf created Puma, Now which is the popular competitor of Adidas. After world war 1, the company has faced issues regarding the supply of electricity inHerzogenaurach, which is the headquarter of the company. In the case of enhancing the quality of the products heavy metal spikes were being collected from previous models so that the rubber and canvas supply can be maintained (Adidas.com.au 2018). In the year 1936, the handmade spiked shoes were introduced in the 1936 Summer Olympic by Dassler. After gaining the gold medals, the popularity of Dassler shoes in the athletic world has increased. It is true that before world war 2, the company sold near about 200000 pairs of sportswear. In the year 1951, during the supper Olympics the company acquired the 3 stripe signature logo from the ended athletic footwear brand called Karhu Sports with 1600 euros. With the increasing popularity all over the world the company has started expanding its business (Adidas.com.au 2018). It is true that near about 55 independent countries in all over the world the company has expanded its business. In the record of 2018, it has been identified that near about 800 outlets have been established by Adidas in the global market. On the other hand, it has been identified that in the year, the Adidas group has served through 1557 concept stores. MARKETING AUDIT[Name of the student]6
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Figure: concept stores of Adidas from 2008 t 2017 (Figure: Statista.com 2018) In the above diagram, it is clearly shown that with the increasing popularity in the market, the number of stores of the company is gradually increasing. In the year 2008, the stores of the company were 1019, where the numbers of stores have reached 1557 in 2017. 3.2 The quest of the company Proper communicationwith the customers can play an influential in case of providing standard quality of service. It has been identified that depending on the efficiency of the employee in the workplace can also play an effective role to convince the decision making process of the customers. By improving the interaction processwith the customers, the serving quality in the workplace can be improved. By enhancing the customer service strategy, the service can be improved. If the organization properly attends the feedbacks of the customers, it will be beneficial for the company. Developing a strong customer relationship, the trust can be built. By ensuring the great service experience to the customers, it will be beneficial for the company to increase its cultural values. In case of Adidas, it has been identified that in the current scenario, the company is dealing with several challenges such as increasing customer complaints and due to its premium ranges, it has become harder for the people to abele the products. On the other hand, due to increasing dependence on the third party, the delivery process of the company is being hampered. In this situation, it has become very important for the company to deal with the challenges. In this situation, the marketing predictors need to focus on identifying the reason behind the business challenges. In this case, the research and development and routine monitoring process can be beneficial. Proper waste management is very important in case of using the resource efficiently. Improving the storage facilities, it will be easier for the company to introduce the strategy for utilizing the resources in a proper way. In case of increasing the efficiency of existing resources, the proper wealth functioning tools can be beneficial. By enabling the movement of raw materials and mass distribution, the existing resources can be utilized in the right manner. In case of maintaining the effective distribution of information, it will be easier for the organization to overcome the business challenges in the workplace. Transport can play an influential role in case of maintaining the distribution process in an organization. Enabling the departmental stores and involving in the construction process, the company will be able to maintain its distribution of innovation. In case of international trade, tourism marketing can be beneficial for the company. Through the universal educational initiatives, it will be easier to convince the customers. In case of maintaining the distribution proper ineffective manner, the cash register facility can be effective. It cannot be denied that proper interaction with the customers plays an influential role in distributing the company related information to the people. It is true that developing Business to business communication in fastest manner, the telephone can be used as an essential resource. Not only the telephone but also the television and radio are important for information distribution. Through the mass distribution of information, the products are being reached to the customers. Questionnaire Do you think that Adidas has followed customer satisfaction initiatives in the workplace? Do you think the strategies of Adidas can help in utilizing its existing resources propelly? MARKETING AUDIT[Name of the student]7
3.3 Vision statement Mission and vision statement of an organization is very important. Mission statement indicates the formal summary of the values and aims of an organization. The mission statement includes an understanding purpose of the company so that the employees will be focused on achieving their goals and objectives. In case of Adidas, it has been identified that the mission of the company is to develop a strong brand image in the sports industry. In the vision statement, the transformational initiatives o the company can be identified. In case of the mission statement, the goals are being summarized, however, in case of vision statement, the future needs of the company can be defined. In other words, it can be said that a mission statement defines the present needs of the organization, where the vision statement indicates the future needs of the company.In case of Adidas it has been identified that the aim of the organization is to bring innovation and inspiration to every athlete. It wants to be the global leader in sporting industry. Questionnaire Do think that Adidas has achieved its vision statement? 4.0 Buyer decision process The process of buyer decision helps to represent three stages by which the purchaser can go through before reaching the purchasing decision. It is true that the buyer decision process can be influenced by the values and perceptions of the customers. Behavioral characteristics of a person can influence needs and preferences. In case of understanding the buying process of the customers, there is high strategic importance. Buyer decision process and its transformation are very important in terms of managing the sales pipeline. If the employees in the organization will be able to understand their responsibilities properly, they can assist the customers to enter in the process. Hence, it has become necessary for marketing predictors to understand the buying decision process. Figure: 3 zones of Buyer decision making process (Source: Fanning 2018) In the above buyer decision model, three 3 zones have been highlighted. It cannot be denied that nature and availability of the products, impact on the buying decision of the customer. In case of determining the speed of the buyer decision process, depending on the situational factors, below zones have been highlighted. MARKETING AUDIT[Name of the student]8
4.1 Followed by 1stzone purchase behavior Cost/risks/ benefit analysis: If the customers are being recognized for the unmet needs, the person gets motivated for achieving the needs. In this situation, the estimation of the customers regarding the value and quality of a particular service or product get changed. Cost/risks/ benefits analysis is very important for exploring the cost involved in the product. In case of prevailing the situational factors, the consideration of values are important for analyzing the situational demands. Need recognition: Need recognition is being considered as the initial stage of buying. In this proves the unmet need of the customers is being identified by the marketing predictors. This is the process by following which the difference between want and need can be identified. The need is something which indicates the specific requirement, and it can be socio-economic, physiological and personal. Determining the promoting, distributing and developing needs the services are being provided by an organization. Product selection process: The product selection process is being considered one of the lengthy process in the purchasing process. Depending on the cost-benefit analysis process, different consumers’ valuecan be identified. It cannot be denied that the diversified values of the customers can influence the nee analysis process. In this case, the marketing predictors have focused on the consumption patternof the customers depending on different values. On the other hand, the importance of the products may differ for different customers. As an example, Adidas mostly manufacture the athletic shoes, in this case, the priority of the products will be higher for an athletic or sports person rather than an office gores. Therefore, it can be said that the product involvementprocess can be influential in terms of grabbing the attention of the customers. The customer product involvement can vary in the form of low and high involvement. In case of developing the customer involvement profile, the marketing predictors can assist to the service providers so that they will be able to understand the needs of the customers. It cannot be denied that there are various types of situational factorsthat can play an influential role to convince a customer towards purchasing. Classification of the products is another important key driver in influencing the purchasing decision of the product. Multi-attribute model In the case of estimating the values of the products, the multi-attribute mode can be adopted by the marketing predictors. In this process, the customers will be able to identify the product attitudes. Depending on the estimated attributes of the products, the customers purchase the products. 4.2 2ndtime zone product delivery In the second time zone, the assessing experience and assessing values are being identified. Depending on the process of product delivery, the experience qualities are being assessed. The products, which have high experience qualities, need to deliver during the presence of the customers. The responsibility of the marketing predictors for ensuring the interaction process with the customers so that scripts, roles and controlling tools can be blueprinted properly. In this case, the cycle of satisfaction cane discussed. A product with high experience qualities can play an influential role in enabling the communication process. Customers' mostly get influenced by the people who have already experienced the products. In case of convincing the large numbers of customers the communication process is very effective. MARKETING AUDIT[Name of the student]9
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It is true that depending on the face to face communication process a delivery person can be able to deliver the right product to the customers. 4.3 3rdtime zone post purchase behavior Depending on the experience of consumption, the post-purchase behavior is being reelected. After receiving the product, the qualities, cost, effort and time are being examined depending on the product. Depending on the reflection of the consumption experience the evaluation process is being started. In this study, the credence qualitieshave been discussed in which the evaluation process depending on the customers’ faith has been examined. This process is similar to the cognitive dissonance.In most of the cases, the market predictors do not follow the cognitive dissonance process.It is true that propagate customer' complain is the main threat to the organizations. Therefore, this is the responsibility of the marketers is to communicate properly with the customers so that the cognitive dissonancecan be reduced. If the customers' feedbacks can be gathered properly, it will be beneficial in terms of maintaining the continuous improvement in the workplace. On the other hand, the market predictors have neglected the time zone of post- purchase. This is true that depending on the behavioral aspects of the customers, the post purchasing behavior gets changed. The post purchasing behavior of the customers can be influenced depending on the implementation strategies, design and development process. It is true that in the product development process, the products are being compared with similar products.in this case, the decision making process of the customers is being changed. Analyzing the current business trend, it has been identified that the organizations are giving priority to the technological uses in the case of influencing the decision making process of the customers. Therefore, it can be said that the three time-zone influence the changing decision making process of the buyers. In the Cycle of satisfaction, the sales, pre-sale, purchase, finance and operation are being included. By fulfilling the needs and requirements of the customers, the products are being sold. In the pre-sale position, the financial and technological analysis is being done. Depending on the purchasing decision process, the multiple options are being arranged for the customers within selected time frame. These are responsibilities of the marketers to following up the vendors and suppliers. If the customers get satisfied with price and quality of the products, they arrange funds for purchasing their favorite products. Questionnaire Does adidas adopted the effective customer behavior analyzing tool that can help to sustain in competitive market? Do you think Adidas properly follow the cycle of satisfaction? Do you think the product selection process of the customers can be satisfied by Adidas? 5.0 5 gap model In the case of capturing the expectations of the customers and understanding the perceptions of the customers, theSERVQUALmultidimensional research instrument is very effective. In case of understanding the satisfaction level of the customers,' the 5 gap model is very effective. It is the conceptual model that helps to analyze the service quality and the implication of its initiative. MARKETING AUDIT[Name of the student]10
Figure: 5 gap model (Source: Fanning 2018) In the above diagram, the 5 steps of gap model have been discussed. In the gap 1, distance between the managers' thinking and the expectations of the customers have been highlighted. It is true that using the survey research; the 1stgap can be identified. In case of marketing audit of Adidas, it has been identified that the aim of the company is to introduce the innovation and technology in the market. It is true that the managers of the company are aware of the needs and demands of the customers. Gap 2 identify the distance between the actual specification and the perception of the management. This step is very important for understanding the managers in the company are being able to understand if they are providing the same standard of service needed by the customers or not. Gap 3 identify the specified experience that is being collected by the managers through the customers' feedbacks regarding the delivery. In this situation, it becomes easier for the managers to understand it the company is being able to fulfill the customers need or not. In the Gap 4, the gap between communication to the customers and customer experience delivery can be analyzed. In this process, it can be assumed that if the company is providing promised quality of service to the customers or not. It is the process in which increasing customers' expectation and its impact of changing customer' perception are being analyzed. Gap 5 is the final step, in this step, the gap between customers' expectation for service and customers' perception of experience is being identified. This is the process by which the customers' experiences is being shapes by word of mouth. By following the transactional survey process, the marketing audit team has identified that measuring the customers' experience is very important for understanding their perception. Questionnaire: As per your understanding, in which gap Adidas needs to work on? Answer: Gap 1 Gap 2 Gap 3 MARKETING AUDIT[Name of the student]11
Gap 4 Gap 5 6.0 SWOT analysis Analyzing business environment of an organization SWOT analysis can play an influential role in terms of bringing the business opportunities for an organization. In the marketing audit, SWOT analysis of Adidas has been done for examining its business environment. StrengthWeakness The company has established its strong brand image in the market. With its heritage and legacy, it has become one of the popular youthful brands in the global market. Diversified products are the biggest strength of Adidas. Introducing the multiple product portfolio in the market, the company grabbed large numbers of customers’ attention. It cannot be denied that with the increasing marketing popularity near about 1557 stores have been introduced by the company in 2018. Analyzing the increasing business revenue of the company it can be said that business revenue of the company has reached€21.218billionin 2017, which indicates its strong financial status. Adidas is being considered as the combination of technology and production. It has developed its strong relationship with c community by contributing in the major events such as UEFA, FIFA, Olympics and NBA Product distribution system of the company is done through online, different channels and supermarket. In case of maintaining sustainable position in the market, strong collaboration between international finance corporation and international labor organization is being maintained. It is true that target market of the company is upper-class people, due to this reason the price ranges of the products are very high. Although the company has taken various initiatives in terms of improving the internal environment in the workplace, due to internal conflicts the organizational culture has been influenced. It has been identified that 93% of the entire production of Adidas is being done by the 3rdparty manufacturers.in this situation, sometimes the risks related to the quality standard increase. On the other hand, it is true that depending economics and social standard of the customers, it has become tough for the company to satisfy the customers’ need. Increasing competition in the market has become one of the major concerns for Adidas. OpportunitiesThreats With technological advancement and economic opportunities, business expansion opportunities in the market Supplier dominancy is the biggest threat to Adidas. As the major portion of the production is being outsourced. MARKETING AUDIT[Name of the student]12
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have increased. It cannot be denied that demands for the premium products in the market is increasing. It has been identified that near about 33% of the demand for premium products in Asian market has increased. It is true that depending on the changing lifestyle of the customers, sportswear has become popular in the market. Smart strategies are being followed by the company, which can bring the operational opportunities in the market. Therefore, increasing bargaining power of the suppliers has created tough situation for Adidas. As Adidas has become the global brand, in this case the newcomers are manufacturing the same products in the market, which has impacted on the brand image. Government regulations and tough taxation policies are the biggest threat to the company. (Source: Created by author) Questionnaire Do you prefer Adidas for sportswear and accessories? Answer: Yes / No Do you regularly purchase products from Adidas? Answer: Yes / No Are you satisfied with the quality of the products? Answer: Yes / No Do you ever faced any delivery issue? Answer: Yes / No Do you recommend Adidas to your friends? Answer: Yes / No 7.0 Conclusion In this study, it can be concluded that marketing plays an influential role in case of understanding business growth. On the other hand, it is true that depending on marketing concept different needs of the customers can be analyzed. Depending on the marketing audit, it has been identified that in case of developing the marketing plan, proper business objectives need to be identified. It is the responsibility of the marketing predictors is to clarify the importance of situational analysis to the employees. It is true that employees need to be informed regarding the business philosophy and its impacts on the organizational operations. This is also required for driving the purchasing decision of the customers. MARKETING AUDIT[Name of the student]13
Reference list Adidas.com.au 2018. https://www.adidas.com.au/[Accessed on 31stOct, 2018]. Fanning,D.2018.The marketing concept [e-book]. [online][Accessed on 31stOct, 2018]. Statista.com 2018. https://www.statista.com/statistics/268442/number-of-retail-stores-of-the- adidas-group-worldwide-by-store-type/[Accessed on 31stOct, 2018]. Wen, M., Lu, R., Lei, J., Li, H., Liang, X. and Shen, X., 2014. SESA: An efficient searchable encryption scheme for auction in emerging smart grid marketing. Security and Communication Networks, 7(1), pp.234-244. MARKETING AUDIT[Name of the student]14