BSBMKG515A: Conduct a Marketing Audit Task 1 and 2 Solution

This document presents a comprehensive solution for the BSBMKG515A: Conduct a Marketing Audit assignment. Task 1 delves into the elements of the marketing planning process, exploring legislation impacts, and differentiating between business and marketing plans. It details primary data collection techniques, types and purpose of marketing audits, and the characteristics and major elements of such audits. The assignment also covers environmental factors, both macro and micro, and their classification, along with external environmental factors. Task 2 applies this knowledge to a case study of Sarto’s Gourmet Pasta, outlining the purpose of a marketing audit and analyzing both micro and macro factors impacting marketing operations, including political, economic, demographic, and technological elements. The solution demonstrates a thorough understanding of marketing audit principles and their practical application within a business context, making it a valuable resource for students studying marketing.

Nathan Ho
BSBMKG515A
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BSBMKG515A: Conduct a Marketing Audi t
TASK 1. KNOWLEDGE TEST
What are the elements of the marketing planning process?
Marketing planning can be defined as process of assessing one or more opportunities in
market place and thereafter strategies and objectives are determined to attain such possibilities. It
can be defined as method that permits a company to concentrate its resources on the optimum
possibility with the objective of enhancing sales and attaining sustainable competitive benefits.
For each of the pieces of legislation listed, describe the intent of each and how it could impact
on the process of conducting a marketing audit.
a. Anti-discrimination legislation
This legislation is intended to promote equality to everybody regardless of their
cultural, ethnical, or educational background, or the disabilities that they possess. This
legislation affects the marketing audit to the extent that it does not discriminate employees
who are included in the audit.

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b. Occupational health and safety
This legislation is intended to keep the health and safety of employees within an
organization. This includes the operational plan and management plan that the organization
could establish in order to keep its employees healthy and safe. This legislation affects the
marketing audit to the extent that it provides a guide for the audit so that it could promote the
health and safety of the organization’s employees.
c. Privacy laws
This law regulates the privacy that every Australian has in the workplace and public
places. This law affects the marketing audit to the extent that it regulates the privacy of every
related party to the audit.
3. What is the difference between a business plan and a marketing plan?
The business plan provides a wide overview of the business, which includes information on staff,
operations, location, marketing and financial aspects, as well as clearly outlined missions and goals. Often
used as a financial tool, the business plan provides lenders with necessary details to determine if the
business is viable, financially sound and able to repay. Although business plans are most commonly known
for assisting new businesses, they should be used throughout the life of the business. Not only does it help
to develop competitive strategies, the business plan can determine if the business’ actual activity matches
the forecasted plans.

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Meanwhile, The marketing plan details actions that achieve the company’s missions
and goals. This plan identifies the business’ price points, target markets and competition. It
explains how the business generates customers through advertisements, trade show
participation and new referrals. By explaining how the business will overcome competitive
challenges by other companies, the marketing plan is a key section within the business plan and
requires detailed industry research and consideration.
4. List three common primary data collection techniques and give a brief description of
each.
 Observation method – This method allows researchers to collect data based on their personal
observation towards the object of the research. For this purpose researcher will interact with
employees to observe their behavior in order to assess their job satisfaction.
 Personal interview – This is a method of primary data collection in which questionnaire is used as a
data collection tool. Several interviewers are sent to the respondents with interview questionnaire
under the guidance of research in defined interview environment.
 Telephone interview – This is one of the most significant primary data collection methods. The
significant features of the telephone interview are selecting telephone numbers, call timing, call
outcomes, and call report.
 Questionnaire method: Under questionnaire method, the researcher prepares a list of questions that are
to be asked from the audience. This method is adopted when the researcher needs fresh data or
information. The advantage of this method is its accuracy of information or data. On other hand, this
process can be very costly for the researcher and time consuming as well.

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5 . What are the two types of a Marketing Audit?
1. Internal marketing audit
2. External marketing audit
6. What is the purpose of a Marketing Audit?
Marketing audit is a process of evaluation where marketing operations are examined by the auditor. It
is a crucial part of marketing planning which focuses on investigating the current markeing scenario and
competitiveness for the business. It is not necessary that the process is conducted in the beginning of the year
but may be at the time of implementing a plan. Whereas, this process consist of both internal and external
marketing audit. Under internal marketing audit, five M's are analyzed and audited by the auditor. In external
marketing audit, the nature of customers is analyzed which includes their satisfaction level.
7. What are the four characteristics of a Marketing Audit?
1. It should be comprehensive and broad in focus covering the entire marketing environment of the
company.
2. It should be an objective exercise and independent of the managers directly involved in making the
marketing decisions.
3. It should be a systematic and orderly sequence of diagnostic steps as compared to an unstructured and
random investigation.
4. It should be carried out periodically. The marketing audit should be undertaken on a regular basis and
not only when major problems arise

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8. List three of the six major elements of a marketing audit, and describe what each of these
entails.
 Economic - It is important for a business to understand the economic environment, not
only for its own benefit, but for the effect it has on potential buyers.
 Demographic - Demographic factors are the vital statistics of the market population
including age, gender, race and physical location.
 Technological - Technology is constantly and rapidly changing. It has become crucial
for businesses to adopt technological advances quickly and efficiently, to ensure they
are able to meet the needs and expectations of the market efficiently.
9. How are environmental factors affecting the business classified, and what is the difference
between the two types?
The two main factors that impact the operations of company are macro and micro. The macro factors can
be defined as major external factors which are uncontrollable and impact a business decision making
efficiency and its performance. The macro factors refers constituents like, political, economic and social
conditions of country. In addition to this, it involve technical and environmental changes. The micro factors
can be stated as constituents in companies proximate area of functioning that impact its decision making
independence and overall performance. It include change in customer taste, buying habits, suppliers, rivals
strategy and distribution channel etc.
10. List and describe two external environmental factors
The external factors are stated below
 Political factors: The economy can be influenced due to policies framed by the government. It mainly
includes tax policies, fiscal and tariffs.

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 Economical: These are the factors which includes inflation rate, interest rates and foreign exchange.
This factor can affect the company due to this element.
 Social: The operations of a firm may get affected due to social factors of an economy. It includes
population, demographic factors etc.
 Technological: The major focus of this factor is on innovation that can be adopted by a company. The
technological development of an economy may vary from another.
 Legal: These are the factors due to which includes laws and regulations that are being followed by an
organization. These regulations may affect the operations of the company as it is based on economic
level.
 Environment: This factor includes the geographical, weather climate etc. An organization needs to
make sure that their production operations does not harm the environment.
11.. Describe how the SWOT analysis can be used in the context of an internal audit There are at least three
steps that can be used to conduct a SWOT analysis in an internal audit:
a. Preparation – We need to determine exactly what we want the SWOT to
Address. These can get out of scope very quickly, so we need to set limits on it to
be sure the focus is where we want it. If the audit revealed inefficiencies in our
marketing department, then that would be the area we want to target.
b. Strengths and weaknesses - For the strengths portion of the SWOT, we would want
to look at internal capabilities and resources. Our business might have conducted
an updated customer relationship management analysis, but not done anything
with the results. That puts us at a disadvantage compared to our rivals because we
are wasting time and money with unlikely prospects and unproductive customers.

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c. Opportunities and threats - With opportunities and threats, you’re looking
Outside our business headquarters. If a weakness is that our product development
is going stale, we may see an innovative rival as a threat and decide to throw more
resources into research and development searching for that next big thing.

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TASK 2
Using the case study information provided to you, complete the following steps
by providing dot-point written information to describe:
a. The purpose of the marketing audit, including details about micro and macro factors that may affect the
marketing operations
Marketing audit is an integral part of business operations and growth. The purpose of the
marketing audit is to analyze the marketing efforts that Sarto’s Gourmet Pasta has made to
implement its marketing and customer services provision. It focuses on analyzing the current
market situations and evaluate the factors which may affect the business operations directly and
indirectly. Marketing Audit for Sarto’s Gourmet Pasta will be undertaken on the basis of Micro
and macro analysis.
External Macro analysis
Political factors
The political factors refers to those polices and frameworks generated by government that
must be followed by the corporation to avoid legal consequence. Therefore, company must
assure timely payment of tax and duties. The political factors have direct impact on the
corporation. Such as, IBSA World new legislation /relating to labelling on take – away products
delivered to customers. With the growing health concerns among customers, it has become
mandatory for restaurant to label its products. Therefore, this increased labeling and other related
cost for Sartos. It is found that the employees are working for long hours which is affecting
their life and work balance. In addition to it, there is a parking issue due to which the customers
faces problems with regard to parking near the restaurant. This can affect the productivity of
Sartos.

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Economic factors
In economic factors, the interest rates are lower down which can help the stated
organization. The firm can take its funds for further investments which leads to increase its
productivity and profitability. Decreasing interest rate can help the firm to grow in an effective
direction. In addition to this, the current level of treasury credit availability is not changed. The
credit limit of the economic factors make the consumer spend less. It can be stated that,
economic factors are not the supportive for this stated organization. In terms of employment, the
employment level is decreasing as less people are looking for job.
Demographic Factors
The demographic factors have direct impact on the marketing operations of Sarto Gourmet
Pasta. The demographic factors refers to the personal attributes that are used to gather and assess
data on identified living beings in a provided population. It include age, gender, income,
occupation, marital status, education etc. According to the Australian Bureau of Statistics, there
are 53% of individual between 25-30 years. Therefore, company must target the large segment
and develop the products as per their taste. The majority of this population are employed and
thus prefer dining out. Therefore, to influence those discounts and offers can be provided to
them.
Technological factors
Technological factors plays a significant impact on the growth and development of
business operations within the economy. Sarto Gourmet Pasta focuses on attaining the business
objectives of attaining high sales and growth within the market. The data of the study revealed
that the sales is rising on significant manner. Technology in terms of production and marketing
is demanded widely for enhancing the sales and development of business unit. Increasing
competition in the market demands the firm to enhance the production capacity to enhance

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quick delivery. Moreover technological adoption will help the firm in enhancing the marketing
perspectives as well.
External Micro analysis
 Market characteristics: As per the analysis it has been evaluated that consumer demand for food
products is rising widely in the market. The demand for food within young people and families is
rising. This clearly evaluated that the company need to develop the product portfolio and promotional
a\measures as per the target group.
 Customer needs: The demand for healthy food options is increasingly rising within the economy.
Consumers in the present market are seeking for healthy product options in order to enhance healthy
food habits. The creamy sauces are now being replaced by tomato sauces which are organic and
healthy as well.
 Competitor factors: The competition within the market is significant. Competition from packed food
product categories offered by supermarkets is rising in the economy. Wide market expansions by
established food chains has increased level of competition in the economy. Moreover price war is
another significant challenge for the business.
b. The scope of the marketing audit that is required
As per the data family sales for pasta and takeaway orders are the two significant expanding
markets which has created a significant impact on business growth and development. The scope of
the marketing would encompass the marketing mix elements of the company (product,
price, place, and promotion), its marketing plans and strategies for takeaway orders. As
per the data evaluated about 46% of the revenue is generated from take away orders. Hence
effective promotional strategies must be developed for the target segment.

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c. The methodology required to be used in conducting the audit and when the audit could
occur for the organization
. Sarto Gourmet Pasta is facing a significant market competition within the economy. The
present data accumulated out different researches revealed the changing market trends and
consumers demands in the country. In order to accumulated significant results for the analysis
qualitative research must be undertaken to analyze the individual perception of an individual thus
to develop strategies based on the same.
d. The participants to be involved in the conduct of the audit and what their invovement
would require
The marketing audit for the research evaluation of the present study will involve the
population of prospective consumers of the business. The research will focus upon young
consumers and people preferring takeaway orders. This will help the business in providing
clear and well defined analysis for the present research.
e. The main characteristics of the marketing audit and how they meet the audit priorties for
the organization
The following are characteristics of the marketing audit:
1. It should be comprehensive and broad in focus covering the entire marketing
environment of the company.
2. It should be an objective exercise and independent of the managers directly involved in
making the marketing decisions.
3. It should be a systematic and orderly sequence of diagnostic steps as compared to an
unstructured and random investigation.

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4. It should be carried out periodically. The marketing audit should be undertaken on a
regular basis and not only when major problems arise
These characteristics meet the audit priorities as they help auditors to determine the best
audit method for the organization.
f. The format of and the main elements to be included in the marketing audit
The main elements of the marketing audit must include the following factors:
 Marketing environment audit
 Marketing organization audit
 Marketing systems audit
 Marketing productivity audit
 Marketing function audit.