Market Audit

Question 1

What part of McDonald’s 2007 strategic planning process does the market audit fall into

Answer 1

Phase 2: Situation Review

Question 2

What are the 3 marketing environments a business needs to be aware of?

Answer 2

• Internal: Strengths & weaknesses
• External: Opportunities & threats
• Performance

Question 3

What are some ways to analyse the internal environment?

Answer 3

• GE Matrix
• Porters 5 forces: Bargaining power of suppliers, threat of substitutes, threat of new entrants, bargaining powers of buyers
• Competitors
• The media

Question 4

What are some ways to analyse the external environment?

Answer 4

• PESTLE

- Part of the SWOT

Question 5

How can a business analyse its own performance?

Answer 5

• SWOT
• Finance
• Ansoff
• Stakeholders

Question 6

Discuss how the market audit process can be intertwined with customers:

Answer 6

• Current and potential market segments: Who are we servicing
• Company market shares within each segment: How dominant, or not, are we?
• Customer buying behaviour: Are we keeping or losing our customer base?

Question 7

What is a competitive audit?

Answer 7

A comparison between yourself and competitors on a component/(s) of your choice. e.g. sales

Question 8

What are some ways in which you can conduct a portfolio audit?

Answer 8

• BCG Matrix: Star, Cashcow, Dog, Questionmark
• Ansoff Matrix: New products, existing markets, existing markets, new markets
• Shell: Shows their competitive capability
• General Electric matrix

Question 9

What is a resource audit?

Answer 9

An analysis/inspection of the resources that an organisation has

Question 10

What types of resource audit are there?

Answer 10

• Human
• Informational
• Financial
• Supply

Question 11

How can metrics be divided?

Answer 11

• Internal Metrics

- External Metrics

Question 12

What are some of the internal metrics that an organisation can use?

Answer 12

• Sales figures
• Profit levels
• Trade ups (How many consumers get the next best product in the product line)

Question 13

What are some of the external metrics that an organisation can use?

Answer 13

• Competitors sales figures
• Market share
• Market growth
• Customer attitude

Question 14

What is a balanced scorecard?

Answer 14

A strategy performance management tool - a semi-standard structured report

Question 15

What do companies need to use metrics to measure and monitor things?

Answer 15

• For accountability purposes
• Try to avoid large costs
• Provides legitimacy for senior management

Question 16

What is brand equity?

Answer 16

The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

Question 17

What is a competitive advantage?

Answer 17

Sustained differentiation from rivals

Question 18

What is passive data collection methods?

Answer 18

Passive data collection occurs without any overt consumer interaction and generally includes capturing user preferences and usage behavior, including location, etc.

Question 19

What are some passive data collection methods?

Answer 19

• From cash registers
• Cookies
• Online purchases & accounts