Conduct a Marketing Audit and Report

Case Study about Function and Effects of Marketing Audit in a Business

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Introduction to Marketing Audit

Sarto's Gourmet Pasta is a restaurant that operates in Graceville, Australia.This report shall provide information regarding external and internal audit which are conducted for developing better understanding of functioning atmosphere of the company. A marketing audit is also performed and reported in this assessment for deeper understanding of company's operations.

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External macro-environmental factors

The external business environment factors which influence functioning of Sarto's Gourmet Pasta are evaluated as follows:

Economic factors

The restaurant has been functioning well currently but certain decreases in interests rates have increased profits of the company. People have gathered more disposable income and this has led them to explore more opportunities in spending this income.

Demographic factors

Steady growth of this restaurant depicts that there is continuous demands of products and services. A large number of families have been contributing their household income to get their specific needs fulfilled by Sarto's. 7% growth rate has been witnessed for this restaurant in region. Mostly young individuals from the age group 25-50 have shown interest in eating at such restaurants. This depicts Sarto's can increase its customer shares by targeting these customers.

Technological factors

Technologically advanced equipment can be implemented for better delivery of products and services. This feature can be utilised by Sarto's restaurant for attracting customers. Internet facilitation has enabled companies to market their products all over the place without any extra expenditure. This factor has a positive influence on the functioning of restaurant.

Political/legal factors

Business activities of Sarto's Gourment Pasta restaurant are completely aligned with political actions and government strategies. Current focus of legislative party is to develop work/life balance which has influenced the employee working structure of the company. It has helped in enhancing employee satisfaction.

External micro-environmental factors

Sarto's internal business environment is made up of certain micro factors which have effective influence on the operations and functions of the company. These are explained as follows:

Market characteristics

Sarto's Gourmet Pasta is an emerging brand. The strategies and decisions which are developed by the company are completely in accordance with market characteristics of Graceville. There are various attributes which are considered in this category which include the basic profile of consumers that are purchasing or demanding food items from Sarto's. Current functioning of the company depicts that it has an increasing share in target markets.

Customer needs

The aim to provide exotic pasta experience to consumers shall help Sarto's in developing effective strategies and meet customer requirements and needs. Since, new trends and better competitor strategies keep on replacing the current demands of customers; Sarto's Gourmet Pasta has to develop plans for meeting set aim.

Competitor factors

Despite of smooth functioning in the local markets till date, there is a growing threat from competitors across Graceville. Henceforth, it is essential for Sarto's to develop and evolve its products and services constantly. This shall help in maintaining existing market share and also attract potential customers.


Identifying criteria

The company Ready-Made marketing has utilised internal sources of data which include finance reports, sales figures and certain other reports for getting information regarding Sarto's business functioning. It has been evaluated that the company has not accomplished any objectives which were led down for future growth. Internal marketing audit has been performed on the basis of primary research for getting information. Entire supply chain management and logistics data has been gathered through these sources. Any marketing strategy can be developed only when appropriate information has been gathered and interpreted correctly.

Criteria used by Ready-made marketing company is internal informative sources which will depict the basic operations of Sarto's Gourmet Pasta and its relevance in the current markets.The reliability of these sources is more as compared to the information collected from external sources. Organisation benefits lie only when authentic information is gained and interpreted wisely. The supply chain data depicts that restaurant gains its raw materials from local farmers and industries. Moreover, information from logistics records and reports demonstrates the efficiency level of Sarto's when it comes to distribution and collection of goods.

Marketing environment audit

The business environment is composed of two types of factors i.e. internal and external. These include political, economical, social, legal, technological and environmental factors as the external factors while employees, suppliers and shareholders as the source of internal factors. The level of competition and the suppliers or distributors that are currently in touch with the company also affect the marketing strategies and other business operations. The changes or influences of these factors brings in a lot of changes in the governance of business.

Marketing Strategy audit

Marketing strategy audit is based on the marketing objectives and the strategy that has to be deployed for meeting these objectives. Following are the objectives which have been defined by the company as follows

To develop better customer share with at least $45, 000 as the minimum criteria for obtaining sales.
The internal marketing audit is performed using the SWOT tool which helps in determining the strengths, weaknesses, opportunities and threats for Sarto's Gourmet Pasta



Sarto's Gourmet Pasta has consulted Ready-Made marketing company for conducting the research and developing an efficient marketing plan. Whenever an organisation distributes or outsources its internal or external functions,then there are two outcomes which are experienced:

The internal interface of these two organisations is the owner of Sarto's Gourmet Pasta i.e. Mario Sarto. Once, certain functions are outsourced, then possibilities of accomplishing anticipated goals and objectives increases. This causes better decision making and sharing of load from employees of the restaurant (Harris, 2013). It helps in increasing efficiency and the restaurant owner will not have to develop a separate marketing department to conduct such researches and planning.

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Ready-Made marketing here plays the role of business process outsourcing firm which is currently handling the marketing research and planning operation of Sarto's Gourmet Pasta. This company's functional efficiency must be high so that future strategies and the products of restaurant do not suffer any sort of negative impact. The organisation has to develop its interfacing platform with at-most efficiency so that no further delay or inconvenience is caused in dealing with customers. Ready made marketing has to develop a market research report which will contain basic information about restaurant's current position in the market and its situation with certain measures and steps that will shall be helpful in gaining profits.

Marketing systems

Marketing information systems are initialised by a company to get well-informed decisions on certain aspects of marketing. All the data or information that is gathered by marketing research team has to be interpreted without committing errors. Hence, a separate marketing system is formulated that will perform these operations smoothly. This process of gathering and interpreting information is continuous as sources are completely linked to the organisation. Planning and control activities are also implemented through this system with a set of procedures which are regularly revised.

Sarto's Gourmet Pasta restaurant can get efficient information regarding its marketing plans and researches if Ready-Made marketing team uses this marketing system. It helps in presenting the set of information that is collected from various sources in an efficient manner. Once all the information is collected, a plan is formulated according to analytical information and this plan is then sequentially executed.

Marketing productivity

Every business strategy is implemented with an aim to get more profits or increase the efficiency of employees. Marketing productivity in terms of profitability is the measure which yields information regarding the profits which are gained by the company. Sarto's Gourmet Pasta should implement its marketing strategies in such a way that productivity and profitability of restaurant and its employees is increased. It also helps in understanding that the activities which are involved in implementing a strategy are effective enough to save capital and utilise maximum of the profits.

Ready Made marketing company has to perform this function for Sarto's Gourmet Pasta. Since, this company is going to perform marketing research it has to implement a system which will help in developing marketing plan with great cost effectiveness and more profitability. When actions are taken in a strategic way with minimum expenditure and increased profits then the strategy is said to be marketing productivity.


Following marketing plan has been proposed by Ready-Made marketing for Sarto's Gourmet Pasta.
Situational analysis

The situational analysis of the company has been conducted using SWOT tool which depicts the following findings

Sarto's Gourmet Pasta has less budget allocated for conducting its marketing program. This has helped outsourcing organisation to develop a marketing plan which can work efficiently without spending much money. It involves use of internet marketing strategies that involves emails, local advertising and brochures or pamphlets which can be spread through magazines. This will help in promoting the company in every aspect and also increase sales with great speed.


Sarto's Gourmet has one mission to provide its customers with exquisite dining experience through their dishes and servings.

Marketing Objectives

To develop better customer share with at least $45, 000 as the minimum criteria for obtaining sales. Moreover, the organisation aims to develop strategies which will help in increasing growth by one store every year.

Target Marketing

The demographical segmentation of targeted markets has been focused on families and people who prefer for take out options in restaurants. This target has helped in developing marketing strategy which is more focused and efficient. Position is performed by separating dishes or menu according to earnings of these families.

Marketing Mix

The marketing mix of Sarto's marketing plan is focused on four basic elements that is price, promotion, distribution and customer service.


The product of the company is different varieties of pasta with regards to the preferences of customers and the potential clients.


Prices introduced by the organisation are moderate i.e. not very high and not very low. This should be the right strategy for bringing in effectiveness in the implementation because of increasing competition. The company must keep strategic check over the pricing strategies adapted by the competitors also.


The place is fixed that is products and services must be promoted in the local communities and societies.


Social media marketing and digital marketing strategies should be used for promotion so that every individual will be aware about the type of products and services that need to be used.

Marketing research

The marketing research that has been conducted for this plan is primary research that is use of interview data that has been conducted by face to face interactions with customer focus groups . While on the other hand, secondary data research has been conducted through access of internal sources like reports and financial statistics of the company.

Financials, budgets and forecasts

Financial objectives

Sarto's Gourmet Pasta aims to develop by perceiving a growth rate in terms of double digits.
Break-even Analysis: Since, the breaking point of the company is kept at $45,000 as the minimum target for the organisation to reach every month which will ultimately help in achieving set objectives.

Budgets and Forecasts

The company has allocated little budget and sales forecasts depicts that within two years good amount of profit shall be achieved if minimum requirements are fulfilled.


This marketing plan has to be evaluated and controlled effectively so that no more deflections from objectives or aim is experienced.


This report helps in understanding the marketing audit and its importance for developing a marketing plan for Sarto's Gourmet pasta.


The organisation must gather more budget for developing its marketing strategies and products so that large customer share can be achieved with a sustainable competition advantage.


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