Marketing due diligence is the thorough analysis and evaluation of a company’s marketing strategy, with the goal of identifying strengths, weaknesses and opportunities for improvement. Conducting proper marketing due diligence can be the tipping point toward increased profits.
Digital marketing due diligence, an integral component, focuses on the company’s online presence and digital strategy. Expert outside help that intimately knows your industry can streamline this process.
Let’s talk about the different aspects marketing due diligence and why a BluWave-grade third party might be just the resource you need.
Conducting Marketing Due Diligence – Best Practices
Marketing due diligence is intertwined with your organization’s business plan, strategy and understanding of competitors and customers. It provides a foundation to determine if you could sell more to the same customers, use different channels or adjust your product messaging. Each component of the due diligence process provides insights that can optimize your business and accelerate growth.
Assessing the Business Plan and Strategy
Reviewing your business plan is a crucial part of marketing due diligence. It allows you to determine if your goals, targets and outlined strategies are still feasible and aligned with your overall marketing plans. Consideration of future marketing trends, innovation potential, scalability and adaptability to change should be central to this assessment.
It’s also important to stay vigilant about the legal side – industry-specific regulations and data protection and privacy laws can significantly impact an organization’s marketing efforts.
Assessing the Marketing Strategy
The digital marketing strategy is a key component of the main marketing strategy. Implementing digital marketing best practices such as maintaining a relevant social media presence, optimizing SEO performance and improving website usability and CTR is table stakes.
Furthermore, it’s important to note that good results from marketing campaigns don’t necessarily equate to profits. Focus on strategic goals like sales, profitability and customer acquisition. Understanding your target market and audience is key in this regard.
Analyzing the Competition
Competitor analysis is vital to understand how your organization performs relative to others. Identifying competitors’ marketing strategies, competitive differentiators and budgets can provide valuable insights. Uncovering their unique selling propositions (USPs) and identifying the advantage your company has can enhance your competitive edge.
Analyzing the Customers
Understanding your customers’ perspective can provide valuable insights into your marketing strategy. Identifying who your customers are, what values are important to them and what they want to see can provide valuable insights. It’s also beneficial to find out why customers like your company and what could potentially sway them toward a competitor.
READ MORE: 5 Steps to an Effective Voice of Customer (VoC) Strategy
Marketing Due Diligence Checklist
The process of marketing due diligence can be complex and extensive. Following a structured checklist can help ensure that all key aspects are covered.
Business Plan and Strategy Checklist
When assessing your business plan, consider the following questions:
- What does the business plan look like?
- Does the company have a clear plan for profits?
- What are the competitive advantages?
- How many goals does the company have? Are they realistic, well-defined and quantifiable?
- Did you review data protection and privacy policies? Are there any industry-specific regulations to keep in mind?
- Did you outline any future marketing trends, innovation potential, scalability or adaptability to change?
Marketing Strategy Checklist
For your marketing strategy, consider the following:
- Does the company have a niche within the industry? Is it sustainable?
- What is the company’s message? Is it clear within the market?
- Is the brand recognizable?
- What are the active channels? Could they be changed or expanded?
- What marketing tools are being used?
- How are you measuring results? What KPIs are you using?
Competitive Landscape Checklist
To fully understand your competitive landscape, consider the following questions:
- What’s the overall company positioning in relation to its competitors?
- What are the marketing dynamics?
- How do company sales compare to competitors?
- What is competitor pricing?
- What are the main economic, competitive or regulatory risks?
Pricing and Margins Checklist
Pricing can significantly influence consumers’ decision-making processes. The point is not just to be cheap, but well-calculated. Consider these questions:
- What does the price sensitivity analysis look like?
- What’s the company’s pricing strategy (target pricing, margin pricing, etc.)?
- Is the pricing structure sustainable? What could impact the pricing in the future? (e.g. rising electricity costs, raw materials costs, etc.)
READ MORE: Hire an Expert Pricing Consultant
Customer Checklist
Understanding your customers can give valuable insights. Ask these questions:
- What does the customer analysis look like? What trends did you identify?
- Is it possible to interview clients and build case studies?
- Is there a potential for cross-selling?
- Could the positioning be improved?
- Can you measure the loyalty of your customer base?
Mastering marketing due diligence can be an intricate process. Fortunately, there’s a deep bench of niche-specific service providers on standby to help.
BluWave’s research and operations team can connect you with an exact-fit service provider to help you navigate your marketing due diligence. Take the first step toward optimizing your strategy by contacting BluWave.
