Once the market analysis is carried out, it’s time to assess the marketing system’s performance and its adequacy to the new market reality. Firstly, the current results according to the marketing KPIs have to be analyzed. The following factors should be at least considered:
- Seasonality of demand (occupancy rates throughout the year)
- Average expenditure per target/segment
- Marketing costs associated to every target/segment and profitability
- Client satisfaction and intention of recommending the destination
- Market share and growth in every segment, considering also the segment growth
- Destination positioning for each segment (core value proposition, attributes & values)
Secondly, many internal aspects related to strategy and efficiency need to be assessed. In the case of DMO the key stakeholders should be interviewed:
- Feasibility assessment of current vision, mission and goals; stakeholder’s support
- Adequacy of the current positioning, communication, product, sales and targeting strategies
- Organizational structure efficiency. Identifying possible over-dimensioned or under-dimensioned areas, under-performing functions, or other organizational problems.
- Operational efficiency related to the cost-effectiveness of the marketing operations and accuracy in the execution of the Marketing Plan.
Finally, there has to be a conclusion summarizing the main strengths and weaknesses:
- Every strength should be assessed according to the following parameters:
- Strategic value or importance
- Percentage of developed potential
- Cost & likelihood of developing its potential to the fullest
- Opportunity value
- Every weakness should be assessed according to the following parameters:
- Strategic value or importance
- Associated risk
- Cost & likelihood of neutralizing the risk
- Opportunity cost
Would you consider any other aspect to analyze in the Internal Audit?
