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The Impact of Marketing Audit on Organizations' Marketing Performance: An Empirical Study on Private Hospitals in Amman

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The Impact of Marketing Audit on Organizations' Marketing Performance: An Empirical Study on Private Hospitals in Amman

The Impact of Marketing Audit on Organizations' Marketing Performance: An Empirical Study on Private Hospitals in AmmanStudent: Asem M.Achraf Al Saied. SulimanSupervisor: Prof. Hamad Al-Ghadeer

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1ContentsSubject1- Introduction9-Research Population, Sample, and Unit of Analysis2- Statement of the Problem10-Marketing Audit Descriptive Statistics3-Research Questions11-Hypotheses Testing4-Research Importance12-Constraints Of Applying The Marketing Audit Descriptive Statistics5-Research Objectives13-Findings and Discussion6-Research Model14-Managerial Recommendations7-Research Hypotheses15-Recommendations for Researchers8-Operational Definitions22IntroductionMarketing plays a key role in the success of organizations, however, in today's volatile, challenging, and competitive business environment, and as the marketing environment is constantly changing, it becomes increasingly important to examine the effectiveness of organizations marketing efforts.With this regard, organizations must periodically review their marketing operations.Hence, marketing audit (MA) comes as a tool for the organizations to keep up with these changes, since it is considered as a method of strategic review and control of an organization's marketing operations. 3Statement of the ProblemBased on analysis of secondary data and literature, it is unclear how widespread audits are in practice (Clark, 1999). Further, marketing audit is still relatively new and under-utilized activity for many organizations (Da Gama, 2011). In addition, there are some problems preventing companies from putting it in practice. (Lipnick & ao, 2013).44Research QuestionsTo what extent, marketing audit is applied in private hospitals in Amman?What is the role of marketing audit in enhancing marketing performance of private hospitals in Amman?What are the main constraints that limit the application of marketing audit in practice of private hospitals in Amman?55Research ImportanceBeside the human and economic importance of the healthcare industry in Jordan and everywhereThis study will spot light on the importance of applying marketing audit in health sector, particularly in hospitals' fieldwork.It will provide a local database for future researches, since it is one of the first studies in its field in Jordan.Providing recommendations and suggestions that will contribute in controlling weaknesses areas along with promoting strengths in the process of applying marketing audit.66Research ObjectivesTo identify the extent of applying marketing audit concepts in practice of the private hospitals in Amman.To examine the impact of applying marketing audit concepts on enhancing marketing performance of the private hospitals in Amman.To investigate the constraints that limit the application of marketing audit in practice of the private hospitals in Amman.77Research ModelMarketing Audit

Marketing Environment AuditMarketing Strategy AuditMarketing Organization AuditMarketing Systems AuditMarketing Productivity AuditMarketing Functions AuditIndependent Variable88Research ModelMarketing Performance

Dependent Variable9ProfitsFinancialSalesMarket ShareCustomer Satisfaction Non-FinancialOccupancy RateCustomer ComplaintsCustomer LoyaltyOrganization's Reputation9Research ModelMarketing Performance---------------------------------------------------

Marketing Audit--------------------------------------Marketing Environment Audit-Marketing Strategy Audit-Marketing Organization Audit-Marketing Systems Audit-Marketing Productivity Audit-Marketing Functions AuditIndependent VariableDependent Variable

The research model adapted by the researcher using following sources:Sources: (Kotler et al., 1977, 1989; Pont & Shaw, 2003; WU 2010)ProfitsFinancialSalesMarket ShareCustomer Satisfaction Non-FinancialOccupancy RateCustomer ComplaintsCustomer LoyaltyOrganization's Reputation1010Research HypothesesMain Hypothesis:Ho.1: There is no significant impact of marketing audit on organizations' marketing performance at ( .05)1111Research Hypotheses (Cont.)Sub Hypotheses:Ho1: 1- There is no significant impact of marketing environment audit on organizations' marketing performance at ( .05)Ho1: 2- There is no significant impact of marketing strategy audit on organizations' marketing performance at ( .05)Ho1: 3- There is no significant impact of marketing organization audit on organizations' marketing performance at ( .05)1212Research Hypotheses (Cont.)Sub Hypotheses:Ho1: 4- There is no significant impact of marketing system audit on organizations' marketing performance at ( .05)Ho1: 5- There is no significant impact of marketing productivity audit on organizations' marketing performance at ( .05)Ho1: 6- There is no significant impact of marketing functions audit on organizations' marketing performance at ( .05)1313Operational DefinitionsMarketing Audit: is a comprehensive, systematic, independent, and periodic examination of a private hospitals marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities.1414Operational Definitions(Cont.)Marketing Environment Audit: is consisting of analyses of private hospitals both macro and task-environment.Marketing Strategy Audit: refers to reviewing the private hospitals marketing objectives and strategy to be adapted to the marketing environment.Marketing Organization Audit: refers to evaluating the effectiveness of the private hospital's marketing capability in carrying out the necessary tasks, and the interaction between marketing and other key management functions.1515Operational Definitions(Cont.)Marketing Systems Audit: involves examining the adequacy of the private hospital's systems for obtaining information, planning and controlling marketing operations.Marketing Productivity Audit: includes determining optimal sources of profits, as well as potential cost savings for private hospital.Marketing Functions Audit: includes reviewing the private hospitals key marketing functions.16Research Population, Sample, and Unit of AnalysisIn this study, all private hospitals that are located in Amman have been surveyed. However, 25 hospitals have responded. The questionnaires were addressed to employees in the managerial departments in the private hospitals in Amman, such as hospital's administration, marketing and public relations, human resources, quality control, and patients' affairs, etc.The researcher distributed (150) questionnaires; the response rate was (75.3%) as the participants completed (113) valid questionnaires for statistical analysis.1717Marketing Audit Descriptive StatisticsNo.DimensionMeanStd. DeviationEngagement Degree1Marketing Environment Audit4.2532.43291High2Marketing Strategy Audit4.3097.56623High3Marketing Organization Audit3.9699.71225High4Marketing System Audit4.1084.69587High5Marketing Productivity Audit4.3221.55513High6Marketing Functions Audit4.2541.62874HighEngagement Degree: Low: (1.00-2.32); Moderate: (2.33-3.66); High: (3.67-5.00)1818Hypotheses TestingHo.1: There is no significant impact of marketing audit on organizations' marketing performance at ( .05).

Independent VariableRR2Unstandardized Coefficients (B)Standardized Coefficients (Beta)F(1,111)Sig.Hypothesis SupportMarketing Audit.389.151.420.38919.763.000Reject1919Hypotheses Testing (Cont.)Ho1: 1- There is no significant impact of marketing environment audit on organizations' marketing performance at ( .05)

Independent VariableRR2Unstandardized Coefficients (B)Standardized Coefficients (Beta)F(1,111)Sig.Hypothesis SupportMarketing Environment Audit.376.141.449.37618.281.000Reject2020Hypotheses Testing (Cont.)Ho1: 2- There is no significant impact of marketing strategy audit on organizations' marketing performance at ( .05)

Independent VariableRR2Unstandardized Coefficients (B)Standardized Coefficients (Beta)F(1,111)Sig.Hypothesis SupportMarketing Strategy Audit.254.065.232.2547.661.007Reject21Hypotheses Testing (Cont.)Ho1: 3- There is no significant impact of marketing organization audit on organizations' marketing performance at ( .05)

Independent VariableRR2Unstandardized Coefficients (B)Standardized Coefficients (Beta)F(1,111)Sig.Hypothesis SupportMarketing Organization Audit.242.059.176.2426.924.010Reject22Hypotheses Testing (Cont.)Ho1: 4- There is no significant impact of marketing system audit on organizations' marketing performance at ( .05)

Independent VariableRR2Unstandardized Coefficients (B)Standardized Coefficients (Beta)F(1,111)Sig.Hypothesis SupportMarketing Systems Audit.323.105.240.32312.964.000Reject23Hypotheses Testing (Cont.)Ho1: 5- There is no significant impact of marketing productivity audit on organizations' marketing performance at ( .05)

Independent VariableRR2Unstandardized Coefficients (B)Standardized Coefficients (Beta)F(1,111)Sig.Hypothesis SupportMarketing Productivity Audit.322.104.300.32212.875.000Reject24Hypotheses Testing (Cont.)Ho1: 6- There is no significant impact of marketing functions audit on organizations' marketing performance at ( .05)

Independent VariableRR2Unstandardized Coefficients (B)Standardized Coefficients (Beta)F(1,111)Sig.Hypothesis SupportMarketing Functions Audit.371.138.305.37117.737.000Reject2525Constraints Of Applying The Marketing Audit Descriptive StatisticsNo.FactorsMeanStd. DeviationImportance Degree1Unawareness Of The Concept3.80.847High2Lack Of Methodology3.81.844High3Lack Of Knowledge Of The Benefits3.72.930High4Fear Of Results And Taking Corrective Actions3.80.847High5Rejection Of Hospital For Providing Information To Those Who Working In The Marketing Audit3.73.848High6Lack Of Marketing Auditing Specialists3.67.958High7Insufficient Financial Resource To Implement Marketing Audit3.80.956HighImportance Degree: Low: (1.00-2.32); Moderate: (2.33-3.66); High: (3.67-5.00)2626Findings and DiscussionThe results showed that the majority of the private hospitals in Amman have adequate involvement in marketing audit concepts in their practices. The results confirmed the soundness of the impact of all dimensions of marketing audit on improving overall marketing performance.The results revealed the importance of all factors that mentioned in the previous slide as barriers that affecting the use of marketing audit in practice of hospitals.27Managerial RecommendationsIt is recommended for managers to apply marketing audit independently, systematically, periodicity, and comprehensively by the support of specialized consultants, marketing agencies, and academics' scientific expertise. Marketing audit should become an integral part of the planning process and in formulating marketing objectives as well as in controlling and evaluation phase.Giving the researchers the ability to access research sites to conduct the needed marketing research, providing them the necessary information, and facilitating their tasks.2828Recommendations for ResearchersIt is recommended to replicate the study by researching marketing audit in other industries and sectors, and by using other research methods.Studying the impact of marketing audit on competitive advantage and other performance metrics such as total number of customers, allocating resources more efficiently, and awareness.Considering a variety of potential moderating variables on the research model such as perceived importance of marketing audit, marketing culture, marketing capabilities, and intensity of competition.2929Thank You30