Abstract

Increasing pressure to reduce costs has forced marketing managers recently to reconsider objectives, structure and influence again of marketing weapons. However, because of lack of accountability and dissatisfaction with marketing measurement systems, the most important problem identified by marketers often incomplete understanding of the mechanisms.

The objective of the study was to examined the impact of Internal Marketing Audit on the Growth of a Microfinance Institution using Mitanyen Cooperative Credit Unions Limited Bamenda as case study. Specifically, the study sought to assess the dimensions and components of marketing audit, to analyse the rank and importance of marketing audit components and dimensions, to evaluate the current status of marketing audit at Mitanyen Cooperative Credit Union and to identify the solutions for development of marketing audit.

In order to achieved these objectives, a sample size of 28 employees from MITACCUL were sampled using Stratified sampling technique by means of a structured questionnaire. Collected data was analysed using SPSS (21.0) where descriptive statistics and inferential statistics such as correlation was obtained. Results shows that respondents overall responses to the components of internal audit also had an overall positive sway, as with the roles of internal marketing, with most taking up positive stances if agreement towards the statements.

The study findings also revealed that fraud, inadequate infrastructure, inexperience managers, Inability to develop a workforce strategy can deter internal audit, Matching the skills of internal audit personnel with an organization’s needs and demands is difficult were major problems Associated with Internal Audit. Findings revealed that there is a significant correlation between Internal Marketing Audit and organisational growth at p<0.05 significant level.

It was concluded that marketing plays a role in organisational growth and allows microfinance to discover problems they encounter. The study recommended that audit should be done in an unbiased manner which will add value to the overall procedure otherwise it will be a total waste of resource of an organization.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Marketing 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 know the effectiveness of organizations marketing efforts.

Organizations must periodically review their marketing operations. Marketing audit (MA) comes as a tool for the organizations to keep up with these changes. The MA is a review of the organizations’ current objectives, strategies, performance, and activities. Its primary purpose is to realize how well the organization is applying the marketing concepts and to identify the organizations strengths and weaknesses so they can capitalize on their strengths and improve weakness areas.

Moreover, it helps marketing executives, top management, and investors to assess customer needs and wants, to understand community patterns, and to ensure that they are doing the right things in the right way to help drive growth for their organizations. Based on careful assessment of environment, customers, channels, and competitors, MA may lead to reassessment of organization’s orientation, accordingly changing marketing strategy to be customer driven. As a result, MA has rapidly been adopted in both the business and non-profit sectors along with the goods and services industries

Marketing is the action and processes of creating ideas, communicating people, delivering services, and exchanging offers that have value for customers, partners, clients and society (American Marketing Association, 2013). Marketing increases pressure to grow and utensil business-oriented approaches and evaluates to enhance not just marketing only, but complete efficiency of business also (Al Fahad et al., 2015). Market-oriented corporate culture progressively considered as a vital component of superior organizational performance (Han et al., 1998; Lai and Cheng, 2005; Ullah and Ahmed, 2017).

All profitable organizations are using a good portion of their budget for marketing purpose. After end of financial or fiscal year, organizations audit their financial transactions for proper justification where marketing lies out of focus. Therefore, justifying marketing related plans, objectives, strategies and activities become necessary (Loya, 2011).

Marketing researchers have scrutinized for strategies over the past few decades to support improved understanding of mix of environmental factors that possibly boosts organizational performance. For this purpose, several models and theories, including market orientation models, have been established and verified throughout last few decades (Diamantopoulos and Hart, 1993; Narver and Slater, 1990; Pelham, 2000; Taghian and Shaw, 2008).

Through marketing, the level of customer expands. However, through marketing audit, the performance of an organization can be justified. Recently, people perceive more about the marketing audit as it is being used to estimate marketing practices alike public accounting audit. It is a new initiative and an enormously diverse methodology. It is a generally acknowledged technique of assessment and a control instrument of marketing performance.

In today’s world of accelerated product lifecycles, the instant diffusion of information, and rapid globalization, it is possible for every company to enter the market and competition between companies has intensified. Consequently, the products and services are delivered according to customer needs and wants. The role of marketing management in organizations is to identify and measure the needs and wants of customers whereas customer-orientation is the foundation of successful marketing.

Marketing is a term usually reserved for the process of marketing a product, service, or idea to the final consumer outside the firm but marketing also takes place within an organization. In this instance, the market is not only the ultimate consumer but also an individual or a group of individuals, within the organization.

These internal customers are potentially as important as the external customers are. Internal marketing audit is also a mutual valuable system between internal customer (employees) and organization, which attracts and retains employees as a resource of surviving growth and profitability, and tries to pave the way for partnership of employees in promoting quality of product and services for external customers.

For this purpose, by using advanced systems and tools and increasing capabilities of organizational behavior, there is a possibility of closer relationships with employees, which enhances their commitment to the organization.

1.2 Statement of the Research Problem

Increasing pressure to reduce costs has forced marketing managers recently to reconsider objectives, structure and influence again of marketing weapons. However, because of lack of accountability and dissatisfaction with marketing measurement systems, the most important problem identified by marketers often incomplete understanding of the mechanisms. If the audit tool to assess a company’s accounting work, Marketing Audit (MA) can assess the appropriateness of marketing activities, and ensure that they comply with established strategies and marketing programs, and that they are effective.

The marketing audit as an efficient method for analyzing, evaluating and improving marketing approach has not been a high level of complexity. Also, because of the lack of transparency and it’s practical results, marketing audit is rarely used by marketing managers. The research results indicate that the benefits of implementation of marketing audit affect perception of marketing managers and its ability to influence their performance.

Researchers are faced with the question whether and how marketing audit creates strategic value to the organization that must be studied and analyzed. In this regard, Mitanyen Cooperative Credit Union as one of the leading banks in the field of modern marketing tools considers the marketing audit as a new tool in marketing and plans to evaluate the performance of the field, especially in the marketing department.

1.3 Research Questions

1.3.1 Main Research Question

What is the impact of Internal Marketing Audit on the Growth of a Microfinance Institution? Case of Mitanyen Cooperative Credit Unions Limited Bamenda

1.3.2 Specific Research Questions

1. What are the dimensions and components of marketing audit?
2. How is the rank and importance of marketing audit components and dimensions?
3. What is the current status of marketing audit at Mitanyen Cooperative Credit Union?
4. What are the solutions for development of marketing audit at Mitanyen Cooperative Credit Union?

1.4 Research Objectives

1. To assess the dimensions and components of marketing audit
2. To analyse the rank and importance of marketing audit components and dimensions
3. To evaluate the current status of marketing audit at Mitanyen Cooperative Credit Union
4. To identify the solutions for development of marketing audit

1.5 Research Hypothesis

For this research, the following null hypothesis are to be tested

Ho: Internal Marketing Audit has no relationship with the growth of an Organisation

Ha: Internal Marketing Audit has a relationship with the growth of an Organisation

1.6 Significance of the Study

Given that marketing audit is new concept and typically is not used in marketing researches and is an optimal method for analyzing, evaluating and improving the marketing affairs, so it is necessary to conduct a study to review and present a model related to the field.

Theoretical Advantages

As regards, any empirical study in relation to the marketing audit has not been conducted in the banking system. Researcher in this research is trying with the help of relevant documents to increase the knowledge of marketing audit in the banking industry.

Practical Benefits

Given that in the traditional banking, customers without passing the required variables entered the bank and solely responsible for providing collaterals to obtain loans and pledges of action are the result of the creation of deferred macro and impact negatively on the economy of the country. Marketing audit tools to identify and select target customers and qualified custodians in addition to this, the strength of the MFI’s portfolio will follow that Thereby reducing arrears to the MFIs and increase the ability of banks to provide facilities to public class society.

Furthermore, and in an era where competition continues to increase and emphasis is placed on specific organizations to distinguish themselves within their industry, the implementation of internal marketing creates an advantage that may not be easily duplicated by competition.  A method requires the full support of top management and must continue throughout the organization.

Examination of internal marketing literature demonstrates few attempts to empirically study the idea. A common, possibly idealistic, logic exists that internal marketing creates these positive outcomes. This study attempts to provide a foundation based on marketing not human resource techniques that may be replicated within other industries.