The marketing audit examines a company's marketing environment, objectives, strategies, and activities to identify issues and opportunities for improving performance. The audit follows a three-step process: 1) agreeing on objectives and scope, 2) collecting data, and 3) preparing and presenting a report of findings and recommendations. The audit analyzed the company's automated phone system, message system, and marketing against competitors to develop benchmarked improvements like direct customer surveys and adapting a new customer service approach.