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3

Gathering Information and Scanning the Environment

Marketing Management

Chapter Questions
What are the components of a modern marketing information system? What are useful internal records? What is involved in a marketing intelligence system? What are the key methods for tracking and identifying opportunities in the macro environment? What are some important macro environment developments?

MIS Systems Provide Information on Buyer Preferences and Behavior: Duponts Pillow Study
Pillow Segments 23% - stackers 20% - plumpers 16% - rollers or folders 16% - cuddlers 10% - smashers

What is a Marketing Information System (MIS)?


A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

Table 3.1 Information Needs Probes


What decisions do you regularly make? What information do you need to make these decisions? What information do you regularly get? What special studies do you periodically request? What information would you want that you are not getting now? What are the four most helpful improvements that could be made in the present marketing information system?

Mkting INTELLEGENCE System

Internal Cos. Records

Mkting Research

Marketing Information System

Internal Records and Marketing Intelligence


Sales Information System Marketing Intelligence System

Order-to-Payment Cycle Databases, Warehousing, Data Mining

Marketing Intelligence System


A Marketing Intelligence System is a set of procedures and sources managers use to obtain everyday information about development in the marketing environment

Steps to Improve Marketing Intelligence


Train sales force to scan for new developments
Motivate channel members to share intelligence Network externally Utilize a customer advisory panel Utilize government data resources

Purchase information
Collect customer feedback online

Table 3.2 Secondary Commercial Data Sources


AC Nielsen ORG MARG
CMIE

TAM Media Research Euromonitor International Gallup Pakistan

NCAER

Sources of Competitive Information


Independent customer goods and service review forums Distributor or sales agent feedback sites Combination sites offering customer reviews and expert opinions Customer complaint sites Public blogs

Needs and Trends

Fad

Trend Megatrend

Trends Shaping the Business Landscape


Profound shifts in centers of economic activity Increases in publicsector activity Change in consumer landscape Technological connectivity Scarcity of well-trained talent Increase in demand for natural resources Emergence of new global industry structures Ubiquitous access to information Management shifts from art to science Increase in scrutiny of big business practices

MICRO-Environmental Forces
Company
Publics Suppliers Marketing Intermediaries Customer Markets

Competitors

Micro Environment Contd


1. The Company
Top Management, Finance, R&D, Purchase, Manufacturing, Accounts and like

2. The Suppliers 3. The Marketing Intermediaries


1. Middle Men

i.e. Agents, brokers, dealers, wholesaler, retailer


Warehousing firms and Transportation firms

2. Physical Distribution

3. Marketing Service Agencies


Marketing Research, Advertising Agencies, media firms, marketing consultancy firms

4. Financial Intermediaries
Banks, credit companies, insurance companies

4. The Customers

Contd.

Consumer Markets, Industrial Markets, Reseller markets, Government markets, International markets

5. The Competitors 6. The Publics


1. 2. 3. 4. 5. 6. 7. Financial- bank stock brokers, financial institutes Media- Newspapers, Magazines, radio, tv Government-Departments Citizen consumer organisations, environment groups Local- Neighbour residents, community groups General- public opinion, public image Internal- Workers, officers, board of Directors

MACRO-Environmental Forces
Demographic
Political-Legal Economic

Technological Natural

Socio-Cultural

Population and Demographics


Population growth Population age mix Ethnic markets Educational groups Household patterns Geographical shifts

Population Age Groups

65+ 40-65 25-40 Teens School-age Preschool

Household Patterns

Economic Environment
Income Distribution Savings, Debt, and Credit Levis has responded to changes in income distribution by offering an upscale line and a mass market line

Social-Cultural Environment
Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe

Islamic Banking: Reflecting Religious and Cultural Sensitivities


Consistent with principles of Islamic Laws (Shariah) Prohibits investing in business that are considered unlawful Growth is due to disenchantment with valueneutral capitalist and socialist financial systems Popular in Pakistan and Bangladesh, National and international banks want to start Islamic banking in India

Cartoon Networks New Generation Survey


Achieving good grades at school all respondents Looking good 90% of respondents Being religious/traditional 84% of respondents Having boyfriend/girlfriend 40% of respondents Career aspirations One-third wanted to be doctor, 21% of wanted to be engineer

Natural Environment
Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections

Toyota Experienced Success with Green Cars

Keys to Avoiding Green Marketing Myopia


Consumer Value Positioning Calibration of Consumer Knowledge Credibility of Product Claims

Technological Environment
Pace of change Opportunities for innovation Varying R&D budgets

Increased regulation of change

Political-Legal Environment

Increase in business legislation

Growth of special interest groups

Marketing Debate
Is consumer behavior more a function of a persons age or generation? Take a position: 1. Age differences are fundamentally more important than cohort effects. or 2. Cohort effects can dominate age differences.

Marketing Discussion

What brands do you feel successfully speak to you? Effectively target your age group? Which ones do not? What could they do better?