3

Gathering Information and Scanning the Environment

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?

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The Importance of Information The Importance of Information

Marketing Environment

Customer Needs

Why Information Is Needed
Strategic Planning

Competition

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3-4 . timely. analyze. sort. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.What is a Marketing Information System (MIS)? A marketing information system consists of people. equipment. and accurate information to marketing decision makers. and distribute needed. and procedures to gather. evaluate.

3-5 . Ltd.The Marketing Information System The Marketing Information System Marketing Information System Marketing Managers Distributing Information Marketing Decisions and Communications Assessing Information Needs Developing Information Information Analysis Internal Data Marketing Intelligence Marketing Research Marketing Environment Marketing Environment Copyright © 2009 Dorling Kindersley (India) Pvt.

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? Copyright © 2009 Dorling Kindersley (India) Pvt. 3-6 . Ltd.Table 3.

Competitors. Sales Collection and Analysis of Publicly Available Information about Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment Competitors and the Marketing Environment From: Employees. and Reporting of Data about a Situation Design. From: Employees. Collection. Analysis. and Reporting of Data about a Situation Marketing Research Marketing Research 3-7 . Manufacturing. Sales Force.Functions of a MIS: Functions of a MIS: Developing Information Developing Information Obtains Needed Information for Marketing Managers Obtains Needed Information for Marketing Managers From the Following Sources From the Following Sources Internal Data Internal Data Collection of Information from Data Sources Within the Company Collection of Information from Data Sources Within the Company From: Accounting. Analysis. Suppliers. Suppliers. Ltd. Design. Marketing Research Companies Competitors. Customers. Sales Force. Sales From: Accounting. Manufacturing. Marketing Research Companies Marketing Intelligence Marketing Intelligence Copyright © 2009 Dorling Kindersley (India) Pvt. Marketing. Marketing. Collection. Customers.

Data Mining Copyright © 2009 Dorling Kindersley (India) Pvt. Warehousing.Internal Records and Marketing Intelligence Sales Information System Marketing Intelligence System Order-to-Payment Cycle Databases. Ltd. 3-8 .

3-9 .Steps to Improve Marketing Intelligence Train sales force to scan for new developments Train sales force to scan for new developments Motivate channel members to share intelligence Motivate channel members to share intelligence Network externally Network externally Utilize a customer advisory panel Utilize a customer advisory panel Utilize government data resources Utilize government data resources Purchase information Purchase information Collect customer feedback online Collect customer feedback online Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

Ltd.ITC Used Extensive Market Research before launching the Sunfeast range of biscuits Copyright © 2009 Dorling Kindersley (India) Pvt. 3-10 .

analysis. collection. and reporting of data and findings relevant to a specific marketing situation facing the company.What is Marketing Research? Marketing research is the systematic design. 3-11 . Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

The Marketing Research Process Define the problem Develop research plan Collect information Analyze information Present findings Copyright © 2009 Dorling Kindersley (India) Pvt. 3-12 Make decision . Ltd.

and suggest hypotheses. Defining the Problem & Research Objectives Research Objectives Exploratory Research Descriptive Research ••Gatherspreliminary information Gathers preliminary information that will help define the problem that will help define the problem and suggest hypotheses. ••Testhypotheses about causeTest hypotheses about causeand-effect relationships. or market potential for a product. Causal Research Copyright © 2009 Dorling Kindersley (India) Pvt. and-effect relationships.Marketing Research Process Marketing Research Process Step 1. Defining the Problem & Step 1. ••Describesthings as consumers’ Describes things as consumers’ attitudes and demographics attitudes and demographics or market potential for a product. 3-13 . Ltd.

Focus Group in Session Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 3-14 .

Ltd. 3-15 .Research Instruments Questionnaires Qualitative Measures Technological Devices Copyright © 2009 Dorling Kindersley (India) Pvt.

Ltd.Questionnaire Do’s and Don’ts • Ensure questions are free of bias • Make questions simple • Make questions specific • Avoid jargon • Avoid sophisticated words • Avoid ambiguous words • Avoid negatives • Avoid hypotheticals • Avoid words that could be misheard • Use response bands • Use mutually exclusive categories • Allow for “other” in fixed response questions Copyright © 2009 Dorling Kindersley (India) Pvt. 3-16 .

did you contact American Airlines?  Yes  No Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 3-17 .Question Types—Dichotomous In arranging this trip.

Question Types—Multiple Choice With whom are you traveling on this trip?  No one  Spouse  Spouse and children  Children only  Business associates/friends/relatives  An organized tour group Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 3-18 .

3-19 . Ltd.  Strongly disagree  Disagree  Neither agree nor disagree  Agree  Strongly agree Copyright © 2009 Dorling Kindersley (India) Pvt.Question Types—Likert Scale Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones.

. 3-20 .Inexperienced Modern………………………. Ltd.…….Old-fashioned Copyright © 2009 Dorling Kindersley (India) Pvt...….Small Experienced………………….Question Types—Semantic Differential American Airlines Large ……………………………….….

3-21 . Ltd.Question Types—Importance Scale Airline food service is _____ to me.  Extremely important  Very important  Somewhat important  Not very important  Not at all important Copyright © 2009 Dorling Kindersley (India) Pvt.

Ltd.Question Types—Rating Scale American Airlines’ food service is _____. 3-22 .  Excellent  Very good  Good  Fair  Poor Copyright © 2009 Dorling Kindersley (India) Pvt.

Question Types— Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?  Definitely buy  Probably buy  Not sure  Probably not buy  Definitely not buy Copyright © 2009 Dorling Kindersley (India) Pvt. 3-23 . Ltd.

3-24 .Question Types—Completely Unstructured What is your opinion of American Airlines? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

Ltd.Question Types—Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________ Travel ________________________ Copyright © 2009 Dorling Kindersley (India) Pvt. 3-25 .

the most important consideration in my decision is: _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ _____________________________________ __________________. 3-26 .Question Types— Sentence Completion When I choose an airline. Ltd. Copyright © 2009 Dorling Kindersley (India) Pvt.

_______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ Copyright © 2009 Dorling Kindersley (India) Pvt.” Now complete the story. I noticed that the exterior and interior of the plane had very bright colors. 3-27 . This aroused in me the following thoughts and feelings.Question Types—Story Completion “I flew American a few days ago. Ltd.

Ltd. 3-28 .Question Types—Picture (Empty Balloons) Copyright © 2009 Dorling Kindersley (India) Pvt.

Question Types—Thematic Apperception Test Make up a story that reflects what you think is happening in this picture. Ltd. 3-29 . Copyright © 2009 Dorling Kindersley (India) Pvt.

Sampling Plan • Sampling unit: Who is to be surveyed? • Sample size: How many people should be surveyed? • Sampling procedure: How should the respondents be chosen? Copyright © 2009 Dorling Kindersley (India) Pvt. 3-30 . Ltd.

3-31 .2 Types of Samples Probability Samples • Simple random • Stratified random • Cluster Nonprobability Samples • Convenience • Judgment • Quota Copyright © 2009 Dorling Kindersley (India) Pvt.Table 4. Ltd.

Contact Methods Mail Questionnaire Telephone Interview Personal Interview Online Interview Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 3-32 .

Ltd. even for sensitive questions • Versatility Disadvantages • Small samples • Skewed samples • Technological problems • Inconsistencies Copyright © 2009 Dorling Kindersley (India) Pvt.Pros and Cons of Online Research Advantages • Inexpensive • Fast • Accuracy of data. 3-33 .

3-34 . Copyright © 2009 Dorling Kindersley (India) Pvt. and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. tools. systems. Ltd.What is a Marketing Decision Support System (MDSS)? A marketing decision support system is a coordinated collection of data.

3-35 . Ltd.Barriers Limiting the Use of Marketing Research • • • • A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings • Personality and presentational differences Copyright © 2009 Dorling Kindersley (India) Pvt.

3-36 . requiring innovative sampling Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.Typical Problems in Rural Research • Low literacy levels require innovations in questionnaire design scales • Wide geographical dispersion requires long travels • A large number of languages and dialects. requiring multiple translations • Non-availability of working population at normal places of residence • Poor access to women respondents • Villages layout based on caste lines.

Develop the Research Plan Step 2. Develop the Research Plan Determine the Specific Information Needed Determine the Specific Information Needed Secondary Information that has Information that has been previously been previously collected. at hand. Marketing Research Process Marketing Research Process Primary Information collected Information collected for the specific purpose for the specific purpose at hand.Step 2. Ltd. Copyright © 2009 Dorling Kindersley (India) Pvt. collected. Both Must Be: Both Must Be: Relevant Relevant Accurate Accurate Current Current Impartial Impartial 3-37 .

3-38 . Ltd.2 Secondary Commercial Data Sources AC Nielsen – ORG MARG CMIE TAM Media Research Euromonitor International Gallup Pakistan NCAER Copyright © 2009 Dorling Kindersley (India) Pvt.Table 3.

Implementing the Research Plan Collection Collection of of Data Data Processing Processing of of Data Data Analyzing the Analyzing the Data Data Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.Step 3. 3-39 Marketing Research Process Marketing Research Process Research Research Plan Plan . Implementing the Research Plan Step 3.

Interpreting and Reporting Step 4.Step 4. 3-40 . Interpreting and Reporting Findings Findings Interpret the Findings Interpret the Findings Draw Conclusions Draw Conclusions Report to Management Report to Management Marketing Research Process Marketing Research Process Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 3-41 .

• 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 3-42 . Ltd.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 Copyright © 2009 Dorling Kindersley (India) Pvt.

larger societal forces that affect the whole microenvironment.Marketing Environment Marketing Environment • All the actors and forces influencing the company’s ability to transact business effectively with it’s target market. 3-43 . • Includes: • Microenvironment . • Macroenvironment . Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.forces close to the company that affect its ability to serve its customers.

Ltd. 3-44 .The Marketing Environment The Marketing Environment Demographic Company Cultural Publics Economic Suppliers Company Political Competitors Customers Natural Intermediaries Technological Copyright © 2009 Dorling Kindersley (India) Pvt.

The Microenvironment The Microenvironment Company Company Publics Publics Forces Affecting a Forces Affecting a Company’s Ability to Company’s Ability to Serve Serve Customers Customers Suppliers Suppliers Competitors Competitors Intermediaries Intermediaries Customers Customers Copyright © 2009 Dorling Kindersley (India) Pvt. 3-45 . Ltd.

and distribute its goods to final buyers. 3-46 .provide the resources needed to produce goods and services. Copyright © 2009 Dorling Kindersley (India) Pvt. • Marketing Intermediaries .functional areas Environment such as top management. etc. and manufacturing. Ltd. sell.The Company’s The Company’s Microenvironment Microenvironment • Company’s Internal Environment. finance. • Suppliers .help the company to promote.

Copyright © 2009 Dorling Kindersley (India) Pvt. 3-47 .those who serve a target market with similar products and services.any group that perceives itself having an interest in a company’s ability to achieve its objectives.The Company’s The Company’s Microenvironment Microenvironment • Customers .five types of markets that purchase a company’s goods and services. • Competitors . Ltd. • Publics .

Ltd. Socio-Cultural 3-48 .Environmental Forces Demographic Political-Legal Economic Technological Natural Copyright © 2009 Dorling Kindersley (India) Pvt.

Population and Demographics • Population growth • Population age mix • Ethnic markets • Educational groups • Household patterns • Geographical shifts Copyright © 2009 Dorling Kindersley (India) Pvt. 3-49 . Ltd.

Ltd.Mobilink-Disney D 100 Mobile Phone Copyright © 2009 Dorling Kindersley (India) Pvt. 3-50 .

Population Age Groups 65+ 40-65 25-40 Teens School-age Preschool Copyright © 2009 Dorling Kindersley (India) Pvt. 3-51 . Ltd.

3-52 . Ltd.Household Patterns Copyright © 2009 Dorling Kindersley (India) Pvt.

Marrying later. Increased Education Increased Education 3-53 . working women. and nonfamily households working women. and nonfamily households Changing Family Structure Changing Family Structure Moving to the Sunbelt and suburbs (MSA’s) Moving to the Sunbelt and suburbs (MSA’s) Geographic Shifts Geographic Shifts Increased college attendance Increased college attendance and white-collar workers and white-collar workers Copyright © 2009 Dorling Kindersley (India) Pvt. fewer children. fewer children.Key Demographic Trends Key Demographic Trends Changing Age Structure Changing Age Structure Population is getting older Population is getting older Marrying later. Ltd.

Economic Environment Economic Environment

Economic Economic Development Development

Key Key Economic Economic Concerns for Concerns for Marketers Marketers
Changes Changes in Consumer in Consumer Spending Spending Patterns Patterns

Changes Changes in Income in Income

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

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Social-Cultural Environment
Views of themselves Views of themselves Views of others Views of others Views of organizations Views of organizations Views of society Views of society Views of nature Views of nature Views of the universe Views of the universe
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The Cultural and Social Environment Time Poverty Economic Power Career Opportunity Cultural Trend: Cultural Trend: The Changing Roles of Women The Changing Roles of Women 3-57 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 4-11 .

Ltd.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 Copyright © 2009 Dorling Kindersley (India) Pvt. 3-58 .

Cartoon Network’s 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. 3-59 . 21% of wanted to be engineer Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

Ltd.Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections Copyright © 2009 Dorling Kindersley (India) Pvt. 3-60 .

Toyota Experienced Success with Green Cars Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 3-61 .

Ltd.1 Consumer Environmental Segments True Blue Greens (30%) Greenback Greens (10%) Sprouts (26%) Grousers (15%) Apathetics (18%) Copyright © 2009 Dorling Kindersley (India) Pvt. 3-62 .Figure 3.

3-63 . Ltd.Keys to Avoiding Green Marketing Myopia • Consumer Value Positioning • Calibration of Consumer Knowledge • Credibility of Product Claims Copyright © 2009 Dorling Kindersley (India) Pvt.

3-64 .Technological Environment Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

Political Environment Political Environment Increased Increased Legislation Legislation Key Key Trends in the Trends in the Political Political Environment Environment Greater Greater Concern for Concern for Ethics Ethics Changing Changing Enforcement Enforcement Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 3-65 .

3-66 .Political-Legal Environment Increase in business legislation Growth of special interest groups Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

Age differences are fundamentally more important than cohort effects. Copyright © 2009 Dorling Kindersley (India) Pvt.Marketing Debate  Is consumer behavior more a function of a person’s age or generation? Take a position: 1. 3-67 . Ltd. Cohort effects can dominate age differences. or 2.

Ltd.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? Copyright © 2009 Dorling Kindersley (India) Pvt. 3-68 .

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