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Gathering Information and Scanning the Environment

Marketing Management, 13th ed

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?

. equipment. and accurate information to marketing decision makers. sort. evaluate.What is a Marketing Information System (MIS)? A marketing information system consists of people. and procedures to gather. timely. and distribute needed. analyze.

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? .

Internal Records (Results data) and Marketing Intelligence (Hapenings data) Sales Information System Marketing Intelligence System Order-to-Payment Cycle Databases. Data Mining . Warehousing.

• E. Cisco saved $24 million in material cost and $51 million on Labor cost .The Order Payment Cycle • Sales representatives.g. • Shipped items generate shipping and billing documents that go to various departments.. • The sales department prepares invoices. transmits copies to various departments. dealers and customers send orders to the firm.

Reliance Petroleum using hand-held billing machines connected with company’s centralized information system .second information.. • e. • e.Sales Information System • Marketing managers need timely and accurate reports on current sales. Wal-Mart (sales and inventory data warehouse capture data on every customer. for every store.g. every day and refreshes it every hour) • Technological gadgets are revolutionizing sales information system and have representative up-to.g..

experts in statistical techniques) Fresh insights into neglected customer segments.Databases. interests. opinions) Product Databases Salesperson Database • Warehousing Data – Easily accessible to decision makers • Mining the Data – (analysts. recent customer trends and other useful information . Data warehousing & Data Mining • Databases: Customer Databases (attitudes.

The Marketing Intelligence System (Happenings data) • A set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. • Marketing managers collect marketing intelligence by reading newspapers. . suppliers and distributors and even meeting with other company managers via online discussion groups and emailing lists. trade publications. talking to the customers.

Steps to Improve Marketing Intelligence Train sales force to scan for new developments Motivate channel members to share intelligence Network externally (Purchase competitors product & Trade shows) Utilize a customer advisory panel Utilize government data resources Purchase information (Gallup Pakistan) Collect customer feedback online .

economic or political significance. economic. short-lived. influence us for 7-10 years or longer . • Megatrends: Large social. slow to form. Reveals the shape of future.Fad. political and technological changes. • Trend: Direction or sequence of events that has some momentum and durability. Trends & Megatrends • Fad: Unpredictable. and without social.

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 .

Europe) • Change in consumer landscape (developing vs.Trends Shaping the Business Landscape • Profound shifts in centers of economic activity (Asia vs. developed economies) • Technological connectivity • Scarcity of well-trained talent (more technical education in developing countries) • Increase in scrutiny of big business practices (social marketing) • Increase in demand for natural resources (more people will require more food) • Emergence of new global industry structures (Bell shape + corporate borders blurrier) • Ubiquitous access to information (Knowledge production is growing) • Management shifts from art to science (more calculated decisions) • Increases in public-sector activity (social services) .

Environmental Forces Demographic Political-Legal Economic Technological Natural Socio-Cultural .

Rural .Population and Demographics • Population growth 76% in less developed • Educational groups Literacy rate (male/ female) • Population age mix Blend of young & old • Household patterns Joint family vs. Independent • Ethnic markets Diversity of consumers • Geographical shifts Urban vs.

000-215.000 (32.1%) Rs45.000 (1.000-45.000 (44%) Rs215.2%) Rs16. debts and credit availability • Income Distribution in India by NCAER Destitute Aspirants Climbers Consuming class Rich Rs16.000+ (33%) . savings.000 (54.Economic Environment • Purchasing Power in an economy depends on income.000-22.5%) Rs22. price.

to nature & to universe Topography Languages Cultures Religious Believes Diversity . to others.Social-Cultural Environment: Relationship to themselves. to society. to organizations.

Most Popular American Leisure Activities • Reading • TV watching • Spending time with family • Going to movies • Fishing • • • • • • Computer activities Gardening Renting movies Walking Exercise Listening to music .

Natural Environment Shortage of raw Materials: Water & Gas Increased energy costs: Electricity & Petrol Anti-pollution pressures: Recycling Centers Governmental Protections: CNG .

Technological Environment Pace of change: Lift to Microchip Opportunities for innovation: Cloning to Robotics Varying R&D Budgets: Innovative Works Increased regulation of change: Rules & Regulations .

Political-Legal Environment: Laws.Unscrupulous exploitation of consumers • Consumer education-The right to consumer education . Government Agencies & Pressure Groups • Increase in Business Legislation: • To protect companies from unfair competition • To protect consumers from unfair business practices • To protect the society from uncontrolled business behavior • To charge businesses a social cost created by the products/production • Growth of Special Interest Groups • Safety-Hazardous to life products • Information-Ingredients • Choice.Many items • Representation.Consumer rights • Redressal.

Demographic / Economic Environment MKG Intermediaries Technologically / Physical Environment Products TGT Place ment Customers Suppliers Price Publics Promotion Political/Legal Environment Competitors Social/Cultural Environment .