Marketing Insights_03 Marketing

8/2/2019 Marketing Insights_03 Marketing

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Gathering Information and

Scanning the Environment

Marketing Management, 13thed


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Chapter Questions

What are the components of a modernmarketing information system?

What are useful internal records?

What is involved in a marketing intelligencesystem?

What are the key methods for tracking andidentifying opportunities in the macro

environment? What are some important macro environment

developments?


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What is aMarketing Information System (MIS)?

A marketing information systemconsists of people, equipment, andprocedures to gather, sort, analyze,

evaluate, and distribute needed, timely,and accurate information tomarketing decision makers.


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Information Needs Probes

What decisions do you regularly make? What information do you need to make thesedecisions?

What information do you regularly get?

What special studies do you periodicallyrequest?

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 marketinginformation system?


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Internal Records (Results data) and

Marketing Intelligence (Hapenings data)

Order-to-PaymentCycle

Databases,

Warehousing,Data Mining

Marketing

IntelligenceSystem

Sales

InformationSystem


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The Order Payment Cycle

Sales representatives, dealers andcustomers send orders to the firm.

The sales department prepares

invoices, transmits copies to variousdepartments.

Shipped items generate shipping and

billing documents that go to variousdepartments.

E.g., Cisco saved $24 million in material cost and$51 million on Labor cost


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Sales Information System

Marketing managers need timely andaccurate reports on current sales.

e.g., Wal-Mart (sales and inventory data warehouse capturedata on every customer, for every store, every day andrefreshes it every hour)

Technological gadgets are revolutionizingsales information system and haverepresentative up-to- second information.

e.g., Reliance Petroleum using hand-held billing machinesconnected with companys centralized information system


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Databases, Data warehousing &Data Mining

Databases:Customer Databases (attitudes, interests, opinions)

Product Databases

Salesperson Database

Warehousing DataEasily accessible to decisionmakers

Mining the Data(analysts, experts in statistical techniques)

Fresh insights into neglected customer segments,

recent customer trends and other useful information


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The Marketing Intelligence System(Happenings data)

A set of procedures and sources managersuse to obtain everyday information aboutdevelopments in the marketing environment.

Marketing managers collect marketingintelligence by reading newspapers, tradepublications, talking to the customers,suppliers and distributors and even meetingwith other companymanagers via onlinediscussion groups and emailing lists.


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Steps to Improve Marketing Intelligence

Train sales force to scan for new developments

Motivate channel members to share intelligence

Network externally (Purchase competitorsproduct & Trade shows)

Utilize a customer advisory panel

Utilize government data resources

Purchase information (Gallup Pakistan)

Collect customer feedback online


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Fad, Trends & Megatrends

Fad: Unpredictable, short-lived, andwithout social, economic or politicalsignificance.

Trend: Direction or sequence of eventsthat has some momentum anddurability. Reveals the shape of future.

Megatrends: Large social, economic,political and technological changes,slow to form, influence us for 7-10 years or

longer


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Sources of Competitive Information

Independent customer goods andservice review forums

Distributor or sales agent feedback

sites

Combination sites offering customerreviews and expert opinions

Customer complaint sites

Public blogs


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Trends Shaping theBusiness Landscape

Profound shifts in centers ofeconomic activity (Asia vs.Europe)

Change in consumerlandscape (developing vs.developed economies)

Technological connectivity

Scarcity of well-trained talent(more technical education in

developing countries) Increase in scrutiny of big

business practices (socialmarketing)

Increase in demand for naturalresources (more people willrequire more food)

Emergence of new globalindustry structures (Bell shape+ corporate borders blurrier)

Ubiquitous access toinformation (Knowledgeproduction is growing)

Management shifts from art toscience (more calculateddecisions)

Increases in public-sectoractivity (social services)


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Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural


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Population and Demographics

Population growth

76% in less developed

Population age mix

Blend of young & old

Ethnic markets

Diversity of consumers

Educational groupsLiteracy rate (male/ female)

Household patterns

Joint family vs. Independent Geographical shifts

Urban vs. Rural


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Economic Environment

Purchasing Power in an economydepends on income, price, savings, debtsand credit availability

Income Distribution in India by NCAER

Destitute Rs16,000 (1.2%)

Aspirants Rs16,000-22,000 (32.5%)

Climbers Rs22,000-45,000 (54.1%)

Consuming class Rs45,000-215,000 (44%)

Rich Rs215,000+ (33%)


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Social-Cultural Environment:Relationship to themselves, to others,to organizations, to society, to nature

& to universe

Topography

Religious Believes

Languages

Cultures

Diversity


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Most PopularAmerican Leisure Activities

Reading

TV watching

Spending timewith family

Going to movies

Fishing

Computer activities

Gardening

Renting movies Walking

Exercise

Listening to music


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Natural Environment

Shortage of rawMaterials: Water & Gas

Increased energy costs:Electricity & Petrol

Anti-pollution pressures:

Recycling Centers

GovernmentalProtections: CNG


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Technological Environment

Pace of change:Lift to Microchip

Opportunities for

innovation: Cloning toRobotics

Varying R&D Budgets:Innovative Works

Increased regulationof change: Rules &

Regulations

P li i l L l E i


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Political-Legal Environment:Laws, Government Agencies &

Pressure Groups Increase in BusinessLegislation:

To protect companies

from unfair competition To protect consumers

from unfair businesspractices

To protect the societyfrom uncontrolledbusiness behavior

To charge businesses asocial cost created by theproducts/production

Growth of Special InterestGroups

Safety-Hazardous to life

products Information-Ingredients

Choice- Many items

Representation- Consumer

rights Redressal- Unscrupulous

exploitation of consumers

Consumer education-The

right to consumer education


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TGT

Customers

Products

Price

Promotion

Placement

Suppliers

Competitors

Publics

MKGIntermediaries

Political/LegalEnvironment

Social/CulturalEnvironment

Technologically /PhysicalEnvironment

Demographic /Economic

Environment

Marketing Insights_03 Marketing

Documents

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