Gathering Information and Scanning the Environment

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Gathering Information and Scanning the Environment
Lecture 3
Marketing Management
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Kotler on Marketing

• Marketing is becoming a battle based more on
  information than on sales power.

Napoleon on Marketing
God is on the side of the big battalions
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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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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.

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MIS Systems Provide Information on Buyer
Preferences and BehaviorDuponts Pillow Study

• Pillow Segments
• 23 - stackers
• 20 - plumpers
• 16 - rollers or folders
• 16 - cuddlers
• 10 - smashers

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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?

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Internal Records and Marketing Intelligence
Order-to-Payment CycleAccounts Receivable Ledger
Sales Information System
Databases, Warehousing, Data Mining
Marketing Intelligence System
A Marketing Intelligence System is a set of
procedures and sources used by managers to obtain
everyday information about developments in the
marketing environment.
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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
Utilize a customer advisory panel
Utilize government data resources
Purchase information
Collect customer feedback online
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Secondary-Data Sources
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The Marketing Research Process
www.bmrb.co.uk
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The Characteristics of Good Marketing Research
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Forecasting and Demand Measurement

• Composite of Sales Force Opinions
• Expert Opinion
• Group discussion method
• Pooling of individual estimates
• Past-Sales Analysis
• Time-series analysis
• Exponential smoothing
• Statistical demand analysis
• Econometric analysis

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Forecasting and Demand Measurement

• Market-Test Method
• Industry Sales and Market Shares
• Estimating Future Demand
• Survey of Buyers Intentions
• Forecasting
• Purchase probability scale

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Multiple-Factor Index Method- using the Brand
development Index (BDI)
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Market-Buildup Method Using SIC/SITC Codes
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Environmental Forces
Demographic
Economic
Political-Legal
Socio-Cultural
Technological
Natural
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Population and Demographics

• Population growth
• Population age mix
• Ethnic markets

• Educational groups
• Household patterns
• Geographical shifts

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10 Megatrends Shaping the USA Consumer
Landscape

• Aging baby boomers
• Delayed retirement
• Changing nature of work
• Greater educational attainment
• Labour shortages

• Increased immigration
• Rising Hispanic influence (USA)
• Shifting birth trends
• Widening geographic differences
• Changing age structure

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Trends Shaping the Business Landscape

• Profound shifts in centres of economic activity
• Increases in public-sector 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

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Future Foundation
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Predicting the future?
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Lots of Information available
Attending the cinema once a month or more by
age, GB Source
www.ons.gov.uk
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Social-Cultural Environment
Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe
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Consumer Environmental Segments
True Blue Greens (30)
Greenback Greens (10)
Sprouts (26)
Grousers (15)
Apathetics (18)
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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

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Political-Legal Environment
Increase in business legislation
since
Growth of special interest groups
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Natural Environment
Shortage of raw materials
Increased energy costs
Anti-pollution pressures
Governmental protections
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Technological Environment
Pace of change
Opportunities for innovation
Varying RD budgets
Increased regulation of change
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Seminar

• Review Lecture
• Annual Reports
• And their Analysis starting to get to know your
  company