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1、Gathering Information and Scanning the Environment,Marketing Management,13th ed,3,3-2,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 iden
2、tifying opportunities in the macro environment?What are some important macro environment developments?,3-3,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
3、 information to marketing decision makers.,Components of the Marketing-Information Systems,Marketing-Information System,MarketingIntelligence,MarketingScience,MarketingResearch,Marketing-InternalData,AccountingRecords Sales Costs Inventories Cash flows Accounts receivable and payable,Observation Sal
4、es Force Dealers and distributors Suppliers Executive awareness,Outside Data Census Trade association data Trade press Syndicated awareness,AnalyticalSystems Statistical analysis Model building,Quantitative Survey research Telephone Mail Personal observation Experiment,Qualitative Projective tests F
5、ocus groups,Marketing MIS,Supports managerial activities in product development,distribution,pricing decisions,and promotional effectiveness,Sales by customer,Sales by salesperson,Sales by product,Operationaldatabases,Databasesof validtransactionsfor eachTPS,Transactionprocessingsystems,Businesstran
6、sactions,MarketingMIS,Databases ofexternal data,Databases ofinternal data,ManufacturingDSS,ManufacturingES,Marketingapplicationsdatabases,Pricing report,Total service calls,Customer satisfaction,Inputs to Marketing MIS,Strategic plan and corporate policiesThe Transaction Processing SystemsExternal s
7、ources:The competitionThe market,Marketing MIS Subsystems and Outputs,Marketing researchProduct developmentPromotion and advertisingProduct pricing,3-9,Information Needs Probes,What decisions do you regularly make?What information do you need to make these decisions?What information do you regularly
8、 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&Marketing Intelligence,Marketing Managers rely on internal r
9、eports of orders,sales,prices,cost etcBy analyzing this information they can spot important opportunities and problems,The order Payment Cycle,Heart of Internal Record System,3-12,Internal Records and Marketing Intelligence,Order-to-payment cyclesend orders,prepares invoices,transmit copies to vario
10、us departments,and back-orders out-of-stock itemsSales information systemtimely and accurate reports on current salesDatabases,warehousing,data mining-customer,product,and salesperson and combine data from the different databases.Marketing intelligence systema set of procedures and sources managers
11、use to obtain everyday information about developments in the marketing environment.,Now,Now(days)improved order payment cycle is required Customers favor firms that can promise timely delivery.Order-Pay can also be done online.This process is called as EDI-Electronic Data Interface.E.G.,Cisco,Dell,E
12、bay,Data Mining,It is the process of analyzing data from different perspectives and summarizing it into useful information-information that can be used to increase revenue,cuts costs,or both.It allows users to analyze data from many different dimensions or angles,categorize it,and summarize the rela
13、tionships identified.Technically,data mining is the process of finding correlations or patterns among dozens of fields in large relational databases.,One Midwest grocery chain used the data mining capacity of Oracle software to analyze local buying patterns.They discovered that when men bought diape
14、rs on Thursdays and Saturdays,they also tended to buy beer.Further analysis showed that these shoppers typically did their weekly grocery shopping on Saturdays.On Thursdays,however,they only bought a few items.The retailer concluded that they purchased the beer to have it available for the upcoming
15、weekend.The grocery chain could use this newly discovered information in various ways to increase revenue.For example,they could move the beer display closer to the diaper display.And,they could make sure beer and diapers were sold at full price on Thursdays,Example of Data Mining,Marketing Intellig
16、ence System,It is a process of acquiring and analyzing information in order to:understand the market;determine the current and future needs and preferences,attitudes and behavior of the market;assess changes in the business environment that may affect the size and nature of the market in the future.
17、A set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment,3-17,Steps to Improve Marketing Intelligence,Train sales force to scan for new developments(make intelligence gathering important to salespeople)Motivate channel members to
18、 share intelligence(hire specialists to gather marketing intelligencemystery shoppers)Network externally(purchase competitors products;attend open houses and trade shows;read competitors published reports;etc.)Utilize a customer advisory panel(representative customers or companys largest customers)U
19、tilize government data sources(U.S.Census data,etc.)Collect customer feedback online(online customer review boards,discussion forums,chat rooms,and blogs)Purchase information(A.C.Nielsen Company and other information sources),3-18,Secondary Commercial Data Sources,Nielsentracks sales of consumer pac
20、kage goods and brands,gathered at the point of sale in retail stores of all types(e.g.,supermarkets through scanner data,television audiences).MRCA(Medium Resolution Coverage Area)data on weekly family purchases of consumer products,and home food consumption.Information Resourcessupermarket scanner
21、data and data on the impact of supermarket promotions.SAMI/Burkereports on warehouse withdrawals to food store in selected market areas and supermarket scan data.Simmonsannual reports covering television markets,television markets,sporting goods,and proprietary drugs with demographic data by sex,inc
22、ome,age,and brand preferences.Arbitronselling data to subscribers.,3-19,Sources of Competitive Information,Independent customer goods and service review forumsDistributor or sales agent feedback sitesCombination sites offering customer reviews and expert opinionsCustomer complaint sitesPublic blogs,
23、3-20,Needs and Trends,Fadsshort-lived and without social,economic,and political significance.Trendsdirection or sequence of events that has some momentum and durability.Megatrendslarge social,economic,political,and technological changes,3-21,Trends Shaping the Business Landscape,Profound shifts in c
24、enters of economic activity(Asia(excluding Japan)13%of World GDP;Western Europe 30%)Increases in public-sector activity(aging of population new levels of efficiency and creativity from public sector)Change in consumer landscape(billion new consumers to enter global marketplace in next decade and U.S
25、.Latinos 2015 spending power equivalent to 60%of Chinese consumers.Technological connectivity(change way people live)Scarcity of well-trained talent(33 mm university-educated young professionals in developing countries is more than double the number in developed ones,Increase in demand for natural r
26、esources(Oil demand projected to grow by 50%in next two decades and water shortages may constraint growth in many countries)Emergence of new global industry structures(barbell-like structurefew large,narrow middle,lot of smaller companies)Ubiquitous access to information(open source approach)Managem
27、ent shifts from art to science(algorithmic decision-making techniques and sophisticated software)Increase in scrutiny of big business practices(be able to argue and demonstrate intellectual,social,and economic case for business),3-22,Environmental Forces,DemographicEconomicSocio-culturalNaturalTechn
28、ologicalPolitical-legal,What is Demographic environment?,The demographic environment includes the study of human populations in terms of:size,density,location,age,sex,race,occupation,other statistical information.,3-24,Population and Demographics,Population growthPopulation age mixEthnic markets,Edu
29、cational groupsHousehold patternsGeographical shifts,World Population Growth,World population shows explosive growth,in 2000 it was 6.1 billon and it is projected to exceed 7.9 billon by 2025Explosive population growth has major implication for business.For Example-GOLDMAN SCAHS report has projected
30、 that India in next 30 year might grow up to 3rd largest economy in world,Population Age Mix,In population age mix marketers are increasingly recognizing the potential of youth segment(marketers are focused on youth)For example-Titan the well-known watch marketer Introduced a range of Sunglasses whi
31、ch is call“Eye Gear”under the brand Fast Track,Literacy Of Population,Literacy of Population is mainly divided into:A)LiterateB)illiterateC)EducatedD)Uneducated,3-28,Household Patterns,ECONOMIC ENVIRONMENT,Market requires purchasing power as well as people.Purchasing power depends upon current incom
32、e,prices,debt,credit,saving etc.Marketers must pay careful attention to trends affecting purchasing power.,INDIAN SOFTWARE GIANTS WARY OF ECONOMIC SLOWDOWN 20 JAN 2008(Economic times),INCOME DISTRIBUTION,Macroeconomic indicators provides overall health of economy as well as direction of economic gro
33、wth.Marketers needs to understand the distribution of income to make more meaningful conclusions.,3-32,Types of Industrial Structures,Industrialeconomies,Subsistenceeconomies,Raw-material-exportingeconomies,Industrializingeconomies,3-33,India An Industrializing Economy,3-34,Saudi Arabia A Raw-Materi
34、al Exporting Economy,SOCIAL CULTURAL ENVIRONMENT,Purchasing power is directed towards certain goods&services.People absorb,unconsciously a worldview that defines relationship to organization,to themselves,to society,to nature,and to universe.,Microsoft steps up on search R&D IN EUROPEThis is because
35、 maximum usage is in European countries.,3-37,Social-Cultural Environment,Views of themselves(pleasure seeker,self-realization,etc.)Views of others(concern about homeless,crime,victims,social surrogatestelevision,home video games,etc.)Views of organizations(company downsizing and corporate accountin
36、g scandals,etc.)Views of society(defend societypreservers;run itmakers;can get fromtakers;change itchangers;looking for something deeperseekers;leave it-escapersViews of nature(natures fragility and finiteness)Views of the universe(religious,etc.),3-38,Most Popular American Leisure Activities,Readin
37、gTV WatchingSpending time with familyGoing to moviesFishing,Computer activitiesGardeningRenting moviesWalkingExerciseListening to music,3-39,Natural Environment,Shortage of raw materials,Increasedenergy costs,Anti-pollutionpressures,Governmentalprotections,NATURAL ENVIRONMENT,Deterioration of natura
38、l environment is major concern.Cities like Mumbai,Bangalore etc.reached dangerous levels.Some regulation hit industries very hard-Steel industry,Microsofts environmental contribution,Microsoft announces a new green wireless mouse.This is environment friendly because it uses six month long battery.,3
39、-42,Keys to Avoiding Green Marketing Myopia,Consumer Value Positioning(design environmental products to perform as well as alternatives;products that have health benefits;fixed price for renewable energy products)Calibration of Consumer Knowledge(connect environmental products attributes with desire
40、d consumer valuepesticide-free;solar powered);use of internet.Credibility of Product Claims(environmental product and consumer benefit claims),TECHNOLOGICAL ENVIRONMENT,Technology has released such wonders like open heart surgeryIt has also released hazards like hydrogen bomb,nuclear bomb etc.,3-44,
41、Technological Environment,Pace of change,Unlimited Opportunitiesfor innovation,Varying R&D budgets,Increased regulationof change,POLITICAL-LEGAL ENVIRONMENT,Marketing decisions are strongly affected by development in political and legal environment.Increase in business legislationProtecting the welf
42、are of consumers,3-46,Political-Legal Environment,Increase in business legislation(e.g.,unfair competition,protect society),Growth of specialinterest groups(e.g.,consumerist movement),3-47,Unit Pricing on Store Shelves,3-48,Study Question 1,_ consists of people,equipment,andprocedures to gather,sort
43、,analyze,evaluate,anddistribute needed,timely,and accurate information toMarketing decision makers.A.A marketing information system B.A marketing research system C.A marketing intelligence system D.A promotional campaign E.A marketing database,3-49,Study Question 2,All of the following would be cons
44、idered to be steps toimprove the quality of marketing intelligence in acompany EXCEPT _.A.training and motivating the sales force to spot and report new developments B.using guerrilla tactics such as going through a competitors trash C.motivating intermediaries to pass along important information D.
45、networking externally E.purchasing information from outside suppliers,3-50,Study Question 3,A _ is“unpredictable,short-lived,and withoutsocial,economic,and political significance.”A.fad B.fashion C.trend D.megatrend E.style,3-51,Study Question 4,_ have been described as“large social,economic,politic
46、al and technological changes that areslow to form,and once in place,they influence us forsome timebetween seven and ten years,or longer.A.Fads B.Fashions C.Trends D.Megatrends E.Styles,3-52,Study Question 5,In which of the following economies would we expect tofind the fewest opportunities for marketers?A.Industrializing economies B.Land-locked economies C.Raw-material-exporting economies D.Industrial economies E.Subsistence economies,
