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3 Gathering Information and Scanning the Environment

Marketing Management A South Asian Perspective, 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? Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

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MIS (Marketing Information system)Systems Provide Information on Buyer Preferences and Behavior: Dupont’s Pillow Study

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

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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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Table 3.1 Information Needs Probes(pillar) • 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. Ltd.

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Internal Records and Marketing Intelligence Order-to-Payment Cycle

Sales Information System

Databases, Warehousing, Data Mining

Marketing Intelligence System

Marketing intelligence is to study customers insights and market insights and Information about what going on in the market. Ex. Camae (P&g) and Dove(HLL) compitation in market…. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

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Steps to Improve Marketing Intelligence Train and motivate the 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 Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

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Table 3.2 Secondary Commercial Data Sources AC Nielsen – ORG MARG

TAM Media Research

CMIE

Euromonitor International

NCAER

Gallup Pakistan

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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

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Needs and Trends

Fad Trend Megatrend

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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. Ltd.

• 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 3-11

Environmental Forces need to be considered during Marketing Demographic Political-Legal

Economic

Technological

Socio-Cultural Natural

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Population and Demographics • Population growth • Population age mix • Ethnic markets

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• Educational groups • Household patterns • Geographical shifts

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Mobilink-Disney D 100 Mobile Phone

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Population Age Groups

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

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Household Patterns

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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 others Views of organizations Views of society Views of nature Views of the universe Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

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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. Ltd.

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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, 21% of wanted to be engineer

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

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Toyota Experienced Success with Green Cars

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Figure 3.1 Consumer Environmental Segments True Blue Greens (30%) Greenback Greens (10%) Sprouts (26%) Grousers (15%) Apathetics (18%) Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

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Keys to Avoiding Green Marketing Myopia • Consumer Value Positioning • Calibration of Consumer Knowledge • Credibility of Product Claims

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

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Political-Legal Environment

Increase in business legislation

Growth of special interest groups

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Marketing Debate  Is consumer behavior more a function of a person’s age or generation? Take a position: 5. Age differences are fundamentally more important than cohort effects. or 2. Cohort effects can dominate age differences. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd.

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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?

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