Gathering Information and Scanning the Environment

Marketing Management, 13th ed

3

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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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MIS 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• 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-PaymentCycle

Databases,Warehousing,

Data Mining

MarketingIntelligence

System

Sales Information

System

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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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Best Buy’s Use of MIS

Best Buy segments its customers into highly differentiated segments known by archetypes like “Buzz,” “Barry,” and “Jill.”

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Table 3.2 Secondary Commercial Data Sources

Nielsen

Information Resources, Inc.

MRCA

Arbitron

Simmons

SAMI/Burke

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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 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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Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

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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Mattel Markets in

China

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Population Age Groups

Preschool

School-age

Teens

25-40

40-65

65+

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Schwab’s Chinese-language Web site

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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 nature

Views of organizations

Views of society

Views of the universe

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Interest in Nature: A Growing Trend

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Table 3.3 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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Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Governmentalprotections

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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%)

Apathetics (18%)

Grousers (15%)

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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

Opportunitiesfor innovation

Varying R&D budgets

Increased regulationof change

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Political-Legal Environment

Increase in business legislation

Growth of specialinterest groups

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Marketing Debate

Is consumer behavior more a function of a person’s age or generation?

Take a position:1. Age differences are fundamentally more important than cohort effects.or2. Cohort effects can dominate age differences.

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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?