Session 4 MG 220 MBA - 26 Aug 10

MG 220 Marketing ManagementMBA 10

Fall 2010

Muhammad Talha Salam, Asst. [email protected]

Access it online: www.slideshare.net/talhasalam

Part 2: Capturing Market Insights

> Review and revision of Part 1 with local examples

> Gathering Information & Scanning the environment

> Key Concepts in complete Chapter 3 will be covered

Class Presentation | Session 4 | 26 Aug 2010

MG 220 Marketing Management 2Access it online: www.slideshare.net/talhasalam

Components of a modern MIS(Marketing Information System)

• Everyone needs to observe the environment but marketers have two advantages:– Disciplined methods for collecting information– More time for interacting with customers & observe

competition

• Marketers understand and have extensive information on consumption patterns

• Companies with superior information enjoy a competitive advantage



• Marketing Information SystemConsists of:

People, Equipment and Procedures to Gather, Sort, Analyze and Distribute needed, timely and accurate information to marketing decision-makers



• Marketing Information Systemis developed from:1. Company’s internal records2. Marketing Intelligence Activities3. Marketing Research

• MIS should be a cross between:What managers think they needWhat managers really needWhat is economically feasible


Internal Records & Marketing Intelligence

• Order-to-payment cycleReview of sales process & its complete transaction flowDoing it accurately and timely is the key

• Sales Information SystemsTimely & accurate reports on current salesNeed to correctly interpret sales data (red or yellow mustang?)

• Database, Data Warehousing and Data MiningCustomer databases, product databases, salespersons databasesUse them to interact correctly with customers


Internal Records & Marketing Intelligence

• Marketing Intelligence SystemA set of procedures and sources managers use to obtain everyday information about developments in marketing environment

Several steps– Train and motivate sales force to gather & report information– Motivate distributors, retailers etc. to pass information (Mystery

shopping)– Network externally (purchasing competitors’ products, attend their

events etc. )– Customer advisory panels (interact with selected customers)– Government data resources (census reports etc.)– Purchase information from research houses etc.– Online customer feedback for competitive intelligence


Analyzing the Macroenvironment

• Successful companies recognize and respond profitably to unmet needs and trends

• Fad, trend & megatrend– Fad is a “unpredictable”, short-lived and without social,

economic, political significance. (a new style of clothing)– Trend is a direction of sequence of events that has some

momentum and more predictable and durable than fads. (music scene in Pakistan)

– Megatrends are large social, economic, political and technological changes that are slow to form and [once in place], they influence us for sometime. (access to TV/news all over Pakistan)



• Identifying the major forces– Demographic– Economic– Social-cultural– Natural– Technological– Political-legal



• Demographic– Main demographic is population

– Population growth• Differences and trends in different countries and regions

and even cities

– Population Age mix– Ethnicity– Educational– Household patterns

• Family structures, collective lifestyles

– Geographical shifts in population



• Economic–Markets require purchasing power [and

people!]

– Few important trends• Income distribution – a key development

indicator• Savings, Debt & credit availability• Outsourcing & Free trade



• Social-Cultural Environment– Society’s impact on individuals and groups

– Some interesting ‘views’• How people view themselves• How people view others• How people view companies, organizations• How people view their society and values• How people view nature• How people view life, universe, religion

– Core beliefs and secondary beliefs– Sub-cultures– Shift of cultural values through time



• Natural– Degradation of natural environment is a

serious issue

– Important O&Ts• Shortage of Raw materials

– Infinite– finite renewable– finite non-renewable

• Increased energy costs• Anti-pollution pressures• Changing role of governments



• Technological– Changing the way we live and that too

rapidly!

– Innovation and new concepts– Cutting-edge research



• Political-Legal Environment– Businesses are being regulated and

more controlled– SIGs• How companies can tackle with lobbying

Special Interest Groups

MG 220 Marketing ManagementMBA 10

Fall 2010

Muhammad Talha Salam, Asst. [email protected]

Access it online: www.slideshare.net/talhasalam

Part 2: Capturing Market Insights

> The Marketing Research System> The Marketing Research Process> QUIZ for Part 1 (Session 1 – 3)

Class Presentation | Session 5 | 30 Aug 2010