Marketing Environment and Marketing Information System

8/11/2019 Marketing Environment and Marketing Information System

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Welcome to all of you

Khalid Jamil Ansar i [email protected]

03002265808 October 04, 2013


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An Overview of the Subject


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Marketing Environment andMarketing Information

Why market environment is importanceMacro-environment forces how they may affectmarketingMicroenvironment forces that affect thecompanys ability to serve its customers Components of the marketing environment

Topic Outline


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Environmental scanning and techniques / toolsusedCompanys microenvironmentImpact of the technological environment on afirms marketing activities Social-cultural environment influencesmarketing.

Key changes that occur in the political andcultural environmentsImportance of environmental scanning and

analysis

Topic Outline (contd..)


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Environmental scanning provides information about social,economic, technological, competitive, and regulatory forces.Social forces such as demographics and culture andeconomic forces such as macroeconomic conditions andconsumer income affect marketing.Technological changes can affect marketing.Forms of competition that exist in a market, key componentsof competition, and the impact of competition on corporate

structuresLaws, government regulations, and regulatory agencies affectmarketingExplore effects of new technology on society and on

marketing

Topic Outline (contd..)


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Importance of information to the company and itsunderstanding of the marketplace

The marketing information system and discuss its parts

The steps in the marketing research process

How companies analyze and distribute marketinginformation

Topic Outline - Marketing Information


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The special issues some marketing researchers face,including public policy and ethics

Assessing Marketing Information Needs

Developing Marketing InformationMarketing Research

Analyzing Marketing Information

Distributing and Using Marketing Information

Other Marketing Information Considerations

Topic Outline - Marketing Information (contd..)


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It is hopeless to tell a river to stop running;

the best thing is to learn how to swim in thedirection it is flowing.

-Anonymous


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Core marketing concepts

Services Marketing

Next

Marketing EnvironmentMarketing Information

Discussed

Marketing, Market Place, Customer needs,Marketing Strategies, Customer Relationships etc.


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Marketing Environment


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The Marketing Environment

The forces that directly and indirectly influence anorganizations capability to undertake its business.

The trading forces operating in a market place overwhich a business has no direct control ,but whichshape the manner in which the business function andis able to satisfy its customers.


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Why is the marketingenvironment of any concern?


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Why market? To create and maintain profitable customers

A companys marketing environment consists of the actors andforces outside marketing (the marketing department) that affect acompanys ability to build and maintain successful relationshipswith its target customers .

Appraise ones position in the market Awareness of trends within the market Decide if changes need to be made

Why do Environmental Analysis?


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Question: So, what do we hope to learn from

environmental analysis?

Answer:

Why do Environmental Analysis?


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What is it? Macro-Environment

consists of the larger societal forces thataffect the entire microenvironment

Microenvironment consists of actors close to the company that

affect its ability to serve its customers

The Marketing Environment


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MACRO ENVIRONMENTBroad forces which shape the character ofopportunities and threats.

MICRO ENVIRONMENT

The factors in the immediate environment .


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Indirect external forces that have a generalimpact on our organization and on marketing

decisions

Uncontrollable elements in the external

environment create opportunities and threats fora firms marketing mix

The macro-environment


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Levels of External Forces

Macro Level

Influences that affect all firms

Micro Level

Influences that affect a particular firm
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External Environment

ProductPlace

PromotionPrice


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The Companys Macroenvironment


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Competitive EnvironmentDemographic Environment

Natural (Ecological) EnvironmentEconomic EnvironmentTechnological EnvironmentPolitical (Regulatory impact) Environment

Cultural Environment



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Economic EnvironmentLocal, national and internationalvariations in disposable wealth

variations in the local populationincreased leisure time

In marketing we are looking for indicators ofeconomic health and the level of economicdevelopment (prospects) consider where mosthotel groups are looking at developing into...



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Technological Environmentnew materials (eg meat substitutes, hybrid cars -alternatives etc)computers / internet (eg online reservation systems,

automated check-in, room keys/cards etc)equipment and methods (eg microwave ovens, cook chillmethods, self cleaning rooms in the future? etc)improved transportation (eg motorways, aircraft eg

Airbus A380, Boeing 787 dreamliner etc)Improved communication (eg television, colour magazines,

podcasting, blogs, mobile phone, e-mail, onlinenewspapers, mobile devices, Wimax etc)



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Why is it Important?

An understanding of macro and micro marketingenvironment forces is essential for planning.

Helps a business to compete more effectively againstits rivals.

Assists in the identification of opportunities and

threats.

Enables an organization to take advantage ofemerging strategic opportunities.


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The Internal Environment?


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It includes the following:

The human resource department.The operations department.The accounting and finance department.

The research and development department.

The Internal Environment


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Demographics

People MakeMarkets

Distribution Growth

Size

Characteristics ofPopulations


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Economic Factors

People withMoney to Spendand Willing toSpend it

InflationInterest

Rates

Stage of theBusiness

Cycle


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Competition

Rivalsfor Customers

LimitedBuying Power Substitute

ProductsEveryCompany

BrandCompetition

Differential Advantage


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Social and Cultural Forces

People MakeMarkets

Beliefs

Socio-culturalPatternsChanging Quickly

Values Lifestyles


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Social and Cultural Changes

Concern for Natural Environment

Quality notQuantity

Changing Gender Roles Two Incomesand Balance

Physical Fitness andHealth

Exercise and Diet

Premium on Time Convenience


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Political and Legal Forces

Monetaryand

Fiscal Policies

GovernmentalRelationshipwithIndustries

Social LegislationandRegulation

LegislationRelated

toMarketing


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Legislation Affecting Marketing

Sherman Antitrust ActFederal TradeCommission ActClayton Antitrust ActState Unfair TradePractices ActsRobinson-Patman Act

Wheeler-Lea ActLanham TrademarkConsumer GoodsPricing ActVarious deregulationlaws pertaining tospecific industries

Regulate Competition


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External Macroenvironment Forces


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Elements (variables) which may directly affectmarketing decisions and / or which it is able touse to gain information that will enhance itsmarketing operationsA set of forces close to the company ..

The Microenvironment


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Suppliers and service agenciesSupply availability (supplies and costs) / Supplier powerOutsourcing / leasing operationsPR agencies / advertising agencies

Company itself including employeesMarket orientated / customer focusedAll departmentsInternal issues

Marketing intermediariesHelp company promote, sell and distributeTravel agents, tour operators etc

CustomersBuyer behaviour, purchasing power etc



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STEEP / PEST / PESTLE

S Social Consumers habits and preferences

T Technological Relevant technology that will be availableto customers and competitors

E Economic General state of the economy: salaries,disposable income etc

E Environmental Likely thinking on environmental issues

P Political Likely political regimes, laws

Checklist for scanning environment to see what it is like now

or will be like


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P Political

E Economic

S Social

T Technological

Alternative to STEEP - useful for forecasting demand

by studying current and past patterns and how thesemay be affected by possible changes in theorganisations environment Environmental factorsincluded under the main headings


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P Political

E Economic

S Social

T Technological

L Legal

E Environmental

Does not matter as to which model more important toremember to include all the factors


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Why do an Environmental Analysis? What is it?

Micro-Environment Macro-Environment

Summary Familiarity with


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Marketing Information


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What is a MarketingInformation System (MIS)?


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Th M k ti I f ti S t


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Marketing Information System

Developing Information

The Marketing Information System

InformationAnalysis

InternalData

MarketingResearch

MarketingIntelligence

DistributingInformation

Assessing InformationNeeds

Marketing Managers

Marketing Environment

M a r k e t

i n g

D e c

i s i o n s a n

d

C o m m u n

i c a

t i o n s


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Assessing Marketing Information Needs

Characteristics of a good MIS balances the information users would

like to have against what they needand what is feasible to offer


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Developing Marketing Information

Marketers can obtain information from: Internal data

Marketing intelligence Marketing research


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Advantages:

Can be accessed more quickly Less expensive

Disadvantages: Incomplete information Wrong form for decision

making Timeliness of information Amount of information

Need for sophisticatedequipment and techniques

Advantages and Disadvantage of I nternal Databases


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M arketing I ntel l igence

Marketing intelligence is the systematic collectionand analysis of publicly available information aboutcompetitors and developments in the marketplace

The goal of marketing intelligence is to improvestrategic decision making, assess and trackcompetitors actions, and provide early warning ofopportunities and threats


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Marketing Research

Marketing research is the systematicdesign, collection, analysis, andreporting of data relevant to a specificmarketing situation facing anorganization


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Marketing Research

Steps in the marketing research process1. Defining the problem and research objectives

2. Developing the research plan3. Implementing the plan4. Interpreting and reporting the findings


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Marketing Research

Defining the Problem and ResearchObjectives

Types of objectives Exploratory research Descriptive research

Causal research


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Marketing Research

Defining the Problem and Research Objectives

Exploratory research is the gathering of preliminaryinformation that will help to define the problem andsuggest hypotheses

Descriptive research is to describe things such asmarket potential for a product or the demographicsand attitudes of consumers who buy the product

Causal research is to test hypotheses about cause-and-effect relationships


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Marketing Research

Developing the Research Pl an

Research plan outlines sources of existingdata and spells out the specific researchapproaches, contact methods, sampling

plans, and instruments that researchers willuse to gather data


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Marketing Research

Developing the Research Plan

Research plan is a written proposal that includes:

Management problemResearch objectivesInformation needed

How the results will help management decisionsBudget


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Marketing Research

Developing the Research Plan

Secondary data consists of information that

already exists somewhere, having beencollected for another purpose

Primary data consists of information gatheredfor the special research plan


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Marketing Research

Advantages: Speed

Cost Provides data that a

company cannot

collect on its own

Disadvantages: Availability

Relevance Accuracy Impartial


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Marketing Research

Primary Data Collection

Research approachesContact methodsSampling plan

Research instruments


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Marketing ResearchResearch Approaches

Observational research involves gathering

primary data by observing relevant people,actions, and situations

Ethnographic research involves sending

trained observers to watch and interact withconsumers in their natural environment


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Marketing ResearchResearch Approaches

Survey research is the most widely used method and is best for descriptive information knowledge,attitudes, preferences, and buying behaviorFlexiblePeople can be unable or unwilling to answerGives misleading or pleasing answersPrivacy concerns


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Marketing ResearchContact M ethods

Mail questionnaires

Collect large amounts of information Low cost Less bias with no interviewer present

Lack of flexibility Low response rate Lack of control of sample

M k i R h


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Marketing Research

Contact M ethods

Telephone interviewing Collects information quickly More flexible than mail questionnaires Interviewers can explain difficult questions Higher response rates than mail questionnaires

Interviewers communicate directly with respondents Higher cost than mail questionnaires Potential interviewer bias


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Marketing Research

Contact M ethods

Mail, telephone, and personal interviewing Personal interviewing

Individual interviewing

Group interviewing


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Marketing Research

Contact M ethods

Personal interviewing

Individual interviewing Involves talking with people at home or the office, on the

street, or in shopping malls Flexible More expensive than telephone interviews

Group interviewing or focus group interviewing Involves inviting six to 10 people to talk with a trained

moderator


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Marketing Research

Online marketing research

Internet surveys Online panels Online experiments Online focus groups

Contact M ethods


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Marketing ResearchContact M ethods

Online marketing research Low cost Speed to administer Fast results Good for hard-to-reach groups

Hard to control whos in the sample Lack of interaction Privacy concerns


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Marketing ResearchSampling Plan

Sample is a segment of the population selected

for marketing research to represent the population as a whole

Who is to be surveyed?

How many people should be surveyed? How should the people be chosen?


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Marketing Research

Sampling Plan

Probability samples : Each population memberhas a known chance of being included in thesample

Non-probability samples : Used when probability sampling costs too much or takestoo much time


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Marketing Research

Research I nstruments

Questionnaires Most common Administered in person, by phone, or

online Flexible


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Marketing ResearchResearch I nstruments

Closed-end questions include all possible answers,and subjects make choices among them

Provide answers that are easier to interpret andtabulate

Open-end questions allow respondents to answer in

their own words Useful in exploratory research


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Marketing ResearchImplementing the Research Plan

Collecting the information Processing the information Analyzing the information

C R l i hi M


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Customer Relationship Management

New business modelPhilosophy that values two-waycommunication between company andcustomerEvery point of contact with a consumer is anopportunity to collect dataCan make employees more productive andenhance corporate profitability


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CRM consists of sophisticated software and

analytical tools that integrate customerinformation from all sources, analyze it indepth, and apply the results to build

stronger customer relationships

Customer Relationship M anagement(CRM )



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Customer Relationship M anagement(CRM)

Data warehouses are comprehensivecompanywide electronic databases of finelytuned detailed customer information

Uses To understand customers better To provide higher levels of customer service To develop deeper customer relationships To identify high-value customers



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Customer Relationship M anagementTouch points : Every contact between the customer

and company Customer purchases Sales force contacts Service and support calls Web site visits

Satisfaction surveys Credit and payment interactions Research studies

Di ib i d U i M k i I f i


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Distributing and Using Marketing Information

Information distribution involvesentering information into databasesand making it available in a time-

useable manner Intranet provides information to employees

and other stakeholders

Extranet provides information to keycustomers and suppliers

Other Marketing Information


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Ot e a et g o at oConsiderations

M arketing Research in Small Businessesand Nonprofi t Organizations

Need information about their industry,competitors, potential customers, andreactions to new offers

Must track changes in customer needs and wants,reactions to new products, and changes in thecompetitive environment



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Other Marketing InformationConsiderations

M arketing Research in Small Businessesand Nonprofi t Organizations

Sources of marketing information: Observing their environment Monitoring competitor advertising Evaluating customer mix Visiting competitors Conducting informal surveys Conducting simple experiments



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M arketing Research in Small Businessesand Nonprofit Organizations

Sources of marketing information: Secondary data Trade associations

Chambers of Commerce Government agencies Media

Oth M k ti g I f ti


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I nternational M arketing Research

Additional and different challenges Level of economic development Culture Customs Buying patterns Difficulty in collecting secondary data Hard-to-reach respondents



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Intrusions on consumer privacy Consumer resentment Misuse of research findings

Public Policy and Ethics in M arketingResearch


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Sources of Market Information

Human sources Executives based abroad are likely to have

established communication with distributors,consumers, customers, suppliers, andgovernment officials

Friends acquaintances, professionalcolleagues, consultants, and prospectiveemployees

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Sources of Market Information

Direct perception provides a vital background for the information that comesfrom human and documentary sources Gets all the senses involved Some information requires sensory

experience to interpret it correctly

Can be important when the domesticmarket is dominated by a global player

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Formal Market Research

Global Marketing Research is the project-specific, systematic gathering ofdata in the search scanning mode on aglobal basis Challenge is to recognize and respond to

national differences that influence the wayinformation is obtained

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Steps in the Research Process

Identifying the research problemDeveloping a research planCollecting dataAnalyzing dataPresenting the research findings

Identifying the Information


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y gRequirement

What information do I need? Existing Markets customer needs already being

served by one or more companies; information may

be readily available Potential Markets

Latent market an undiscovered market; demand would be there if product was there

Incipient market market will emerge as macroenvironmental trends continue

Why do I need this information?

Developing A Research Plan


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Developing A Research Plan

Do we need quantitative or qualitative data?What is the information worth (versus whatwill it cost to collect)?What will it cost if we dont get theinformation?What can be gained from the information?

C ll i D


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Collecting Data

Secondary Data Statistical Abstract of the United States Statistical Yearbook of the United Nations World Factbook The Economist

The Financial Times Syndicated studies And much more

Collecting Data (cont )


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Collecting Data (cont.)

Primary Data Collection M ethods Survey research Interviews Consumer panels Observation

Focus groups

S i l C id i f S


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Special Considerations for Surveys

Benefits : Data collection from a large sample Both quantitative and qualitative data possible

Can be self-administeredI ssues Subjects may respond with social desirability

Translation may be difficultUse back and parallel translations to ensureaccuracy and validity

S li


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Sampling

A sample is a selected subset of a population that is representative of theentire population. Probability samples Non-probability samples

A l i D t


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Analyzing Data

Demand Pattern AnalysisIncome Elasticity Measurements

Market Estimation by AnalogyTime-series displacementComparative AnalysisCluster Analysis


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Presenting the Findings

Report must clearly address problemidentified in Step 1

Include a memo or executive summary ofthe key findings along with main report


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Thank [email protected]

Documents

Marketing Environment and Marketing Information System