Gathering Information and Scanning the Environment 3

GATHERING INFORMATION AND SCANNING THE ENVIRONMENT

Ms. Kiran Sharma

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?

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.

COMPONENTS OF A MODERN MARKETING INFORMATION SYSTEM

A marketing information system is developed from:

Internal company records.

Marketing intelligence activities.

Marketing research.

Information needs probes:

1) What decisions do you regularly make?

2) What information do you need to make these decisions?

3) What information do you regularly get?

4) What information would you want that you are not getting now?

5) What information would you want daily? Weekly? Monthly? Yearly?

6) What magazines and trade reports would you like to see on a regular basis?

7) What topics would you like to be kept informed of?

8) What data analysis programs would you want?

Internal Records and Marketing Intelligence

Order-to-PaymentCycle

Databases,Warehousing,

Data Mining

MarketingIntelligence

System

Sales Information

System

Internal Records and Marketing Intelligence

Order-to-Payment Cycle

•Orders sent by Sales representatives, dealers, and customers sent to the firm.

•Preparation and transmission of copies of invoices by the sales department to various departments.

•Shipped items accompanied by shipping and billing documents that are sent to the various departments.

•Steps need to be performed quickly and accurately.

•Internet being used excessively improve the speed, accuracy, and efficiency of the order-to-payment cycle.

Order-to-PaymentCycle

Databases,Warehousing,

Data Mining

MarketingIntelligence

System

Sales Information

System

Internal Records and Marketing Intelligence

Sales Information Systems

• Marketing managers need timely and accurate reports on current sales.

• Companies carefully interpret the sales data so as not to get the wrong signals.

• Technological gadgets are revolutionizing sales information systems and allowing representatives to have up-to-the second information.

Order-to-PaymentCycle

Databases,Warehousing,

Data Mining

MarketingIntelligence

System

Sales Information

System

Internal Records and Marketing Intelligence

Databases, Data Warehouses, and Data-Mining

Companies organize information in databases—

customer

product

salesperson

Companies warehouse these data for easy accessibly to decision makers.

By hiring analysts skilled in sophisticated statistical methods, companies can “mine” the data and garner fresh insights into:

Neglected customer segments.

Recent customer trends.

Other useful information.

Order-to-PaymentCycle

Databases,Warehousing,

Data Mining

MarketingIntelligence

System

Sales Information

System

Internal Records and Marketing Intelligence

Marketing Intelligence System

The internal records systems supplies results data, but the marketing intelligence system supplies happenings data.

a set of procedures and sources used to obtain everyday information about developments in the marketing environment.

Marketing managers collect marketing intelligence by:

Reading books, newspapers, and trade publications.

Talking to customers, suppliers, and distributors.

Meeting with other company managers.

Order-to-PaymentCycle

Databases,Warehousing,

Data Mining

MarketingIntelligence

System

Sales Information

System

Train sales force to scan for new developments Train sales force to scan for new developments

Motivate distributors to share intelligence – mystery shoppers

Motivate distributors to share intelligence – mystery shoppers

Network externallyNetwork externally

Utilize a customer advisory panelUtilize a customer advisory panel

Utilize government data resourcesUtilize government data resources

Purchase informationPurchase information

Collect customer feedback onlineCollect customer feedback online

Steps to Improve Marketing Intelligence

Needs and Trends

•A fad is “unpredictable, short-lived, and without social, economic, and political significance.”

•A trend is a direction or sequence of events that has some momentum and durability.

•Trends are more predictable and durable than fads.

•A trend reveals the shape of the future and provides many opportunities.

ANALYZING THE MACROENVIRONMENT

Fad

Trend

Mega trend

Mega trends have been described as “large social, economic, political, and technological changes [that] are slow to form, and once in place, they influence us for some time—between seven and ten years, or longer.

Trends and mega trends merit close attention.

ANALYZING THE MACROENVIRONMENTSome Mega trends

Shaping the Consumer Landscape

Delayed retirement Changing nature of

work Greater educational

attainment Labor shortages Increased immigration Shifting birth trends Changing age structure

Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

Population and Demographics Population growth

Insufficient food supply Depletion of minerals/natural resources Decrease in the quality of life

Population age mix Less than 25 years – 34% 25 – 34 years – 24% Titan, Sony Ericsson, TV channels like MTV and Channel V Various advertisements

Educational groups Approx 65% (As per 2001 Census) are literate

Economic Environment•Purchasing Power

•Income Distribution•Classification of Indian Consumers as per NCAER –

•Destitutes - >16000

•Aspirants – 16K – 22K

•Climbers – 22 K – 45 K

•Consuming Class – 45 K – 2.15 K

•Rich class

•Savings Rate

•Debt

Social-Cultural Environment

Views of themselves – pleasure seekersViews of themselves – pleasure seekers

Views of othersViews of others

Views of natureViews of nature

Views of organizationsViews of organizations

Views of society – Makers/ Changers/ Escapers

Views of society – Makers/ Changers/ Escapers

Political-Legal Environment

Increase in business legislation

Protecting the Welfare of consumers

CONSUMER PROTECTION ACT

Safety – protected against products and services that are hazardous to life and property

Information - protection against unfair trade practices, informed about quantity, quality and standard and price

Choice – at competitive prices Representation – to be heard and be assured

that interests receive due consideration Redressal – Seek redressal against unfair and

restrictive trade practices Consumer education

Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Changing role of government

Technological Environment

Pace of change

Opportunitiesfor innovation

Varying R&D budgets

Increased regulationof change