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04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Marketing ManagementMBA CP 205

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Learning objectives:

• Know what are the components of a modern marketing information system.

• Know what are useful internal records. • Know what is involved with a marketing intelligence

system.• Know what are the key methods for tracking and

identifying opportunities in the macro environment.• Know what are some important macro environment

developments.

Gathering information and Scanning the Environment

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Marketing Information System

A Marketing Information System (MIS) consists of people, equipment, and procedures

to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information

to marketing decision makers.

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

MIS is developed from ….

Internal company records

Marketing Research

Marketing Intelligence

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Internal company records

Order-to-PaymentCycle

Databases,Warehousing, Data Mining

MarketingIntelligence

System

Sales Information

System

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Marketing Intelligence System

A marketing intelligence system is a set of procedures and sources

manager use to obtain everyday information about

developments in the marketing environment.

Gathering information and Scanning the Environment

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Steps to improve quality of marketing intelligence

Motivate channel members to share intelligenceMotivate channel members to share intelligence

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

Network externallyNetwork externally

Utilize a customer advisory panelUtilize a customer advisory panel

Utilize government data resourcesUtilize government data resources

Purchase information from outside suppliers

Purchase information from outside suppliers

Collect customer feedback onlineCollect customer feedback online

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Analyzing the Macro-environment

Needs and Trends

Fad

Trend

Megatrend

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Identifying Environmental forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Population and demographics

Size Growth rate Age

distribution Ethnic mix Educational

levels

Household patterns

Regional characteristics

Movement

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

All figures in million

Source: The Marketing White book 2007-08, Business World

318

105 100

523

0

100

200

300

400

500

600

Urban population2005

Net births Net migration Urban population2025

Urban population growth

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

• The size and growth rate of India’s population provides great marketing opportunities.

• As per 2001 census, median age of Indian population is 24 years making India a young country where as there is a trend towards an aging population globally.

• Marketers need to analyze the markets carefully to find major opportunities due to rising population. Chinese example.

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Mattel markets in China.

The headline reads: “Hot wheels

Performance Tracks – Great

Varieties,Great Challenges!”

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Economic Environment

Purchasing Power

Income Distribution

Savings Rate

Debt

Credit Availability

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Classification of Income Class

Income Class Households

Estimated Population

Households

Estimated Population

The Globals(>10L) 1.2 7 5.2 30

The Strivers(5-10L) 32.5 186 75.5 432

The seekers(2-5L) 54.1 312.2 81.7 472

The Aspirers(0.9-2L)

44 253.9 20.2 117

The Deprived(<0.9L)

33 190.4 16.5 95

1995-1996

2006-2007

All figures in million

Source: The Marketing White book 2003-04, Business World

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Socio-cultural Environment

• Culture, traditions, beliefs, attitudes, values and lifestyles of the people constitute the socio-cultural environment.

• Social factors influence the products people buy, the prices they are willing to pay and how, where and when people expect to purchase products.

• With over 30 languages, over 200 mother tongues and app. 2000 dialects, India is a complex nation of cultures and sub-cultures.

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

• Diversity of languages has implications for marketing communications.

• A survey conducted by Research International in 2002 indicated significant regional differences in values, attitudes and preferences amongst Indian women.

• Based on the shopping habits of women, the study classifies them into five categories.

• These are: Liberated youngsters (13%), Modern mums (18%), Behind the times (20%), Rebellious youngsters (22%), and Orthodox mothers (27%)

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Changing role ofGovernments

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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GreenDisk, a company that

Produces high – qualityRecycled disks.

Gathering information and Scanning the Environment

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Technological Environment Pace of change

Opportunitiesfor innovation

Varying R&D budgets

Increased regulationof change

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Gathering information and Scanning the Environment

Politico-Legal Environment

Increase in business legislation

Growth of specialinterest groups

04/10/23 13:00 Prof. U.M. Amin, CMS, JMI University, New Delhi

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Recap:

• What are the components of a modern marketing information system.

• What are useful internal records. • What is involved with 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.

Gathering information and Scanning the Environment