Marketing environment, information and research

Marketing environment, Information and research

The Marketing Environment

Marketing Environment

• The marketing environment consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers.

• Environment offers both opportunities and threats.• Marketing intelligence and research used to collect

information about the environment.

• Includes:– Microenvironment: actors close to the company

that affect its ability to serve its customers.– Macroenvironment: larger societal forces that

affect the microenvironment.• Considered to be beyond the control of the

organization.

Marketing Environment

Actors in the Microenvironment

Types of Publics

The Company’s Macroenvironment

WhyInformation

IsNeeded

MarketingEnvironment

StrategicPlanning

Customer Needs

Competition

StrategicPlanning

What is marketing information system ?

Marketing information consists of people, equipment and procedures to gather,sort,analyze,evaluate and distribute needed, timely and accurate information to marketing decision makers.

Marketing decision makers use the data to identify and solve marketing related problems.

Marketing research is the “function which links the consumer, customer, and public to the marketer through information--information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.”

- American Marketing Association

12

Marketing research is the systematic and objective identification collection analysis dissemination and use of information

For the purpose of improving decision making related to the identification of problems and opportunities and solution of problems and opportunities in marketing.

Marketing Research Defined

Marketing Information System

Recurrent Information

This is the data that an MIS supplies periodically about the market share of a specific product and customer’s awareness of company’s brands. The data may be supplied on weekly, monthly or yearly basis.

Monitoring Information This is the data obtained from the regular

scanning of certain sources. Marketing managers may need data related to competition or the industry. It is essential so that marketing managers can be alert and identify potential problems

Requested Information This information is developed in response to

some specific request by the marketing manager. Secondary data or primary data through survey research are collected in response to the specific request. The MIS supplies the requested information for decision making.

17

Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

Using Information….

18

Assessing Marketing Information Needs

• The MIS serves company managers as well as external partners

• The MIS must balance needs against feasibility:– Not all information can be obtained– Obtaining, processing, sorting, and delivering

information is costly

19

Developing Marketing Information

• Internal data is gathered via customer databases, financial records, and operations reports

• Advantages include quick/easy access to information

• Disadvantages stem from the incompleteness or inappropriateness of data to a particular situation

Internal data Marketing intelligence Marketing research

Sources of Info

20

Developing Marketing Information

• Marketing intelligence is the systematic collection and analysis of publicly available information about competitors and trends in the marketing environment.

• Competitive intelligence gathering activities have grown dramatically.

• Many sources of competitive information exist.

Internal data Marketing intelligence Marketing research

Sources of Info

21

Developing Marketing Information

• Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Internal data Marketing intelligence Marketing research

Sources of Info

The Marketing Research Process

Define the problem

Develop research plan

Collect information

Analyze information

Present findings

Step 2: Develop the Research Plan

Data Sources

ContactMethods

ResearchInstruments

SamplingPlan

Research Approach

Research Approaches

ObservationObservation

Focus GroupFocus Group

SurveySurvey

Behavioral DataBehavioral Data

ExperimentationExperimentation

25

Research Approaches

Survey Asking individuals about attitudes, preferences or buying behaviors

(Descriptive)

Survey Asking individuals about attitudes, preferences or buying behaviors

(Descriptive)

Experimental Using groups of people to determine cause-and-effect relationships

(Causal)

Experimental Using groups of people to determine cause-and-effect relationships

(Causal)

Observational Gathering data by observing people, actions and situations (Exploratory)

Observational Gathering data by observing people, actions and situations (Exploratory)

Focus Group in Session

Research Instruments

QuestionnairesQualitative MeasuresTechnological Devices

Questionnaire Do’s and Don’ts

• Ensure questions are free of bias• Make questions simple• Make questions specific• Avoid jargon• Avoid sophisticated words• Avoid ambiguous words

• Avoid negatives• Avoid hypotheticals• Avoid words that could be misheard• Use response bands• Use mutually exclusive categories• Allow for “other” in fixed response questions

Question Types—Dichotomous

In arranging this trip, did you contact public transport?

Yes No

Question Types—Multiple Choice

With whom are you traveling on this trip?

No one

Spouse

Spouse and children

Children only

Business associates/friends/relatives

An organized tour group

Question Types—Likert Scale

Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones.

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

Question Types—Semantic Differential

American Airlines

Large ………………………………...…….Small

Experienced………………….….Inexperienced

Modern……………………….…..Old-fashioned

Question Types—Importance Scale

Airline food service is _____ to me.

Extremely important

Very important

Somewhat important

Not very important

Not at all important

Question Types—Rating Scale

Sri Lankan Airlines’ food service is _____.

Excellent

Very good

Good

Fair

Poor

Question Types—Intention to Buy Scale

How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?

Definitely buy

Probably buy

Not sure

Probably not buy

Definitely not buy

Question Types—Completely Unstructured

What is your opinion about

37

Sampling Plan

Who is to be surveyed?(Sampling

Unit)

How many should besurveyed?

(Sample size)

How should thesample be

chosen?(Sampl.procedure)

Probability orNon-probability

sampling?Sample -

representative segment of the

population

38

Sampling Plan• Probability Sampling

– Simple random sample ğ every member of the population has an equal chance of selection

– Stratified random sample ğ the population is divided into groups, random samples are drawn from each group

– Cluster (area) sample ğ e.g. groups such as blocks

• Nonprobability Sampling– Convenience sample ğ The most accessible population members are

selected to obtain information– Judgement sample ğ The researcher uses judgement to select

population members who are good prospects for accurate information

– Quota sample ğ finds and interviews a prescribed number of people in each of several categories

39

Strengths and Weaknesses of Contact Methods

Mail Telephone Personal Online

Flexibility Poor Good Excellent Good

Quantity of Data Collected

Good Fair Excellent Good

Control of Interviewer

Excellent Fair Poor Fair

Control of Sample

Fair Excellent Fair Poor

Speed of Data Collection

Poor Excellent Good Excellent

Response Rate Fair Good Good Good

Cost Good Fair Poor Excellent