Marketing Management
Gathering Information and Scanning
the Environment
BY
Javed Ahmed
Lecture#3
Session 3
Class BBA-2K22
1
• What are the components of a modern marketing
information
• system?
• What are useful internal records for such a
system?
• What makes up a marketing intelligence system?
• What are some influential macro environment
developments?
• How can companies accurately measure and
forecast demand?
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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.
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Components of the Marketing-Information Systems
Marketing-Information System
MarketingInternal
Data
Marketing
Intelligence
Marketing
Science
Marketing
Research
Accounting
Records
Observation
Outside Data
Analytical
Systems
Quantitative
Qualitative
• Sales
• Costs
• Inventories
• Cash flows
• Accounts
receivable
and payable
• Sales Force
• Dealers and
distributors
• Suppliers
• Executive
awareness
• Census
• Trade
association
data
• Trade press
• Syndicated
awareness
• Statistical
analysis
• Model
building
• Survey
research
• Telephone
• Mail
• Personal
observation
• Experiment
• Projective
tests
• Focus
groups
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Marketing MIS
• Supports managerial activities in product
development, distribution, pricing decisions,
and promotional effectiveness
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Inputs to Marketing MIS
• Strategic plan and corporate policies
• The Transaction Processing Systems
• External sources:
– The competition
– The market
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Marketing MIS Subsystems and
Outputs
•
•
•
•
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Marketing research
Product development
Promotion and advertising
Product pricing
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Internal Records & Marketing
Intelligence
• Marketing Managers rely on internal reports
of orders ,sales ,prices, cost etc
• By analyzing this information they can spot
important opportunities and problems
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The order Payment Cycle
• Heart of Internal Record System
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Internal Records and
Marketing Intelligence
• Order-to-payment cycle—send orders, prepares invoices,
transmit copies to various departments, and back-orders outof-stock items
• Sales information system—timely and accurate reports on
current sales
• Databases, warehousing, data mining--customer, product,
and salesperson and combine data from the different
databases.
• Marketing intelligence system—a set of procedures and
sources managers use to obtain everyday information about
developments in the marketing environment.
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Now
• Now (days) improved order payment cycle is
required
• Customers favor firms that can promise timely
delivery.
• Order-Pay can also be done online. This
process is called as EDI-Electronic Data
Interface.
• E.G., Cisco, Dell, Ebay
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Marketing Intelligence System
• It is a process of acquiring and analyzing information in
order to:
– understand the market;
– determine the current and future needs and preferences, attitudes
and behavior of the market;
– assess changes in the business environment that may affect the size
and nature of the market in the future.
• A set of procedures and sources used by managers to obtain
everyday information about developments in the marketing
environment
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Steps to Improve Marketing Intelligence
• Train sales force to scan for new developments (make
intelligence gathering important to salespeople)
• Motivate channel members to share intelligence (hire
specialists to gather marketing intelligence—mystery
shoppers)
• Network externally (purchase competitors’ products;
attend open houses and trade shows; read competitors’
published reports; etc.)
• Utilize a customer advisory panel (representative
customers or company’s largest customers)
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• Utilize government data sources (U.S. Census
data, etc.)
• Collect customer feedback online (online
customer review boards, discussion forums,
chat rooms, and blogs)
• Purchase information (A.C. Nielsen Company
and other information sources)
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Sources of Competitive Information
• Independent customer goods and service review forums
• Distributor or sales agent feedback sites
• Combination sites offering customer reviews and expert
opinions
• Customer complaint sites
• Public blogs
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Needs and Trends
• Fads—short-lived and without social,
economic, and political significance.
• Trends—direction or sequence of events that
has some momentum and durability.
• Megatrends—large social, economic, political,
and technological changes
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Environmental Forces
• Demographic
• Economic
• Socio-cultural
• Natural
• Technological
• Political-legal
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What is Demographic environment?
• The demographic environment includes the study
of human populations in terms of:
– size,
– density,
– location,
– age,
– race,
– occupation,
– other statistical information.
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Population and Demographics
• Educational
Population growth
groups
• Household
Population patterns
age mix
• Geographical
Ethnic marketsshifts
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Population Age Mix
• In population age mix marketers are
increasingly recognizing the potential of
youth segment (marketers are focused on
youth )
• For example--Titan the well-known watch
marketer
• Introduced a range of Sunglasses which is
call “Eye Gear” under the brand Fast Track
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Literacy Of Population
• Literacy of Population is mainly
divided into:
–A) Literate
–B) illiterate
–C)Educated
–D)Uneducated
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Household Patterns
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ECONOMIC ENVIRONMENT
• Market requires purchasing power as well as
people.
• Purchasing power depends upon current
income, prices, debt, credit, saving etc.
• Marketers must pay careful attention to
trends affecting purchasing power.
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INCOME DISTRIBUTION
• Macroeconomic indicators provides overall
health of economy as well as direction of
economic growth.
• Marketers needs to understand the
distribution of income to make more
meaningful conclusions.
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Types of Industrial Structures
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Industrial
economies
Industrializing
economies
Raw-materialexporting
economies
Subsistence
economies
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SOCIAL –CULTURAL ENVIRONMENT
• Purchasing power is directed towards
certain goods &services.
• People absorb, unconsciously a
worldview that defines relationship to
organization, to themselves, to
society, to nature, and to universe.
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Microsoft steps up on search R&D IN
EUROPE
This is because maximum usage is in
European countries.
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Social-Cultural Environment
• Views of themselves (pleasure seeker, self-realization, etc.)
• Views of others (concern about homeless, crime, victims,
social surrogates—television, home video games, etc.)
• Views of organizations (company downsizing and corporate
accounting scandals, etc.)
• Views of society (defend society—preservers; run it—makers;
can get from—takers; change it—changers; looking for
something deeper—seekers; leave it--escapers
• Views of nature (nature’s fragility and finiteness)
• Views of the universe (religious, etc.)
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Most Popular
Pakistani and American Leisure Activities
• Computer
Reading activities
• Gardening
TV Watching
• Renting
Spendingmovies
time with family
• Walking
Going to movies
• Exercise
Fishing
• Listening to music
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Natural Environment
Shortage of
raw materials
Increased
energy costs
Anti-pollution
pressures
Governmental
protections
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NATURAL ENVIRONMENT
• Deterioration of natural environment is major
concern.
• Cities like Mumbai, Bangalore etc. reached
dangerous levels.
• Some regulation hit industries very hard--Steel
industry
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Microsoft’s environmental contribution
• Microsoft announces a new green wireless
mouse.
• This is environment friendly because it uses six
month long battery.
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TECHNOLOGICAL ENVIRONMENT
• Technology has released such
wonders like open heart surgery
• It has also released hazards like
hydrogen bomb, nuclear bomb
etc.
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Technological Environment
Pace of change
Unlimited Opportunities
for innovation
Varying R&D
budgets
Increased regulation
of change
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POLITICAL- LEGAL ENVIRONMENT
• Marketing decisions are strongly
affected by development in political
and legal environment.
• Increase in business legislation
• Protecting the welfare of consumers
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Political-Legal Environment
Increase in
business legislation
(e.g., unfair competition,
protect society)
Growth of special
interest groups
(e.g., consumerist movement)
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Task-02
• How to Design a Marketing Information
System.
• Note: You can design on any industry.
• Max Group Members: 05
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