Arab World Edition Kotler, Keller, Hassan, Baalbaki, and Shamma Marketing Management Arab World Edition Kotler, Keller, Hassan, Baalbaki, and Shamma Chapter 3 Gathering Information and Scanning the Environment

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 macroenvironment? What are some important macroenvironment developments? Copyright © 2012 Pearson Education 3-2

Components of a Modern Marketing Information System Chapter Question 1: What are the components of a modern marketing information system? Components of a Modern Marketing Information System 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. Copyright © 2012 Pearson Education 3-3

Components of a Modern Marketing Information System Chapter Question 1: What are the components of a modern marketing information system? Components of a Modern Marketing Information System Questions to ask to find out what managers need from an MIS are shown in Box 3.1: Box 3.1: Information Needs Probes Copyright © 2012 Pearson Education 3-4

Internal Records and Marketing Intelligence Chapter Question 2: What are useful internal records? Internal Records and Marketing Intelligence Marketing managers rely on internal reports of orders, sales, prices, costs, inventory levels, receivables, payables, etc. This information can reveal important opportunities and problems. Copyright © 2012 Pearson Education 3-5

Internal Records and Marketing Intelligence Chapter Question 2: What are useful internal records? Internal Records and Marketing Intelligence Key internal records and systems include: Order-to-payment cycle Sales information system Databases, warehousing, data mining Marketing intelligence system Copyright © 2012 Pearson Education 3-6

The Marketing Intelligence System Chapter Question 3: What is involved in a marketing intelligence system? The Marketing Intelligence System A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment. Copyright © 2012 Pearson Education 3-7

The Marketing Intelligence System Chapter Question 3: What is involved in a marketing intelligence system? The Marketing Intelligence System A company can take several steps to improve its marketing intelligence: Train sales force to scan for new developments Motivate channel members to share intelligence Collect internal information through mystery shoppers Network externally Utilize a customer advisory panel Utilize government, world and industry data sources Collect customer feedback online Purchase information from outside suppliers Copyright © 2012 Pearson Education 3-8

Sources of Competitive Intelligence Chapter Question 3: What is involved in a marketing intelligence system? Sources of Competitive Intelligence 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 Copyright © 2012 Pearson Education 3-9

Analyzing the Macroenvironment Chapter Question 4: What are the key methods for tracking and identifying opportunities in the macroenvironment? Analyzing the Macroenvironment Needs and Trends Successful companies recognize and respond profitably to unmet needs and trends. Fad: “Unpredictable, short-lived, and without social, economic, and political significance.” Trend: A direction or sequence of events that has some momentum and durability. Megatrend: Large social, economic, political, and technological changes that happen slowly and last several years. Copyright © 2012 Pearson Education 3-10

Chapter Question 4: What are the key methods for tracking and identifying opportunities in the macroenvironment? Macroeconomic Trends 1. Centers of economic activity will shift profoundly, not just globally, but also regionally. 2. Public-sector activities will balloon, making productivity gains essential. 3. The consumer landscape will change and expand significantly. Copyright © 2012 Pearson Education 3-11

Social and Environmental Trends Chapter Question 4: What are the key methods for tracking and identifying opportunities in the macroenvironment? Social and Environmental Trends 4. Technological connectivity will transform the way people live and interact. 5. The battlefield for talent will shift. 6. The role and behavior of big business will come under increasingly sharp scrutiny. 7. Demand for natural resources will grow, as will the strain on the environment. Copyright © 2012 Pearson Education 3-12

Business and Industry Trends Chapter Question 4: What are the key methods for tracking and identifying opportunities in the macroenvironment? Business and Industry Trends 8. New global industry structures are emerging. 9. Management will go from art to science. 10. Worldwide open access to information is changing the economics of knowledge. Copyright © 2012 Pearson Education 3-13

Identifying the Six Major Forces Chapter Question 4: What are the key methods for tracking and identifying opportunities in the macroenvironment? Identifying the Six Major Forces Demographic Economic Socio-cultural Natural Technological Political-legal Copyright © 2012 Pearson Education 3-14

The Demographic Environment Chapter Question 5: What are some important macroenvironmental developments? The Demographic Environment Population Growth Trends World population shows explosive growth. It reached 7 billion in 2011. Population growth is highest in countries and communities that can least afford it. The Arab world has a population of nearly 330 million. Population Age and Gender Mix General global trends towards an ageing population. The Arab world has an unusual age structure compared to the world trend – higher economically active population growth. Female labor force participation in the Arab world has been consistently on the rise. Expected to reach 43 percent in 2020. Copyright © 2012 Pearson Education 3-15

The Demographic Environment Chapter Question 5: What are some important macroenvironmental developments? The Demographic Environment Ethnic, Religious and Other Markets Countries vary in their diversity of ethnic makeup. Some companies target particular ethnic or religious groups. People with physical or learning disabilities also constitute a market force. Educational Groups Five educational groups exist: illiterate, high-school dropout, high-school diploma, college degree, and professional degree. In the Arab world, a gender gap still exists in education, but is improving. Ethnic markets for expats flourish in several Arab countries. Copyright © 2012 Pearson Education 3-16

The Demographic Environment Chapter Question 5: What are some important macroenvironmental developments? The Demographic Environment Household Patterns ‘Traditional household’ consists of a husband, wife, and children. The ‘extended family,’ includes grandparents, aunts and uncles, in-laws, and cousins. Globally, including in the Arab world, there is a delay in the age of marriage, mainly for economic reasons. Geographical Shifts in Population Globally, this is a period of large-scale migration. Many non-nationals live in the Arab world, especially in the GCC. There is a trend for young, educated Arabs to emigrate to North America, Europe and Australia. Copyright © 2012 Pearson Education 3-17

Other Major Macroenvironments Chapter Question 5: What are some important macroenvironmental developments? Other Major Macroenvironments Economic Environment The economic environment depends on current income, prices, savings, debt and credit availability. Marketers should consider patterns including: Income distribution Savings, debt and credit Family businesses (the prevalence and success of these) Copyright © 2012 Pearson Education 3-18

Other Major Macroenvironments Chapter Question 5: What are some important macroenvironmental developments? Other Major Macroenvironments Sociocultural Environment Society shapes beliefs, values and norms, including people’s: Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe Outdoor gear and wilderness trips are marketed in response to consumers’ growing appreciation of nature. Copyright © 2012 Pearson Education 3-19

Other Major Macroenvironments Chapter Question 5: What are some important macroenvironmental developments? Other Major Macroenvironments Natural Environment The deterioration of the natural environment is a major global problem, and requires companies to make responsible decisions. Other environmental issues for companies include: Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections Copyright © 2012 Pearson Education 3-20

Other Major Macroenvironments Chapter Question 5: What are some important macroenvironmental developments? Other Major Macroenvironments Technological Environment Marketers should monitor four key trends in technology: Accelerating pace of change Unlimited opportunities for innovation Varying R&D budgets Increased regulation of technological change Copyright © 2012 Pearson Education 3-21

Table 3.2: Internet Penetration in Arab countries in 2011 Chapter Question 5: What are some important macroenvironmental developments? Technological Environment Table 3.2: Internet Penetration in Arab countries in 2011 Copyright © 2012 Pearson Education 3-22

Other Major Macroenvironments Chapter Question 5: What are some important macroenvironmental developments? Other Major Macroenvironments Political-Legal Environment Marketers should be aware of two key trends: Increase in business legislation Growth of special interest groups Copyright © 2012 Pearson Education 3-23

Other Major Macroenvironments Chapter Question 5: What are some important macroenvironmental developments? Other Major Macroenvironments Political-Legal Environment The political environment in the Arab region: Political risk is a major challenge. The region is one of the most active in the world in terms of political events, tensions, and developments. Consumer boycotts. Example: Coca-Cola When Coca-Cola suffered under the Arab League’s boycott of their products, Mecca Cola flourished. Copyright © 2012 Pearson Education 3-24

Credits Slide 1 Alamy Images: Bon Appetit Slides 11-13 Ian Davis and Elizabeth Stephenson, “Ten Trends to Watch in 2006,” McKinsey Quarterly, January 2006. Used with permission from McKinsey & Company. Ellen McCarthy, “Marriage-minded Do Better Online than at Bars, Survey Claims,” The Washington Post, Sunday, April 25, 2010, www.washingtonpost.com/wp-dyn/content/article/2010/04/23/AR2010042300014.html; “Number of Global Patent Filings Recovers in 2010, UN Agency Reports,” UN News Centre, February 9, 2011, www.un.org/apps/news/story.asp?NewsID=37498&Cr=patents&Cr1 Slide 16 Alamy Images: Megapress Slide 19 Glow Images: JuergenStumpe / LOOKfoto Slide 22 “Internet penetration in the Arab countries”, 2011, www.internetworldstats.com, copyright © 2000 - 2012, Miniwatts Marketing Group. All rights reserved Slide 24 Rex Features: PAUL COOPER