Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-1 Internet Marketing Intelligence Chapter 4 Environmental Intelligence

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-2 Objectives Define environmental intelligence. Explain the phenomenon of environmental scanning and why it is an essential analysis that should be carried out by every organisation. Demonstrate the utility of the Internet as a means for gathering environmental intelligence for marketing management.

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-3 Environmental Intelligence The collection of information about changing macro-environmental variables, which is then incorporated into an organisation’s marketing plan. These variables include: Political and legal Economic Social and cultural Technological physical (natural environment)

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-4 Environmental Intelligence: Information Resources Traditional media: journals, reports, books, magazines, newsletters, newspapers, TV, radio. New Media: web sites, Newsgroups, CDs. Professional: meetings, industrial conferences, board meetings. Personal: colleagues, friends and employees.

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-5 Environmental Scanning Looking at information (viewing) Looking for information (searching) Can vary greatly in scope and style undirected viewing conditioned viewing informal search formal search

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-6 Undirected Viewing Browsing through information with little purpose other than exploration Sources are many and varied Information comes in and is lost quickly surfing the Internet changing channels on TV

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-7 Conditioned Viewing (CV) Directed exposure, not involving active search, to a clearly identified area or type of information Researcher is sensitive to particular kinds of data, and is ready to assess significance as encountered web sites that regularly report on topics browsing sections of newspaper

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-8 Informal Search Relatively limited and unstructured effort to obtain specific information for a specific purpose Differs from CV in that information is actively sought Searching Internet by category or using general keywords

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-9 Formal Search Deliberate effort (usually following a plan) to secure specific information Much of the activity performed in a typical research and development department Searching the Internet with exact key words

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-10 Macro-Environmental Web Sites Integrated/global information resource web sites globalEDGE™ (Michigan State University) a web portal for international business professionals, connecting users to global information and resources regarding business activities

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-11 The Politico-Legal environment World Wide Web Virtual law Library comprehensive set of search tools to retrieve local documents from around the world Macro-Environmental Web Sites

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-12 The Economic environment the Australian Bureau of Statistics provides an extensive range of reports and analytical papers, which examine Australia's key economic and social indicators including the latest consumer price index, gross domestic product, unemployment rate, retail trade, average weekly earnings, estimated resident population, and company profits Macro-Environmental Web Sites

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-13 The Socio-Cultural environment resources monitoring consumers’ opinions: –Gallup –Roper Starch Worldwide –Yankelovich –Roy Morgan Research Macro-Environmental Web Sites

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-14 The Technological environment US Patent and Trademark Office for the researcher who wants/needs to keep track of the latest developments in any domain of technology, the patent information available through the US Patent and Trademark Office is a good source of intelligence Macro-Environmental Web Sites

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-15 The physical environment Global Environment Business their electronic newspaper (Tomorrow) has links to news and trends, sector surveillance, relevant upcoming conferences, and a directory of related sources Macro-Environmental Web Sites

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-16 Situational Analysis 1.Environmental scan 2.Market analysis How do the trends/developments revealed by the environmental scan impact the market? What is the industry structure? What is happening vis-a-vis market size, market dynamics etc.? 3.Competitor analysis Who are the key competitors? Profile key competitors and their key strengths and weaknesses.

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-17 Situational Analysis (cont.) 4. SWOT Analysis What are key threats to the business have been identified from the environmental scan? What are the key opportunities? What are the key strategic threats from that external environment in the short, medium and long term? In light of those threats and opportunities and the rest of the above market/competitor analyses, what are the organisation’s key strategic strengths and weaknesses?

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-18 Situational Analysis (cont.) Perform a situational analysis with an environmental scan of the aforementioned information resources scan the resources and identify and extract relevant information assess the organisational implications of the extracted trends and issues analyse and prioritise implications as to their strategic importance

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Internet Marketing Intelligence by Edward Forrest 4-19 Summary Environmental scanning is the process whereby information on key macro- environmental variables is gathered, evaluated and incorporated into everyday decision making and long-term strategic planning.