1. Scanning the Market Environment

2. Today’s Agenda Your Product and Company Skeleton of the Marketing Plan
Components of Modern Marketing Information System
Revisiting Marketing Environment
SWOT Analysis - IKEA
Paicho Pasal – An excellent Nepali Example of Value Creation

3. Information Needs Probes
What decisions do you regularly make?
What information do you need to make these decisions?
What information do you regularly get?
What special studies do you periodically request?
What information would you want that you are not getting now?
What are the four most helpful improvements that could be made in the present marketing information system?

4. 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.

5. Marketing Information System
Components of MIS
Internal Company Record
Marketing Intelligence System
Marketing Research System

6. Internal Records
To spot important opportunities and potential problems, marketing managers rely on internal reports of
orders,
sales,
prices,
costs,
inventory levels,
receivables and payables.

7. Internal Records and Marketing Intelligence
Order-to-Payment
Cycle
Sales
Information
System
Databases,
Warehousing,
Data Mining
Marketing
Intelligence
System

8. Marketing Intelligence
The Marketing Intelligence System
Provides happening data
Collect marketing intelligence in variety of ways, such as reading books, newspapers, and trade publications; talking to customers, suppliers and distributors, monitoring social media on the internet, and meeting with other company managers.
Collecting Marketing Intelligence on the Internet
Collects marketing intelligence on internet, online review boards, discussion forums, chat rooms and blogs

9. Marketing Intelligence
Communicating and Acting on Marketing Intelligence
Should work closely coordinated with the decision making process.
E.g.
Coke – spotted a twitter post that went to 10,000 followers from an upset consumer who couldn't’t redeem a prize from MyCoke rewards program, Coke apologized and offered to resolve the situation. Later, he changed his Twitter avatar to photo of himself holding a Coke bottle.
It is not enough you have marketing intelligence, that intelligence needs to reach to decision makers, and decision makers promptly needs to act on it as well. This is the whole essence of MIS.

10. 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

11. Analyzing the Macroenvironment
Identifying Major Forces
Monitor six major forces: demographic, economic, socio-cultural, natural, technological and political-legal

12. Environmental Forces Demographic Political-Legal Economic
Technological
Socio-Cultural
Natural

13. Remember…
Remember their interactions will lead to new opportunities and threats
For e.g.
Explosive population growth (demographic) leads to a more resource depletion and pollution (natural), which leads consumers to call for more laws (political-legal), which stimulate new technological solutions and products (technology), that if they are affordable (economic), may actually change attitudes and behaviors (social-cultural)

14. Population and Demographics
Population growth
Population age mix
Ethnic markets
Household Patterns

15. Economic Environment
Consumer Psychology – Consumer Confidence Index
Income Distribution – very low, mostly low, very low & high, low & medium & high, mostly medium
Savings, Debt, and Credit
Levi’s has responded to changes in income distribution by offering an upscale line and a mass market line

16. Social-Cultural Environment
Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe

17. Natural Environment Shortage of raw materials Increased energy costs
Anti-pollution
pressures
Governmental
protections

18. Toyota Experienced Success with Green Cars

19. Political-Legal Environment
Increase in
business legislation
Growth of special
interest groups

20. The Microenvironment The Company
In designing marketing plans, marketing management takes other company groups into account – groups such as top management, finance, research and development, purchasing, operations, and accounting
All these inter-related groups form the internal environment
Top Management makes company’s mission, objectives and broad strategies
All functions must “think customers”

21. The Microenvironment Suppliers
Provide resources needed by the company to product its goods and services.
Supplier problem can affect marketing
Suppliers as partners

22. The Microenvironment Marketing Intermediaries
Help the company to promote, sell an distribute its products to the final customer.
Today’s marketer recognize the importance of working with the intermediaries as partners rather than simply as channels through with they sell products.
Coke – McDonald and Subway

23. The Microenvironment Competitors
Companies must provide greater customer value and satisfaction than its competitors.
You should take competitive strategy based on your company’s position.

24. The Microenvironment Publics
Any group that has actual or potential interest in or impact on an organization’s ability to achieve its objectives.
Financial Publics
Media Publics
Government Publics
Citizen-action Publics
Local Publics
General Publics
A company can prepare marketing plans for these major publics as well as for its customer markets

25. The Microenvironment Customers Target one or all five markets
Consumer Markets – individuals and households
Business Markets – business buy goods and services and further process
Reseller Markets – buy goods and services and resell for profit
Government Markets – government agencies buy goods and services
International Markets – buyers from other countries
Each market types has special characteristics that call for careful study by the marketer

26. SWOT Analysis - IKEA

27. SWOT Analysis

28. SWOT Analysis I – Looking Outside for Threat and Opportunities

29. Identifying threats and opportunities in the external environment
The world of work style and lifestyle trends that can affect your business
Assessing customers
Changes in the competitive arena
Porter’s five forces framework

30. External Analysis
“The essence of formulating competitive strategy,” writes scholar Michael Porter, “is relating a company to its environment.”
Every company’s environment is populated with customers, competitors, suppliers, and, in most cases, regulators. And all have an impact on its profit potential.
There are both current and potential customers, each with requirements for product/service quality, features, and utility. Are any of these requirements unserved? There is also a set of current competitors and still others who might enter the arena.

31. Customers
A business, as Peter Drucker once wrote, has no higher requirement than that to create customers. In the absence of customers, the many things that businesses do—product development, manufacturing, shipping, and so forth—are utterly pointless.
Who are they?
How sensitive are they to price?
How can they be reached?
How are they currently using a particular product or service?
Which of their needs are poorly served—or unserved?
What level of loyalty do they have to current vendors?

32. Competition
As George Day, a professor at the Wharton School, has perceptively written, “One of the primary issues facing mangers in formulating competitive strategy is defining the arena of competition. Where are you competing? Who are your competitors? How attractive is the competitive arena?” No examination of the external environment is complete without a thoughtful analysis of competitors and the competitive arena.
Technology is a major driver of the modern economy. Technology represents both a threat and an opportunity. It is a threat in the sense that a new technology may undermine your existing business,

33. Porter’s Five Forces Model
“The collective strength of these forces,” he writes, “determines the ultimate profit potential of an industry.” Owing to these factors, the profit potential will vary from industry to industry.

34. SWOT Analysis II : Looking Inside for Strengths and Weaknesses

35. Identifying and assessing core competencies
Understanding your financial capacity for undertaking a new strategy
Evaluating management and organizational culture in terms of change-readiness

36. Next Class
Quiz 1
Paicho Pasal Assignment

37. Thank you!