1. Gathering Information and Scanning the Environment3
Gathering Information and Scanning the Environment
Marketing Management, 13th ed

2. 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 macro environment?
What are some important macro environment developments?
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3. MIS Systems Provide Information on Buyer Preferences and Behavior: Dupont’s Pillow Study
Pillow Segments
23% - stackers
20% - plumpers
16% - rollers or folders
16% - cuddlers
10% - smashers
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4. 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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5. Table 3.1 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?
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6. Internal Records and Marketing Intelligence
Order-to-Payment
Cycle
Sales
Information
System
Databases,
Warehousing,
Data Mining
Marketing
Intelligence
System
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7. The Order Payment Cycle
Sales representatives, dealers and customers send orders to the firm.
The sales department prepares invoices, transmits copies to various departments.
Shipped items generate shipping and billing documents that go to various departments.
E.g., Cisco saved $24 million in material cost and $51 million on Labor cost
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8. Sales Information System
Marketing managers need timely and accurate reports on current sales.
Technological gadgets are revolutionizing sales information system and have representative up-to- second information.
E.g., Wal-Mart
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9. Databases, Data warehousing & Data Mining
Customer Databases (attitudes, interests, opinions)
Product Databases
Salesperson Database
Warehousing Data: Easily accessible
Mining the Data:
Fresh insight s into neglected customer segments, recent customer trends and other useful information
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10. The Marketing Intelligence System
A set of procedures and sources managers use to obtain everyday information about developments in the marketing department.
Marketing managers collect marketing intelligence by reading newspapers, trade publications, talking to the customers, suppliers and distributors and even meeting with other company managers.
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11. Steps to Improve Marketing Intelligence
Train sales force to scan for new developments
Motivate channel members to share intelligence
Network externally (Purchase competitors product & Trade shows)
Utilize a customer advisory panel
Utilize government data resources
Purchase information (Syndicated)
Collect customer feedback online
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12. Table 3.2 Secondary Commercial Data Sources
Nielsen
SAMI/Burke
MRCA
Simmons
By clicking on the video icon, you can launch a short video clip about Burke’s research process.
Information
Resources, Inc.
Arbitron
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13. Fad, Trends & Megatrends
Fad: Unpredictable, short-lived, and without social, economic or political significance.
Trend: Direction or sequence of events that has some momentum and durability. Reveals the shape of future.
Megatrends: Large social, economic, political and technological changes, slow to form, influence us for 7-10 years or longer
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14. 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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15. Trends Shaping the Business Landscape
Profound shifts in centers of economic activity (Asia vs. Europe)
Change in consumer landscape (developing vs. developed economies)
Technological connectivity
Scarcity of well-trained talent (more technical education in developing countries)
Increase in scrutiny of big business practices (social marketing)
Increase in demand for natural resources (more people will require more food)
Emergence of new global industry structures (Bell shape + corporate borders blurrier)
Ubiquitous access to information (Knowledge production is growing)
Management shifts from art to science (more calculated decisions)
Increases in public-sector activity (social services)
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16. Environmental Forces Demographic Political-Legal Economic
Technological
Socio-Cultural
Natural
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17. Population and Demographics
Educational groups
Literacy rate (male/ female)
Household patterns
Joint family vs. Independent
Geographical shifts
Urban vs. Rural
Population growth
76% in less developed
Population age mix
Blend of young & old
Ethnic markets
Diversity of consumers
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18. Income Distribution in India by NCAER
Economic Environment
Purchasing Power in an economy depends on income, price, savings, debts and credit availability
Income Distribution in India by NCAER
Destitute Rs16,000 (1.2%)
Aspirants Rs16,000-22,000 (32.5%)
Climbers Rs22,000-45,000 (54.1%)
Consuming class Rs45, ,000 (44%)
Rich Rs215,000+ (33%)
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19. Social-Cultural Environment: Relationship to themselves, to others, to organizations, to society, to nature & to universe
Topography
Languages
Cultures
Religious Believes
Diversity
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20. Table 3.3 Most Popular American Leisure Activities
Reading
TV watching
Spending time with family
Going to movies
Fishing
Computer activities
Gardening
Renting movies
Walking
Exercise
Listening to music
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21. Natural Environment Shortage of raw Materials: Water & Gas
Increased energy costs:
Electricity & Petrol
Anti-pollution pressures:
Recycling Centers
Governmental
Protections: CNG
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22. Technological Environment
Pace of change:
Lift to Microchip
Opportunities for
innovation: Cloning to
Robotics
Varying R&D Budgets:
Innovative Works
Increased regulation
of change: Rules &
Regulations
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23. Political-Legal Environment: Laws, Government Agencies & Pressure Groups
Increase in Business Legislation:
To protect companies from unfair competition
To protect consumers from unfair business practices
To protect the society from unbridled business behavior
To charge businesses a social cost created by the products/production
Growth of Special Interest Groups
Safety-Hazardous to life products
Information-Ingredients
Choice- Many items
Representation- Consumer rights
Redressal- Unscrupulous exploitation of consumers
Consumer education-The right to consumer education