2. 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

3. 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?
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4. 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.
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5. 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
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6. 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.
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7. 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
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8. 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.
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9. 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
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10. 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
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11. 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.
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12. 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.
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13. 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.
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14. 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.
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15. 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
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16. 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.
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17. 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.
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18. 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.
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19. 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)
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20. 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.
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21. 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
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22. 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
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23. 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
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24. 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

25. 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.
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26. Credits Slide 1 Alamy Images: Bon Appetit
Slides Ian Davis and Elizabeth Stephenson, “Ten Trends to Watch in 2006,” McKinsey Quarterly, January 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, “Number of Global Patent Filings Recovers in 2010, UN Agency Reports,” UN News Centre, February 9, 2011,
Slide 16 Alamy Images: Megapress
Slide 19 Glow Images: JuergenStumpe / LOOKfoto
Slide 22 “Internet penetration in the Arab countries”, 2011, copyright © , Miniwatts Marketing Group. All rights reserved
Slide 24 Rex Features: PAUL COOPER