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Gathering Information and Scanning the Environment

Marketing Management, 13th ed

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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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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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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Internal Records and Marketing Intelligence

Order-to-payment cyclesend orders, prepares invoices, transmit copies to various departments, and back-orders out-of-stock items Sales information systemtimely and accurate reports on current sales Databases, warehousing, data mining--customer, product, and salesperson and combine data from the different databases. Marketing intelligence systema set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
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Steps to Improve Marketing Intelligence

Train sales force to scan for new developments (make intelligence gathering important to salespeople) Motivate channel members to share intelligence (hire specialists to gather marketing intelligence mystery shoppers) Network externally (purchase competitors products; attend open houses and trade shows; read competitors published reports; etc.) Utilize a customer advisory panel (representative customers or companys largest customers) Utilize government data sources (U.S. Census data, etc.) Collect customer feedback online (online customer review boards, discussion forums, chat rooms, and blogs) Purchase information (A.C. Nielsen Company and other information sources) 3-6

Secondary Commercial Data Sources

Nielsendata on products and brands sold through retail outlets, supermarket scanner data, television audiences. MRCA (Medium Resolution Coverage Area)data on weekly family purchases of consumer products, and home food consumption. Information Resourcessupermarket scanner data and data on the impact of supermarket promotions. SAMI/Burkereports on warehouse withdrawals to food store in selected market areas and supermarket scan data. Simmonsannual reports covering television markets, television markets, sporting goods, and proprietary drugs with demographic data by sex, income, age, and brand preferences. Arbitronselling data to subscribers.

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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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Needs and Trends

Fadsshort-lived and without social, economic, and political significance. Trendsdirection or sequence of events that has some momentum and durability. Megatrendslarge social, economic, political, and technological changes

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Trends Shaping the Business Landscape

Profound shifts in centers of economic activity (Asia (excluding Japan)13% of World GDP; Western Europe > 30%) Increases in public-sector activity (aging of population new levels of efficiency and creativity from public sector) Change in consumer landscape (billion new consumers to enter global marketplace in next decade and U.S. Latinos 2015 spending power equivalent to 60% of Chinese consumers. Technological connectivity (change way people live) Scarcity of well-trained talent (33 mm university-educated young professionals in developing countries is more than double the number in 3-10 developed ones Increase in demand for natural resources (Oil demand projected to grow by 50% in next two decades and water shortages may constraint growth in many countries) Emergence of new global industry structures (barbelllike structurefew large, narrow middle, lot of smaller companies) Ubiquitous access to information (open source approach) Management shifts from art to science (algorithmic decision-making techniques and sophisticated software) Increase in scrutiny of big business practices (be able to argue and demonstrate intellectual, social, and economic case for business)

Environmental Forces
Demographic Economic Socio-cultural Natural Technological Political-legal

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Population and Demographics

Population growth Population age mix Ethnic markets Educational groups Household patterns Geographical shifts

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Economic Environment
Income Distribution Savings, Debt, and Credit

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Household Patterns

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Types of Industrial Structures

Industrial economies

Industrializing economies

Raw-materialexporting economies

Subsistence economies

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India An Industrializing Economy

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Saudi Arabia A Raw-Material Exporting Economy

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Social-Cultural Environment
Views of themselves (pleasure seeker, selfrealization, etc.) Views of others (concern about homeless, crime, victims, social surrogatestelevision, home video games, etc.) Views of organizations (company downsizing and corporate accounting scandals, etc.) Views of society (defend societypreservers; run itmakers; can get fromtakers; change it changers; looking for something deeperseekers; leave it--escapers Views of nature (natures fragility and finiteness) Views of the universe (religious, etc.)
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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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Natural Environment
Shortage of raw materials

Increased energy costs

Anti-pollution pressures

Governmental protections
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Keys to Avoiding Green Marketing Myopia

Consumer Value Positioning (design environmental to perform as well as alternatives; products that have health benefits; fixed price for renewable energy products) Calibration of Consumer Knowledge (connect environmental products attributes with desired consumer valuepesticide-free; solar powered); use of internet. Credibility of Product Claims (environmental product and consumer benefit claims)
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Technological Environment
Pace of change

Unlimited Opportunities for innovation

Varying R&D budgets

Increased regulation of change

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Political-Legal Environment

Increase in business legislation (e.g., unfair competition, protect society)

Growth of special interest groups (e.g., consumerist movement)

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Unit Pricing on Store Shelves

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Study Question 1
________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to Marketing decision makers. A. B. C. D. E. A marketing information system A marketing research system A marketing intelligence system A promotional campaign A marketing database
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Study Question 2
All of the following would be considered to be steps to improve the quality of marketing intelligence in a company EXCEPT ________. A. training and motivating the sales force to spot and report new developments B. using guerrilla tactics such as going through a competitors trash C. motivating intermediaries to pass along important information D. networking externally E. purchasing information from outside suppliers
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Study Question 3
A ________ is unpredictable, short-lived, and without social, economic, and political significance. A. B. C. D. E. fad fashion trend megatrend style

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Study Question 4
________ have been described as large social, economic, political and technological changes [that] are slow to form, and once in place, they influence us for some timebetween seven and ten years, or longer. A. B. C. D. E. Fads Fashions Trends Megatrends Styles
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Study Question 5
In which of the following economies would we expect to find the fewest opportunities for marketers? A. B. C. D. E. Industrializing economies Land-locked economies Raw-material-exporting economies Industrial economies Subsistence economies

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