Gathering Information and

Scanning the Environment

Take away
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?

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.

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?

Internal Records and

Marketing Intelligence
Order-to-payment cycle
Sales information system
Databases, warehousing, data
mining
Marketing intelligence system

Steps to Improve Marketing

Intelligence
Train sales force to scan for new
developments
Motivate channel members to share
intelligence
Network externally
Utilize a customer advisory panel
Utilize government data sources
Collect customer feedback online
Purchase information

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

Analysing macro environment

Needs and Trends
Fads
Trends:
Megatrends

What is a Mega Trend?

Mega trends are global, sustained and
macro economic forces of
development that impacts business,
economy, society, cultures and
personal lives thereby defining our
future world and its increasing pace of
change.

Why Do Mega Trends Matter?

Mega trends have different meanings and impacts
for
different industries, companies and individuals.
Analysis
of these mega trends and their implications forms
an
important component of a companys future
strategy,
development and innovation process, and design
and
technology planning

Some Mega Trends to Watch

Urbanization
Smart City
GenY
Women Empowerment
Rise of middle class
Reverse Brain drain
N11
Fortune Global 500
New Trade Zone
Cloud Computing
M2m communications, Virtual World,

Trends Shaping the

Business Landscape
Profound shifts in
centers of economic
activity
Increases in publicsector activity
Change in consumer
landscape
Technological
connectivity
Scarcity of welltrained talent

Increase in demand
for natural resources
Emergence of new
global industry
structures
Ubiquitous access to
information
Management shifts
from art to science
Increase in scrutiny of
big business practices

Environmental Forces

Demographic
Economic
Socio-cultural
Natural
Technological
Political-legal

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

Economic Environment
Income Distribution
Savings, Debt, and Credit

Social-Cultural Environment

Views
Views
Views
Views
Views
Views

of
of
of
of
of
of

themselves
others
organizations
society
nature
the universe

Natural Environment

Shortage of raw materials

Increased energy costs
Anti-pollution pressures
Governmental protections

Technological Environment

Pace of change
Opportunities for innovation
Varying R&D budgets
Increased regulation of change

Conducting
Marketing Research and
Forecasting Demand

Take Aways
What constitutes good marketing
research?
What are good metrics for
measuring marketing productivity?
How can marketers assess their
return on investment of marketing
expenditures?
How can companies more
accurately measure and forecast
demand

Gillette Used Extensive Market

Research When Designing the Venus

What is Marketing
Research?
Marketing research is the
systematic design, collection,
analysis, and reporting of data and
findings relevant to a specific
marketing situation facing the
company.

Types of Marketing Research Firms

Syndicatedservice

Custom

Specialtyline

The Marketing Research Process

Define the problem
Develop research plan
Collect information
Analyze information
Present findings

Make
decision

Step 1: Define the

Problem
Define the problem
Specify decision alternatives
State research objectives

Step 2: Develop the Research Plan

Data
Sources

Research
Approach

Research
Instruments

Sampling
Plan

Contact
Methods

Research Approaches
Observation
Observation
Ethnographic
Ethnographic
Focus
Focus Group
Group
Survey
Survey
Behavioral
Behavioral
Data(scanner)
Data(scanner)
Experimentation
Experimentation

Focus Group in Session

Research Instruments
Questionnaires
Qualitative Measures
Technological Devices

Question Types
Dichotomous
In arranging this trip, did you contact
American Airlines?
Yes No

Question TypesMultiple
Choice
With whom are you traveling on this trip?
No one
Spouse
Spouse and children
Children only
Business associates/friends/relatives
An organized tour group

Question TypesLikert Scale

Indicate your level of agreement with the
following statement: Small airlines generally give
better service than large ones.
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree

Question TypesSemantic Differential

American Airlines
Large ....Small
Experienced..Inexperienced
Modern...Old-fashioned

Question TypesImportance Scale

Airline food service is _____ to me.
Extremely important
Very important
Somewhat important
Not very important
Not at all important

Question TypesRating
Scale
American Airlines food service is _____.
Excellent
Very good
Good
Fair
Poor

Question Types
Intention to Buy Scale
How likely are you to purchase tickets on
American Airlines if in-flight Internet access
were available?
Definitely buy
Probably buy
Not sure
Probably not buy
Definitely not buy

Question TypesCompletely
Unstructured
What is your opinion of American Airlines?

Qualitative Measures
Word
Word Association
Association
Projective
Projective Techniques
Techniques
Visualization
Visualization
Brand
Brand Personification
Personification
Laddering
Laddering

Question TypesWord Association

What is the first word that comes to your mind
when you hear the following?
Airline ________________________
American _____________________
Travel ________________________

Question Types
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.

Question TypesStory Completion

I flew American a few days ago. I noticed that
the exterior and interior of the plane had very
bright colors. This aroused in me the following
thoughts and feelings. Now complete the story.
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________

Question TypesPicture
(Empty Balloons)

Question TypesThematic
Apperception Test

Make up a story that reflects what you think is

happening in this picture.

Qualitative Measures
Word
Word Association
Association
Projective
Projective Techniques
Techniques
Visualization
Visualization
Brand
Brand Personification
Personification
Laddering
Laddering

Technological Devices
Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS

Nielsen Outdoor Leverages GPS to

Track Billboard Reach

Sampling Plan
Sampling unit: Who is to be surveyed?
Sample size: How many people should
be surveyed?
Sampling procedure: How should the
respondents be chosen?

Types of Samples
Probability
Samples
Simple random
Stratified random
Cluster

Nonprobability
Samples
Convenience
Judgment
Quota

Contact Methods
Mail Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview

Pros and Cons of Online Research

Advantages
Inexpensive
Fast
Accuracy of data,
even for sensitive
questions
Versatility

Disadvantages
Small samples
Skewed samples
Technological
problems
Inconsistencies

Barriers Limiting the Use of

Marketing Research
A narrow conception of the
research
Uneven caliber of researchers
Poor framing of the problem
Late and occasionally erroneous
findings
Personality and presentational
differences

What is Marketing Metrics?

Marketing metrics is the set of
measures that helps marketers
quantify, compare, and interpret
marketing performance.

Marketing Metrics
External

Awareness
Market share
Relative price
Number of
complaints
Customer
satisfaction
Distribution
Total number of
customers
Loyalty

Internal
Awareness of goals
Commitment to
goals
Active support
Resource adequacy
Staffing levels
Desire to learn
Willingness to
change
Freedom to fail
Autonomy

What is Marketing-Mix
Modeling?
Marketing-mix models analyze
data from a variety of sources, such
as retailer scanner data, company
shipment data, pricing, media, and
promotion spending data, to
understand more precisely the
effects of specific marketing
activities.

Marketing Dashboards
A customer-performance
scorecard records how well the
company is doing year after year
on customer-based measures.
A stakeholder-performance
scorecard tracks the satisfaction
of various constituencies who
have a critical interest in and
impact on the companys
performance including employees,
suppliers, banks, distributors,
retailers, and stockholders.

Sample Customer-Performance Scorecard

Measures

% of new customers to average #

% of lost customers to average #
% of win-back customers to average #
% of customers in various levels of
satisfaction
% of customers who would repurchase
% of target market members with brand
recall
% of customers who say brand is most
preferred

Common Measurement
Paths
Customer Metrics Pathway
Unit Metrics Pathway
Cash-flow Metrics Pathway
Brand Metrics Pathway

Marketing Measurement Pathways

Example of a
Marketing Dashboard

The Measures of Market Demand

Potential
Market

Available
Market

Target
Market

Penetrated
Market

Vocabulary for Demand Measurement

Market demand
Market forecast
Market potential
Company demand
Company sales forecast
Company sales potential

Ninety Types of
Demand Measurement

Market Demand Functions

Market Demand Functions

Product Penetration Percentage

How Can We Estimate

Current Demand?
Total market potential

Area market potential

Market buildup method
Multiple-factor index method

Calculating
Brand Development Index

Estimating Future Demand

Survey of Buyers Intentions

Composite of Sales Force Opinions
Expert Opinion
Past-Sales Analysis
Market-Test Method