3 Gathering Information and Scanning the Environment Marketing

3 Gathering Information and Scanning the Environment Marketing Management, 13 th 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? 3 -2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 3 -3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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. 3 -4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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? 3 -5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Internal Records and Marketing Intelligence 3 -6 Order-to-Payment Cycle Sales Information System Databases, Warehousing, Data Mining Marketing Intelligence System Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 resources Purchase information Collect customer feedback online 3 -7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Best Buy’s Use of MIS Best Buy segments its customers into highly differentiated segments known by archetypes like “Buzz, ” “Barry, ” and “Jill. ” 3 -8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Table 3. 2 Secondary Commercial Data Sources 3 -9 Nielsen SAMI/Burke MRCA Simmons Information Resources, Inc. Arbitron Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 3 -10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Needs and Trends Fad Trend Megatrend 3 -11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Trends Shaping the Business Landscape • Profound shifts in centers of economic activity • Increases in publicsector activity • Change in consumer landscape • Technological connectivity • Scarcity of well-trained talent 3 -12 • 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Environmental Forces Demographic Political-Legal Economic Technological Socio-Cultural Natural 3 -13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Population and Demographics • Population growth • Population age mix • Ethnic markets 3 -14 • Educational groups • Household patterns • Geographical shifts Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Mattel Markets in China 3 -15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Population Age Groups 65+ 40 -65 25 -40 Teens School-age Preschool 3 -16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Schwab’s Chinese-language Web site 3 -17 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Household Patterns 3 -18 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Economic Environment • Income Distribution • Savings, Debt, and Credit • Levi’s has responded to changes in income distribution by offering an upscale line and a mass market line 3 -19 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Social-Cultural Environment Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe 3 -20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Interest in Nature: A Growing Trend 3 -21 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Table 3. 3 Most Popular American Leisure Activities • Reading • TV watching • Spending time with family • Going to movies • Fishing 3 -22 • • • Computer activities Gardening Renting movies Walking Exercise Listening to music Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections 3 -23 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Toyota Experienced Success with Green Cars 3 -24 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Figure 3. 1 Consumer Environmental Segments True Blue Greens (30%) Greenback Greens (10%) Sprouts (26%) Grousers (15%) Apathetics (18%) 3 -25 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Keys to Avoiding Green Marketing Myopia • Consumer Value Positioning • Calibration of Consumer Knowledge • Credibility of Product Claims 3 -26 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Technological Environment Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change 3 -27 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Political-Legal Environment Increase in business legislation Growth of special interest groups 3 -28 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Debate ü Is consumer behavior more a function of a person’s age or generation? Take a position: 1. Age differences are fundamentally 2. more important than cohort effects. 3. or 4. 2. Cohort effects can dominate age 5. differences. 3 -29 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Marketing Discussion ü What brands do you feel successfully speak to you? ü Effectively target your age group? ü Which ones do not? ü What could they do better? 3 -30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall