Collecting and Analyzing Marketing Information Dr Ananda Sabil

Collecting and Analyzing Marketing Information Dr. Ananda Sabil Hussein 4 -1

Issues to be Considered in a Situation Analysis 4 -2 Exhibit 4. 1

Conducting a Situation Analysis (1 of 2) Analysis Alone is Not the Solution Data and Information are Not the Same Data A collection of numbers or facts that have the potential to inform Information Data that has been transformed or combined with other data in a manner that makes it useful to decision makers 4 -3

Conducting a Situation Analysis (2 of 2) The Benefits of Analysis Must Outweigh the Costs Conducting a Situation Analysis is a Challenging Exercise One of the most difficult parts of the marketing plan Should provide a complete picture of three key environments: 1. Internal 2. Customer 3. External 4 -4

The Interconnectedness of the Internal, Customer, and External Environments 4 -5 Exhibit 4. 2

Discussion Question Of the three major environments in a situation analysis (internal, customer, external), which do you think is the most important in a general sense? Why? What are some situations that would make one environment more important than the others? 4 -6

The Internal Environment (1 of 2) Review of Current Objectives, Strategy and Performance An important input to later stages in the planning process Poor or declining performance must be the result of: Goals or objectives that are inconsistent with the customer or external environments Flawed marketing strategy Poor implementation Changes in the customer or external environments that are beyond the control of the firm 4 -7

The Internal Environment (2 of 2) Availability of Resources Includes a review of financial, human, and experience resources; as well as resources from key relationships Financial resources tend to get most attention Labor shortages are expected to be a major problem in the coming years Organizational Culture and Structure Problems can arise when marketing does not hold a prominent position in the organizational hierarchy Culture and structure are relatively stable but can be affected by mergers 4 -8

The Customer Environment Who are our Current and Potential Customers? What do our Customers do with our Products? Where do Customers Purchase our Products? When do Customers Purchase our Products? Why (and How) do Customers Select our Products? Why do Potential Customers not Purchase our Products? 4 -9

Discussion Question Understanding the motivations of a firm’s noncustomers is often just as important as understanding its customers. Look again at the reasons why an individual would not purchase a firm’s products. How can a firm reach out to noncustomers and successfully convert them to customers? 4 -10

The External Environment (1 of 2) Competition Brand competitors Product competitors Generic competitors Total budget competitors 4 -11

Major Types of Competition 4 -12 Exhibit 4. 6

Stages of Competitive Analysis 1. Identification Identify all current and potential competitors 2. Characteristics Assess each key competitor’s characteristics 3. Assessment Assess each key competitor’s strengths and weaknesses 4. Capabilities Focus the analysis on each key competitor’s marketing capabilities 5. Response Estimate each key competitor’s most likely strategies and responses under different environmental situations 4 -13

The External Environment (2 of 2) Economic Growth and Stability Political Trends Legal and Regulatory Issues Technological Advancements Sociocultural Trends Demographic Trends Lifestyle Trends in Cultural Values 4 -14

Trends in the Sociocultural Environment (1 of 2) Example Demographic Trends Aging of the American population Decline in the teen population Population growth in the Sun Belt states Example Lifestyle Trends Clothing has become more casual, especially at work Clothing has become more revealing, especially for women Growing participation in body modification (e. g. , tattoos, piercings) 4 -15 From Exhibit 4. 7

Trends in the Sociocultural Environment (2 of 2) Trends in Cultural Values Less focus on “me-oriented” values More value-oriented consumption (good quality, good price) Importance in maintaining close, personal relationships 4 -16 From Exhibit 4. 7

Collecting Environmental Data and Information (1 of 2) Secondary Information Sources Internal Data Sources Government Sources Periodicals/Book Sources Commercial (Fee-Based) Sources 4 -17

Collecting Environmental Data and Information (2 of 2) Primary Data Collection Direct Observation Focus Groups Surveys Experiments Overcoming Problems in Data Collection 4 -18

Discussion Question Do you think the Internet has made it easier or more difficult to collect marketing data and information? Why? How might the major data collection issues of today compare to the issues that occurred in the pre-Internet era? 4 -19