MM_GRP3_CHAPT3_FINAL

8/8/2019 MM_GRP3_CHAPT3_FINAL

1/52

CHAPTER: 3CHAPTER: 3

GATHERINGGATHERINGINFORMATIONINFORMATION

AND SCANNING THEAND SCANNING THE

ENVIRONMENTENVIRONMENT

Presented by Roll No,

12, 13, 14, 15, 16


2/52

AGENDAAGENDA

y Components of a modern marketinginformation system

y Internal recordsy Marketing intelligence system

y Opportunities in the Macro Environment

y

Important Macro Environmentdevelopments


3/52


4/52

Challenges of MarketingChallenges of Marketingy High volume, high speed work

y The high variety of works

y

The complexity of interactionsy The issue of preferences

y Highly competitive market

y Rapidly changing market

environment


5/52

A Marketer ..A Marketer ..

Has disciplined methods for collecting information.

Spends more time interacting with customers andobserving competition.

Has extensive information about how consumption

patterns vary across countries. Every firm must organize and distribute acontinuous flow of information to its marketingmanager.

The companys marketing information system shouldbe a cross between what managers think they need,what managers really need, and what is economicallyfeasible.


6/52

MARKETING INFORMATIONMARKETING INFORMATION

SYSTEMSSYSTEMSDefinition: Marketing Information System is a set

ofprocedures and methodsfor the regular planned analysis and presentationof information for use in making marketingdecisions. [Cox and Good]

Role: Gather, analyse,evaluate, distribute theinformation related to marketing process for useby marketing decision maker to improve theirmarketing planning, implementation and control.


7/52


8/52

MIS Probes for InformationMIS Probes for Information

y What decisions do you regularly make?

y What information do you need to make thesedecisions?

y What information do you regularly get?y What special studies do you periodically

request?

y What information would you want that you

are not getting now?y What are improvements that could be made

in the present marketing information system?


9/52


10/52

Internal RecordsInternal Records

Order-to-PaymentCycle

Databases,

Warehousing,Data Mining

Marketing

IntelligenceSystem

Sales

InformationSystem


11/52

Order to Payment CycleOrder to Payment Cycle


12/52


13/52

Databases, Data Warehousing andDatabases, Data Warehousing and

Data MiningData Mining

DATA

BASES

Customer Databases

Product Databases

Sales Person Databases

DATA

WARE

HOUSING

Electronically stored Data

Facilitates Analysis and Reporting

DATAMINING

Process of extracting patterns from Data

Transform data into Business Intelligence

Provides Informational Advantage


14/52


15/52

Steps to Improve MarketingSteps to Improve Marketing

IntelligenceIntelligence

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


16/52

Analyzing the Macro EnvironmentAnalyzing the Macro Environment


17/52


18/52

TRENDTREND

y Direction or sequence of events

y Medium level of momentum and durability

y Reveals shape of the future

y Provides growth opportunities

Eg: Level of Physical Fitness


19/52

FADFAD

y Unpredictable

y Short-lived

y Sans Social Economic Political

significance


20/52

MegatrendsMegatrends Slow to form Large Social-Political -Economic change

Higher degree ofInfluence


21/52

6 Major6 MajorForcesForces

Demographic Environment

Economic Environment

Social-Cultural Environment

Natural Environment

Technological Environment

Political legal Environment


22/52

DEMOGRAPHIC ENVIROMENTDEMOGRAPHIC ENVIROMENT

Study of human populations in terms of size,growth rate, age distribution, ethnic mix,educational level, age, gender, household

patterns, religion characteristics

Marketers are interested in monitoring thepopulation.

Because people make up markets.


23/52

DEMOGRAFIC FACTORSDEMOGRAFIC FACTORS

y Refers to changing nature of population.

y W

hat are the current demographic trends.

y What are the implication of thesechanges.


24/52

Worldwide Population GrowthWorldwide Population Growth

y The population explosion has been a source of majorconcern.

y It has major implications for business.

y A growing population does not mean growing marketsunless these markets have sufficient purchasingpower.

The worlds population is showingexplosive growth: It totaled 6.1

billion in 2000 and will exceed 7.9billion by the year 2025.


25/52

Population Age MixPopulation Age Mixy National populations vary in their age mix.

y A population can be subdivided into six age groups:

Pre-School, School-age children, Teens

Young adults age 25 to 40

Middle-aged adults age 40 to 65

Older adults ages 65 and up

y There is a global trend toward an aging population.

y

For marketers, the most populous age groups shape themarketing environment.


26/52

POPULATION AGE GROUPPOPULATION AGE GROUP

SUPPOSE! Under age 25: Grow by 4.8%.

25-34 years old: Decline by5%.

35-44 years old: Increase by4.5%.

45-64 years old: Grow by 2.5million, or 39.5%.

Over age 65: Grow by 20%.

What can be theimplications?


27/52

2 ends of the age spectrum2 ends of the age spectrum

and marketers response to it!and marketers response to it!

Elderly people

Companies who have

monitored this trend have

responded with

y The development ofresidential homes,

y Cruise holidays

y Financial portfolio

management servicesaimed at meeting thisgroups needs.

Birth rate

Birth rate of mostcountries is cyclical,resulting in a cyclicalpattern of demand forage-related productssuch as

y Baby products,y Fashion clothing

y Family cars


28/52

Ethnic and Other MarketsEthnic and Other Markets

Countries vary in ethnic and racial

makeup.

y Ethnic groups have certain specific wants andbuying habits, within group there are consumerswho are quite different from each other.

e.g. More than 50 million Americanshave disabilities and they constitute amarket for home delivery products.


29/52

Household PatternsHousehold Patterns

The traditional household consists of a husband, wife,and children.

Each group has a distinctive set of needs and buyinghabits.

Marketers must increasingly consider the specialneeds of nontraditionalhouseholds, because theyare now growing more rapidly than traditionalhouseholds.

TODAY!In the United States today, their are Single/live-alones.

Adult/live-together(of one or both sexes). Single-parent families. Childless married couples. Empty-nesters.


30/52

Consider the following changes inConsider the following changes inthe structure of the Indianthe structure of the Indianpopulation andpopulation and its implicationits implication


31/52

ChangesChanges Results InResults In

Trend for women tohave fewer children.

Women to havechildren later in life.

There has been anincrease in the number of

women having nochildren.

Parents spending moreper child (more designerclothes for children

rather than budgetclothes)Has allowed women tostay at work longer(increasing householdincomes and encouraging

the purchase of laboursaving products).


32/52

Geographical Shifts in PopulationGeographical Shifts in Population

This is a period of great migratorymovements between and within

countries. Forward-looking companiesand entrepreneurs are taking advantageof the growth in immigrant populationsand marketing wares specifically to thesenew members of the population.


33/52

ChangesChanges Results InResults In

Changes in

geographical distributionof the population

Between differentregions of the countryand between urban andrural areas.

Results in higher carownership levels

And preference forusing out-of-townshopping centres.


34/52

ECONOMIC ENVIROMENTECONOMIC ENVIROMENT

Markets require purchasingpower as well as people.

The available purchasing power in an economydepends upon:

Current income, Prices, Savings, Debt, Creditavailability.

Marketers must pay careful attention totrends affecting purchasing power

because th

ey canh

ave a strong impact onbusiness.

.


35/52

Income DistributionIncome Distribution

y Marketers need to pay attention to the shifting

income distribution in countries around the world,particularly in countries where affluence levels arerising.

Marketers often distinguish countries withfive different income-distributionpatterns:

Very low incomes. Mostly low incomes.

Very low, very high incomes. Low, medium, high incomes. Mostly medium incomes.


36/52

Savings, Debt, and CreditSavings, Debt, and Credit

Availability and Other FactorsAvailability and Other Factorsy Change in per capital real income

Disposable Discretionary Income distribution

Inflation ratey Consumer expenditures

Savings.

Debt.

Credit availabilityy

Change in interest rates and cost of livingy The stage of the Business Cycle:

Prosperity, recession and recovery

For example, if theprices of raw

material , labor, andutility shows

inflationary trends,

the firm may havelittle option but to

pass on this hike tothe consumer in theform of increased

prices


37/52

Social and cultural environment refersto the influence exercised by certainsocial factor which are beyond the

companies gate

Culture refers to dance, drama, musicand festival include Knowledge, belief,

art, moral, law, customs & otherscapability

Social-Cultural Environment


38/52

Views of themselves

Views of others

Views of nature

Views of organizations

Views of society

Views of the universe


39/52

3-39

MostMost Popular American LeisurePopular American Leisure

ActivitiesActivitiesy Walking

y Gardening

y Swimming

y Photography

y Bicycling

y Fishing

y Bowling

y Camping

y Jogging

y Free weights

y Golf

y Continuingeducation


40/52

Culture and Globalization

U.S. Japan

Company Team in Sport Family in Village

Business goal To Win To Survive

Employees Players in

team

Children in Family

Human

Relation

Functional Emotional

Competition Cut throat cooperative

Work

motivation

Individual

Income

Group Income

promotion Acc. To

Abilities

Length of Service

Pay Service &

Result

Award of patience and sacrifice


41/52

Culture determines good and services

Social/Cultural factor Japan India

Govt./Admn. Emphasis on govt by

virtuous and abrogation

of coercion, mutual trust

EE minimum control,

Highly motivated

Prevalence of

impersonal bureaucratic

social relation, mistrust,

assumption of human

evil, Highly concentrated

admn.. bureaucratic

delays Low level of

delegation

Attitude towards work

and goal

Highly result oriented General deep seated

Discipline Highly disciplined and

respect towards

superiors

Lack of discipline. Poor

S-S relationship

Group harmony Highly based on informal

facilitative pattern of

behavior

Assumption of in

equality, suspicious

environment, self

centered

Education Highly emphasized General


42/52

3-42

Natural EnvironmentNatural Environment

Shortage of

raw materials

Increased

energy costs

Anti-pollution

pressures

Governmental

protections


43/52

Hybrid CarsHybrid Cars


44/52

BHARAT IVBHARAT IV


45/52

Technological EnvironmentTechnological Environment


46/52

How we define Technological Environment?

It is a method or technique for convertinginputs to outputs in accomplishing a specifictask. Thus, the terms 'method' and 'technique'refer not only to the knowledge but also to the

skills and the means for accomplishing a task.Technological innovation, then, refers to theincrease in knowledge, the improvement inskills, or the discovery of a new or improved

means that extends people's ability to achievea given task.


47/52

Cont.Cont.

Technology can be classified in several

waysFor example, blueprints, machinery, equipment

and other capital goods are sometimes referredto as hard technology while soft technologyincludes management know-how, finance,marketing and administrative techniques.

Relatively primitive technology is used in theproduction process, the technology is usuallyreferred to as labor-intensive. Highlyadvanced technology, on the other hand, isgenerally termed capital-intensive.


48/52

Accelerating Pace

of Change(Apple iPod's)

Unlimited Opportunities

for Innovation(Biotechnological,Telecommunication, Robotics)

IncreasedRegulation

Issues in the TechnologicalEnvironment

VaryingR & D Budgets

Technological Environment


49/52

PoliticalPolitical--Legal EnvironmentLegal Environment

It consist of laws, governmentagencies, pressure groups that limitvarious organization and individuals.

Sometimes these laws leads to newbusiness

example: mandatory recycling lawsboost to recycling industry


50/52

PoliticalPolitical--Legal EnvironmentLegal Environment

Increase in business legislation

It has for main purposes:

1. To protect companies from unfair competition.

2. To protect consumer from unfair business practices.

3. Protect the society from unbridled business behavior.

4. Charge businesses with the social cost created by their

product.


51/52

y Organized movement by citizens and the govt. tostrengthen the rights and power of buyers in

relation to seller.y According to consumer act, 1986 following six

wrights to consumers are recognized.1) Safety2) Information3) Choice4) Representation5) Redressal6) Consumer education

PoliticalPolitical--Legal EnvironmentLegal EnvironmentGrowth of Special InterestGroups


52/52

Documents

MM_GRP3_CHAPT3_FINAL