S-3 Marketing Intellegence System and Consumerism

7/30/2019 S-3 Marketing Intellegence System and Consumerism

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Marketing Information System


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Marketing IntelligenceSystem. (MIS)

Consists of people, equipment, andprocedures to gather, sort, analyze,evaluate and distribute timely andaccurate information to decisionmakers.


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Components of Intelligence System

Customer Intelligence: This provides usefulinformation on a customers business,preferences or loyalties, personal

demographic details.

Competition Intelligence: This gives

information on strengths and weaknesses ofeach competitor in the territory, the strategyand the tactics being used by them.


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Purposes of Marketing Intelligence Customer satisfaction Creative and effective marketing strategy Realities of the company and its competitors

Strengths and weaknesses

Realities of the marketplace Opportunities and threats

Competitive advantage Anticipate the competitive move and develop

competitive strategies


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Scope of Marketing Intelligence External environment BPEST Analysis

Business (industry) Political and legal environment Economic and demographic environment

Social and cultural environment

Technology and natural environment


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Sources of Marketing Intelligence Companys own personnel

Executives Consultants and specialists Purchasing agents Salespersons Other employeesIssue: Always busy people Fail to pass on important information


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Sources of Marketing Intelligence Companys supply chain

Suppliers Resellers Business partners Business allies Other marketing intermediaries


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Sources of Marketing Intelligence Competitors

Annual reports Speeches and press releases Products and labels Advertisements and other marketing

communications Web sites


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Sources of Marketing Intelligence Government sources

Census of population Census of industries Other government agencies and publications

Academic sources Theses and research reports Academic journals Academic forum


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Sources of Marketing Intelligence Publications and mass media

Television/radio news Newspapers Magazines and trade journals

Syndicated services Panel data Retail audit Customized reports (on demand)


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Analyzing Marketing Intelligence Data Competitor analysis -- knowing about competitors

1. Who are ourcompetitors? 2. What aretheir strategies? 3. What aretheir objectives?

4. What are theirstrengths and weaknesses? 5. What are theirreaction patterns?


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Analyzing Marketing Intelligence Data Competitor analysis -- levels of competition

Brand Competition

Industry Competition

Other companies offering a similarproduct and services to the same

customer at similar pricesAll companies making the sameproduct or class of products

Form Competition

Generic Competition

All companies manufacturing

products that supply the same serviceAll companies competing for the sameconsumer dollars


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Need For BusinessReporting.

A marketing intelligencesystem relies on internal

company records,marketing intelligence

activities and marketingresearch.


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Contents of a Marketing Plan.

1) Executive Summary: Thispresents an overview of theproposed plan for quick management

skimming.

It helps higher management toquickly grasp the major thrust of the

plan.


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2) Current Marketing Situation:This presents relevant data related toindustry, market, product,

competition, distribution andenvironment.

Many issues can surface up during the

discussions of market situation.


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3) Opportunity and Issue analysis:This summarizes the mainopportunities/threats,

strengths/weaknesses and issuesfacing the product that the plan mustdeal with. (SWOT Analysis)


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4) Objectives: This defines the goalsthe plan wants to reach in the areasof sales volumes, market share,

profits and customer satisfaction.

5) Marketing Strategy: Thispresents the broad marketing

approach that will be used to meetthe plans objectives.


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6) Action Programs/Plans: This answerswhat will be done?, who will do it?,when will it be done? And how much will

it cost?7) Projected Profit & loss statement:

This summarizes the expected financialpayoff from the plan.

8) Controls: This tells how will the plan bemonitored?


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Data Mining and Warehousing

Data Mining: Database marketing,

customization and CRM require effective

information management.

The first organization to use data warehousing

and mining is Wal-Mart.

Eg. Small retail shop


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Data Mining and Warehousing

Data Warehousing: Data Warehousing is an IT

architecture, aimed at storing and organizing

information in a meaningful manner.

Eg. To the Salesman, a data warehousing

should be able to provide information on the

customers background, the last sales call, the

status of any customer complain received.


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Research Process

Problem Definition

Defining research objectives

Working out a research design

Deciding on the sources of data

Planning and deciding on data collectiontechniques and tools

Analyzing data Making a report and presenting it to the decision

makers


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Research Design

Exploratory Research-:

It is conducted when the researcher does not

know how and why a certain phenomenon

occurs.

In doing so, they used focus groups. Since the

prime goal is to know the unknown, this

research is unstructured.


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Research Design

Descriptive Research-:

Descriptive research is carried out to describe

a phenomenon or market characteristics.

For Eg. A study to understand buyer behavior

to describe the characteristics of the target

market.


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Research Design

Causative Research-:

It is done to establish a cause and effect

relationship.

For Eg. The influence of income and lifestyle

on purchase decisions.


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Types of Questionnaires

Open Ended Questions

Close Ended Questions

Ordinal Scales

Interval Scales

Semantic Differential Scale


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Examples of Different Types of

Questionnaires

Open Ended Questions

Where the person who is filling thequestionnaire is been given a choice.


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Examples of Different Types of

Questionnaires

Close Ended Questions

Where the person who is filling thequestionnaire is not been given a choice.


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Nominal Scales

The Open Ended and the Close EndedQuestions are also known as Nominal Scale

Questions


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Ordinal Scales

Ordinal Scales are those where you need torank according to your choice with the options

available.


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Interval Scales

Interval Scales are those scales where in you

need to rank according to your choice.

The difference here is it would be measured in

Strongly agree, agree, neither agree nor

disagree, disagree, strongly disagree


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Semantic Differential Scale

Another type of scaling questionnaire.

Positive and negative adjective can be used.

Each serves as positive and negative end of a

continuum that characterizes the stimulus.


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Consumerism ?


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What is Consumerism ?

Consumerism is an organised movement of citizens and governmentto strengthen the rights and power of buyers in relation to sellers.

Consumerism refers to the wide range of activities of government

business and independent organisations designed to protect rights ofthe consumers.

Consumerism is a collective consciousness on the part of consumers,

business, government and civil society to enhance consumersatisfaction and social welfare which will in turn benefit all of them

and finally make the society a better place to live in.


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In our Indian system, the consumer has six rights given for his

protection from exploitation from the shopkeepers or sellers.

Consumer exploitation means mistreatment or cheating withconsumer by adulteration, Thagi or in any other unfair form.

To prevent consumer from exploitation, our government have passed

manyActs

from time to time.

Some of them are as follows:-

1. Drug and Cosmetics Act, 1940

2. Prevention of Food Adulteration Act, 1954

3. Essential Commodity (supply) Act, 19554. Monopolies and Restrictive Trade Practices Act, 1969

5. Standard of Weights and Measures Act, 1976

6. Consumer Protection Act, 1986


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Why Is It Needed ?

Demand-supply imbalance (demand > supply / demand < supply)

Lack of workable competition (monopoly > perfect competition)

Unfamiliarity with innovations

(poverty, lack of social awareness, accepting life as it is and passiveoutlook)

Unconsciousness about rights

(illiterate uneducated ignorant and ill-informed)

Feign advertisements (a need for consumer guidance) Time consuming legal process


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How Has It Come About ?

Before Liberalization :-

No Disposable Income

No Rights & Redressal Forums

After Liberalization :-

Informed Consumer

Proactive Steps By Industry & Government


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What It Creates ?

Demand driven economy

Status of king for the Consumer

A more responsive government Minimize imperfections on distribution front


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How Is It Affecting Us ?

We now have choices. Regulatory authorities like:

TRAI ASCI

Government have passed many Actsto protect consumers from

exploitation. Some of them are as follows :-

1. Drug and Cosmetics Act, 1940

2. Prevention of Food Adulteration Act, 1954

3. Essential Commodity (supply) Act, 1955

4. Monopolies and Restrictive Trade Practices Act, 19695. Standard of Weights and Measures Act, 1976

6. Consumer Protection Act, 1986


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ADVERTISING

&CONSUMERISM


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Benefits Of Advertising

Inform

Guide

Contribute to efficiency

Stimulate economic progress

Expand business & trade


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Advertising Code

Make honest claims & do not mislead the consumer.

Do not offend the generally accepted standards of public

decency.

Safeguard against the excessive promotion of products which

are regarded as hazardous to society or individuals.

Observe fairness in competition between different brands ofthe same product.


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Consumer Groups

Advocacy groups that seek to protect people from corporate

abuse.

Example:- unsafe products, predatory lending, false

advertising.

They operate via protests, campaigning or lobbying.

Bodies- Consumer Forum, CAG, VOICE, AIBDA, CICO


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Labelling

As per Updated Package Commodity Rule (Jan 1, 2007)

Name & address of the manufacturer

Common & generic names of commodity in package

Name & no. of quantity of each product

Net qty. in terms of std. unit of weight of measure

Month & year of manufacturing / packing

Size / dimensions of commodity (where relevant) MRP


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COST OF

CONSUMER PROTECTION


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Consumer protection costs may be defined in 3 ways:-

1. Economic costs.2. Social costs.

3. Opportunity costs.


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ECONOMIC COSTS

Connected with the defending charges of regulatory

agencies and cost of manufacturing consumer safety

devices. Passed on to the consumers through increased prices of

goods and services.


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SOCIAL COSTS

The social costs are the sum total of all costs to

individuals in society, regardless of whether the costs are

paid by the person who decides whether they will beincurred.

Social costs are the sum of private and external costs.


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OPPORTUNITY COSTS

Opportunity cost is the cost (sacrifice) incurred by

choosing one option over the next best alternative (which

may be equally desired). Arise from the ordering of social priorities.


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Methods of Consumer ProtectionThere are four main methods of protecting the interests of

consumers: -

1.Business Self-regulation:

Businessmen can regulate their own behavior and actions by

adopting higher ethical standards. Trade associations and chambers of commerce can check unfair

trade practices used by some businessmen.

2. Consumer Self-help:

Every consumer must be alert as self-help is the best help.

He should educate himself and know his rights and should not

allow unscrupulous businessmen to cheat him.


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3. Consumers' Associations:

Consumers should form voluntary associations.

These associations can educate and awaken consumers.

They can take organized action and put pressure on businessmento adopt fair trade practices.

4. Government Regulations: The State can ensure consumer protection through legislative,

executive and judicial actions.

The laws enacted by the Government must be strictly enforced

by the executive. Government of India has enacted several laws to protect the

interests and rights of consumers.


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CONSUMER PROTECTION

ACT,1986


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INTRODUCTION

This ACT is a milestone in the history of socio-economic

legislation in the country.

The first ever legislation in India of its kind which solely

aimed at the grief striken consumers who were the victims of

the unfair trade practices and sub standard services rendered to

them.


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OBJECTIVES

The main objective of the act is to provide for the better

protection of consumers.

The act is intended to provide simple, speedy and inexpensive

redressal to the consumers' grievances, and relief of a specific

nature and award of compensation wherever appropriate to the

consumer.


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EXTENT AND COVERGAE OF THE ACT

The salient features of the Act are summed up as under :-

The Act applies to all goods and services unless specifically

exempted by the Central Government.

It covers all the sectors whether private, public or cooperative.

The provisions of the Act are compensatory in nature.

The setting up of the dispute redressal machinery was only to

secure and enable speedy justice to the aggrieved consumers.

A U d i 6 f C P i A


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As Under section-6 of Consumer Protection Act,

consumer has the following rights:

It enshrines the following rights of consumers:-

Right to safety :- Right to be protected against the marketing of goodsand services which are hazardous to health, life and property of the

consumer. Right to be informed :- Right to be provided all those information on

the basis of which consumer decides to buy goods or services about thequality, quantity, potency, purity, standard and price of goods orservices so as to protect the consumer against unfair trade practices.

Right to be heard :- Consumer has the right that his complaint beheard. Under this Right the consumer can file complaint against allthose things which prejudicial to his interest. Example- The EconomicTimes

Ri ht t h C h h f ll i h b d


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Right to choose :- Consumer has the full right to buy good or

services of his choice from among the different goods or services

available in the market.

Right to Seek redress :- Right to seek redressal against unfair trade

practices unscrupulous exploitation of consumers. This Act provides

compensation to consumer against unfair trade practice of the seller.

Right to consumer education :- Consumer education refers toeducate the consumer constantly with regards to their rights. In other

words, consumers must be aware of the rights they enjoy against the

loss they suffer on account of goods and services purchased by them.

The Act envisages establishment of Consumer Protection Councils at

the Central and State levels, whose main objects will be to promote

and protect the rights of the consumers.

C R ibili i


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Consumers Responsibilities

1. Consumer should exercise his right

2. Cautious consumer/ Do not buy blindly

3. Filing complaint for the redressal of genuine grievances

4. Consumer must be quality conscious/Do not compromise on quality5. Advertisements often exaggerate/Beware of false advertisement

6. Do not forget to get Receipt and Guarantee/warrantee card

7. Do not buy in hurry


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Relief Available To Consumers

Depending on the facts and circumstances, the RedressalForums may give order for one or more of the following relief :-

Removal of defects from the goods

Replacement of the goods

Refund of the price paid Award of compensation for the loss or injury suffered

Removal of defects or deficiencies in the services

Discontinuance of unfair trade practices or restrictive trade

practices

Withdrawal of the hazardous goods from being offered to sale

Award for adequate costs to parties


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STRUCTURE

To provide simple, speedy and inexpensive redressal of consumergrievances, the Act envisages a three- tier quasi-judicial machineryat the National, State and District levels.

National Consumer Disputes Redressal Commission - known as"National Commission".

Consumer Disputes Redressal Commissions -known as "StateCommission".

Consumer Disputes Redressal Forums - known as "DistrictForum".


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District Forums have the Jurisdiction to entertain complaints:

If the cost of goods or services and compensation asked for is up to Rs.20 lacs.

State Commission has the Jurisdiction to entertain complaints:

It can hear cases involving sum exceeds Rs.20 Lacs and up to Rs.1 Crore.

The State Commission also has the jurisdiction to entertain appeal againstthe orders of any District Forum within the State.

National Commission has jurisdiction to entertain complaints:

It has a Jurisdiction to hear complaints amounting more than Rs.1 Crore.The National Commission besides entertaining the original complaintsalso has jurisdiction to entertain appeals against the orders of any StateCommission.


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Procedure on Admission of Complaint

The Period of Limitation prescribed for the filing ofcomplaints before District Forum, the State Commission, orthe National Commission is two years from the date on whichthe cause of action has arisen.

On admission of a complaint, a copy of the complaint is to bereferred to the opposite party within 21 days, directing him togive his version of the case within 30 days. This period may beextended by another 15 days.


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THANK YOU

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S-3 Marketing Intellegence System and Consumerism