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Chapter - 3

Scanning the Marketing

Environmentand conducting
Marketing Research

Ms. Anita Laila

Collecting Information What is a

Marketing Information System (MIS)?
Customers

A marketing information system

consists of people, equipment, and
procedures to gather, sort, analyze,
evaluate, and distribute needed, timely,
and accurate information to
External Factors
Competitors marketing decision makers.

Components of Marketing Information Components of MIS

System
Internal Records Obtains Needed Information for Marketing Managers
From the Following Sources

Internal Data
Collection of Information from Data Sources Within the Company
From: Accounting, Sales Force, Marketing, Manufacturing, Sales
Marketing Research
Marketing Intelligence
Insight Collection and Analysis of Publicly Available Information about
Competitors and the Marketing Environment
From: Employees, Suppliers, Customers,
Competitors, Marketing Research Companies

Marketing Research
Marketing Design, Collection, Analysis, and Reporting of Data about a Situation

Intelligence

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Internal Records Internal Records

Order-to-Payment
Cycle
The order-to-payment cycle entails the process that
Databases / Data orders go through once they are received by the company.
Mining Includes invoices and shipping documents. Customers
prefer firms that can get orders processed quickly and
accurately.

Sales information systems provide managers with up-to-

date information on the current sales of individual products.

Databases store and organize information that can be

retrieved based on a number of criteria such as purchase
history, product preferences, and can even contain
Sales Information demographic and psychographic information on customers.
Systems

Marketing Intelligence
News and Trade Marketing Intelligence
Publications
A marketing intelligence system is a set of
procedures and sources that managers
use to obtain everyday information about
developments in the marketing
environment. This information can come
Meet with customers, from reading books and trade journals;
suppliers, distributors, talking to customers, distributors,
and other managers suppliers, etc; monitoring social media;
Monitor and talking to other managers in the
social media company.
sites

Steps to Improve Marketing Intelligence Using Marketing Intelligence

Share Information
Train sales force to scan for new developments

Motivate channel members to share intelligence

Network externally
Utilize a customer advisory panel Quickly
Utilize government data resources
Purchase information
Collect customer feedback online

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Analyzing the Needs and Trends

FAD: Unpredictable, short-lived, and without social, economic, and
Macroenvironment political significance. Fads are measured in months, rather than
years. Fads are often heavily driven by social media today. In fact
social media at one time was considered a fad, which has now
evolved into a trend.
Clothing, foods, exercises, hairstyles, language are all areas that are
subject to fads.

TRENDS:
Trends are a bit slower paced but represent something that is
occurring on a much wider scale than a fad. The use of social media
is a trend that reaches a broader segment. The fitness/diet trend is an
example.

Macro-environment • Definition:
• MEGATRENDS: If trends are a bit slower, – It consists of larger societal forces
megatrends are the glaciers of this set. that affect the micro-environment
Megatrends are the long-lasting, years in
developing, things that shift the
world. Changes that are slow to form but • Also called uncontrollable factors
once established last for 7 – 10 years (or – These forces cannot be controlled
more). by the company with its own actions

Major Environmental Forces

Demographics

Demographics Economic • Definition: Demography

– Study of human populations in terms of size,
Technological density, location, age, gender, race,
occupation, income etc.

• Studying the demographics is very

Natural Political-Legal important for marketers
• Why?
Sociocultural

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• Trends like:
• Because
– It involves people and people buy the
– Population – Population mix
firm’s goods and services
growth • Age wise
– If there is any change in the trend, then – Babies
marketers will have to adjust their – Population size
– Kids
marketing strategy and marketing mix • Birth rate – Teenagers
accordingly • Death rate – Adults
– Location – Senior citizens

• Rural • Gender wise

• Urban

Economic
– Education level – Family structure
• Literacy rate • Joint family
– Gender wise • Nuclear family
– Rural/Urban
• Single parent • It consists of factors that affect consumer
– Age-wise
– Occupation – purchasing power
• Unemployment rate – spending patterns
• White-Collar vs.
Blue-Collar

Natural
• Environmental concerns
– Green house gases
• It includes the natural resources that are – Global warming
– needed as inputs by marketers – Ozone layer depletion
• Wood  paper, table, chair
– Water shortages
• Vegetation  restaurants
– Animal rights
• Minerals
– affected by marketing activities
• Water, Air, Land, Deforestation etc.

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• By focusing on environmental Technological

sustainability, marketers can create
opportunities
– Environment-friendly products • It consists of forces that create new
• Paper bags, Prius (GE) technologies, create new product and
– Animal-free products market opportunities
• The Body Shop
– Recycled products • Technology both has a positive impact
• Recycled papers, cans and negative one – depends on how we
– Corporate social responsibility use it.

• Every new technology replaces the

older one • When old industries fight or ignore
new technologies, their businesses
may fail
Floppy USB
Disk

Film Digital
Cameras Cameras

• Companies spend a lot of money in Political

research and development to come up
with new products
• Definition: Political Environment
Walkman CD Player iPod – It consists of laws, government agencies, and
pressure groups that influence or limit various
organizations and individuals in a given
society
Desktop Laptop Tablet

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• These laws protect Socio-Cultural

– Companies form unfair competition
– Consumers from unfair business
practices • It is made up of institutions and other
• False advertising forces that affect society’s basic values,
• Proper labeling perceptions, preferences, and behaviors
• Product standards
• Illegal pricing
– Interest of society

• Culture includes:
– Sub-cultures – Traditions
• Social systems
– Religion • Nationality – Social Classes
– Schools
• Beliefs – Mosques • Religions • Lower class
– Islam • Ethnicity
– Temples • Middle class
– Hinduism
• Change in Fashion • Age • Upper class
– Christianity
– Sikhism • Social issues • Gender
– Equality – Languages
• Values &
– Social movements
Habits etc – Family
– Food
– Dress