Chapter 3 Collecting Information and Forecasting Demand

Components of a Modern Marketing Information System (MIS)

 Internal company records

 Marketing intelligence activities
 Marketing research
Internal records

 Internal reports of orders

 Sales
 Prices
 Costs
 Inventory levels
 Receivables
 Payables
Marketing intelligence
Marketing intelligence system: a set of procedures and sources that managers use to obtain everyday
information about developments in the marketing environment
Improving marketing intelligence

 Motivate sales force to report new developments

 Motivate intermediaries to pass along intelligence
 Hire external experts to collect intelligence
 Network internally and externally
 Set up a customer advisory panel
 Take advantage of government-related data
 Purchase information from outside research vendors
 Collect marketing intelligence on Internet
Marketing intelligence can be gathered from various sources on the internet.

 Independent customer review forums provide insights into customer needs, preferences, and
expectations.
 Distributor or sales agent feedback sites can identify product or service quality issues and areas
for improvement.
 Combo sites that offer customer reviews and expert opinions provide a comprehensive view of a
product or service's performance and how it compares to competitors.
 Customer complaint sites can be used to address customer concerns and improve overall
satisfaction.
 Public blogs can provide insights into customer preferences and trends, as well as feedback on
specific products or services.
Communicating & Acting on Marketing intelligence

 The competitive intelligence function works best when it is closely coordinated with the decision-
making process
- Given the speed of the Internet, it is important to act quickly on information gleaned
online
Analyzing the macro environment is an important aspect of strategic planning for businesses.
Within the macroenvironment, there are various needs and trends that can affect a company's
operations, sales, and overall success. Three types of trends that businesses should be aware of are
fads, trends, and megatrends.

 Fad: A fad is a short-lived, popular trend that quickly gains and loses popularity. Fads are often
driven by popular culture or social media and can be difficult to predict or capitalize on.
Examples of recent fads include fidget spinners or Pokémon Go.
 Trend: A trend is a longer-term change in consumer behavior or preferences that can impact the
market for years. Trends tend to be more predictable than fads and can be monitored and
capitalized on by businesses. Examples of current trends include sustainability, plant-based diets,
and the rise of e-commerce.
 Megatrend: A megatrend is a large-scale, long-term shift in the environment, society, or
economy that can have a significant impact on businesses and industries. Megatrends tend to be
slow-moving but have a profound impact on the market. Examples of megatrends include climate
change, urbanization, and the aging population.
Identifying the Major Forces
Six major forces in the broad environment
1. Demographic
2. Natural
3. Economic
4. Technological
5. Socio-cultural
6. Political-legal
The Demographic Environment

 Worldwide population growth

 Population age mix
 Ethnic and other markets
 Educational groups
 Household patterns
The Economic Environment

 Consumer psychology is the study of how individuals make decisions about spending their money
on goods and services. It takes into account various factors, such as personal values, beliefs,
emotions, and behaviors, that influence consumer behavior.
 Income distribution refers to how the total income of a country or a region is divided among its
population. It is typically measured using statistical tools, such as the Gini coefficient, which
calculates the level of income inequality within a society.
Income, Savings, Debt, Credit:
 Income, savings, debt, and credit are interrelated concepts that play a crucial role in personal
finance and the economy as a whole.
Income distribution

 Subsistence economies
 Raw-material-exporting economies
 Industrializing economies
 Industrial economies
  Very low incomes
 Mostly low incomes
 Very low, very high incomes
 Low, medium, high incomes
 Mostly medium incomes
The sociocultural environment refers to the combination of social and cultural factors that affect an
individual's beliefs, values, and norms. These factors can include a variety of different elements, such
as:

 Views of others: This includes attitudes toward different groups of people, such as race, ethnicity,
religion, gender, and sexual orientation. These views can impact consumer behavior and influence
marketing strategies.
 Views of ourselves: This includes self-concept, self-esteem, and self-image. Marketers often try
to appeal to consumers' self-concept in advertising and branding.
 Views of society: This includes cultural values, beliefs, and norms, such as attitudes toward work,
family, and leisure time. Understanding these views is essential for developing effective
marketing strategies that resonate with the target audience.
 Views of nature: This includes attitudes toward the environment and sustainability. As consumers
become more environmentally conscious, businesses must adapt their practices to meet these
changing views.
 Views of organizations: This includes attitudes toward businesses and institutions, such as trust,
loyalty, and expectations of corporate social responsibility.
 Views of the universe: This includes beliefs about spirituality, religion, and the meaning of life.
While less directly related to marketing, these views can influence consumer behavior and should
be considered when developing marketing strategies.
The sociocultural environment refers to the shared beliefs, values, customs, behaviors, and artifacts
that characterize a society and influence its members' attitudes and behaviors.
The core cultural values are the fundamental beliefs and principles that guide the behavior and
attitudes of individuals within a society, which are often passed down from parents to children and
reinforced by social institutions.
Subcultures refer to groups of people within a larger society who share distinctive beliefs, values,
preferences, and behaviors that emerge from their unique life experiences or circumstances. These
subcultures can include ethnic or racial groups, religious groups, age cohorts, or other identifiable
groups with shared characteristics.
The natural environment
Corporate environmentalism
- Opportunities await those who can reconcile prosperity with environmental protection