ENVIRONMENTAL

SCANNING
COLLEGE OF BUSINESS ADMINISTRATTION
RAMON L. LERIT, MM/BA
PROFESSOR
Data sources
• Primary data sources include questionnaires and surveys. Secondary
research is usually faster, easier and less expensive than primary
research.
...
Secondary and primary research
• a company's own records and publications.
• government publications.
• competitors' websites and publications.
• newspapers, journals and magazine articles.
Marketing intelligence
• Marketing intelligence (MI) is the everyday
information relevant to a company's markets,
gathered and analyzed specifically for the purpose of
accurate and confident decision-making in
determining market opportunity, market penetration
strategy, and market development metrics.
MI System
• Market Intelligence System is a business analytics tool that analyses business data
obtained from various sources- Customers, Competitors, supply chain, stores etc.
Market Value.
• It is a set of procedures to gather information about what is happening in the market.
• -sources of information may includes:
- customers – they provide feedback on the product.
- Employes and partners – they pass on relevant customer information back to the
company.
- Third parties these include well-known data suppliers, government released data, and
competitors’ reports and datasheets.
Other source of intelligence are the internet, online review boards discussion forums,
chat rooms, and blogs are the rich sources interlligence.
Population and demographics
• Demographic factors that influence the market.
• Population growth is one of the main concerns of any market, but it
does not mean a growing market unless it is in tandem witht an
increase in buying power.
• There is a growing population in develop countries of older and more
affluent populations, hence affecting the population age mix. Thus,
products should be dedicated towards meeting an aging population’s
needs.
Economic factors the influence the market.
• The level of income.
• The type of industrial structure the country operates under, is an
indicator of propensity of the population to spent.
• A population propensity to save.
• Level of debt credit availability in a country is reflection of the health
of the economy.
Socio-cultural factors that influence the
market.
• A market is determined by customers’ view of
themselves, socity, and nature, as well as their
cultural values.
Natural environment that influence the
market.
• There is increasing concern for the state of the environment due to
greater awareness of environmental issues.
• Companies have responded by focusing on the development of
greener products and eco-friendly practices.
Technological factor that influence the market
• Technology shrinks some markets and paves the way for other to
emerge. The rapid pace of development creates continuously shifting
and overlapping target markets.
Political and legal factor the influence
market.
• Government charge companies with the perceived social costs their products or
practices have on the market.
• Companies practicing unfair methods of completion are also clamped down on to
protect the interest of fellow companies.
• Some regulations also protect local companies that do not have the ability to compete
with the economies of scale and marketability that multinational companies enjoy.
• Regulations on counterfeiting are also increasing.
• The rise of special interest groups to support consumerism imposes more
responsibility on companies in terms of their product pricing, advertisement, and
quality.
• The level of corruption in a country’s political and economic backbone influences the
development of a country
Forecasting and demand measurement. (What
does it mean by “market”)
• Potential market is the set of consumers with a sufficient level of
interest in the product.
• Available market is the set of consumers who have and interest,
income, and access to buy the product.
• Target market is that part of the available market that the compay
wants to pursue.
Market demand and market penetration
index.
• Market demand for a product is the total volume that would be
bought by a defined customer group in a define geographical area in
defined time period in a marketing environment under a defined
marketing program.
• Market penetration index is a comparison of the current and potential
levels of market demand.
Methods to estimate current demand.
• The market buildup method requires identifying all the potential
buyers in each market and estimating their potential purchases.
• The multiple-factor index method involves giving weights to different
factors that may contribute to sales opportunities. These factors
include income and level of competition.
Methods that estimate future demand.
• Future demand can estimated by surveying buyers’ intentions, using
a composite of sales force opinions using expert opinions, analyzing
past sales, or conducting direct-market test.
COMPONENTS OF A MODERN
MARKETING INFORMATION SYSTEM
• It consist of people, information, and systems to gather, analyze, and
distribute information, in a timely manner so that marketing
managers can carry out their analysis, planning, implementation, and
control responsibilities.
• Internal records and marketing intelligence.
e.g. Order are placed – invoices are prepared and distributed – Out-of-
Stock items are ordered from suppliers – Shipping and billing
information are prepared and distributed to the customers and stored
in the company’s data
Database, Data Warehousing and Data
Mining
• A database is a consolidated collection of customer information,
buying preferences, and psychographics ( interests, activities, and
opinions)
• Companies use the database to rank customers according to to their
FRM(purchase recency, frequency and monetary value) Data
warehousing is the storage of this data for decision making.
• Data mining is the mining of the data by statistical analysts to identify
trends and target markets.