Marketing Management

MBA CP 205

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and

Scanning the Environment

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment
Learning objectives:
Know what are the components of a modern marketing
information system.
Know what are useful internal records.
Know what is involved with a marketing intelligence
system.
Know what are the key methods for tracking and
identifying opportunities in the macro environment.
Know what are some important macro environment
developments.
03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment
Marketing Information System

A Marketing Information System (MIS) consists of

people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information
to marketing decision makers.

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment
MIS is developed from .
Internal company
records

Marketing
Intelligence

Marketing
Research

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment
Internal company
records
Order-to-Payment
Cycle

Sales
Information
System

Databases,
Warehousing,
Data Mining

Marketing
Intelligence
System

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment
Marketing Intelligence System

A marketing intelligence system is a

set of procedures and sources
manager use to obtain
everyday information about
developments in the
marketing environment.

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment

Steps to improve quality of marketing

intelligence

Train
Train sales
sales force
force to
to scan
scan for
for new
new developments
developments
Motivate
Motivate channel
channel members
members to
to share
share intelligence
intelligence
Network
Network externally
externally
Utilize
Utilize a
a customer
customer advisory
advisory panel
panel
Utilize
Utilize government
government data
data resources
resources
Purchase
Purchase information
information from
from outside
outside
suppliers
suppliers
Collect
Collect customer
customer feedback
feedback online
online

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment

Analyzing the Macro-environment

Needs and Trends

Fad

Trend

Megatrend

03/26/15 13:43

Prof. U.M. Amin, CMS,

Gathering information and Scanning the

Environment
Identifying Environmental forces
Demographic
Political-Legal

Economic

Technological

Socio-Cultural
Natural

03/26/15 13:43

Prof. U.M. Amin, CMS,

10

Gathering information and Scanning the

Environment
Population and
demographics

Size
Growth rate
Age
distribution
Ethnic mix
Educational
levels

03/26/15 13:43

Prof. U.M. Amin, CMS,

Household
patterns
Regional
characteristics
Movement

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Gathering information and Scanning the

Environment
All figures in
million

Source: The Marketing White book 2007-08, Business

World

03/26/15 13:43

Prof. U.M. Amin, CMS,

12

Gathering information and Scanning the

Environment
The size and growth rate of Indias population provides
great marketing opportunities.
As per 2001 census, median age of Indian population is
24 years making India a young country where as there is
a trend towards an aging population globally.
Marketers need to analyze the markets carefully to find
major opportunities due to rising population. Chinese
example.

03/26/15 13:43

Prof. U.M. Amin, CMS,

13

Gathering information and Scanning the

Environment

Mattel markets in
China.
The headline reads:
Hot wheels
Performance
Tracks Great
Varieties,
Great Challenges!

03/26/15 13:43

Prof. U.M. Amin, CMS,

14

Gathering information and Scanning the

Environment
Economic
Environment

Purchasing Power
Income Distribution
Savings Rate
Debt
Credit Availability

03/26/15 13:43

Prof. U.M. Amin, CMS,

15

Gathering information and Scanning the

Environment
Classification of Income Class
All figures in
million
19951996

20062007

Income Class

Household
s

Estimated
Population

Household
s

Estimated
Population

The Globals(>10L)

1.2

5.2

30

The Strivers(5-10L)

32.5

186

75.5

432

The seekers(2-5L)

54.1

312.2

81.7

472

The Aspirers(0.92L)

44

253.9

20.2

117

The
Deprived(<0.9L)

33

190.4

16.5

95

Source: The Marketing White book 2003-04, Business

World

03/26/15 13:43

Prof. U.M. Amin, CMS,

16

Gathering information and Scanning the

Environment
Socio-cultural Environment
Culture, traditions, beliefs, attitudes, values and lifestyles
of the people constitute the socio-cultural environment.
Social factors influence the products people buy, the
prices they are willing to pay and how, where and when
people expect to purchase products.
With over 30 languages, over 200 mother tongues and
app. 2000 dialects, India is a complex nation of cultures
and sub-cultures.

03/26/15 13:43

Prof. U.M. Amin, CMS,

17

Gathering information and Scanning the

Environment
Diversity of languages has implications for marketing
communications.
A survey conducted by Research International in 2002
indicated significant regional differences in values,
attitudes and preferences amongst Indian women.
Based on the shopping habits of women, the study
classifies them into five categories.
These are: Liberated youngsters (13%), Modern mums
(18%), Behind the times (20%), Rebellious youngsters
(22%), and Orthodox mothers (27%)
03/26/15 13:43

Prof. U.M. Amin, CMS,

18

Gathering information and Scanning the

Environment
Natural
Environment

Shortage of
raw materials

Increased
energy costs

Anti-pollution
pressures

Changing role of
Governments

03/26/15 13:43

Prof. U.M. Amin, CMS,

19

Gathering information and Scanning the

Environment

GreenDisk, a company
that
Produces high quality
Recycled disks.

03/26/15 13:43

Prof. U.M. Amin, CMS,

20

Gathering information and Scanning the

Environment
Technological
Environment

Pace of change

Opportunities
for innovation
Varying R&D
budgets
Increased regulation
of change
03/26/15 13:43

Prof. U.M. Amin, CMS,

21

Gathering information and Scanning the

Environment
Politico-Legal
Environment
Increase in
business legislation

Growth of special
interest groups

03/26/15 13:43

Prof. U.M. Amin, CMS,

22

Gathering information and Scanning the

Environment
Recap:
What are the components of a modern marketing
information system.
What are useful internal records.
What is involved with a marketing intelligence system.
What are the key methods for tracking and identifying
opportunities in the macro environment.
What are some important macro environment
developments.

03/26/15 13:43

Prof. U.M. Amin, CMS,

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