Scanning the Marketing Environment Chap 3

8/10/2019 Scanning the Marketing Environment Chap 3

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Scanning the Marketing

EnvironmentPresented by: Group 1Shweta Jayaprakash

Akshay P S

Archana Vijaykumar

Sujin Thomas


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Components of a Modern Marketing

Information System

It consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and

distribute the needed information to marketing decision makers.

It relies on:

Internal company records

Marketing Intelligence System

Marketing research system


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Internal Records

Marketing managers rely on internal reports to spot important opportunities. The

different types of internal records include,

(1) The Order-to-Payment Cycle

(2) Sales Information Systems

(3) Databases, Data warehousing

(4) Data Mining.

The Order-to-Payment Cycle : It is a system that gathers and records information on

the time taken from the stage of placing orders by consumers to the stage of receiving

payments.


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Internal Records

Sales Information Systems:--

Its a flexible tool that helps you collect , consolidate and utilize data from sales and

distribution processing.

Provides timely and accurate information and reports on current sales of the company


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Data Warehousing

Its a database that can be used for reporting and analysing data.

It stores current as well as historical data .

It can be used for creating trending reports for senior management reporting


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Data Mining

Its the process of analysing data from different perspectives and summarising it into

useful information.

It lets users to analyse data from different dimensions.

Its the analysis of large quantities of data to extract unknown information.


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Marketing Intelligence

A marketing intelligence system, is a set a procedures that managers use to obtain

everyday information about the happenings in the marketing environment.

It supplies the happenings data.

It is collected in various ways like, reading books, newspapers, and trade publications,talking to customers, suppliers and distributers, monitoring social media on the

internet, meeting with other company managers etc.


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Improving Market Intelligence

TRAINING AND MOTIVATING THE SALES FORCE :-- Sales force is considered to be the

Intelligence Gatherers of the company. The acquired facts can be regarding the

companys market offerings , whether any improvements are require, or if there is any

opportunity for new products.

The sales team accomplishes this task by observing the competitors actions, listeningto the voice of trade channels and customers, etc.


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INTERNAL & EXTERNAL NETWORKING: Specialists are hired by the company to gathermarketing intelligence.

In order to measure the quality of products, the relation between employees andcustomers, quality of facilities being provided, retailers and service providers sendmystery shoppers.

The firms can also purchase the competitors products, their published reports, attendstockholders meetings, and look up news stories about the competitors.

SET UP CUSTOMER ADVISORY PANEL: Setting up customer advisory panels will help thefirms get advice from a group of existing customers regarding the industry trends,business priorities, and strategic direction


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OPTIMAL USE OF GOVERNMENT DATA SOURCES : Governments of almost all countries

provide reports regarding the population trends, demographic characteristics,

agricultural production and a lot of other data. This can be used by the firms.

INFORMATION BOUGHT FROM EXTERNAL SUPPLIERS: The firms can purchase

information from certain agencies that sell data

COLLECTING COMPETITIVE INTELLIGENCE THROUGH ONLINE CUSTOMER FEEDBACK :

Sources for customer feedback include, online platforms like chat rooms, discussion

forums, customer review boards, etc. This will help the firms to get customer

impressions and experiences.


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Analyzing the Macroenvironment


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Fad

Characteristic featureUnpredictable, short-lived & without social, economic &

political significance

Companies can cash in but requires luck & good timing


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Trend

Direction or sequence of events with momentum & durability

More predictable & durable than a fad


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Megatrend

Large social, economic, political & technological change that is slow to form & once in

place influences people for a period of 7 to 10 years or longer


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Demographic Environment( PPEEH)

World-wide Population Growth : Analyze the population growth, Identify the

urban & rural population etc

Population age mix : Differentiate based on age groups such as preschool

children, school-age children, teens, young adults,

middle aged adults & older adults

Ethnic& other markets : Ethnicity & racial diversity is checked across the coun

Educational Groups : Differentiate based on educational qualifications suc

high school diplomas, college degrees etc

Household patterns : Differentiate based on nuclear & joint families


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Demographic Environment

Titans Fastrackbrand dedicated for

the urban youth

Fastrack has strived to set itself apart

as a brand for the youth with their

bold & often controversial commercials

Creating the bold & sassy appearance

is something Faststrack has consciously

taken up to get the youth population

hooked on


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Economic Environment (CP, ID,CP)

Consumer Psychology : Consumer spending depends on disposable

income, socio-economic profiles etc

Income Distribution : Marketers classify countries based on income

levels such as mostly low incomes, mostly

medium incomes( subsistence , raw material

exporting, industrializing, industrial)

Consumption Patterns : Income class & Consumptions patterns are

matched & the trends are observed


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Sociocultural Environment

Views of ourselves

Views of others

Views of organizations

Views of society

Views of nature

High Persistence of Core Cultural ValuesCore beliefs & Secondary beliefs

Existence of SubculturesIdentify groups with shared beliefs, values, preferences


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Sociocultural Environment

More number of onlinematrimony services have become

available recently

These matrimony services cater to

the core belief of arranged

marriages prevalent in our country

Combining the core belief & the

power of online connectivity has

made it a successful venture

Advertisements focus on keeping

the traditional & cultural beliefs

intact


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Natural Environment

Corporate environmentalismRecognition of the need to integrate environmental

issues into firms strategic plans

Growing rise in researching other alternative sources of energy

Firms have to develop substitute products to replace non-renewable resources to stay

in the market


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Technological Environment

Marketers should monitor the following trends

Accelerating Pace of Change

Unlimited Opportunities for Innovation

Varying R&D budgets

Increased Regulation of technological gain


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Technological Environment

Apple Inc has constantly come out in

the market with innovative, out-of-the-

box ideas, products & services

Brand image that Apple has created is

not just due to sheer technological

brilliance but also their rigorous &

well-developed marketing strategies


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Political-legal Environment

Laws, government agencies & pressure groups influence various organizations &

individuals

Two major trends

Increase in business legislationProtect companies from unfair

competition, protect consumers from unfair business practices

Growth of special interest groupsNGOs lobbying to respect the rights

of women, children, senior citizens


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Political-legal Environment

Milma has been ordered by KeralaHigh Court to remove Fresh & Pure

imprint

This was issued on the grounds that it

contained skimmed milk

Many milk federations in the country

use similar lines on their products

despite using skimmed milk


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Scanning the Marketing Environment Chap 3

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