Understanding Markets and the Marketing Environment
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Transcript of Understanding Markets and the Marketing Environment
Understanding Markets and the
Marketing Environment
Marketing Environment
Marketing Environment- consists of : the actors & forces outside marketing that affect
marketing management’s ability to develop and maintain successful relationships with its target customers.
Includes: Microenvironment - forces close to the
company that affect its ability to serve its customers.
Macroenvironment - larger societal forces that affect the microenvironment.
TargetConsumers
Product
Place Price
Promotion
Mar
ketin
g
Im
plem
enta
tion
Marketing
Planning
Marketing
Control
Mar
ketin
g
Analysis
Competitors
MarketingIntermediaries
PublicsSuppliers
Demographic-Economic
Environment
Technological-Natural
Environment
Political-Legal
Environment
Social-Cultural
Environment
The Marketing Environment
The Company’s Microenvironment
Forces affecting company’s ability to serve customers: Company’s Internal Environment Suppliers Intermediaries Customer Markets Competitors Publics
Microenvironment Company’s Internal Environment: Company
itself and its role in microenvironment Functional areas inside a company that have
an impact on the marketing department’s plans.
Top management is responsible for setting company’s mission, objectives, broad strategies and policies
Marketing managers must make decisions within the parameters established by top management
Marketing managers must also work closely with other company departments
Company’s Internal Environment
Microenvironment
Suppliers: Firms and individuals providing resources to the company and its competitors to produce goods and services.
Important link in the company’s overall customer “value delivery system.” One consideration is to watch supply availability Another point of concern is the monitoring of
price trends of key inputs
Microenvironment
Intermediaries: Marketing intermediaries: Firms that help the
company to promote, sell, and distribute its goods to final buyers.
Resellers ğ Distribution channel firms that help the company to find customers or to make sales to them.
These include wholesalers and retailers They perform important functions more effectively
Microenvironment
Intermediaries (cont.): Physical distribution firms ğ Help the company
to stock and move goods from their origins to their destinations
Marketing service agencies ğ Help the company target and promote its products such as marketing research firms, ad agencies etc.
Financial intermediaries ğ Help finance transactions and insure against risks such as banks, insurance companies
Microenvironment
Government Markets
International
Markets
ResellerMarkets
Business
Markets
Con
sum
er M
arke
ts
Company
Customers - five main types of markets that purchase a company’s goods and services:
Microenvironment
Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage.
Every company faces a wide range of competitors
A company must secure a strategic advantage over competitors to be successful in the marketplace
No single competitive strategy is best for all companies
Microenvironment
Publics: any group that has actual or potential interest in or impact on an organization’s ability to achieve its objectives. A company should prepare a marketing plan for all of their major publics as well as their customer markets.
Financial publics Media publics Government publics Citizen-action publics Local publics General publics Internal publics
The Company’s Macroenvironment
Demographic Economic Natural Political-Legal Social-Cultural Technological
Demographic Environment
Worldwide Population GrowthWorldwide Population Growth
Age Structure of the PopulationAge Structure of the Population
Household PatternsHousehold Patterns
Educational GroupsEducational Groups
Geographical Shifts in PopulationGeographical Shifts in Population
Shift from Mass Market to MicromarketsShift from Mass Market to Micromarkets
Ethnic MarketsEthnic Markets
EconomicDevelopment
EconomicDevelopment
Changes in Income:Value Marketing
Changes in Income:Value Marketing
Changing ConsumerSpending Patterns
Changing ConsumerSpending Patterns
KeyEconomic
Concerns forMarketers
KeyEconomic
Concerns forMarketers
Economic Environment
Economic EnvironmentIncome DistributionIncome Distribution
Subsistence economies ğ The vast majority of people engage in simple agriculture, consume most of their output and barter the rest for simple goods and services.
Subsistence economies ğ The vast majority of people engage in simple agriculture, consume most of their output and barter the rest for simple goods and services.
Raw-material-exporting economies ğ are rich in one or more natural resources but poor in other respects. Much of their revenue comes from exporting these resources.
Raw-material-exporting economies ğ are rich in one or more natural resources but poor in other respects. Much of their revenue comes from exporting these resources.
Industrializing economies ğ Manufacturing accounts for 10 to 20% of gross domestic product. Industrialization creates a new rich class and a small but growing middle class, both demanding new types of goods.
Industrializing economies ğ Manufacturing accounts for 10 to 20% of gross domestic product. Industrialization creates a new rich class and a small but growing middle class, both demanding new types of goods.
Industrial economies ğ are major exporters of manufactured goods and investment funds. They buy manufactured goods from one another & export themto other types of economies in exchange for raw materials & semi-finished goods.
Industrial economies ğ are major exporters of manufactured goods and investment funds. They buy manufactured goods from one another & export themto other types of economies in exchange for raw materials & semi-finished goods.
Savings, Debt, & Credit AvailabilitySavings, Debt, & Credit Availability
Shortages of Raw Materials
Natural Environment
Factors Affecting
the Natural
Environment
Increased Pollution
GovernmentalIntervention
Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
Accelerating Paceof Change
Accelerating Paceof Change
Unlimited Opportunitiesfor Innovation
Unlimited Opportunitiesfor Innovation
IncreasedRegulation
IncreasedRegulation
Issues in the TechnologicalEnvironment
Issues in the TechnologicalEnvironment
VaryingR & D Budgets
VaryingR & D Budgets
Technological Environment
Technological Environment
Faster pace of technological change; products are outdated at a rapid pace.
Almost unlimited opportunities being developed daily in health care, space industry, robotics, and bio-genetic field.
Challenge is not only technical, but also commercial – make practical, affordable versions of products.
Increased regulation concerning product safety, individual privacy, and other areas that affect technological changes.
Includes laws, government agencies, etc. that influence & limit organizations/individuals in a given society
Includes laws, government agencies, etc. that influence & limit organizations/individuals in a given society
Political Environment
Legislation affecting businesses worldwide has increased Laws protect companies, consumers and the interests of society Increased emphasis on socially responsible actions
Social /Cultural Environment
People’s View of Organizations
People’s View of Organizations
People’s View of Nature
People’s View of Nature
People’s View of Themselves
People’s View of Themselves
People’s View of Society
People’s View of Society
People’s View ofthe Universe
People’s View ofthe Universe
People’s View of Others
People’s View of Others
Cultural Valuesof a
Society
Cultural Valuesof a
Society
Responding to the Marketing Environment
Environmental Management Perspective Taking a proactive approach to managing the
microenvironment & the macroenvironment by taking active actions to affect the publics and forces in the marketing environment.
How? Hire lobbyists , run “advertorials”, press law
suits, file complaints, and form agreements.
The marketplace isn’t what it used to be…
Changing technologyChanging technology
GlobalizationGlobalization
DeregulationDeregulation
PrivatizationPrivatization
EmpowermentEmpowerment
CustomizationCustomization
ConvergenceConvergence
DisintermediationDisintermediation
The Importance of Information
“Marketing is becoming a battle based more on information than on sales power”
Companies need information about their marketing environment competition customer needs
Some have developed advanced mktg info. systems, some others lack information sophistication
Companies with superior information; choose its markets better develop better offerings execute better marketing planning
The Importance of InformationThe Importance of Information
The 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 info. to marketing decision makers.
The MIS helps managers to: 1. Assess information needs,2. Develop needed information,3. Distribute information.
The Marketing Information System
10 useful questions to determine the information needs of marketing managers
1. What decisions do you regularly make?2. What information do you need to make these decisions?3. What information do you regularly get?4. What special studies do you periodically request?5. What information would you want that you are not getting
now?6. What information would you want daily? Weekly? Monthly?
Yearly?7. What magazines and trade reports would you like to see on
a regular basis? 8. What topics would you like to be kept informed of?9. What data analysis programs would you want?10.What are the three most helpful improvements that could
be made in the present marketing information system?
Information Managers
Would Like to Have
What They Really Need &
What is Feasible to
Offer
Functions of a MIS: Assessing Information Needs
Internal DataInternal DataComputerized Collection of Information
from Data Sources (i.e. Accounting) Within the Company.
Computerized Collection of Information from Data Sources (i.e. Accounting)
Within the Company.
MarketingResearchMarketingResearch
Design, Collection, Analysis, and Reporting of Data about a Specific
Marketing Situation Facing the Organization.
Design, Collection, Analysis, and Reporting of Data about a Specific
Marketing Situation Facing the Organization.
MarketingIntelligenceMarketing
IntelligenceCollection and Analysis of Publicly
Available Information about Competitors and the Marketing Environment
Collection and Analysis of Publicly Available Information about Competitors
and the Marketing Environment
Functions of a MIS: Developing Information
Information Needed by Managers Can be Obtained From:
Internal Record System
Consists of computerized collections of info. obtained from data sources within the company (internal data);
Includes reports on orders, sales, prices, costs, inventory levels, receivables, payables, etc. “opportunities” and “problems” can be determined
by analyzing these information Can usually be accessed more quickly and cheaply May be incomplete or data may be in the wrong
form.
Marketing Intelligence System
A set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment Data gathering sources:
Company personnel (esp.sales repr.) Suppliers, resellers, customers
“Mystery shoppers” sent by retailers Annual reports, speeches, press releases, and
advertisements Business publications, web pages Trade show exhibits Outside suppliers (e.g. mktg research company) Internal mktg info.center to collect and circulate mktg
intelligence
Marketing Research System
Marketing research ğ the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing an organization.
Market research ğ research into a particular market !
just one component of mktg research
Examples of research
• QUANTITATIVE RESEARCH : Seeks to quantify the data and typically applies some form of statistical analysis.
It is based on large number of representative sample Data collection is structured Recommend a final course of action
• QUALITATIVE RESEARCH : The main objective is to gain qualitative understanding of the underlying reasons & motives.
It is based on large number of representative sample Sample consists of small number of nonrepresentative cases. Data collection is unstructured Data analysis is nonstatistical It is possible to develop an initial understanding
The Marketing Research Process
Defining the problem and
research objectives
Defining the problem and
research objectives
Developing theresearch plan
Developing theresearch plan
Implementingthe research
plan: collecting the data
Implementingthe research
plan: collecting the data
Implementingthe research
plan: analyzing the data
Implementingthe research
plan: analyzing the data
Interpreting and reporting the findings
Interpreting and reporting the findings
Defining the Problem & Research Objectives
Example: ABC Airlines Case ABC Airlines is constantly looking for new
ways to serve the needs of air travelers:
One manager came up with the idea of offering phone service to passengers.
The other managers got excited about this idea and agreed that it should be researched further.
The marketing manager volunteered to do some preliminary research
The marketing manager then asked the company’s research manager to find out how air travelers would respond to this new service.
Defining the Problem & Research Objectives Example: American Airlines Case (cont.)
Research ProblemResearch Problem ? ? ““to find out everything about air travelers’ need” – too broad! “to find out if enough passengers aboard a B-747 flying
between East Cost and West Coast would be willing to pay $ 25” to make a phone call so that the company would break even on the cost of offering this service” – too narrow!
Research ProblemResearch Problem is finally defined as: “Will offering an in-flight phone service create enough incremental preference and profit for American Airlines to justify its cost against other possible investments that the company might make?”
Defining the Problem & Research Objectives Example: American Airlines Case (cont.)
Research Objectives: What are the main reasons that airline
passengers might place phone calls while flying?
What kinds of passengers would be the most likely to make phone calls?
How many passengers are likely to make phone calls, given different price levels?
How many extra customers might choose this company because of this new service?
How important will phone service be relative to other factors? (such as flight schedules, food quality, baggage handling, etc.)
Defining the Problem & Research Objectives
ExploratoryResearch
DescriptiveResearch
CausalResearch
•Test cause- and-effect relationships.
•Tests hypotheses about cause- and-effect relationships.
•Test cause- and-effect relationships.
•Tests hypotheses about cause- and-effect relationships.
•Sheds light on problem - suggest solutions or new ideas.
•Gathers preliminary information that will help define the problem
and suggest hypotheses
•Sheds light on problem - suggest solutions or new ideas.
•Gathers preliminary information that will help define the problem
and suggest hypotheses
•Ascertain magnitudes•Describes things as market
potential for a product or the demographics and consumers’
attitudes.
•Ascertain magnitudes•Describes things as market
potential for a product or the demographics and consumers’
attitudes.
Developing the Research Plan
Designing a research plan calls for decisions on: Data sources Research approaches Contact methods Sampling plan Research instruments
Data that were collected for another purpose, and already exist somewhere
(+)Obtained more quikcly / at lower cost
(-)Might not be usable data.
Developing the Research Plan:Data Sources
both must be:
Relevant
Accurate
Current
Impartial
Data gathered for a specific purpose or for a specific research project
A classification of marketing research data
Developing the Research Plan Secondary Data Collection
Internal Sources Company profit-loss statements, balance
sheets, sales figures, sales-call reports, invoices, inventory records, and prior research reports.
Government Publications Statistical Abstract County and City Data Book Industrial Outlook Marketing Information Guide
Periodicals and Books Business Periodicals Index Standard and Poor’s Industry
On-Line Databases (e.g. Lexis-Nexis, Compuserve, Dialog)
Applications of Secondary Data
Demand Estimation Monitoring the environment Segmentation and Targeting
Sources of Secondary Data (examples)
ESOMAR website - www.esomar.org founded in 1948 4,400 members in 100 countries mission : "ESOMAR is the world organisation for enabling
better research into markets, consumers and societies." the aim is to promote the value of market and opinion
research in illuminating real issues and bringing about effective decision-making.
creates and manages a comprehensive programme of industry-specific and thematic conferences, publications and communications
www.arastirmacilar.org in Turkey (Pazarlama ve Kamuoyu Araştırmacıları Derneği)
Other useful sources: AMA website – www.marketingpower.com AMS website – www.ams-web.org www.trendwatching.com
www.esomar.org
www.arastirmacilar.org
Basic Means of Primary Data
• Human versus machine observers • Natural versus contrived situations
Observation Communication
• Survey • Depth Interview• Focus group • Projective techniques
Research Techniques
Focus-groupFocus-group
ExperimentalExperimental
Behavioral Research
Depth Interview
Projective Techniques
Survey
Observation
Developing the Research Plan: Contact Methods
Mail Telephone Personal (arranged or intercept interviews)
Individual or group interviewing CAPI and CATI
On-line (Internet research) the data are not representative of a target
population people in the target market who do not use the
Internet or who don’t want to answer a questionnaire can bias the results.
Developing the Research Plan: Contact Methods (cont.)
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of Data Collected
Good Fair Excellent Good
Control of Interviewer
Excellent Fair Poor Fair
Control of Sample
Fair Excellent Fair Poor
Speed of Data Collection
Poor Excellent Good Excellent
Response Rate
Fair Good Good Good
Cost Good Fair Poor Excellent
Developing the Research Plan: Sampling Plan
Sample -representative segment of the
population How should thesample be
chosen?(Sampl.procedure)
Who is to be surveyed?(Sampling
Unit)
How many should besurveyed?
(Sample size)
A. Probability Sample
Simple random sample Every member of the population has an equal chance of selection
Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group
Cluster (area) sample The population is divided into mutually exclusive groups (such as city blocks), and the researcher draws a sample of the groups to interview
Probability and Nonprobability Samples
Continued on next slide . . .
B. Nonprobability Sample
Convenience sample The researcher selects the most accessible population members
Judgment sample The researcher selects population members who are good prospects for accurate information
Quota sample The researcher finds and interviews a prescribed number of people in each of several categories
Probability and Nonprobability Samples
Developing the Research Plan: Research Instruments
Mechanical Devices
• People Meters• Supermarket Scanners• Galvanometer• Tachistoscope• Eye Cameras
Questionnaire
• What questions to ask?• Form of each question?
•Closed-end•Open-end
• Wording?• Ordering?
Types of Questions
1_____ 2 _____ 3_____ 4_____ 5_____
Small airlines generally give better service than large ones.Strongly Disagree Neither agree Agree Stronglydisagree nor disagree agree
A statement with which the respondent shows the amount of agreement/ disagreement.
Likert scale
An organized tour groupSpouse and children
Business associates/friends/relativesSpouse
Children onlyNo one
With whom are you traveling on this flight?A question with three or more answers.
Multiple Choice
In arranging this trip, did you personally phone American? Yes No
A question with two possible answers.
Dichotomous
ExampleDescriptionName
A. Closed-end Questions
Types of Questions
Evet-Hayır Türü Kapalı SorularCep telefonunuz var mı?( )Evet (X )Hayır
Çok Seçenekli Kapalı Sorular A Markasını tercih etmenizin neden(ler)i nedir? Birden fazla
seçenek işaretleyebilirsiniz. ( ) Kalitesi(X ) Fiyatının makul olması .( ) Hafif olması ( ) Arkadaş tavsiyesi( ) Diğer. Belirtiniz
Types of Questions
Çok Seçenekli Kapalı Sorular (önem derecelerine göre sıralatma)A Markasını tercih etmenizin neden(ler)i nedir? Marka
tercihiniz üzerine etkili olduğu düşünülen aşağıdaki faktörleri 1’den 5’e kadar önem sırasına göre işaretleyiniz.
(2) Kalitesi(1) Fiyatının makul olması .(3) Hafif olması (4) Arkadaş tavsiyesi(5) Diğer – Lütfen belirtiniz: ..Bekleme süresi.........
Types of Questions
Likert ÖlçeğiBir cep telefonu için en önemli özellik hafif olmasıdır. Bu
yargıya katılır mısınız? ( ) Kesinlikle katılıyorum () Katılıyorum ( ) Ne katılıyorum ne
katılmıyorum (X) Katılmıyorum ( )Kesinlikle katılmıyorum
Boyutsal Ayırma Ölçeği (Semantic Differential)Bu işyerinde satış elemanlarının müşteriye karşı davranışlarıÇok soğuktur _ _ _ _ _ _ _ Çok sıcaktır
1 2 3 4 5 6 7
Types of Questions
Önem ÖlçeğiSizce bir cep telefonunda bekleme süresinin kısa olması ne
derecede önemlidir?
Çok önemlidir Hiç önemli değildir
( ) ( X ) ( ) ( ) ( ) 1 2 3 4 5
Satın Alma Niyeti Ölçeği Hastanemizde sizlere daha iyi hizmet sunabilmek amacı ile bir
gözlükçünün faaliyet göstermesine izin vermeyi düşünüyoruz. Bu proje gerçekleştirilirse gözlüklerinizi göz polikliniği içinde yer alacak bu gözlükçüye yaptırmayı düşünür müsünüz? Kesinlikle yapt. Yaptırmayı Ne düşünürüm Yaptırmayı Kesinlikle yapt.
düşünürüm düşünürüm ne düşünmem düşünmem düşünmem ( ) ( X ) ( ) ( ) ( )
Types of Questions
Önem-Performans Ölçeği
Bir hastanede yemekler sizce ne kadar lezzetli olmalıdır? Düşüncenizi 1-7 arasında bir değer vererek açıklayınız.
(en düşük) 1 2 3 4 5 6 7 (en yüksek)
( ) ( ) ( ) ( ) (X ) ( ) ( ) Hastanemizdeki yemekleri ne ölçüde lezzetli buldunuz ? Düşüncenizi
1-7 arasında bir değer vererek açıklayınız.
(en düşük) 1 2 3 4 5 6 7 (en yüksek)
( ) ( X) ( ) ( ) ( ) ( ) ( )
Types of Questions
Tam Açık Uçlu SoruŞirketimiz sizlere daha iyi hizmet sunabilmek amacı ile bir
aylık bakım servisini devreye sokmayı planlamaktadır. Bu proje gerçekleştirilirse yılda 50 milyon ödeyerek kaloriferinizin bakımını yaptırır mısınız? Bu konudaki görüşlerinizi kısaca açıklayınız ............................................................................................................
Kelime Çağrışım SorularıHavayolu .............................Cep telefonu ........................deyince aklınıza ne gelir? Boşlukları doldurunuz.
Interpreting and Reporting Findings
Researcher should present important findings that are useful in the major decisions faced by management.
Step 1. Interpret the Findings
Step 2. Draw Conclusions
Step 3. Report to Management
Back to: ABC Airlines Case:Main Survey Findings
The chief reasons for using in-flight phone service are:
emergencies, urgent business deals, mix-ups in flight times, and so on.
Making phone calls to pass the time would be rare. Most of the phone calls would be made by businesspeople on expense accounts.
About 5 passengers out of every 200 would make in-flight phone calls at a price $25 a call; 12 would make calls at $15.
Thus a charge of $15 would produce more revenue (12x$15=$180) than $25 a call (5x$25=$125).
ABC Airlines Case:Main Survey Findings (cont.)
The promotion of in-flight phone service would win the company about two extra passengers on each flight.
The net revenue from these two extra passengers would be about $ 620, but this still would not help meet the breakeven cost.
Offering in-flight phone service would strengthen the public’s image of ABC Airlines as an innovative and progressive airline.
However, it would cost the company about $200 per flight to create this extra goodwill.
Good Marketing Research:
Is scientific Is creative Uses multiple methods Realizes the interdependence of
models & data Acknowledges the cost & value of
information Maintains “healthy” skepticism Is ethical
Analyzing Marketing Information
Information gathered in internal databases and through marketing intelligence and marketing research ğ may require more analysis
Managers may need help in applying the info. to their mktg problems and decisions
Marketing decision support sysytems (MDSS) ğ “coordinated collection of data, systems, tools and techniques with supporting software and hardware, by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action”
marketing and sales software programs (decision models)
Important Outcome of Marketing Research:Customer Relationship Management
Many companies are turning to CRM ğ to manage detailed info.about individual customers
They manage “customer touch points” in order to maximize “customer loyalty”.
CRM ğ consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze in depth, and apply the results to build stronger relationships
Data warehouses Data mining techniques
“...CRM is not a technology solution....is just one part of an effective overall customer relationship strategy...”
Functions of a MIS:Distributing Information
Information Must be Distributed
to the Right Managers at the Right Time.
Distributes NonroutineInformation for Special
Situations
Distributes Routine Information for
Decision Making