Download Module 3 - Valdosta State University

Module 3
Researching and Analyzing Marketing
Opportunities in the Environment
Kotler’s Chapter 4 and 5
Chapter 4: Gathering Information
and Measuring Market Demand
• Learning Objectives
– 1. Describe the components of a marketing
information system.
– 2. Describe the steps in the marketing research
process and how one would design a marketing
research project.
– 3. Describe how companies estimate current
and future demand.
Chapter 4/Objective 1: The components
of a marketing information system.
• Marketing Information System (MIS)
– Consists of people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate info to mktg
decision makers.
– Made up of Internal Records System,
Marketing Intelligence System, Marketing
Research System, and Marketing Decision
Support System
Chapter 4/Objective 1: The components
of a marketing information system cont.
– Internal Records System
• Order-to-payment cycle - EDI, intranets can help
• Sales Information Systems - up-to-date sales figures
• Need to determine info needs
– Marketing Intelligence System -everyday info
• A set of procedures and sources used by managers to obtain
everyday info about developments in the mktg environment.
• Get salespeople, channel members, and customers to
communicate intelligence. Use mystery shoppers, buy outside
information, learn about competition, and develop a marketing
information center to collect/share information.
Chapter 4/Objective 1: The components
of a marketing information system cont.
– Marketing Research System - specific questions
• The systematic design, collection, analysis, and reporting of
data and findings relevant to a specific marketing situation (i.e.
to answer a specific marketing question - not day-to-day
marketing information).
– Marketing Decision Support System - tech
• A 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 (i.e. use of technology to utilize information
for better marketing decision making).
Chapter 4/Objective 2: The steps
in the marketing research process
• Five Basic Steps
– 1. Define the problem and research
objectives
• Key step because if misdefine the problem the other steps are
useless. The research can be exploratory, descriptive, or causal
based on nature of defining the problem.
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2.
3.
4.
5.
Develop the research plan
Collect the information
Analyze the information
Present the findings
Chapter 4/Objective 2: The steps
in the marketing research process
• Step Two - Develop the Research Plan
– Determine data sources, research approaches, research
instruments, sampling plan, and contact methods.
– Data Sources - primary or secondary
– Research Approaches - observation, focus groups,
surveys, behavioral data, and experiments
– Research Instruments - questionnaires or mechanical
instruments (ex. Nielsen box measuring TV viewing)
– Sampling Plan - who, how many, how chosen
– Contact Methods - mail, phone, personal, or online
Chapter 4/Objective 2: The steps
in the marketing research process
• Step Three - Collect the Information
– Need to be careful here to avoid bias.
• Step Four - Analyze the Information
– Use statistical techniques and decision models
to transform data into useful information.
• Step Five - Present the Findings
– Communicate findings clearly and effectively.
Chapter Four/Objective Three:
Estimate Current/Future Demand
– Market Demand - the total volume that would be bought by a
defined customer group in a defined geographical area in a defined
time period in a defined marketing environment under a defined
marketing program.
– Market Potential - the limit approached by market demand as
industry marketing expenditures approach infinity for a given
marketing environment
– Company Demand - the company’s estimated share of
market demand at alternative levels of company marketing effort in
a given time period
– Company Sales Forecast - the expected level of company
sales based on a chosen marketing plan and an assumed marketing
environment
Chapter Four/Objective Three:
Estimate Current/Future Demand
• Estimating Current Demand
– Total Market Potential = potential number of
buyers x average quantity purchased x price
– Area Market Potential - estimate territories
• Market-Buildup Method (business markets)
– Identify buyers and estimate their potential purchases
• Multiple-Factor Index method (consumer markets)
– Determine factors that impact purchase (ex. population
size, income level) and weight them
Chapter Four/Objective Three:
Estimate Current/Future Demand
• Estimating Future Demand
– Look at what people say, what people do, or
what people have done.
– Survey of Buyers’ Intentions
– Composite of Sales Force Opinions
– Expert Opinion
– Past Sales Analysis - ex. time-series analysis
– Market-Test Method
Chapter 5: Scanning the
Marketing Environment
• Learning Objectives
– 1. Describe what are the trends and why they
are so important for marketers to address.
– 2. Describe the major forces in the
macroenvironment and how they influence
marketing.
Chapter 5/Objective 1: Trends
• Trend - a direction or sequence of events that have some
momentum and durability
– has longevity, is observable across several market areas
and consumer activities, and is consistent with other
significant indicators occurring at the same time
• Fad - unpredictable, short-lived, without social,
economic, and political significance
• Megatrends - large, social, economic, political and
technological changes that are slow to form, and once in
place, influence for 7-10 years+ (ex. global economy)
• Need to first identify trend and then assess its’ implications
Chapter 5/Objective 2: Major
Forces in Macroenvironment
• The external environment presents both
opportunities and threats that marketers must
address.
– Demographic
– Economic
– Natural
– Technological
– Political-Legal
– Social-Cultural
Chapter 5/Objective 2: Major
Forces in Macroenvironment
• Demographic Environment - need to identify key
characteristics, analyze purchasing behavior, and
determine media preference
– Worldwide population growth - highest in 3rd world
– Population age mix - varies by country
– Ethnic markets - may have distinct buying patterns
– Educational groups - literacy rates, % college educated
– Household patterns- non-traditional households
– Geographical Shifts in Population
– Shift from a Mass Market to Micromarkets
Chapter 5/Objective 2: Major
Forces in Macroenvironment
• Economic Environment
– Income Distribution
• 4 types of industrial structures: subsistence, raw
material exporting, industrializing, and industrial
– Savings, Debt, and Credit Availability
• Marketers must pay attention to changes in incomes,
cost of living, interest rates, savings, and borrowing
patterns as will impact business.
Chapter 5/Objective 2: Major
Forces in Macroenvironment
• Natural Environment - deterioration of the
natural environment is a global concern
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–
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Shortage of Raw Materials
Increased Energy Costs
Increased Pollution Levels
Changing Role of Governments in effort to
promote clean environment; varies by country
Chapter 5/Objective 2: Major
Forces in Macroenvironment
• Technological Environment - impacts new
products and new processes (way to do
things and market products)
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Accelerating Pace of Technological Change
Unlimited Opportunities for Innovation
Varying R&D Budgets
Increased Regulation of Technological Change
- how will this impact the Internet?
Chapter 5/Objective 2: Major
Forces in Macroenvironment
• Political-Legal Environment
– Legislation Regulating Business
• To protect companies from unfair competition, to
protect consumers from unfair business practices,
and to protect the interests of society from unbridled
business behavior.
• Consider local, state, national, international laws
– Growth of Special Interest Groups
• Political-Action Committees lobbying efforts.
Chapter 5/Objective 2: Major
Forces in Macroenvironment
• Social-Cultural Environment
– People’s perceptions of themselves, others,
organizations, society, nature, and the universe
all effect buying patterns.
– High Persistence of Core Cultural Values
• Core beliefs/values persist while secondary beliefs/
values are more open to change.
• Existence of Subcultures.
• Shifts of Secondary Cultural Values Through Time
Module 3 - Researching and Analyzing
Marketing Opportunities in the Environment
• Chapter 4: Gathering
Information and
Measuring Market
Demand.
• Chapter 5: Scanning the
Marketing Environment
• Any Questions?