ENT4310 Business Economics and Marketing Gathering Market Information

ENT4310
Business Economics and
Marketing
Gathering Market Information
Arild Aspelund
Outline
• Environmental scanning – the responsibility of marketers
• Marketing Information Systems (MIS)
• Environmental analysis
– Competitive forces – Porter’s five forces
– PESTEL
The responsibility of Marketeers
•
Deliver information to top management of movements in the markets
that have implication for allocation of firm resources and firm strategy
•
Provide information of market fads, trends, megatrends and
competitive moves that regard firm operations
•
Emergence of demand for new products and services
•
Deliver feasibility studies for new business proposals
•
Status reports of ongoing marketing and sales activities
Marketing Information Systems (MIS)
a) An internal records system
•
•
•
Order-to-payment cycles (the logistics…)
Sales information and prognosis
Data mining
b) Marketing intelligence system
•
Procedures and sources for everyday development of marketing
environment
c) Marketing research system (ad hoc based)
•
Systematic design, collection, analysis, and reporting of data and findings
related to a specific situation or new business opportunity
Rockart’s Critical Success Factor
Model
•
The role of the MIS is to assess the manager’s information needs,
develop the needed information, and distribute that information in a
timely manner
•
The MIS is designed to provide a continous flow of information on key
factors that regularly goes into everyday marketing decision-making
•
The factors that goes into the MIS is determined by a study of
decision-making in management
•
All information is stored for later analysis
Rockart’s Critical Success Factor Model
Designing a CSF – marketing MIS
•
What decisions do you regularly make?
•
What information do you need to make these decisions?
•
What information do you regularly get?
•
What special studies do you periodically request?
•
What information would you want that you are not getting now?
Porter’s Competitive Forces
What is going on…?
Fad
Trend
Megatrend
Environmental Analysis
•
P – Political
•
E – Economical and demographical
•
S – Social and cultural
•
T - Technological
•
E – Environmental and natural
•
L – Legal
Environmental Analysis
P – Political
• Regulation and deregulation
• Tax policy
• Special Interest Groups
Economical and demographical
• Income and dept distribution and growth
• Population characteristics and growth
–
•
•
Ethnicity, age, and educational mix
Household patterns and non-traditional households
Geographical patterns; urban versus rural
Environmental Analysis
S – Social and cultural
• Society shapes normes, values, and beliefs that largely defines tastes
and preferences
• People absorb a worldview
–
•
•
Views about themselves, others, organizations, society, nature and the universe
Core beliefs versus secondary beliefs
Subcultures
T - Technological
• ”Creative destruction”
• Pace of change
• IP management and dangers of imitation
Environmental Analysis
E – Environmental and natural
• Pollution
• Shortage of energy and other raw material such as water
• Green customer preferences and legislation
L – Legal
• Laws protecting competition, consumers and society
• Rights and powers of buyers in relation to sellers
• Labeling
• Product safety and liability
• Privacy, management of personal information and direct marketing
Summary and Conclusions
•
It is the responsibility of the marketer to deliver information to top management
of movements in the markets that have implication for allocation of firm
resources and firm strategy
•
It is important to be able to distinguish fads from trends and megatrends. The
latter two are predominantly profitable, the former potentially risky…
•
Environmental analysis might help you on your way
–
–
•
Porters five competitive forces
PESTEL
Continuation
–
Market analysis
•
•
•
Customer value and needs
Quality and satisfaction
Loyalty