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3Scanning the Marketing

Environment, ForecastingDemand, and Conducting

Marketing Research

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Chapter Questions

What are the components of a modernmarketing information system?What are useful internal records?

What makes up a marketing intelligencesystem?What are some influential macroenvironment developments?How can companies accurately measureand forecast demand?

Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e .

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3-3

Chapter Questions

What constitutes good marketing research?What are the best metrics for measuringmarketing productivity?

How can marketers assess their return oninvestment of marketing expenditures?


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3-4

What Is a

Marketing Information System?

A marketing information system

consists of people, equipment, andprocedures to gather, sort, analyze,evaluate, and distribute needed, timely,and accurate information tomarketing decision makers .


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Table 3.2 Information Needs Probes

What decisions do you regularly make?What information do you need to make thesedecisions?What information do you regularly get?What studies do you periodically request?What information would you want that you arenot getting now?

What are the four most helpful improvementsthat could be made in the present marketinginformation system?


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Internal Records andMarketing Intelligence

Order-to-payment cycleSales information system

Databases, warehousing, data miningMarketing intelligence system


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What Is aMarketing Intelligence System?

A marketing intelligence system isa set of procedures and sources thatmanagers use to obtain everydayinformation about developments inthe marketing environment.


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Steps to Quality Marketing Intelligence

Train sales force to scan for new developmentsMotivate channel members to share intelligenceHire external experts to collect intelligenceNetwork externallyUtilize a customer advisory panelUtilize government data sourcesPurchase information


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Important Sources of Secondary Datain South Asia

Statistical Outline of IndiaCentre for Monitoring Indian Economy(CMIE)

The Marketing WhitebookReadership SurveysNational Council of Applied Economic

Research (NCAER)Indian Trade Statistics


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Important Sources of Secondary Datain South Asia

Web sites such as magindia.com andagencyfaqs.comEuromonitor International

Statistics Division of the Government ofPakistan (http://www.statpak.gov.pk)The Bangladesh Bureau of Statistics

(http://www.bbs.gov.bd)The Department of Census and Statistics, SriLanka (http://www.statistics.gov.lk)


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Sources of Competitive Information

Independent customer goods and servicereview forumsDistributor or sales agent feedback sites

Combination sites offering customer reviewsand expert opinionsCustomer complaint sites

Public blogs


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Needs and Trends

Fad

Trend

Megatrend


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Major Forces in the Environment

Demographic

Economic

Socio-cultural

Natural

Technological

Political-legal


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Population and Demographics

Population growthPopulation age mix

Ethnic and other marketsEducational groupsHousehold patterns


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Economic Environment

Consumer Psychology

Income Distribution

Income, Savings, Debt, Credit


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Income Distribution

Subsistence economies( very few)Raw-material-exporting economies

(Saudi Arabia)Industrializing economies(India, Egypt Etc)Industrial economies(Western Europe)


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Very Low IncomeMostly Low IncomeVery Low, Very High IncomeLow, Medium and High IncomeMostly Medium Income

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Income Distribution in India


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Sociocultural Environment

Views of themselvesViews of othersViews of organizationsViews of societyViews of natureViews of the universe


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Other Cultural Factors in Marketing

Core beliefs: hard to changeSecondary beliefs: easier to changeExistence of subcultures


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Natural Environment


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Technological Environment

Accelerating Pace of changeOpportunities for innovationVarying R&D budgetsIncreased regulation of change


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The Political-Legal Environment

Business Legislation

Growth of Special InterestGroups

Government Agencies


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Forecasting andDemand Measurement

How can we measure market demand?Potential market

Available marketTarget marketPenetrated market


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A Vocabulary forDemand Measurement

Market Demand

Market Forecast

Market Potential

Company Demand

Company Sales Forecast

Company Sales Potential


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Market Demand Functions


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Estimating Current Demand:Total Market Potential

CalculationsMultiply potential number of buyers byaverage quantity each purchases timespriceChain-ratio method


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Estimating Current Demand:Area Market Potential

Market-Buildup


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Estimating Current Demand:Area Market Potential

Multiple-Factor Index


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Estimating Future Demand

Survey of Buyers Intentions Composite of Sales Force OpinionsExpert OpinionPast-Sales AnalysisMarket-Test Method


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What Is Marketing Research?

Marketing research is the systematic design,collection, analysis, and reporting of data

and findings relevant to a specific marketing

situation facing the company.


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Market Research process


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Step 1: Define the Problem

Define the problemSpecify decision alternativesState research objectives


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Step 2: Develop the Research Plan

Data sourcesResearch approachResearch instrumentsSampling planContact methods


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Research Approaches

Observational and ethnographicFocus groupSurveyBehavioral dataExperimental research


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Research Instruments

QuestionnairesQualitative MeasuresTechnological Devices


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Sampling Plan

Sampling unit: Who is to be surveyed?Sample size: How many people should besurveyed?

Sampling procedure: How should therespondents be chosen?


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Contact Methods

Mail contactsTelephone contactsPersonal contactsOnline contacts


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What Is aMarketing Decision Support

System (MDSS)? A marketing decision support system is acoordinated collection of data, systems,tools, and techniques with supportinghardware and software by which anorganization gathers and interprets relevantinformation from business and environmentand turns it into a basis for marketing action.


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Characteristics of good MarketingResearch


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What Are Marketing Metrics?

Marketing metrics are the set of measuresthat helps marketers quantify, compare, and

interpret marketing performance.


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Marketing-Mix Modeling

Marketing-mix models analyze data froma variety of sources, such as retailerscanner data, company shipment data,pricing, media, and promotion spendingdata, to understand more precisely theeffects of specific marketing activities.


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For Review

What are the components of a modernmarketing information system?What are useful internal records?

What makes up a marketing intelligencesystem?What are some influential macroenvironmentdevelopments?How can companies accurately measure andforecast demand?


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For Review

What constitutes good marketing research?What are the best metrics for measuringmarketing productivity?

How can marketers assess their return oninvestment of marketing expenditures?

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