Marketing Environment

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Marketing Environment
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• Marketing is becoming a battle based more on
  information than on sales power.

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What is a marketing decision support system
(mdss)?

• 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 (Kotler p. 71)

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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
• (Kotler, p. 65)

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Example of using internal secondary data Skil
Cordless Screwdriver
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Qualitative Research ExampleObservation Research
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Primary versus Secondary Data

• Primary data refers to information that is
  developed or gathered by the researcher
  specifically for the research project at hand.
• Secondary data refers to information that has
  previously been gathered by someone other than
  the researcher and/or for some other purpose than
  the research project at hand.

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What are the main types of marketing research
information?

• Primary
• Qualitative
• Quantitative
• Secondary

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Which is the Largest Marketing Research
Corporation in the world?
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VNU Inc. Netherlands 1.6 billion sales in 2003
Includes ACNielsen, Claritas, Spectra Retail
measurement services ScanTrack - weekly data on
packaged goods Procision - tracks drug and
beauty health purchases Consumer panel
services HomeScan tracks buying behavior of
households Customized research services
Source Jack Honomichl, 2003
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What are the most important trends in marketing
research in the last decade?

• Globalization
• Gathering data via the Internet
• Greater use of qualitative data
• Greater use of quantitative data
• New and improved tools
• Multiple methods of marketing research used

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The Best Marketing Research Website

• http//www.quirks.com

Also, see http//www.esomar.org/
http//www.knowthis.com/
http//www.harcourtcollege.com/marketing/students/
research.htm
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Companies sometimes fail to recognize how changes
in the environment might affect their ultimate
performance. Can you name some examples?
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Environmental Scanning

• Environmental Scanning is the process of
  collecting information about the external
  marketing environment to identify and interpret
  potential trends

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THE ECONOMIC ENVIRONMENT

• The economic environment represents the
  relationship between economic changes and
  marketing decisions

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Economic Environment

• Distribution of income
• Real world growth
• Saving, debt, and credit availability
• Exchange rates
• Inflation
• Employment
• Business cycles
• Others?

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THE NATURAL ENVIRONMENT

• The natural environment represents the interface
  between the earths natural resources and
  marketing.

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Natural Environment

• Availability and cost of raw materials
• Availability and cost of energy
• Role of government
• Pollution problems and regulation

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Changing Natural Environment
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THE TECHNOLOGICAL ENVIRONMENT

• The technological environment represents the
  application of knowledge in science, inventions,
  and innovations to marketing.

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Technological

• New discoveries and innovations
• Speed of technology transfer
• Accelerating pace of change
• Internet
• Information technology
• Increased regulation
• Others?

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THE SOCIAL-CULTURAL AND DEMOGRAPHIC ENVIRONMENT

• Marketings social-cultural environment the
  relationship between marketing and society and
  its culture

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Sociocultural and demographic factors

• Demographics
• Distribution of income
• Social mobility
• Lifestyle changes
• Household patterns
• Levels of education
• Others?

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How do you explain Uncrustables?
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THE POLITICAL-LEGAL ENVIRONMENT

• Political-Legal Environment Component of the
  marketing environment consisting of laws and
  interpretations of laws that require firms to
  operate under competitive conditions and to
  protect consumer rights.

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Legal environment

• Monopolistic regulation
• Environmental protection laws
• Taxation policy
• Employment laws
• Consumer protection laws
• Legislation
• Others?

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Political Environment

• Government policy
• Nationalism
• Consumerism
• Special interest groups

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High-tech pay toilets in San Francisco have been
difficult to maintain due to legal requirements.
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FINAL THOUGHT AVOID PARALYSIS BY ANALYSIS
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