Principles of marketing: Lecture 11

MGT301
Principles of Marketing
Lecture­11


Summary
of
Lecture-10


The Macroenvironment


Demographic
Demographic

Cultural
Cultural

Forces that Shape
Forces that Shape
Opportunities 
Opportunities 
and Pose Threats
and Pose Threats
to a Company
to a Company

Political
Political

Economic
Economic

Natural
Natural
Technological
Technological


Today’s Topics
Analyzing Marketing opportunities and developing strategies­
MIS
 Analyzing marketing opportunities

Situation Analysis
The Three Cs


••Market
MarketPotential
Potential
(size,
(size,growth
growthrate)
rate)

Customers
••Industry
Industry
Structure

Structure
Analysis
Analysis
(entry/exit
(entry/exit
barriers,
barriers,buyers,
buyers,
sellers,
sellers,
substitutes)
substitutes)
••Competitor
Competitor
Response
Response
Profiles
Profiles
(capabilities,
(capabilities,
current
currentand
andfuture
future
actions)
actions)

Company

Competitors

••Customer
Customer
Behavior
Behavior(wants
(wants
and
andneeds,
needs,
segmentation,
segmentation,
price
pricesensitivity)
sensitivity)
••Economic
Economic
Analysis
Analysis(costs,
(costs,
break-even,
break-even,
profitability)
profitability)
••Company
CompanyFit
Fit
(strengths,
(strengths,
weaknesses,
weaknesses,

resources,
resources,culture,
culture,




changing environment
– opportunities and threats



changing firm situation
– relative strengths and weaknesses



Fit ­ match opportunities with firm’s objectives and resources 
(strengths)



Market Information System


Marketing Information System (MIS)
People, equipment, and procedures to gather, sort, analyze, 
evaluate, and distribute needed, timely, and accurate 
information to marketing decision makers. 

The Marketing
Information System
Marketing
managers

Marketing Information System
Developing information

Analysis
Planning

Assessing
information
needs

Internal
records

Marketing
intelligence

Implementation

Marketing
environment
Test
markets
Marketing
channels

Competitors

Control
Distributing
information

Marketing
decision
support
analysis

Marketing
research

Marketing decisions and communication

Publics
Macroenvironment
forces


Purpose?





Determine decision makers’ information needs
Acquire needed information
Distribute information

Steps..





Assessing the Marketing Information Needs
Developing the Marketing Information
Analyzing Marketing Information
Distributing and using Marketing Information 


Assessing Marketing Information 
Needs





 What Users would like to have?
 What Really is need?
 What is feasible to offer?
Costs of Information



Developing the Marketing Information





Internal Records (Internal Data)
Marketing Intelligence
Marketing Research


Internal Records (Internal Data)

Information obtained from data source within the company


Marketing Intelligence

The systematic collection and analysis of publicly available 
information about competitors and developments in the 
marketing environment




 Competitors



 Suppliers



 Resellers



 Customers



 Published Information


Marketing Research

The systematic design, collection, analysis, and reporting of 
data relevant to a specific marketing situation facing an 
organization


Steps in the Marketing Research 
Process
1.
1. Problem
Problem Definition
Definition and
and the
the
Research
Research Objectives
Objectives

2.
2. Developing
Developing the
the Research
Research Plan
Plan
3.
3. Implementation
Implementation
4.
4. Interpretation
Interpretation and
and Reporting
Reporting
of
of Findings
Findings


Why Research?

Why Business Research ?


Business Research is ….
Provides information for aid in making business related decisions
– Identify opportunities
– Generate & refine actions
Systematic & objective process
– designing, gathering, analyzing & reporting information

– used to solve a specific problem
Helps reduce risk inherent in decision making


Why is research important?




Provides an important link to customers
Allows implementation of the business concept


Enables managers
 to identify & understand stakeholders wants & needs
develop appropriate strategies to meet these needs


Enough for today. . .


Summary

Marketing Information System (MIS)