Capturing marketing insights & spotting marketing trends 03

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Capturing marketing insights & spotting marketing trends 03

  1. 1. Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha logo copy.tif SUMMARY by Chapter 3 Capturing Marketing insights and Spotting Market Trends To provide insight into an inspiration for marketing decision making, companies must possess comprehensive, up-to-date information about macro trends as well as micro trends particular to their business. This chapter deals with various modes of obtaining this information and also looks into the major macroeconomic forces that affectMIS marketing decisions.(MarketingInformation MIS (Marketing Information System)System) MIS can provide data e.g. Swiss eat most chocolates, Greeks eat most cheese. It relies on internal company records, marketing intelligence activities and Market Research.Consists of people, MIS provides information on market happenings and changes in environment. Purposesequipment and of MIS have been noted below.procedures, togather, sort, • Train the sales force for intelligence gathering by observing competitors activities and listening to customer comments.analyze, evaluate • Motivate retailers and distributors to pass intelligence. E.g. mystery shoppers toand distribute identify customer treatment and possible flaws.needed, timely and • Network externally using competitor’s annual reports, talking with theiraccurate retailers, distributors and employees, attending shareholder meetings. It should be done ethically and legally.information to • Use government sources (Census, NSSO reports) or purchase data from outsidemarketers. suppliers (AC-Nielsen, etc) • Create a panel of largest, sophisticated and important customers for feedback. • Use online forums, sites offering customer and expert reviews, Customer compliant sites,
  2. 2. Chapter 3 - Capturing Marketing insights and Spotting Market Trends Internal Company Records • Order to Payment cycle - Customer places order for goods -> Sales team sends invoice to various departments -> Sales team back orders out of stock items -> Suppliers send goods and sales team pays suppliers -> Sales team delivers order and receives payment. Purpose is to minimize number and duration of cycles. • Sales Information System - Keeping constant track of sales, customers, etc. It can help in identifying trends. • Database / Data warehousing / Data Mining - Separate databases are there for products, salespersons and customers. Purpose is to analyze (mine) data using statistical methods and discover trends.Analyzing theMacro Major Macro Environmental ForcesEnvironment DemographicFad – 16.7% of World population in India; Male to Female ratio of 933:1000Unpredictable, Population Age mix : median age of 23.8 years, 34% b/w 12 and 25yrs, 24% b/w 25 andshort-lived, without 34 years Literacy level: 65.38% literate, 75.8% males and 54.16% females, 76% literacy betweenany economic or 15-24yrs age group, 64.5% literacy between 25-34yrs age group.social significanceTrend -Sequence of events Economicthat have Purchasing Power depends on income, savings, prices, credit availability. India’s GDP ismomentum and $1.2 trillion, per capital income of $3100durability, reveals Income distribution: 77.7% of urban households have income up to Rs3000/month while only 2.1% have income more than Rs 10,000/month.the future. Categories of Indian consumers: Destitute ( less than Rs16,000 annually, inactiveMegatrend – participants in market exchange), Aspirants ( Rs 16,000 to Rs22,000, new entrants inLarge social and consumption system), Climbers, (Rs 22,000 to Rs 45,000, have desire and willingness toeconomic influence, buy but has limited cash), Consuming Class ( Rs 45, 000 to Rs 2,15,000, majority haveslow in formation money and are willing to pay), Rich ( more than Rs 2,15 000, have money and own a variety of products).but has lasting Trend shows increasing % of Consumers and Climbers while a decreasing % of Destituteeffect. and Aspirants. Social-Cultural Society shapes beliefs, values, demands, and requirements. It affects dress codes, food habits, brand preferences. Trend shows an increasing role of children on purchasing decisions e.g. bicycles, computers, wrist watches, shoes and other FMCG goods.
  3. 3. Chapter 3 - Capturing Marketing insights and Spotting Market Trends Natural Deterioration of environment is a significant concern e.g. Greenhouse Effect, Ozone layer and fossil fuel depletion. Government concerns in this aspect are Euro-2 emissions norms and CNG. Although majority feels necessity of environmental friendly products, they do not buy because (a) Perception of green good being of inferior quality and (b) Perception that good does not contribute majorly to the environment. Corporate Environmentalism is recognizing the importance of environmental issuesWhat is the affecting the firm and integrating those in its strategic plans is fast gaining ground. E.g. Focus on Non-renewable sources like Jatropha oil, Pollution Control Systems likedifference landfills, recycling centers and focus on CNG initiatives.between aFad and a Technological Four major trends are (a) Accelerated Pace of Change: e.g. Apple selling 23.5 million in 2006Trend? (b) Unlimited Opportunities for Innovation e.g. Developments in Bio-tech,A fad becomes a telecommunication, Robotics, aid vaccines, contraceptive pills.trend when it (c) Varying R & D Budget: e.g. Increasing R & D in Pharmaceutical companies like Cipla, Dr. Reddy’s, and Ranbaxyaffects a large (d) Increasing regulation of technological change e.g. Drugs and cosmetic act, controlnumber of people, on clinical trial, standard for drugs.has functionalvalue, has lessernumber of Political and Legal Two major trends aresubstitutes, and has (a) Increase in business legislation: to protect companies from unfair competition, toother trends protect consumers from unfair business practices, to protect society from unbridledpromoting it. business behavior and to charge businesses with social costs created by their products or processes (b) Growth of special interest groups and improvements like the Consumer Protection Act.

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