02.scanning marketing environment and the marketing reserch process


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Marketing environment by Tharaka

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02.scanning marketing environment and the marketing reserch process

  1. 1. • Chapter- 02SLIM • Scanning Marketing Environment and the Marketing Research processTharaka • MBA(USA), BBA(USA), Dip in Mgt, ACIM(UK), FAEA(Dip in AEA- Dias UK), FinstSMM(UK), CPM(Asia), MS LIM
  2. 2. ―It is useless to tell a river to stop running, the best thing is to learnswimming in the direction it is flowing‖
  3. 3. The marketing environment refers to theinternal and external influences that affectthe marketing function. A company’s marketing environment consists of the actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with target customers.(Philip Kotler- 12th edition)
  4. 4. The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. The marketing environment is made up of  micro-environment (The Company, Suppliers, Marketing Intermediaries, Customers Markets, Competitors, And Publics),and  macro-environment (Demographic, Economic, Natural, Technological, Politica l, And Culture Forces). 4
  5. 5. The actors close to the company that affect its ability to serve its customer – the company, suppliers, marketing intermediaries, customers markets, competitors, and publics. Marketing customers intermediaries suppliers competitors The company Marketing publics 5
  6. 6. 6 Actors  Marketing must consider other parts of 1 •The company the organization •Suppliers including 2 finance, R&D, purchasi 3 •Marketing intermediaries ng, operations and 4 •Customers accounting 5 •Competitors  Marketing decisions •Publics must relate to broader 6 company goals and strategies
  7. 7. 7 Actors Marketers must watch supply 1 •The company availability and 2 •Suppliers pricing 3 •Marketing intermediaries Effective 4 •Customers partnership •Competitors 5 relationship 6 •Publics management with suppliers is
  8. 8. 8 Actors  Help to promote, sell and distribute goods to •The company final buyers 1  Include 2 •Suppliers  resellers, 3 •Marketing intermediaries  physical distribution firms, •Customers  marketing services 4 agencies, and 5 •Competitors  financial intermediaries •Publics  Effective partner 6 relationship management is
  9. 9. 9 Actors The five types of customer markets 1 •The company •Suppliers  Consumer 2 •Marketing intermediaries  Business 3 4 •Customers  Reseller 5 •Competitors  Government 6 •Publics  International
  10. 10. 10 Actors Conducting competitor analysis 1 •The company is critical for success 2 •Suppliers of the firm 3 •Marketing intermediaries A marketer must 4 •Customers monitor its 5 •Competitors competitors’ •Publics offerings to create 6 strategic advantage
  11. 11. 11 Actors  A group that has an actual or potential interest in or impact on 1 •The company an organization 2 •Suppliers  Seven publics include: 3 •Marketing intermediaries ● Financial •Customers ● Media 4 ● Government •Competitors 5 ● Citizen-action 6 •Publics ● Local ● General ● Internal
  12. 12. The larger social forces that affect the micro-environment – demographic, economic, natural, technological, political, a nd culture forces. Natural Technologica forces l forces Economic Political forces forces Demographic Cultural forces Marketing forces 12
  13. 13.  Demographic environment―The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics‖ Age structure of the population Geographic shifts in population ○ people move to the cities in search of employment and a higher standard of living Education (a better-educated, more whit-collar, more professional population) Changing in marital states (more single people) The changing Egyptian family 13
  14. 14.  Economic environment―Factors that affect consumer buying power and spending patterns‖ Value Marketing has become the watchword for many marketers. They are looking for ways to offer today’s more financially cautious buyers greater value. Marketers should pay attention to income distribution as well as average income. ○ Upper-class consumers, whose spending patterns are not affected by current economic events. ○ The middle class is somewhat careful about its spending, but can still afford the good life some of the time. ○ The working class must stick close to the basics of food, clothing, and shelter. ○ The underclass must count their pennies when making even the most basic purchases. 14
  15. 15.  The Economic Environment • Two types of national economies: o subsistence o industrial 15
  16. 16.  Natural Environment:―Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities‖ Trends  Shortages of raw materials Air and water may seem to be infinite resources, but some groups see long-run dangers.  Increased pollution Industry will almost always damage the quality of the natural environment.  Increased government intervention The governments of different countries vary in their concern and efforts to promote a clean environment. 16
  17. 17. Many companies use recycling to help protect natural resources “Environmental Sustainable Strategies” 17
  18. 18.  Technological environment―Forces that create new technologies, creating new products and market opportunities‖ The most dramatic force shaping our destiny New technologies create new markets and opportunities. However, every new technology replaces on older technology. Marketers should watch the technological environment closely. 18
  19. 19.  Political environment―Consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society‖  Legislation affecting businesses worldwide has increased  Laws protect companies, consumers and the interests of society  Increased emphasis on socially responsible actions 19
  20. 20.  Cultural EnvironmentMade up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors.  Core beliefs values are passed on from parents to children and are reinforced by schools, religion, business, and government.  Secondary beliefs are more open to change.(Example: marriage) 20
  21. 21.  Cultural Environment Includes people’s views of…  Themselves Identify with brands for self-expression  Others Recent shift from ―me‖ to ―we‖ society  Organizations Trend of decline in trust and loyalty to companies  Society Patriotism on the rise  Nature ―lifestyles of health and sustainability‖  Universe Includes religion and spirituality 21
  22. 22. The Marketing Research process
  23. 23. Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.
  24. 24. Define the problem Develop research plan Collect information Make decision Analyze information Present findings
  25. 25.  Define the problem (e.g., Will offering an in- flight Internet service create enough incremental preference and profit of American Airlines to justify its cost?) Specify decision alternatives (e.g., Should American offer an Internet connection?) State research objectives (e.g., types of 1st class passengers are likely to use internet?)
  26. 26. Data Research Sources Approach Research SamplingInstruments Plan Contact Methods
  27. 27.  Observation--unobtrusive Ethnographic--link between culture & behavior &/or how cultural processes develop over time (participant observation) Focus group—discuss topics of interest Survey— knowledge, beliefs, preferences, satisfaction Behavioral data--Data—purchasing data Experimentation—cause and effect relationships
  28. 28. 4-28
  29. 29.  Questionnaires Qualitative Measures Technological Devices
  30. 30.  Ensure questions are  Avoid negatives free of bias  Avoid hypotheticals Make questions simple  Avoid words that could Make questions be misheard specific  Use response bands Avoid jargon  Use mutually exclusive Avoid sophisticated categories words  Allow for “other” in Avoid ambiguous fixed response words questions
  31. 31.  Word association—words are presented, one at a time, and respondents mention the first word that comes to mind. Projective techniques—give people an incomplete stimulus and ask them to complete it. Visualization—requires people to create a collage from magazine or drawing to depict their perceptions Brand personification—ask subjects what kind of person they think of when the brand is mentioned. Laddering—series of increasingly more specific “why” questions can reveal consumer motivation and consumers’ deeper, more abstract goals.
  32. 32. Shadowing—observing people Behavior mapping—photographing people with a space—2 or 3 daysConsumer journey—keeping track of interactions a consumer has with a product, service, or space Camera journals—ask consumers to keep visual diaries of activities and impression related to a product Extreme user interviews—talking to people about a product and evaluating their experience with it Storytelling—prompting people to tell personal stories about their consumer experiences Unfocused groups—interview a diverse group of people to explore ideas
  33. 33. Galvanometers (measure interest or emotions aroused by Exposure to a specific ad or picture) Tachistoscope (flashes an ad to a Subject with an exposure interval andrespondent describes everything he/she recalls) Eye cameras (study respondents’eye movement to see where their eyes land 1st and how long, etc.) Audiometers (record when TV is on and the channel) GPS (global positioning system, canDetermine how many billboards a person may walk or drive by during a day)
  34. 34.  Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?
  35. 35. Probability Simple random Non-probability  Convenience  Every member of population has an equal  Selects the most chance of selection accessible population Stratified random members  Population is divided into  Judgment mutually exclusive  Selects population groups (age groups) and members who are good random samples are prospects for accurate drawn from each group information Cluster  Quota  Population is divided into mutually exclusive  Selects and interviews a groups (city blocks) and a prescribed number of sample is taken from people in each of each group several categories
  36. 36. Mail Questionnaire (For people would not give personal interviews or whose responses might be biased or distorted by interviewer) Telephone Interview (Gather information quickly, however interview are short and non-personal) Personal Interview (Most versatile and expensive, subject to interview bias or distortion) Online Interview(Inexpensive, faster, honest, versatile, samples small and skewed, tech problems and inconsistencies)
  37. 37. Advantages Disadvantages Inexpensive  Small samples Fast  Skewed samples Accuracy of  Technological data, even for problems sensitive questions  Inconsistencies Versatility
  38. 38. A marketing decision support system is acoordinated collection ofdata, systems, tools, and techniques withsupporting hardware and software by which anorganization gathers and interprets relevantinformation from business and environmentand turns it into a basis for marketing action.
  39. 39.  A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences
  40. 40. Thank you