This document discusses components of a modern marketing information system (MIS). It covers gathering market insights through internal records, marketing intelligence activities, and marketing research. Key aspects of an MIS include people, equipment, and procedures to collect, analyze, and distribute timely and accurate information to marketing decision-makers. It also discusses analyzing the macroenvironment, including demographic, economic, social/cultural, natural, technological, and political/legal forces. The overall purpose is to understand consumption patterns and trends to gain a competitive advantage.

1. Part 2: Capturing Market Insights > Review and revision of Part 1 with local examples > Gathering Information & Scanning the environment > Key Concepts in complete Chapter 3 will be covered Class Presentation | Session 4 | 26 Aug 2010

2. Components of a modern MIS(Marketing Information System) Everyone needs to observe the environment but marketers have two advantages: Disciplined methods for collecting information More time for interacting with customers & observe competition Marketers understand and have extensive information on consumption patterns Companies with superior information enjoy a competitive advantage MG 220 Marketing Management 2

3. Components of a modern MIS(Marketing Information System) Marketing Information System Consists of: People, Equipment and Procedures to Gather, Sort, Analyze and Distributeneeded, timely and accurate information to marketing decision-makers MG 220 Marketing Management 3

4. Components of a modern MIS(Marketing Information System) Marketing Information System is developed from: Company’s internal records Marketing Intelligence Activities Marketing Research MIS should be a cross between: What managers think they need What managers really need What is economically feasible MG 220 Marketing Management 4

5. Internal Records & Marketing Intelligence Order-to-payment cycle Review of sales process & its complete transaction flow Doing it accurately and timely is the key Sales Information Systems Timely & accurate reports on current sales Need to correctly interpret sales data (red or yellow mustang?) Database, Data Warehousing and Data MiningCustomer databases, product databases, salespersons databases Use them to interact correctly with customers MG 220 Marketing Management 5

6. Internal Records & Marketing Intelligence Marketing Intelligence System A set of procedures and sources managers use to obtain everyday information about developments in marketing environment Several steps Train and motivate sales force to gather & report information Motivate distributors, retailers etc. to pass information (Mystery shopping) Network externally (purchasing competitors’ products, attend their events etc. ) Customer advisory panels (interact with selected customers) Government data resources (census reports etc.) Purchase information from research houses etc. Online customer feedback for competitive intelligence MG 220 Marketing Management 6

7. Analyzing the Macroenvironment Successful companies recognize and respond profitably to unmet needs and trends Fad, trend & megatrend Fad is a “unpredictable”, short-lived and without social, economic, political significance. (a new style of clothing) Trend is a direction of sequence of events that has some momentum and more predictable and durable than fads. (music scene in Pakistan) Megatrends are large social, economic, political and technological changes that are slow to form and [once in place], they influence us for sometime. (access to TV/news all over Pakistan) MG 220 Marketing Management 7

8. Analyzing the Macroenvironment Identifying the major forces Demographic Economic Social-cultural Natural Technological Political-legal MG 220 Marketing Management 8

9. Analyzing the Macroenvironment Demographic Main demographic is population Population growth Differences and trends in different countries and regions and even cities Population Age mix Ethnicity Educational Household patterns Family structures, collective lifestyles Geographical shifts in population MG 220 Marketing Management 9

10. Analyzing the Macroenvironment Economic Markets require purchasing power [and people!] Few important trends Income distribution – a key development indicator Savings, Debt & credit availability Outsourcing & Free trade MG 220 Marketing Management 10

11. Analyzing the Macroenvironment Social-Cultural Environment Society’s impact on individuals and groups Some interesting ‘views’ How people view themselves How people view others How people view companies, organizations How people view their society and values How people view nature How people view life, universe, religion Core beliefs and secondary beliefs Sub-cultures Shift of cultural values through time MG 220 Marketing Management 11

12. Analyzing the Macroenvironment Natural Degradation of natural environment is a serious issue Important O&Ts Shortage of Raw materials Infinite finite renewable finite non-renewable Increased energy costs Anti-pollution pressures Changing role of governments MG 220 Marketing Management 12

13. Analyzing the Macroenvironment Technological Changing the way we live and that too rapidly! Innovation and new concepts Cutting-edge research MG 220 Marketing Management 13

14. Analyzing the Macroenvironment Political-Legal Environment Businesses are being regulated and more controlled SIGs How companies can tackle with lobbying Special Interest Groups MG 220 Marketing Management 14

15. Part 2: Capturing Market Insights > The Marketing Research System > The Marketing Research Process > QUIZ for Part 1 (Session 1 – 3) Class Presentation | Session 5 | 30 Aug 2010