Transcript for:
Overview of Marketing Information System

Title: Microsoft PowerPoint - LEC01_2024_Mari URL Source: file://pdf.a4d1d5d848229ae8c43bcbd8f713e741/ Markdown Content: # Lecture 1 MARKETING INFORMATION SYSTEM : MARKETING RESEARCH AND MARKETING ENVIRONMENT > Mria Magyar, PhD TIMETABLE OF THE MIDTERMS > DATE MIDTERM TEST 7th of October MID-term test 1 13 th of November MID-term test 2 11 th of December MID-term test 3 Marketing environment MIS, Marketing research Consumer Market Business Market Product Price Place (Distribution, Retailing) Promotion (Marketing Communication) Strategic planning and marketing strategy Segmenting, Targeting, Positioning, Differentiation Learning # Objectives Marketing Information System (MIS) Marketing Research The Microenvironment The Macroenvironment Responding to the Marketing Environment A Companys Marketing Environment Learning Objectives Marketing Information System Marketing Information System MARKETING INFORMATION SYSTEM (MIS) refers to the people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. (Kotler- Armstrong, 2017) A system in which marketing information is formally gathered, stored, analyzed and distributed to managers in accord with their information needs on a regular planned basis. > (Jobber, 2016) Marketing Information System > (Kotler - Armstrong, 2017) Developing Marketing Information Internal Data Internal database sources: information on customer characteristics sales transactions website visits customer satisfaction and service records records of sales, costs and cash flows reports on production, shipments and inventories reports on reseller reactions and competitor activities point-of-sale transaction data (Kotler - Armstrong, 2017) INTERNAL AND EXTERNAL DATA SOURCE IN BUSINESS INTERNAL DATABASES are collections of consumer and market information obtained from data sources within the company network. Developing Marketing Information Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketing environment. (Kotler - Armstrong, 2017) COMPETITIVE INTELLIGENCE - Investments - Organizational changes - Strategy CUSTOMER UNDERSTANDING - Product definition - Customer behavior - Loyalty/Satisfaction PRODUCT INTELLIGENCE - Pricing - Product introd - promotions MARKET UNDERSTANDING - Market share - Opportunity forecasts - Market volume analysis > MARKET > INTELLIGENCE Developing Marketing Information Marketing intelligence techniques range from: observing consumers firsthand quizzing the companys own employees benchmarking competitors products researching the Internet monitoring Internet buzz > (Kotler - Armstrong, 2017) Analyzing and Using Marketing Information CRM TOUCHPOINTS Customer purchases Sales force contacts Service and support calls Web and social media sites Satisfaction surveys Credit and payment interactions Marketing research studies Marketing Information and ## Customer Insights Marketing Information System (MIS) refers to the people and procedures dedicated to assessing information needs: to company managers and external partners developing the needed information: Internal database, marketing intelligence, market research and helping decision makers to use the information CRM database to generate and validate actionable customer and market insights. Learning Objectives > Marketing Research # Marketing Research Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. Helps managers use this information to make decisions. > (Kotler - Armstrong, 2017) Problem and purpose of the research Research design Data collection Data analyses Research report Decision making Marketing research process > (Kotler - Keller, 2012) ## RESEARCH DATA Source: Qualtrics (2024) A Comparison of Primary and Secondary Data SECONDARY DATA PRIMARY DATA For other problems For the problem at hand COLLECTION PURPOSE Rapid and easy Very complex COLLECTION PROCESS Relatively low High COLLECTION COST Short Long COLLECTION TIME > (Malhotra, 2012) MARKETING RESEARCH DATA SECONDARY DATA External sources within country international Internal sources PRIMARY DATA Questionning Qualitative Quantitative Test Qualitative Quantitative Experiment Quantitative Observation Qualitative Quantitative Marketing # Research Problem formulation is the most important step of MR process. Problem definition involves stating the general problem and identifying the specific objectives of the marketing research problem. Problem and purpose of the research (Kotler - Armstrong, 2017) (explanatory) PROBLEM AND PURPOSE OF THE RESEARCH Marketing Research Problem and purpose of the research > EXPLORATORY > RESEARCH The objective is to gather preliminary information that will help define the problem and suggest hypotheses. (qualitative studies) > DESCRIPTIVE > RESEARCH describes marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers. (e.g. survey, observation) > EXPLANATORY > (CAUSAL) > RESEARCH tests hypothesis about cause-and-effect relationships. (experiments, tests) > (Kotler - Armstrong, 2017) MARKETING RESEARCH METHODS SECONDARY PRIMARY > QUANTITATIVE > RESEARCH > QUALITATIVE > RESEARCH QUALITATIVE vs QUANTITATIVE research QUANTITATIVE QUALITATIVE To quantify the data and generalize the results from the sample to the population of interest To gain a qualitative understanding of the underlying reasons and motives Objective Large number of representative / nonrepresentative cases (100+) Small number of nonrepresentative cases (10-50 resp.) Sample Structured (e.g. survey) Unstructured (e.g. interviews) Data collection Statistical methods Nonstatistical. Content analysis Data analysis Recommend a final course of action Develop an initial understanding Outcome Marketing Research MARKETING RESEARCH METHODS > SECONDARY PRIMARY QUALITATIVE direct > in depth > interview > focus group indirect > projective > techniques QUANTITATIVE survey test, experiment observation Marketing Research Secondary data consists of information that already exists somewhere, having been collected for another purpose. Researchers usually start by gathering secondary data. Types: Internal or External (within country and international) Primary data consist of information collected for the specific purpose at hand. Most of marketing research project can be desribed as either qualitative or quantitative . Problem formulation is the most important step of MR process. Based on the research objectives 3 types of research: > Exploratory > Descriptive > Causal # Learning Objectives A Companys Marketing Environment The Marketing System (Kotler - Armstrong, 2017) Suppliers COMPANY Competitors Marketing intermediaries Final consumers MAJOR ENVIRONMENTAL FORCES A Companys ## Marketing ## Environment The marketing environment includes the actors and forces that affect the marketing managements ability to build and maintain successful relationships with target customers. A Companys Marketing Environment Microenvironment the actors close to the company that affect its ability to serve its customers have direct impact on the companys performance the company may have influence on the microenvironment. Macroenvironment the larger societal forces that affect the microenvironment companies have only a limited or no influence on them > (Kotler - Armstrong, 2017) ## A Companys Marketing Environment Microenvironment the company suppliers marketing intermediaries customer markets competitors publics Macroenvironment demographic economic natural technological political cultural forces > (Kotler - Armstrong, 2017) # The Microenvironment COMPANY COMPANY Company Company Supplier Supplier Marketing intermediaries Marketing intermediaries Competitors Competitors Publics Publics Customers Customers Microenvironment consists of the actors close to the company that affect its ability to serve its customersthey influence each other. The Marketing System (Kotler - Armstrong, 2017) Suppliers COMPANY Competitors Marketing intermediaries Final consumers MAJOR ENVIRONMENTAL FORCES The Microenvironment The Company In designing marketing plans, the marketing management takes other company groups into account. Top management Finance & accounting R&D Sales Operations Information systems > Marketing > (Kotler - Armstrong, 2017) The Microenvironment Suppliers Provide the resources to produce goods and services. Importance: Supplier problems (strikes, delays) can seriously affect marketing. Increase in supply cost can push up prices It can be expensive to change a supplier Treat as partners to provide customer value > (Kotler - Armstrong, 2017) The Microenvironment Marketing Intermediaries Marketing intermediaries are firms that help the company to promote, sell and distribute its goods to final buyers. Resellers Physical distribution firms Marketing services agencies Financial intermediaries > (Kotler - Armstrong, 2017) The Microenvironment Marketing Intermediaries Resellers Physical distribution firms Marketing services agencies Financial intermediaries Resellers are distribution channel firms that help the company find customers or make sales to them. Resellers: wholesalers or retailers (Tesco, Auchan). Wholesaler is a company that buys a large quantity of goods from various producers or manufacturers, warehouses them, and resells them to retailers. Retailer is a company that sells goods to the consumer. The Microenvironment Marketing Intermediaries Resellers Physical distribution firms Marketing services agencies Financial intermediaries Marketing services agencies (the marketing research firms, advertising agencies, media firms, and marketing consulting firms) focus on specific marketing activities. The Microenvironment Marketing Intermediaries Resellers Physical distribution firms Marketing services agencies Financial intermediaries Physical distribution firms help the company stock, warehouse and move goods from the company to their destinations. E. g.: Transportation and logistics companies The Microenvironment Marketing Intermediaries Resellers Physical distribution firms Marketing services agencies Financial intermediaries Financial intermediaries include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods. The Microenvironment Competitors COMPETITOR - another company that meets the same need - who offer the same or similar products/services as us - everyone who competes for the customer's wallet is a competitor (In a broader sense) Firms must gain strategic advantage by positioning their offerings strongly against competitors offerings in the minds of consumers. > (Kotler - Amstrong, 2017) The Microenvironment Customers Consumer markets (B2C) consist of individuals Business markets (B2B) buy goods and services for further processing or use in their production processes Reseller markets buy goods and services to resell at a profit Government markets consist of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them International markets - consist of various buyers in other countries, including consumers, producers, resellers, and governments > (Kotler - Armstrong, 2017) The Microenvironment Publics Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives: Financial publics Media publics Government publics Citizen-action publics Local publics General public Internal publics > (Kotler - Armstrong, 2017) # Macroenvironment Macroenvironment consists of a number of external forces that affect not only the company but also the other actors in the microenvironment. The company has no or little impact on these forces. The Macroenvironment Company Company Demographic Demographic Economic Economic Natural Natural Technological Technological Cultural Cultural Political Political (Kotler - Armstrong, 2017) The Macroenvironment Demographic Environment Demography is the study of human populationssize, density, location, age, gender, race, occupation, and other statistics. Demographic environment involves people, and people make up markets. Demographic trends include changing age and family structures, geographic population shifts, educational characteristics, and population diversity. > (Kotler - Armstrong, 2017) The Macroenvironment Economic Environment Trends in Economic Environment Uneven Income Distribution: over the past several decades, the rich have grown richer, the middle class has shrunk, and the poor have remained poor Changes in Consumer Spending: the long term effect of the recession was that consumers are buying less and looking for greater value in the things they buy > (Kotler - Armstrong, 2017) Changes in major economic variables, such as income, cost of living, interest rates, and savings and borrowing patterns , have a large impact on the marketplace. The Macroenvironment The Natural Environment The natural environment is the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities. > (Kotler - Armstrong, 2017) Trends in Natural Environment Growing shortages of raw materials Increased pollution Increased government intervention The Macroenvironment Natural Environment Trends in Natural Environment Environmental sustainability involves developing strategies and practices that create a world economy that the planet can support indefinitely. > (Kotler - Armstrong, 2017) The Macroenvironment Cultural Environment The cultural environment consists of institutions and other forces that affect a societys basic values, perceptions, and behaviors. CORE BELIEFS AND VALUES are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and governments . SECONDARY BELIEFS AND VALUES are more open to change and include peoples views of themselves, others, organizations, society, nature, and the universe. > (Kotler - Armstrong, 2017) The Macroenvironment Technological Environment Technological innovations (such as computer, internet, mobile phone, biotechnology) have impact on both consumers and companies opportunities and decisions. Trends in Technological Environment Most dramatic force in changing the marketplace New products, opportunities Concern for the safety of new products > (Kotler - Armstrong, 2017) The Macroenvironment Political and Social Environment The political environment includes laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. Legislation regulating business is intended to protect companies from each other consumers from unfair business practices the interests of society against unrestrained business behavior In Europe companies are affected by legislations of European Union and national levels. Consumer protection in Hungary: Hungarian Competition Authority Consumer Protection Ministry of National > (Kotler - Armstrong, 2017) Microenvironment : the actors close to the company that affect its ability to serve its customers Factors: the company, suppliers, marketing intermediaries, customers, competitors and publics have direct impact on the companys performance the company may have an influence on the microenvironment. Macroenvironment: the larger societal forces that affect the microenvironment Factors: demographic, economic, natural, technological, political, cultural forces companies have no or only a limited influence on them ## Marketing Environment Learning Objectives Responding to the Marketing Environment Views on Responding Passive Passively accept and adapt to forces in the environment Proactive Take aggressive actions to affect forces in the environment Reactive Watch and react to forces in the environment > (Kotler - Armstrong, 2017) Responding to the Marketing Environment Passive Responding to the # Marketing Environment Cases of marketing myopia E.g.: Kodak It lost most of its Sony cameras when digital cameras took off Kodak was focused on developing analog camera products, and not on the consumers simple need for photography. Views on Responding Passive Passively accept and adapt to forces in the environment Proactive Take aggressive actions to affect forces in the environment Reactive Watch and react to forces in the environment > (Kotler - Armstrong, 2017) Responding to the Marketing Environment international home improvement company with more than 1,200 stores in 10 European countries, Russia and Turkey It intends to extend its chemicals policy not only to comply with all required regulatory requirements, but also to reduce exposure to chemicals it believes are of greater concern to customers, the factories that make its products, people and the wider environment. PROACTIVE It has compiled a Chemicals Action List (CAL). This list is used to create product descriptions when purchasing commercial brand products. Proactive Responding to the Marketing Environment > https:// www .kingfisher.com/en/index.html Views on Responding Passive Passively accept and adapt to forces in the environment Proactive Take aggressive actions to affect forces in the environment Reactive Watch and react to forces in the environment > (Kotler - Armstrong, 2017) Responding to the Marketing Environment Reactive Responding to the Marketing Environment July 14, 2023: International Agency for Research on Cancer (IARC, belonging to the WHO) classified ASPARTAME as a "possible carcinogen" (category 2B) BUT: There is limited evidence that the sweetener can cause cancer Recommendation: people keep consumption below the safe daily value (40 milligrams/kilogram of body weight) > https://www.iarc.who.int/infographics/iarc-monographs-classification/ Reactive Responding to the Marketing Environment July 14, 2023: International Agency for Research on Cancer (IARC) classified ASPARTAME as a "possible carcinogen" (category 2B) REACTIVE new product advantage: "does not contain aspartame influencer marketing