Gathering Information and Scanning The Environment

Chapter 3Phillip Kotler & Kevin Lane Keller

Prepared for:Universitas Ciputra

The Objectives

After this class, you should be able to:• Explain the external environments of

company and its impact to the company• Discuss about marketing information system• Use the information for the purpose of

marketing decision

Marketing Information System

People, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision maker.

The Components of a Modern Marketing Information System

• Internal Company Record• Marketing Intelligent Activities • Marketing Research

10 Useful Questions• What decision do you regularly made?• What information do you need to make these decisions?• What information do you regularly get?• What special studies do you periodically request?• What information would you want that you are not getting

now?• What information would you want daily? Weekly? Monthly?

Yearly?• What magazines and trade reports would you like to see on a

regular basis?• What topics would you like to be kept informed of?• What data analysis programs would you want?• What are the four most helpful improvements that could be

made in the present marketing information system?

Internal Records System

• The Order-to-Payment Cycle• Sales Information System• Databases, Data Warehousing and

Data Mining

Marketing Intelligence System

A set of procedures and resources used by managers to obtain everyday information about developments in the marketing environment

Steps to Improve Quality of Company’s Marketing Intelligence System

• Train and motivate sales force to spot and report new development

• Motivate distributors, retailers and other intermediaries to pass along important intelligence

• Network externally • Set up customer advisory panel• Take advantage of government data resources• Purchase information from outside suppliers• Use online customer feedback systems to collect

competitive intelligence

Analyzing the Macro-environment

• FadUnpredictable, short-lived, and without social, economic and political significance (eg. CJ7 doll, Upin & Ipin)

• TrendsDirection or sequences of events that has some momentum and durability (eg. fashion)

• MegatrendLarge social, economic, political and technological changes (that) are slow to form, and once in place, they influence us for sometime (eg. notebook)

Identifying the Major Forces

Companies and consumers are affected by global forces:• The substantial speedup of international transportation, communication,

and financial transactions, leading to the rapid growth of world trade and investment, especially tripolar trade (North America, Western Europe and Far East)

• The movement of manufacturing capacity and skills to lower cost country• The rising economic power of several Asian countries in work market• The rise of trade blocks such as European Union and NAFTA signatories• The severe debt problems of a number of countries along with the

increasing fragility of the international financial system• The increasing use of barter and countertrade to support international

transactions

Identify products/services that being influenced by above stated factors

Major Forces in Company’s Macro Environment

• Demographic Forces • Economic Forces• Social-Cultural Forces • Natural Forces • Technological Forces• Political-Legal Forces

Demographic Environment

• Worldwide Population Growth• Population Age Mix• Ethnic and Other Markets• Educational Groups• Household Patterns• Geographical Shifts in Population

Economic Environment• Income Distribution

- Subsistence economy (few opportunities for marketers)

- Raw exporting economy (Zaire – copper; Arab – oil)

- Industrializing economy (India, Egypt, Philippines)

- Industrial economy (rich markets for all sort of goods)

• Saving, debt, credit availability• Outsourcing and free trade

Social-Cultural Environment

• High persistence of core cultural values• Shifts of secondary cultural values

through time• Existence of sub-cultures

Natural Environment

• Shortage of Raw Materials• Increased Energy Cost• Anti-Pollution Pressures• Changing Role of Governments

Eg. Toyota Prius; proliferation of organic stores

Technological Environment

• Accelerating Pace of Changing• Unlimited Opportunity of Innovations• Varying of R&D Budgets• Increased Regulation of Technological Change

Political-Legal Environment

• Legislation Regulating Business- UU Persaingan Usaha- UU Perlindungan Konsumen- UU Periklanan

• Growth of Special-Interest Group- Political Action Committees- Consumerist Movements

End of Chapter 3