ANALYZING MARKETING OPPORTUNITIES AND DEVELOPING STRATEGIES:MIS, Marketing Research

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Principles of Marketing MGT301

Lesson 11

Lesson overview and learning objectives:

In last Lesson we discussed the marketing environment factors or forces. Today we will study

some strategies that a company designs to meet the requirements of the environment, to analyze

the opportunities available. In order to analyze the environment company needs information that

is acquired through marketing information system. Keeping in view this importance of the

marketing information and research we will be covering the topic of MIS or marketing research

system in this Lesson. Main objective of this Lesson is to eexplain the concept of marketing

information system, emphasising ways of assessing information needs, the sources used for

developing information and ways of distributing information.

So our today's topics are:

A. ANALYZING

MARKETING

OPPORTUNITIES

AND

DEVELOPING

STRATEGIES

B. MIS

Analyzing Marketing opportunities and developing strategies

We discussed in last two Lessons those companies and their marketing departments' success

depends upon the careful analysis of the marketing environment. Opportunities are need to be

analyzed and capture in order to make the profits. Changing market opportunities must be

explored and pursued.

In order to correctly identify opportunities and monitor threats, the company must begin with a

thorough understanding of the marketing environment in which the firm operates. The marketing

environment consists of all the actors and forces outside marketing that affect the marketing

management's ability to develop and maintain successful relationships with its target customers.

Though these factors and forces may vary depending on the specific company and industrial

group, they can generally be divided into broad micro environmental and macro environmental

components.

For

most companies, the

micro environmental

components are: the

··MarketPotentitall

Market Poten ia

company, suppliers,

((sze,,grrowh rrae))

siize gowtth atte

marketing channel

Customers

··Cusomerr

Custtome

firms

Behaviorr((wans

Behavio wantts

(intermediaries),

and needs,,

and needs

··ndustrry

IIndusty

customer markets,

segmentation,,

segmentation

Strrucurre

ucttue

prrce sensitivity))

piice sensitivity

and St

competitors,

Analysis

publics. The macro (Antay/sixit

n ly s

Company

e nrrye xit

(e t /e

environmental

barrrerrs,buyerrs,

riies, buyes,

··Economc

Economiic

components

are ssellerrs,

el les,

Analysis ((coss,,

Analysis costts

thought

be: ssubsittiutess)

ubst tute )

brreak-even,

beak-even,

demographic,

·· ompetitor

C om i

prroitabiliilty))

poffitab ity

economic, natural, RCspopetetor

e ns

Response

··CompanyFitt

Company Fi

technological,

Prroilies

off les

Competitors

((srrenghs,,

sttengtths

political, and cultural ((capabliiltiitess,

capabi ie ,

weaknesses,,

weaknesses

forces. The wise ccurrentand futurre

urrent and futue

rresources,culturre,

esources, cultue,

marketing manager accitonss)

a t ion )

goals))

goals

knows that he or she cannot always affect environmental forces. However, smart managers can

take a proactive, rather than reactive, approach to the marketing environment.

Principles of Marketing MGT301

As marketing management collects and processes data on these environments, they must be ever

vigilant in their efforts to apply what they learn to developing opportunities and dealing with

threats. Studies have shown that excellent companies not only have a keen sense of customer but

an appreciation of the environmental forces swirling around them. By constantly looking at the

dynamic changes that are occurring in the aforementioned environments, companies are better

prepared to adapt to change, prepare long-range strategy, meet the needs of today's and

tomorrow's customers, and compete with the intense competition present in the global

marketplace.

A. Marketing Information System:

Marketing information is a critical element in effective marketing as a result of the trend toward

global marketing, the transition from buyer needs to buyer wants, and the transition from price to

non-price competition. All firms operate some form of marketing information system, but the

systems vary greatly in their sophistication. In too many cases, information is not available or

comes too late or cannot be trusted. Too many companies are learning that they lack an

appropriate information system, still do not have an information system, lack appropriate

information, or they do not know what information they lack or need to know to compete

effectively.

a. The Marketing Information System

No matters what type of marketing organization we refer to, marketing managers need a great deal

of information to carry out their marketing so as to provide superior value and satisfaction for

customers. However, despite the growing supply of information, managers often lack enough

information of the right kind or have too much information of the wrong kind. To overcome

these problems, many companies are taking steps to improve their marketing information systems.

In this Lesson the marketing information system is discussed, along with the marketing research

process thus showing the types of information gathered and how it is gathered.

If a marketing organization is to produce superior value and satisfaction for customers, marketing

managers need information at almost every turn. They need information about customers such as

resellers, end-users (who tend to be called consumers), as well as competitors, governmental and

other forces in the marketplace. A marketing information system (MIS) consists of people,

equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and

accurate information to marketing decision makers. MIS works in the following way:

A well-designed marketing information system (MIS) begins and ends with the user. The

MIS first assesses information needs by interviewing marketing managers and surveying

their decision environment to determine what information is desired, needed, and feasible

to offer.

The MIS next develops information and helps managers to use it more effectively. Internal

records provide information on sales, costs, inventories, cash flows, and accounts

receivable and payable. Such data can be obtained quickly and cheaply, but must often be

adapted for marketing decisions.

Marketing intelligence supplies marketing executives with everyday information about

developments in the external marketing environment. Intelligence can be collected from

company employees, customers, suppliers, and resellers; or by monitoring published

reports, conferences, advertisements, competitor actions, and other activities in the

Principles of Marketing MGT301

environment. Marketing research involves collecting information relevant to a specific

marketing problem facing the company.

The Marketing

Finally, the

marketing

Information System

information

system

distributes

Marketing

Marketing Information System

managers

environment

information

gathered

Developing information

Test

Analysis

from

markets

Assessing

Internal

Marketing

internal

information

Planning

Marketing

records

intelligence

needs

sources,

channels

Implemen-

marketing

tation

Competitors

intelligence,

Marketing

and

Control

Publics

decision

Marketing

marketing

Distributing

support

research

information

Macro-

research to

analysis

environment

the

right

forces

managers at

the

right

Marketing decisions and communication

times.

More and

more companies are decentralizing their information systems through networks that allow

managers to have direct access to information.

b. The working of the Marketing Information System:

If a marketing organization is to produce superior value and satisfaction for customers, marketing

managers need information at almost every turn. They need information about customers such as

resellers, end-users (who tend to be called consumers), as well as competitors, governmental and

other forces in the marketplace. A marketing information system (MIS) consists of people,

equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and

accurate information to marketing decision makers.

I. Assessing information needs:

Marketing organizations must establish what information is needed or likely to be needed. This is a

key feature of the MIS that underscores the importance of information.

II. Developing information:

Internal Records - provide a wealth of information, which is essentially raw data for decision-

making. An effective MIS organizes and summaries balance sheets, orders, schedules, shipments,

and inventories into trends that can be linked to management decisions on marketing mix changes.

III. Marketing Intelligence:

Provides the everyday information about environmental variables that managers need as the

implement and adjust marketing plans. Sources for intelligence may vary according to needs but

may include both internal and external sources.

IV. Marketing Research:

Principles of Marketing MGT301

Marketing research links the consumer, customer, and public to the marketer through an exchange

of information.

c. Subsystems of Marketing Information System:

A well-designed market information system consists of four subsystems.

The first is the internal records system, which provides current data on sales, costs,

inventories, cash flows, and accounts receivable and payable. Many companies have

developed advanced computer-based internal reports systems to allow for speedier and

more comprehensive information.

The second market information subsystem is the marketing intelligence system, supplying

marketing managers with everyday information about developments in the external

marketing environment. characterized by the scientific method, creativity, multiple

methodologies, model building, and cost/benefit measures of the value of information.

The third subsystem, marketing research, involves collecting information that is relevant to

specific marketing problems facing the company. The marketing research process consists

of five steps: defining the problem and research objectives; developing the research plan;

collecting information; analyzing the information; and presenting the findings.

The fourth system is the Marketing Decision Support System (MDSS marketing system)

that consists of statistical and decision tools to assist marketing managers in making better

decisions. MDSS is a coordinated collection of data, systems, tools, and techniques with

supporting software and hardware. Using MDSS software and decision models, the

organization gathers and interprets relevant information from the business and the

environment and turns it into a basis for marketing action. MDSS experts use descriptive

or decision models, and verbal, graphical, or mathematical models, to perform analysis on a

wide variety of marketing problems.

d. Why to acquire information:

Managers mostly want to be able to predict the future for a company and its products. That future

embraces the total market demand and the nature of such demand, the company's share by brand

and what competitors will be doing. They want this information so they can chart their own firm's

future and thereby are proactive rather than be forced into reacting to a competitor's actions.

The firm's internal record system should be set up in such a way as to easily provide

information in a form the manager can act on. But this is largely historical information such as

sales by account, by territory, by salesperson and so on. Acquiring forward-looking information is

the name of the game. By monitoring the relevant intervening variables, firms are able to monitor

intentions to purchase among many other factors such as competitor's activities. Such intervening

variables differ by industry sector and company. For consumer goods companies' measures of

awareness, attitudes toward the brand, and distribution levels -- among others -- are indicators of

future sales performance. In the case of industrial companies, relationships between buyers and

sellers are all important. So measures of customer service levels, product performance measures

and acceptability of the technical knowledge of the salespeople will be partial indicators of whether

particular suppliers will be chosen. In both instances, economic indicators are scanned before

companies decide on the level of marketing expenditure. That is, whether an expanding or

contracting local and global economy faces the industry and firm.

Principles of Marketing MGT301

Well accepted salespeople invariably have stronger relationships with their clients, and

being closer to them, are privy to more information on the buying company's performance,

expectations of the future and even the views on the supplying companies strengths and

weaknesses as well as their competitors. Often it is necessary to establish performance rankings in

a formal manner.

In much the same manner as consumer companies assess the important criteria that

consumers user to decide between brands, industrials conduct research that identifies the criteria

purchasers use to choose and maintain suppliers, as well as the ratings for individual companies.

Given the generally high education level of such as sales engineers, it is not uncommon for the

field force to administer such research. Others use research companies.

e. Marketing Research

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing

situation facing an organization

Steps in the Marketing Research Process

The marketing research process consists of four steps:

1. Defining the problem and research objectives

2. Developing the research plan,

3. Implementing the research plan, and

4. Interpreting and reporting the findings.

f. Why to Conduct Business Research?

Marketing Research is a Systematic & objective process of designing, gathering, analyzing &

reporting information that is used to solve a specific problem. It Provides information for aid in

making business related decisions, to Identify opportunities and generate & refine actions. It is

important for the mangers for many decisions like:

· Helps reduce risk inherent in decision-making

· Provides an important link to customers

· Allows implementation of the business concept

· Enables managers to identify & understand stakeholders wants & needs and to develop

appropriate strategies to meet these needs

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