Analysing marketing opportunities marketing management

Marketing management

1. Analyzing Marketing
Opportunities
Module 3

2. Marketing environment
•Themarketingenvironmentencompassesallofthefactorsthatcanimpact
thesuccessofacompany’smarketingstrategy.
•Itincludesbothinternalandexternalforcessuchascustomertrends,
economicconditions,competition,governmentpolicies,andthemacro
environment.
•Understandingthedifferentcomponentsofthemarketingenvironmentis
essentialforanybusinesslookingtooptimizetheirmarketingefforts.
•Bytakingthetimetoanalyzebothinternalandexternalforces,companies
canbetteranticipatepotentialopportunitiesorthreatsandcreateeffective
strategiesthatwillleadtolong-termsuccess.

3. Definition
•Marketing environment is a set of internal and external factors that
influence a company's activities related to the promotion of a
product. Tracking the marketing environment helps a business avoid
possible threats, make the right business decisions, develop relevant
marketing campaigns, and allocate resources efficiently.

4. Types of Marketing
Environment

6. Internal marketing environment
•Theseoperationstakeplacewithinthecompany.
•Theoperationincludesworkwithmaterials,systems,and
professionals.Thistypeofmarketingenvironmentinfluencesthe
tasksofmarketingandproductionteamsandtheirefforts.
•Marketersdevelopstrategiesandcampaignsandselectsuitable
channelsbasedoninternalfactors.
•Themarketingenvironmentincludestheinternalfactorslike
employees,shareholders,retailersanddistributors.

7. The internal marketing environment consists of all
factors that are internal to organizations like:
•Production and Research
•Internal Processes and
Procedures
•Allocation of responsibilities
•Resource availability
•Attitude of stakeholders
•Human Resources-HR
Department, Operations
department, Accounting and
Finance departments, Research
and design
•Mission, Vision and objectives of
company
•Company Culture
•Company Image and Goodwill
•Marketing Strategy
•Technical Capacity
•Managerial Skills and Ability
•Structure and Processes
•Finance and Sales force

8. External micro environment
•Customers, vendors, partners, and competitors belong to marketing
environment because they influence your business operations.
•The behavior and actions of these people and companies set the
direction for your further actions, strategies, and activities.
•You can control these factors yet can’t prevent them from impacting
your brand’s success and proper operation of your brand.

9. •Public: Any group with potential
interest in organizational working
•Financers: Founders, Stakeholders,
Investors, Partners, Banks
•Market Intermediaries: Supplies and
Wholesalers
•Customers: Individual, industrial, re-
seller, retail
•Suppliers: Vendors for supplying raw
material
•Competitors: Number of firms, Size of
market, Nature of Products, Market
entry and exit barriers, Differential
advantage

10. The Company’s
Microenvironment
Actors in the Microenvironment
10

11. The Company’s
Microenvironment
The Company
•Top management
•Finance
•R&D
•Purchasing
•Operations
•Accounting
11

12. Suppliers
•Provide the resources to produce goods and services
•Treated as partners to provide customer value
12
The Company’s Microenvironment –
Contd…

13. Marketing Intermediaries
•Help the company to
promote, sell and distribute its
products to final buyers
13
The Company’s Microenvironment –
Contd…

14. Competitors
•Firms must gain strategic advantage by positioning
their offerings against competitors’ offerings.
14
The Company’s Microenvironment –
Contd…

15. Publics
•Any group that has an actual or
potential interest in or impact on an
organization’s ability to achieve its
objectives
15
The Company’s Microenvironment –
Contd…

16. The Company’s Macroenvironment
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17. The Company’s Macroenvironment
Demographic Environment
•Demography is the study of human populations in terms
of size, density, location, age, gender, race, occupation,
and other statistics.
•Demographic environment is important because it
involves people, and people make up markets.
•Demographic trends include age, family structure,
geographic population, educational characteristics, and
population diversity.
17

18. Economic Environment
•Economic environment consists of factors that affect
consumer purchasing power and spending patterns
18
The Company’s Macroenvironment –
Contd…

19. Natural Environment
•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
✓Increased pollution
✓Increase government intervention
✓Environmentally sustainable strategies
19
The Company’s Macroenvironment –
Contd…

20. Technological Environment
•Most dramatic force in
changing the marketplace
•Mobile phones and
computers
20
The Company’s Macroenvironment –
Contd…

21. Political Environment
•Political environment consists of laws, government
agencies, and pressure groups that influence or limit
various organizations and individuals in a given society.
21
The Company’s Macroenvironment –
Contd…

22. Cultural Environment
Cultural environment consists of institutions and other
forces that affect a society’s basic values, perceptions,
and behaviors.
22
The Company’s Macroenvironment –
Contd…

23. Marketing Information System
Definition
•The Marketing Information System refers to the systematic collection,
analysis, interpretation, storage and dissemination of the market
information, from both the internal and external sources, to the
marketers on a regular, continuous basis.
•The marketing information system distributes the relevant
information to the marketers who can make the efficient decisions
related to the marketing operations viz. Pricing, packaging, new
product development, distribution, media, promotion, etc.

25. Components of Marketing Information System
1. Internal Records:
The Company can collect information through its internal records consisting of sales data,
customer database, product database, financial data, operations data, etc.
2. Marketing Intelligence System:
The marketing intelligence system provides the data about the happenings in the market,
i.e. data related to the marketing environment which is external to the organization. It
includes the information about the changing market trends, competitor’s pricing strategy,
change in the customer’s tastes and preferences, new products launched in the market,
promotion strategy of the competitor, etc.

26. 3. Marketing Research:
•The Marketing Research is the systematic collection, organization, analysis
and interpretation of the primary or the secondary data to find out the
solutions to the marketing problems. Several Companies conduct
marketing research to analyze the marketing environment comprising of
changes in the customer’s tastes and preferences, competitor’s strategies,
the scope of new product launch, etc. by applying several statistical tools.
In order to conduct the market research, the data is to be collected that
can be either primary data (the first-hand data) or the secondary data
(second-hand data, available in books, magazines, research reports,
journals, etc.)
•The secondary data are publicly available, but the primary data is to be
collected by the researcher through certain methods such as
questionnaires, personal interviews, surveys, seminars, etc.
•Marketing research contributes a lot to the marketing information system
as it provides the factual data that has been tested several times by the
researchers.

27. 4. Marketing Decision Support System:
•It includes several software programs that can be used by the marketers
to analyze the data, collected so far, to take better marketing decisions.
With the use of computers, the marking managers can save the huge data
in a tabular form and can apply statistical programs to analyze the data
and make the decisions in line with the findings.

28. Marketing Research
Definition:
•Marketing Research is the systematic collection, analysis, and
interpretation of data pertaining to the marketing conditions.
•The basic reason for carrying out the marketing research is to find out
the change in the consumer behavior due to the change in the
elements of the marketing mix (product, price, place, promotion).
•The marketers need to know about the changing trends in the market
viz. Changes in the customer’s tastes and preferences, the new
products launched in the market, prices of the competitor’s product,
the close substitutes of the product, etc.

29. Marketing Research Process
To begin with the marketing research, the following steps have to be followed:
1. Define the Problem
•The foremost decision that every firm has to undertake is to find out the problem for
which the research is to be conducted. The problem must be defined adequately
because if it is too vague, then it may result in the wastage of scarce resources and if it
is too narrow, then the exact conclusion cannot be drawn. In order to define the
problem appropriately, each firm must have a clear answer to the questions viz.
•What is to be researched (content and the scope)?
• And Why the research is to be done (decisions that are to be made)?
2. Develop the Research Plan
This step involves gathering the information relevant to the research objective. It
includes:
•Data Sources: The researcher can collect the data pertaining to the research problem
from either the primary source or the secondary source or both the sources of
information. The primary source is the first-hand data that does not exist in any books
or research reports whereas the secondary data is the second-hand data which is
available in the books, journals, reports, etc.

30. 3. Research Approaches:
Secondary data are readily available in books, journals, magazines, reports,
online, etc. But the primary data have to be collected by the researchers.
4. Analyze the Information:
Once the information is collected the next step is to organize it in such a
way that some analysis can be obtained. The researchers apply several
statistical techniques to perform the analysis, such as they compute
averages and measures of dispersion.

31. 5. Present the Findings:
Finally, all the findings and the research are shown to the top
management level viz. Managing director, CEO, or board of directors to
make the marketing decisions in line with the research.
6. Make the Decision:
This is the last step of the marketing research, once the findings are
presented to the top-level management it is up to them either to rely
on the findings and take decisions or discard the findings as unsuitable.
Thus, marketing research is done to gather all the relevant information
about the market and design the marketing strategies accordingly.

32. Distinguish Between Marketing Information
System and Marketing Research:
Basis Market Information System Marketing Research
Meaning :MIS means to collect, analyze and supply relevant marketing
information to the marketing managers. The marketing
managers use this information for taking effective marketing
decisions. It is a permanent and continuous process
Marketing Research (MR) is a systematic
process of collecting and analyzing information
to solve a specific marketing problem.
Purpose :The main purpose of MIS is to provide
relevant information to marketing
managers and enable them to make
effective marketing decisions.
However, the main purpose of Marketing
Research (MR) is to solve a specific marketing
problem.
Scope :The scope of MIS is wide. Marketing Research (MR) is one of its
components. It is not only used to solve problems but also
helps to prevent problems in the future.
The scope of Marketing Research (MR) is
narrow. It is one small part of MIS. It solves a
specific present marketing problem.
Nature :MIS is more nonspecific or general in
nature. It can solve many types of
marketing problems.
Marketing Research (MR) is more specific or
particular in nature. At one time, it can only
solve a single type of marketing problem

33. Basis Market Information System Marketing Research
Reports : MIS gives four types of reports namely, plan-
reports, periodic-reports, triggered reports and
demand reports.
Marketing Research (MR) provides only one report
called ‘MR Report.
Orientation :Orientation of MIS is more future-oriented
when compared to MR.
However, the orientation of Marketing
Research (MR) is more past and present one
when compared to MIS. It concentrates more
on earlier and latest information. It uses this
information to solve a current marketing
problem.
Problems :MIS deals with and attempts to solve many
different marketing problems at one time.
For this, it collects, stores, analyzes and
supplies relevant market information to the
marketing managers.
Marketing Research (MR) only deals with a
single marketing problem at one time. It doesn't
solve multiple marketing problems
simultaneously.
Data : In MIS, the data is collected more
frequently, usually almost daily. This is a
must for every company.
In Marketing Research (MR), the data is not
collected as frequently as MIS. It is collected on
a required basis

34. Basis Market Information System Marketing Research