Lecture 1: Marketing Information System PDF

Lecture 1 MARKETING INFORMATION SYSTEM: MARKETING RESEARCH AND MARKETING ENVIRONMENT Mária Magyar, PhD  MIDTERM TEST DATE TIMETABLE OF MID-term test 1 7th of October THE MIDTERMS MID-term test 2 13th of November MID-ter...

Lecture 1 MARKETING INFORMATION SYSTEM: MARKETING RESEARCH AND MARKETING ENVIRONMENT Mária Magyar, PhD  MIDTERM TEST DATE TIMETABLE OF MID-term test 1 7th of October THE MIDTERMS MID-term test 2 13th of November MID-term test 3 11th of December  Strategic Marketing planning and environment Product marketing strategy MIS, Segmenting, Marketing Targeting, Price research Positioning, Differentiation Consumer Place Market (Distribution, Retailing) Business Promotion Market (Marketing Communication)  Marketing Information System (MIS) Marketing Research Learning Objectives A Company’s Marketing Environment The Microenvironment The Macroenvironment Responding to the 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 A system in which marketing information is formally actionable customer and market insights. gathered, stored, analyzed and distributed to managers in accord with their information needs on a (Kotler- Armstrong, 2017) regular planned basis. (Jobber, 2016) Marketing Information System (Kotler - Armstrong, 2017) Developing Marketing Information Internal Data INTERNAL AND EXTERNAL DATA SOURCE IN BUSINESS 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 INTERNAL DATABASES are collections of consumer and market information obtained from data sources within the company network. (Kotler - Armstrong, 2017) Developing Marketing Information COMPETITIVE MARKET INTELLIGENCE UNDERSTANDING Competitive marketing - Market share - Investments intelligence is the - Organizational - Opportunity forecasts changes systematic collection and - Market volume - Strategy analysis analysis of publicly available information about MARKET INTELLIGENCE consumers, competitors and developments in the PRODUCT INTELLIGENCE CUSTOMER UNDERSTANDING marketing environment. - Pricing - Product definition - Product introd - Customer behavior - promotions - Loyalty/Satisfaction (Kotler - Armstrong, 2017) Developing Marketing Information Marketing intelligence techniques range from: observing consumers firsthand quizzing the company’s own employees benchmarking competitors’ products researching the Internet monitoring Internet buzz (Kotler - Armstrong, 2017) Analyzing and Using Marketing Information CRM TOUCHPOINTS Customer Sales force Service and Web and social purchases contacts support calls media sites Credit and Marketing Satisfaction payment research surveys interactions 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 Marketing research Research report process Decision making (Kotler - Keller, 2012) RESEARCH DATA Source: Qualtrics (2024) A Comparison of Primary and Secondary Data PRIMARY DATA SECONDARY DATA COLLECTION PURPOSE For the problem at hand For other problems COLLECTION PROCESS Very complex Rapid and easy COLLECTION COST High Relatively low COLLECTION TIME Long Short (Malhotra, 2012)  MARKETING RESEARCH DATA SECONDARY PRIMARY DATA DATA External Internal Questionning Test Experiment Observation sources sources within Qualitative Qualitative Quantitative Qualitative country international Quantitative Quantitative Quantitative  Problem and purpose of the research Problem formulation is the most Marketing important step of MR process. Research Problem definition involves stating the general problem and identifying the specific objectives of the marketing research problem.  (explanatory) PROBLEM AND PURPOSE OF THE RESEARCH (Kotler - Armstrong, 2017) Marketing Research Problem and purpose of the research The objective is to gather preliminary information that will EXPLORATORY help define the problem and suggest hypotheses. RESEARCH (qualitative studies) describes marketing problems, situations, or markets, such DESCRIPTIVE as the market potential for a product or the demographics RESEARCH and attitudes of consumers. (e.g. survey, observation) EXPLANATORY tests hypothesis about cause-and-effect relationships. (CAUSAL) (experiments, tests) RESEARCH (Kotler - Armstrong, 2017)  MARKETING RESEARCH METHODS SECONDARY PRIMARY QUANTITATIVE QUALITATIVE RESEARCH RESEARCH Marketing Research QUALITATIVE vs QUANTITATIVE research QUALITATIVE QUANTITATIVE To quantify the data and Objective To gain a qualitative understanding of generalize the results from the the underlying reasons and motives sample to the population of interest Sample Small number of nonrepresentative Large number of representative / cases (10-50 resp.) nonrepresentative cases (100+) Data collection Unstructured (e.g. interviews) Structured (e.g. survey) Data analysis Nonstatistical. Content analysis Statistical methods Outcome Develop an initial understanding Recommend a final course of action  MARKETING RESEARCH METHODS SECONDARY PRIMARY QUALITATIVE QUANTITATIVE direct indirect survey in depth projective test, interview techniques experiment focus group 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 Company’s Marketing Environment  The Marketing System COMPANY Marketing Final Suppliers intermediaries consumers Competitors MAJOR ENVIRONMENTAL FORCES (Kotler - Armstrong, 2017) A Company’s The marketing environment includes Marketing the actors and forces that affect the Environment marketing management’s ability to build and maintain successful relationships with target customers. A Company’s Marketing Environment Microenvironment Macroenvironment the actors close to the the larger societal forces company that affect its that affect the ability to serve its customers microenvironment have direct impact on the companies have only a company’s performance limited or no influence on the company may have them influence on the microenvironment. (Kotler - Armstrong, 2017) A Company’s Marketing Environment Microenvironment Macroenvironment the company demographic suppliers economic marketing intermediaries natural customer markets technological competitors political publics cultural forces (Kotler - Armstrong, 2017) The Microenvironment Marketing Competitors intermediaries Supplier Publics Company COMPANY Customers Microenvironment consists of the actors close to the company that affect its ability to serve its customers—they influence each other.  The Marketing System COMPANY Marketing Final Suppliers intermediaries consumers Competitors MAJOR ENVIRONMENTAL FORCES (Kotler - Armstrong, 2017) The Microenvironment The Company In designing marketing plans, the marketing management takes other company groups Marketing into account. Top management Finance & accounting R&D Sales Operations Information systems (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 Physical Marketing Resellers distribution intermediaries are firms firms that help the company to promote, sell and distribute its Marketing goods to final buyers. Financial services intermediaries agencies (Kotler - Armstrong, 2017) The Microenvironment Marketing Intermediaries Physical Resellers distribution firms Marketing Financial services intermediaries agencies Resellers are distribution channel firms that help the company find Wholesaler is a company that buys a large quantity of customers or make sales to them. goods from various producers or manufacturers, warehouses them, and resells them to retailers. Resellers: wholesalers or retailers Retailer is a company that sells goods to the consumer. (Tesco, Auchan).  The Microenvironment Marketing Intermediaries Physical Resellers distribution firms Marketing Financial services intermediaries agencies Marketing services agencies (the marketing research firms, advertising agencies, media firms, and marketing consulting firms) focus on specific marketing activities.  The Microenvironment Marketing Intermediaries Physical Resellers distribution firms Marketing Financial services intermediaries agencies 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 Physical Resellers distribution firms Marketing Financial services intermediaries agencies 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 consist of individuals markets (B2C) Business buy goods and services for further processing or use in their production markets (B2B) processes Reseller buy goods and services to resell at a profit markets Government consist of government agencies that buy goods and services to produce markets public services or transfer the goods and services to others who need them International consist of various buyers in other countries, including consumers, producers, markets - resellers, and governments (Kotler - Armstrong, 2017) The Microenvironment Publics Any group that has an actual or Financial publics potential interest in or impact on an organization’s ability to achieve its Media publics objectives: 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 Natural Technological Economic Cultural Demographic Company Political (Kotler - Armstrong, 2017) The Macroenvironment Demographic Environment Demography is the study of human populations—size, 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 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. 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) 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. Trends in Natural Environment  Growing shortages of raw materials  Increased pollution  Increased government intervention (Kotler - Armstrong, 2017) 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 society’s 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 people’s 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) Marketing Environment  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 company’s 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  Learning Objectives Responding to the Marketing Environment Responding to the Marketing Environment Views on Responding Passive Proactive Reactive Passively Take Watch and accept and aggressive react to adapt to actions to forces in the forces in the affect forces environment environment in the environment (Kotler - Armstrong, 2017) 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 consumer’s simple need for photography. Responding to the Marketing Environment Views on Responding Passive Proactive Reactive Passively Take Watch and accept and aggressive react to adapt to actions to forces in the forces in the affect forces environment environment in the environment (Kotler - Armstrong, 2017) Proactive Responding to the Marketing Environment  It intends to extend its chemicals policy not only to comply with all required regulatory requirements, but also to reduce exposure  international home to chemicals it believes are of greater concern improvement company with to customers, the factories that make its more than 1,200 stores in 10 products, people and the wider environment. European countries, Russia and Turkey PROACTIVE  It has compiled a Chemicals Action List (CAL).  This list is used to create product descriptions when purchasing commercial brand products. https://www.kingfisher.com/en/index.html Responding to the Marketing Environment Views on Responding Passive Proactive Reactive Passively Take Watch and accept and aggressive react to adapt to actions to forces in the forces in the affect forces environment environment in the environment (Kotler - Armstrong, 2017) 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