ENT4310 Business Economics and Marketing Gathering Market Information Arild Aspelund

Outline Environmental scanning – the responsibility of marketers Marketing Information Systems (MIS) Environmental analysis –Competitive forces – Porter’s five forces –PESTEL

The responsibility of Marketeers Deliver information to top management of movements in the markets that have implication for allocation of firm resources and firm strategy Provide information of market fads, trends, megatrends and competitive moves that regard firm operations Emergence of demand for new products and services Deliver feasibility studies for new business proposals Status reports of ongoing marketing and sales activities

Marketing Information Systems (MIS) a)An internal records system Order-to-payment cycles (the logistics…) Sales information and prognosis Data mining b)Marketing intelligence system Procedures and sources for everyday development of marketing environment c)Marketing research system (ad hoc based) Systematic design, collection, analysis, and reporting of data and findings related to a specific situation or new business opportunity

Rockart’s Critical Success Factor Model The role of the MIS is to assess the manager’s information needs, develop the needed information, and distribute that information in a timely manner The MIS is designed to provide a continous flow of information on key factors that regularly goes into everyday marketing decision-making The factors that goes into the MIS is determined by a study of decision-making in management All information is stored for later analysis

Rockart’s Critical Success Factor Model Designing a CSF – marketing MIS What decisions do you regularly make? 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?

Porter’s Competitive Forces

What is going on…? Fad Trend Megatrend

Environmental Analysis P – Political E – Economical and demographical S – Social and cultural T - Technological E – Environmental and natural L – Legal

Environmental Analysis P – Political Regulation and deregulation Tax policy Special Interest Groups Economical and demographical Income and dept distribution and growth Population characteristics and growth –Ethnicity, age, and educational mix Household patterns and non-traditional households Geographical patterns; urban versus rural

Environmental Analysis S – Social and cultural Society shapes normes, values, and beliefs that largely defines tastes and preferences People absorb a worldview –Views about themselves, others, organizations, society, nature and the universe Core beliefs versus secondary beliefs Subcultures T - Technological ”Creative destruction” Pace of change IP management and dangers of imitation

Environmental Analysis E – Environmental and natural Pollution Shortage of energy and other raw material such as water Green customer preferences and legislation L – Legal Laws protecting competition, consumers and society Rights and powers of buyers in relation to sellers Labeling Product safety and liability Privacy, management of personal information and direct marketing

Summary and Conclusions It is the responsibility of the marketer to deliver information to top management of movements in the markets that have implication for allocation of firm resources and firm strategy It is important to be able to distinguish fads from trends and megatrends. The latter two are predominantly profitable, the former potentially risky… Environmental analysis might help you on your way –Porters five competitive forces –PESTEL Continuation –Market analysis Customer value and needs Quality and satisfaction Loyalty