Marketing plan memo + power points main points
txs584
COM5111Week3SemB2019-20-C.pdf
COM5111 SemB 2019-20
COM5111 Fundamentals of Marketing Communication
Week 3
Marketing Information & Customer Insights
Photo source: www.scmp.com
COM5111 SemB 2019-20COM5111 SemB 2019-20
Learning Objectives
3-1 Describe the environmental forces that affect the company’s ability to serve its customers
3-2 Explain how changes in the demographic and economic environments affect marketing decisions
3-3 Identify the major trends in the firm’s natural and technological environments
3-4 Explain the key changes in the political and cultural environments
3-5 Discuss how companies can react to the marketing environment
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A Company’s Marketing Environment
The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers
Microenvironment consists of the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces
Learning Objective 1
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Study Seek
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The Microenvironment
Learning Objective 1
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Marketing management’s job is to build relationships with customers by creating customer value and satisfaction
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The Microenvironment
The Company
In designing marketing plans, marketing management takes other company groups into account
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
Learning Objective 1
• Provide the resources to produce goods and services
• Treat as partners to provide customer value
Suppliers
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Critical Questions
• What type of collaboration does there need to be between the
departments?
• How might projects be integrated between marketing and finance?
• How might projects be integrated between marketing and
information systems?
$, Availability, quality shortage, delay …
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The Microenvironment
Marketing Intermediaries
Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers
Learning Objective 1
Resellers Physical
distribution firms
Marketing services agencies
Financial intermediaries
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The Microenvironment
Competitors
Firms must gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers
Learning Objective 1
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Own size and
industry position
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The Microenvironment
Publics
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives:
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics
Learning Objective 1
Customers
• Consumer markets
• Business markets
• Reseller markets
• Government markets
• International markets
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Seller needs to study these
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The Macro environment
Learning Objective 2
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vulnerable to the often turbulent and changing forces
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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
Learning Objective 2
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The Macroenvironment
Demographic Environment
• Baby Boomers – born 1946 to 1964 (spending more carefully)
• Generation X – born between 1965 and 1976 (overlooked, research, quality)
• Millennials – born between 1977 and 2000 (filled with devices, social media, financially strapped)
• Generation Z – born after 2000 (kids, tweens and teens)
Learning Objective 2
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The Macroenvironment
Demographic Environment
Generational marketing is important in segmenting people by lifestyle or life stage instead of age
Learning Objective 2
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Critical Question
Do marketers need to create
separate products and marketing programs
for each generation?
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The Macroenvironment
Demographic Environment
• Changing (American) family • What kind of changes?
• Changes in the workforce • What kind of changes?
Learning Objective 2
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The Macroenvironment
Demographic Environment
Geographic Shifts in Population
• Growth in U.S. West and South and decline in Midwest and Northeast
• How about China or Europe or any place (e.g. Hong Kong) you would like to discuss?
• Change in where people work • Telecommuting
• Home Office
Learning Objective 2
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Critical Questions
• Why do you think these
geographic shifts in population
are happening?
• Where will you choose to live
when you finish your education?
Why?
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The Macroenvironment
Demographic Environment
Markets are becoming more diverse
• International
• National
• Ethnicity
• Gay and lesbian
• Disabled
Learning Objective 2
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The Macroenvironment
Economic Environment
Learning Objective 2
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The Macroenvironment
Economic Environment
Changes in Consumer Spending
Value marketing involves offering financially cautious buyers greater value—the right combination of quality and service at a fair price
Learning Objective 2
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What changes might there be in U.S. vs. China?
Any thoughts?
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The Macroenvironment
Economic Environment
Income Distribution
Over the past several decades, the rich have grown richer, the middle class has shrunk, and the poor have remained poor
Learning Objective 2
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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
Learning Objective 3
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The Macroenvironment
The Natural Environment
Trends in the Natural Environment
• Growing shortages of raw materials
• Increased pollution
• Increased government intervention
• Developing strategies that support environmental sustainability
Learning Objective 3
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The Macroenvironment
Natural Environment
Environmental sustainability involves developing strategies and practices that create a world economy that the planet can support indefinitely
Learning Objective 3
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The Macroenvironment
Technological Environment
• Most dramatic force in changing the marketplace
• New products, opportunities
• Concern for the safety of new products
Learning Objective 3
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The Macroenvironment
Political and Social Environment
Legislation regulating business is intended to protect
• companies from each other
• consumers from unfair business practices
• the interests of society against unrestrained business behavior
Learning Objective 4
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The Macroenvironment
Political and Social Environment
• Increased emphasis on ethics
• Socially responsible behavior
• Cause-related marketing
Learning Objective 4
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The Macroenvironment
Cultural Environment
The cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors
Why?
Learning Objective 4
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How they think and consume?
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The Macroenvironment
Cultural Environment
Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government
Secondary beliefs and values are more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe
Learning Objective 4
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Responding to the Marketing Environment
Views on Responding
Uncontrollable
• React and adapt to forces in the environment
Proactive
• Take aggressive actions to affect forces in the environment
Reactive
• Watch and react to forces in the environment
Learning Objective 5
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“There are three kinds of companies: those who make things happen, those who watch things happen, and those who
wonder what’s happened.”
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Marketing Information to gain Customer Insights Learning Objectives
4-1 Explain the importance of information in gaining insights about the marketplace and customers
4-2 Define the marketing information system and discuss its parts
4-3 Outline the steps in the marketing research process
4-4 Explain how companies analyze and use marketing information
4-5 Discuss the special issues some marketing researchers face, including public policy and ethics issues
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Marketing Information and Customer Insights
Customer insights are fresh marketing
information-based understandings of customers
and the marketplace that become the basis for
creating customer value, engagement, and
relationships
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Learning Objective 1
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Marketing Information and Customer Insights
Customer insights
• Fresh and deep insights into customer needs and wants
• Important but difficult to obtain ▪ Needs and buying motives not obvious
▪ Customers usually can’t tell you what and why
• Better information and more effective use of existing information
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Learning Objective 1
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Marketing Information and Customer Insights
Managing Marketing Information
• Companies are forming customer insights teams ▪ Include all company functional areas
▪ Collect information from a wide variety of sources
▪ Use insights to create more value for their customers
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Learning Objective 1
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Marketing Information and Customer Insights
Managing Marketing Information
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 actionable customer and market insights
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Learning Objective 1
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Marketing Information and Customer Insights
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Learning Objective 1
Marketing Information System - to develop customer insights, make marketing decisions, and manage customer relationships
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2
3
0
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Assessing Marketing Information Needs
A marketing information system (MIS) provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies
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Learning Objective 2
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Assessing Marketing Information Needs
Characteristics of a Good MIS
Balancing the information users would like to have against what they need and what is feasible to offer
User’s Needs
MIS Offerings
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Learning Objective 2
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Developing Marketing Information
Marketers obtain information from:
Internal data
Marketing intelligence
Marketing research
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Learning Objective 2
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Developing Marketing Information
Internal Data
Internal databases are collections of consumer and market information obtained from data sources within the company network
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Learning Objective 2
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Developing Marketing Information
Competitive Marketing Intelligence
Competitive marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
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Learning Objective 2
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Marketing Research
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
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Learning Objective 3
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Marketing Research
Defining the Problem and Research Objectives - guides the entire research process
Exploratory research
Descriptive research
Causal research
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Learning Objective 3
to gather preliminary
information that will help
define the problem and
suggest hypothesesdescribes marketing problems,
situations, or markets , such as
the market potential for a
product or the demographics
and attitudes of consumer
research tests hypothesis about
cause-and-effect relationships
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Marketing Research
Developing the Research Plan
• Outlines sources of existing data
• Spells out the specific research approaches, contact methods, sampling plans, and instruments to gather data
present the plan to management
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Learning Objective 3
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Marketing Research
Developing the Research Plan
Management problem
Research objectives
Information needed
How the results will help management decisions
Budget
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Learning Objective 3
presented in a
written proposal
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Marketing Research
Developing the Research Plan
Secondary data is information that already exists somewhere, having been collected for another purpose
Primary data is information collected for the specific purpose at hand
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Learning Objective 3
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Marketing Research
Gathering Secondary Data
Advantages
Lower cost
Obtained quickly
Cannot collect otherwise
Disadvantages
- data may not be
Relevant
Accurate
Current
Impartial
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Learning Objective 3
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Marketing Research
Primary Data Collection
Research Approaches
Contact Methods
Sampling Plan
Research Instruments
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Learning Objective 3
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Marketing Research
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Learning Objective 3
Planning Primary Data Collection
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Marketing Research
Primary Data Collection
Research Approaches
• Observational research involves gathering primary data by observing relevant people, actions, and situations
• Ethnographic research involves sending trained observers to watch and interact with consumers in their “natural environments.”
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Learning Objective 3
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Marketing Research
Primary Data Collection
Research Approaches
• Survey research involves gathering primary data by asking people
questions about their knowledge, attitudes, preferences, and buying
behavior
• Experimental research involves gathering primary data by selecting
matched groups of subjects, giving them different treatments, controlling
related factors, and checking for differences in group responses
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Learning Objective 3
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Marketing Research
Focus Group—Personal Contact Method
• Six to 10 people
• Trained moderator
• Challenges ▪ Expensive
▪ Difficult to generalize from small group
▪ Consumers not always open and honest
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Learning Objective 3
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Marketing Research
Online Contact Methods
Advantages
• Low cost
• Speed
• Higher response rates
• Good for hard to reach groups
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Learning Objective 3
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Marketing Research
Primary Data Collection
Sampling Plan
A sample is a segment of the population selected for marketing research to represent the population as a whole
• Who is to be studied?
• How many people should be studied?
• How should the people be chosen?
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Learning Objective 3
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Marketing Research
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Learning Objective 3
Types of samples
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Marketing Research
Primary Data Collection
Research Instruments--Questionnaires
• Most common
• In person, by phone, or online
• Flexible
• Researchers must be careful with wording and ordering of questions ▪ Closed-ended
▪ Open-ended
• Useful in exploratory research
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Learning Objective 3
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Marketing Research
Primary Data Collection
Mechanical Research Instruments
Mechanical devices
People meters
Checkout scanners Neuro-
marketing
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Learning Objective 3
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Marketing Research
Implementing the Research Plan
• Collecting the information
• Processing the information
• Analyzing the information
Interpreting and Reporting Findings
• Interpret findings
• Draw conclusions
• Report to management
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Learning Objective 3
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Analyzing and Using Marketing Information
Customer Relationship Management (CRM)
CRM involves managing detailed information about individual customers and
carefully managing customer touch points to maximize customer loyalty
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Learning Objective 4
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Analyzing and Using Marketing Information
Customer Relationship Management
CRM Touchpoints
Customer purchases
Sales force contacts
Service and support
calls
Web and social
media sites
Satisfaction surveys
Credit and payment
interactions
Marketing research studies
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Learning Objective 4
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Analyzing and Using Marketing Information
Distributing and Using Marketing Information
Information distribution involves making information available in a timely, user-friendly way
• Intranet
• Extranet
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Learning Objective 4
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Other Marketing Information Considerations
Marketing Research in Small Businesses and Nonprofit Organizations
International Market Research
Public Policy and Ethics
• Customer privacy
• Misuse of research findings
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Learning Objective 5
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Coronavirus Free
Good Health
