ENT4310 Business Economics and Marketing

1. ENT4310Business Economics and Marketing Gathering Market Information Arild Aspelund

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

3. 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

4. Marketing Information Systems (MIS) • An internal records system • Order-to-payment cycles (the logistics…) • Sales information and prognosis • Data mining • Marketing intelligence system • Procedures and sources for everyday development of marketing environment • 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

5. 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

6. 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?

7. Porter’s Competitive Forces

8. What is going on…? Fad Trend Megatrend

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

10. 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

11. 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

12. 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

13. 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 • A six-step model for market research