ENT4310 Business Economics and Marketing

1. ENT4310Business Economics and Marketing Gathering Market Information Arild Aspelund

2. Outline • Environmentalscanning – theresponsibilityofmarketers • Marketing Information Systems (MIS) • Environmentalanalysis • Competitiveforces – Porter’sfiveforces • PESTEL

3. The responsibilityofMarketeers • Deliverinformation to topmanagementofmovements in the markets that have implication for allocationoffirmresources and firmstrategy • Provideinformationof market fads, trends, megatrends and competitivemovesthatregardfirmoperations • Emergenceofdemand for newproducts and services • Deliverfeasibility studies for new business proposals • Status reportsofongoing marketing and sales activities

4. Marketing Information Systems (MIS) • An internalrecords system • Order-to-paymentcycles (thelogistics…) • Sales information and prognosis • Data mining • Marketing intelligence system • Procedures and sources for everydaydevelopmentof marketing environment • Marketing research system (ad hoc based) • Systematic design, collection, analysis, and reportingof data and findings related to a specificsituation or new business opportunity

5. Rockart’sCriticalSuccessFactorModel • The roleofthe MIS is to assessthemanager’sinformationneeds, developtheneededinformation, and distributethatinformation in a timely manner • The MIS is designed to provide a continousflowofinformationonkeyfactorsthatregularlygoesintoeveryday marketing decision-making • The factorsthatgoesintothe MIS is determined by a studyofdecision-making in management • All information is stored for later analysis

6. Rockart’sCriticalSuccessFactorModel 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. EnvironmentalAnalysis • P – Political • E – Economical and demographical • S – Social and cultural • T - Technological • E – Environmental and natural • L – Legal

10. EnvironmentalAnalysis P – Political • Regulation and deregulation • Tax policy • Special Interest Groups Economical and demographical • Income and dept distribution and growth • Populationcharacteristics and growth • Ethnicity, age, and educationalmix • Householdpatterns and non-traditionalhouseholds • Geographicalpatterns; urban versus rural

11. EnvironmentalAnalysis S – Social and cultural • Society shapesnormes, values, and beliefsthatlargelydefines tastes and preferences • Peopleabsorb a worldview • Viewsaboutthemselves, others, organizations, society, nature and theuniverse • Corebeliefs versus secondarybeliefs • Subcultures T - Technological • ”Creativedestruction” • Pace ofchange • IP management and dangersofimitation

12. EnvironmentalAnalysis E – Environmental and natural • Pollution • Shortageofenergy and otherraw material such as water • Green customerpreferences and legislation L – Legal • Lawsprotectingcompetition, consumers and society • Rights and powersofbuyers in relation to sellers • Labeling • Productsafety and liability • Privacy, managementof personal information and direct marketing

13. Summary and Conclusions • It is theresponsibilityofthemarketer to deliverinformation to topmanagementofmovements in the markets that have implication for allocationoffirmresources and firmstrategy • It is important to be able to distinguishfads from trends and megatrends. The latter twoarepredominantly profitable, the former potentiallyrisky… • Environmentalanalysismighthelpyouonyourway • Porters fivecompetitiveforces • PESTEL • Continuation • Market analysis • Customervalue and needs • Quality and satisfaction • Loyalty