MARKETING MANAGEMENT

(MBA4051)

Chapter: Three

Analysing Marketing Opportunities

By: K.E (Ph.D)

 Marketing Information System (MIS)
A marketing information system (MIS)
consists of people, equipment, and
procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and
accurate information to marketing decision
makers. (Philip Kotler)
• Assess the information needs
• Develop and analyze needed information
• Distribute and using information
The Marketing Information System
Cont…
• MIS provides information to the company’s
marketing and other managers and external
partners such as suppliers, resellers, and
marketing service agencies
Marketers can obtain information from:
• Internal data
• Marketing intelligence
• Marketing research
Internal Data
• Internal databases are electronic collections of
consumer and market information obtained from
data sources within the company network,
including accounting, marketing, customer
service, and sales departments.
 Advantages and Disadvantage
of Internal Databases
Advantages: Disadvantages:
• Can be accessed more • Incomplete information
quickly • Wrong form for decision making
• Less expensive • Timeliness of information
• Amount of information
• Need for sophisticated equipment
and techniques
 Marketing Intelligence
• Marketing intelligence is the systematic
collection and analysis of publicly available
information about competitors and
developments in the marketplace.
• The goal of marketing intelligence is to:
• Improve strategic decision making,
• Assess and track competitors’ actions, and
• Provide early warning of opportunities and threats.
Marketing research
Marketing research is the systematic design,
collection, analysis, and reporting of data
relevant to a specific marketing situation
facing an organization.
FEATURES OF MARKETING RESEARCH
o It is a systematic process carried out in a
stepwise process
o It should be objective and the research
should not be carried out to establish an
opinion
o It is multi-disciplinary in the sense that it is
related to Statistics, Economics,
Psychology and Sociology.
 Objective Of Marketing Research

• To understand why consumers buy a product

• To forecast future sales and market share

• To assess competitive strengths and strategies

• To evaluate the effectiveness of marketing actions

already undertaken

• To asses customer satisfaction.

Marketing Research Process
Define the problem and research objective

Develop the research plan and design

Collect the information

Analyze the information

Present the findings

 STEP I : Define The Problem &
Research Objective
• Proper definition of the marketing problem will lead to

useful and relevant results which can solve the

marketing problem.

• Usually research is conducted with one or more

objectives and this forms the broad frame within which

the research has to be conducted.

 STEP 2: DEVELOP ESEARCH PLAN

• A research plan is a framework within which

collection and analysis of data is undertaken
• This involves decisions on the following
a. Data sources
b. Research Approaches
c. Research Instruments
d. Sampling Plan
a. Data Sources
• The researcher has to decided which source of data
to use – Primary data or secondary data
• Primary data are freshly gathered for a specific
purpose or a specific research project
• Secondary data are data which collected for some
other purpose or for commercial purpose of selling
C. Research Instruments
• The instruments used in research can

1. Questionnaire
• This is the most commonly used to instrument
which is highly flexible
2. Mechanical Device
• Mechanical devices such as galvanometers, eye
cameras, audiometers etc are used as research
instruments
3. Observational Research
•Fresh data is collected by observing people and situation
4. Focus Group Research
•This is a group discussion method in which eight to twelve
people are involved in the presence of a skilled moderator to
discuss a product, service, a firm or any marketing related
activity
5. Survey Research
•Survey is undertaken with the help of questionnaires
6. Behavioral Research
•Customers’ actual behavior in terms of actual
purchases are obtained
7. Experimental Research
•This is the most scientific method of research which
tries to capture cause and effect relationship
d. Sampling Plan
• The researcher has to prepare a sampling
plan that should outline the following:
o Who should be surveyed (Sampling Unit)
o How many should be surveyed (Sample Size)
o How should they be selected for the survey
(Sampling Procedure)
Cont…
– 1.Sampling Unit
• Researcher must define the element of the target
population in which the information shall be
collected.
– 2.Sample Size
• Sample size is decided based on the nature of
the study and variance in the population, level of
accuracy desired and the budget available for
research.
Sampling Procedure

Two types of methods are available

for selecting samples
•Probability Sampling
•Non-Probability Sampling
Research Designs
 Step III – Collect the Information
• After designing the research instrument, the
researcher should now actually contact the
respondent and collect the information
• At this stage, it is very important to keep the
quality of the data under control by ensuring
accurate unbiased answers and by seeking the
entire respondent’s cooperation.
• The data collectors should be well trained.
Step IV: Analyze the information
• In this stage researcher collects the data
and codify it
• Nowadays, many questionnaires are pre-
coded
• The coded data is then tabulated
• Then the data is analyzed with the help of
several statistical tools
• Here the data is converted into information
 Step V: Present the findings
• The researcher should present the findings to the
decision makers or users of the information
• General format of report
– Introduction
– Statement of purpose
– Research methodology
– Analysis of data
– Findings and conclusions
– Recommendations
– Appendix and bibliography
 What is a Business Market ?
The Business Market - all the organizations
that buy goods and services to use in the
production of other products and services
that are sold, rented, or supplied to others.

It also includes the behavior of retailing

and wholesaling firms.
Similarity and difference between Business Market and
individual Market
Similarity
Both involve people who assume buying roles and
make purchase decisions to satisfy needs.

Difference
Business markets involve many more dollars and items do
consumer markets.
Characteristics
Characteristics of
of Business
Business Markets
Markets

Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demandderived
derivedfrom
fromconsumers
consumers
••Inelastic
Inelasticdemand
demand
••Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
••More
Morebuyers
buyers
••More
More professionalpurchasing
professional purchasing
effort
effort
Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
••More
Morecomplex
complexdecisions
decisions
••Process
Process is moreformalized
is more formalized
••Buyer
Buyer and seller aremore
and seller are more
dependent on each other
dependent on each other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with customers
with customers
 Model
Model of
of Business
Business Buyer
Buyer Behavior
Behavior
Marketing
Marketingand
and
Other
OtherStimuli
Stimuli The
TheBuying
Buying Buyer’s
Buyer’s
Organization
Organization Response
Response
The Buying Center

Product Economic Buying Decision • Product or Service

Process Choice
Price Technological • Supplier Choice

Place Political • Order Quantities

• Delivery Terms
Interpersonal and
Promotion Cultural Individual
and Times
Influences • Service Terms
Payment
Organizational
Influences
 Business Buying Situations

New
New Task
Task Buying
Buying
(Buying
(Buyingaaproduct
productor orservice
service
for
forthe
thefirst
firsttime.)
time.)
Involved Decision Making

Modified
Modified Rebuy
Rebuy
(Buy
(Buythe
thesame
sametype
typeofofproduct
productitithas
has
with
withsome
somemodifications)
modifications)

Straight
Straight Rebuy
Rebuy
(The
(Thebuyer
buyerreorders
reorderssomething
something
without any modifications)
without any modifications)
 i se
rc
xe
E
Discussion on the purchasing practice
 1. What are the participants of gov’t office Purchases?
 2. What are the steps of gov’t office Purchases?
 3. Is consumer or Business buying more complex?
 Participants in the Business Buying
Process: The Buying Center

Users
Gatekeepers Who
Whowill
willuse
usethe
thepurchased
purchased
Control information flows product
in purchase decisions productororservice.
service.

Buying
Buying
Deciders Influencers
Who have power to select
Center
Center Define specifications and
or approve the final suppliers also provide information
for
evaluating alternatives

Buyers
Who make an actual purchase.
 Major Influences/Factors on
Business Buying
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive&&Cultural
Cultural

Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&&Systems
Systems
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes

Buyers
Buyers
Stages in the Business Buying Process
Problem
Problem Recognition
Recognition
General
General Need
Need Description
Description
Product
Product Specification
Specification
Supplier
Supplier Search
Search
Proposal
Proposal Solicitation
Solicitation
Supplier
Supplier Selection
Selection
Order
Order Routine
Routine Specification
Specification
Performance
Performance Review
Review
Institutional and Government Markets
Institutional
Institutional Markets
Markets

Low
LowBudgets
Budgets Captive
CaptivePatrons
Patrons

Government
Government Markets
Markets

Specialized
SpecializedBuying
Buying Public
PublicReview
Review

Outside
OutsidePublics
Publics Open
OpenBids
Bids

Negotiated
NegotiatedContracts
Contracts