Page 115 - Marketing Management

92 PART 2 CAPTURING MARKETING INSIGHTS

Summary

1. To carry out their analysis, planning, implementation, 7. In the social-cultural arena, marketers must under-
and control responsibilities, marketing managers need stand people’s views of themselves, others, organiza-
a marketing information system (MIS). The role of the tions, society, nature, and the universe. They must
MIS is to assess the managers’ information needs, market products that correspond to society’s core
develop the needed information, and distribute that in- and secondary values and address the needs of dif-
formation in a timely manner. ferent subcultures within a society.
2. An MIS has three components: (a) an internal records 8. In the natural environment, marketers need to be
system, which includes information on the order-to- aware of the public’s increased concern about the
payment cycle and sales information systems; (b) a health of the environment. Many marketers are now
marketing intelligence system, a set of procedures embracing sustainability and green marketing pro-
and sources used by managers to obtain everyday in- grams that provide better environmental solutions as
formation about pertinent developments in the mar- a result.
keting environment; and (c) a marketing research sys- 9. In the technological arena, marketers should take
tem that allows for the systematic design, collection, account of the accelerating pace of technological
analysis, and reporting of data and findings relevant to change, opportunities for innovation, varying R&D
a specific marketing situation. budgets, and the increased governmental regulation
3. Marketers find many opportunities by identifying brought about by technological change.
trends (directions or sequences of events that have 10. In the political-legal environment, marketers must
some momentum and durability) and megatrends work within the many laws regulating business
(major social, economic, political, and technological practices and with various special-interest
changes that have long-lasting influence). groups.
4. Within the rapidly changing global picture, marketers 11. There are two types of demand: market demand and
must monitor six major environmental forces: demo- company demand. To estimate current demand, com-
graphic, economic, social-cultural, natural, technologi- panies attempt to determine total market potential,
cal, and political-legal. area market potential, industry sales, and market
5. In the demographic environment, marketers must be share. To estimate future demand, companies survey
aware of worldwide population growth; changing buyers’ intentions, solicit their sales force’s input,
mixes of age, ethnic composition, and educational lev- gather expert opinions, analyze past sales, or engage
els; the rise of nontraditional families; and large geo- in market testing. Mathematical models, advanced
graphic shifts in population. statistical techniques, and computerized data collec-
6. In the economic arena, marketers need to focus on in- tion procedures are essential to all types of demand
come distribution and levels of savings, debt, and and sales forecasting.
credit availability.

Applications

Marketing Debate Take a position: Age differences are fundamentally
more important than cohort effects versus Cohort
Is Consumer Behavior More a Function effects can dominate age differences.
of a Person’s Age or Generation?
One of the widely debated issues in developing marketing Marketing Discussion
programs that target certain age groups is how much con- Age Targeting
sumers change over time. Some marketers maintain that What brands and products do you feel successfully “speak
age differences are critical and that the needs and wants of to you” and effectively target your age group? Why? Which
a 25-year-old in 2010 are not that different from those of a ones do not? What could they do better?
25-year-old in 1980. Others argue that cohort and genera-
tion effects are critical, and that marketing programs must
therefore suit the times.