topic two (ppt)

8/13/2019 Topic Two (PPT)

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Understanding the market place


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After studying this chapter you should beable to: Define and explain the market environment

Explain the environmental factors of themarket environment

Define and explain marketing informationsystem

Explain marketing information needs,developing marketing information andinformation distribution


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A market place can be defined as sharing ofparticular needs or wants by potential buyerswho might be willing to engage in exchangeto satisfy needs or wants.

Market size depends on number of peoplethat exhibit the need, possess the resourcesto engage in exchange and have the

willingness to exchange resources for whatthey possess.


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These include factors that may influence theorganization either directly or indirectly inany observable manner.

In general, environmental factors affectorganization originate from two sides-inputsand outputs.

Inputs in an organization include, people with

values, needs and focus, goal for affiliationwith organization, resources and technologyin form of equipment and products.


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The organization process these inputs thatgive rise to output that further go back intothe environment.

These affect the organization as the output isconsumed.

It is for this reason organization andenvironment cannot be separated each

exerting influence on the other.


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These are external forces that are threat tothe organization.

The analysis helps to determine theorganizational opportunities and dangerthere by tracing the sources.

The marketing environment surrounds andexerts impacts on the organization from

three major perspectives: Micro, Macro andinternal environments.


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Micro-environment describes therelationships between organization and thedriving forces that control the relationships.

Supplier, customer, intermediaries,employees, creditors and shareholdersconstitute the micro environment.

The relationship is local and the organization

may exercise a degree of influence.


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All factors that influence organization whichare out of direct control of the organization.

Organizations generally have no influence onany of such forces- socio-cultural,competition, economic, ecological, politicaland technological.

They continuously changing and the

organization needs to be flexible to adapt.


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Referred to all factors that are internal to theorganization.

The internal environment, like the externalimportant for managing change.

Generally assess by applying personnel,

money, machinery, materials and markets.


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Process that consists of people, equipmentand procedure to gather, sort, analyze,evaluate and distribute needed, timely andaccurate information to the marketing

decision makers.

Managing of marketing information normallybegins and ends with marketing managers


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Therefore, it: Interacts with information users to assess

information

Develops needed information from internal and

external sources of company data Helps users analyze information for marketing

decisions

Distributes the marketing information and helpsmanagers use it for a better decision making.


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Marketing Information System (MIS) helpsmanagers to:

Information Needs Assessment: Strives tobalance the information that the managerswould like to have contrary to what they reallyneed and what is reasonable to offer.

Developing Marketing Information:Marketingmanagers can obtain essential informationfrom some sources such as


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Internal Records (Data): customer databases, financial records, and operation

reports. Marketing Intelligence: Systematic collection and analysis of publicly

available information about competitors and patternin the marketing environment. E.g. Companyemployees, Internet, Garbage, Published information,Competitors employees, Trade shows,Benchmarking, Channel members and key customers

Marketing research: Involvesa systematic design, collection, analysis, and

reporting of data relevant to a specific marketingsituation facing an organization.


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Marketing research: Defining the problem and research objectives

Developing the research plan for collectinginformation

Implementation of the research plan throughcollecting and analyzing the data.

Interpreting and reporting the research

findings


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Information gathered through the requiredprocess ought to be distributed to theappropriate people (marketing managers) andat right time.

The development in information technologyhas changed the pattern of informationdistribution.

The distribution and using marketing

information should take the form of routineactivity that makes information available in atimely manner.


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Reference Brine Gary (2007) Marketing Magazine,

November 2007 - December 2007

Boone and Kurtz (2006) ContemporaryMarketing 2006, Thomson, south western

Kotler, Philip and Armstrong, Gary (2004)Principles of Marketing

Khatibi, Ali Mohan, Avvari V. and Haque,Ahasanul (2005) Principles of Marketing,Thomson

topic two (ppt)

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