COLLECTING AND

ANALYZING
MARKETING
INFORMATION
 ANALYTICAL MODELS

• BCG: Boston Consulting Group (USA)

This model has been developed by students of
Boston College in USA. The Company classifies all its
SBUs according to the growth-Share Matrix. The
BCG Matrix has two axes. The vertical one
represents Market Growth rate (market
attractiveness) whereas the Horizontal one
represents Relative Market share (Market strength)

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 COMPONENTS OF BCG

• Problem Children/ Question Marks

These are low-share SBUs in high Growth Markets.
Management should think with due care, which SBU
to build and which to phase out
• Stars
These are both of High Growth rate and Market
share. They should be held carefully

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 CASH COWS

These are of Low-growth with high Market share. They

need less investment to retain them in the Market.
The Management should harvest cash from these
SBUs and pay for bills and support other SBUs
• Dogs
These SBUs are of Low-growth and Low Market-share.
Low cash generation

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 BCG MODEL

STAR PROBLEM
CHILD
(Hold)
(Build)

CASH COW DOG

(Harvest) (Divest)

HIGH LOW
Relative Market Share (% Competitor)
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 MICRO & MACRO ENVIRONMENT

• Micro
This is an internal environment. It entails dynamic
forces within the industry. These factors include:
Vendors, Competitors, Customers
• Macro
This is the general environment, which sometimes is
referred as external.

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 SWOT ANALYSIS

• SW = Strength and Weakness (INTERNAL)

• OT = Opportunities and Threats (EXTERNAL)

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 COMPETITORS ANALYSIS

• Knowing your competitors as you know yourself

• Analysis of competitors: Strengths & Weaknesses
• Is there any ‘loose brick’ in the value chain of your
competitor? Make sure you do not have one on
your side

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 MARKET & INDUSTRY ANALYSIS

• The impact of Market size & Potential

• Market growth and attractiveness: The link

with BCG
• Cost structure

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 THREE KEY ENVIRONMENTS

• Analysis of the external environment

(macroenvironmental) should include all the external
factors— competitive, economic, political, legal/
regulatory, technological, and sociocultural—that can
exert direct and indirect pressures on both domestic
and international marketing activities.
• The marketing manager should examine the customer
environment (5 W’s) to assess the current and future
situation with respect to customers in the firm's target
markets.
• Finally, a critical evaluation of the firm's current and
anticipated internal environment (microenvironmental)
with respect to its objectives and performance,
allocation of resources, structural characteristics, and
political and power struggles.
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 Four Basic Types of Competition

Brand Competitors: market products that are similar in

features and benefits to the same customers at similar prices

Product Competitors: compete in the same product class,

but with products that are different in features, benefits, and
price

Generic Competitors: market very different products that

solve the same problem or satisfy the same basic need

Total Budget Competitors: compete for the limited

financial resources of the same customers
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 Stages of Competitive Analysis

1) Identify all current and potential brand, product, generic, and total
budget competitors

2) Assess each key competitor in terms of relevant characteristics,

such as size, profitability, growth, objectives, strategies, etc.

3) Assess each key competitor’s strengths and weaknesses, as well as

the major competencies that each competitor possesses

4) Focus on each competitor’s marketing capabilities in terms of their

products, pricing, distribution, and promotion

5) Estimate each competitor’s most likely strategies and responses

under different environmental situations, as well as their reactions
to the organization’s own marketing efforts
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 ECONOMIC CONDITIONS

• A thorough examination of economic factors requires

marketing managers to gauge and anticipate the
general economic conditions of the nation, region,
state, and local area in which they operate.

• Economic factors to consider include inflation,

employment and income levels, interest rates, taxes,
trade restrictions and tariffs, current and future stages of
the business cycle (prosperity, stagnation, recession,
depression, and recovery), consumers' overall
impressions of the economy and their ability and
willingness to spend, and current and anticipated
spending patterns of consumers in the firm's target
market.
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 POLITICAL TRENDS

• Many marketers view political factors as

being beyond their control and do little
more than adjust the firm's strategies to
accommodate changes in those factors.

• Other firms take a more proactive stance

by seeking to influence elected officials.

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 LEGAL AND REGULATORY FACTORS

• The marketing manager should carefully

examine recent court decisions and recent
rulings of federal, state, local and self-
regulatory trade agencies to determine
their effects on marketing activities.

• Companies that engage in international

marketing activities should also consider
changes in the trade agreements
between nations.

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 CHANGES IN TECHNOLOGY

• Many changes in technology assume a

frontstage presence in that they are most
noticeable to customers.

• Technological changes can also assume

a backstage presence when their
advantages are not necessarily apparent
to consumers.

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 SOCIOCULTURAL FACTORS

• Sociocultural factors are those social and

cultural influences can cause changes in
attitudes, beliefs, norms, customs, and
lifestyles.

• Changes in cultural values can also create

challenges and opportunities for marketers.

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 THE CUSTOMER ENVIRONMENT

• Information should be collected that identifies

• The firm's current and potential customers
• The prevailing needs of current and potential
customers
• The basic features of the firm's and competitors'
products that are perceived as meeting customers'
needs
• Anticipated changes in customers' needs

• In assessing the firm's target markets, the

marketing manager should attempt to
understand all relevant buyer behavior and
product usage statistics.
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 5-W MODEL

• Who Are Our Current and Potential Customers?

• What Do Our Customers Do with Our Products?
• Where Do Our Customers Purchase Our Products?
• When Do Our Customers Purchase Our Products?
• Why (and How) Do Our Customers Select Our
Products?
• Why Do Potential Customers Not Purchase Our
Products?

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