Collecting and Analyzing

Marketing Information
Dr. Ananda Sabil Hussein

4-1
Issues to be Considered
in a Situation Analysis

4-2 4.1
Exhibit
 Conducting a
Situation Analysis (1 of 2)

 Analysis Alone is Not the Solution

 Data and Information are Not the Same

 Data
 A collection of numbers or facts that have the potential to inform
 Information
 Data that has been transformed or combined with other data in a
manner that makes it useful to decision makers

4-3
 Conducting a
Situation Analysis (2 of 2)
 The Benefits of Analysis Must Outweigh the Costs

 Conducting a Situation Analysis is a Challenging Exercise

 One of the most difficult parts of the marketing plan
 Should provide a complete picture of three key environments:
1. Internal
2. Customer
3. External

4-4
The Interconnectedness of the Internal,
Customer, and External Environments

4-5 4.2
Exhibit
 Discussion Question

 Of the three major environments in a situation analysis

(internal, customer, external), which do you think is the
most important in a general sense? Why? What are some
situations that would make one environment more
important than the others?

4-6
 The Internal Environment (1
of 2)

 Review of Current Objectives, Strategy and Performance

 An important input to later stages in the planning process
 Poor or declining performance must be the result of:
 Goals or objectives that are inconsistent with the
customer or external environments
 Flawed marketing strategy
 Poor implementation
 Changes in the customer or external
environments that are beyond the control of the
firm

4-7
 The Internal Environment (2
of 2)

 Availability of Resources
 Includes a review of financial, human, and experience resources; as
well as resources from key relationships
 Financial resources tend to get most attention
 Labor shortages are expected to be a major problem in the coming
years

 Organizational Culture and Structure

 Problems can arise when marketing does not hold a prominent
position in the organizational hierarchy
 Culture and structure are relatively stable but can be affected by
mergers

4-8
 The Customer
Environment
 Who are our Current and Potential Customers?
 What do our Customers do with our Products?
 Where do Customers Purchase our Products?
 When do Customers Purchase our Products?
 Why (and How) do Customers Select our Products?
 Why do Potential Customers not Purchase our
Products?

4-9
 Discussion Question

 Understanding the motivations of a firm’s noncustomers is

often just as important as understanding its customers.
Look again at the reasons why an individual would not
purchase a firm’s products. How can a firm reach out to
noncustomers and successfully convert them to customers?

4-10
 The External Environment
(1 of 2)

 Competition
 Brand competitors
 Product competitors
 Generic competitors
 Total budget competitors

4-11
Major Types of Competition

4-12 4.6
Exhibit
 Stages of Competitive
Analysis
1. Identification
 Identify all current and potential competitors

2. Characteristics
 Assess each key competitor’s characteristics

3. Assessment
 Assess each key competitor’s strengths and weaknesses

4. Capabilities
 Focus the analysis on each key competitor’s marketing
capabilities

5. Response
 Estimate each key competitor’s most likely strategies and
responses under different environmental situations
4-13
 The External Environment
(2 of 2)

 Economic Growth and Stability

 Political Trends
 Legal and Regulatory Issues
 Technological Advancements
 Sociocultural Trends
 Demographic Trends
 Lifestyle Trends
 Trends in Cultural Values

4-14
 Trends in the
Sociocultural Environment (1 of 2)

 Example Demographic Trends

 Aging of the American population
 Decline in the teen population
 Population growth in the Sun Belt states

 Example Lifestyle Trends

 Clothing has become more casual, especially at work
 Clothing has become more revealing, especially for
women
 Growing participation in body modification (e.g., tattoos,
piercings)

4-15
From Exhibit 4.7
 Trends in the
Sociocultural Environment (2 of 2)

 Trends in Cultural Values

 Less focus on “me-oriented” values
 More value-oriented consumption (good quality, good
price)
 Importance in maintaining close, personal relationships

4-16
From Exhibit 4.7
 Collecting Environmental
Data and Information (1 of 2)
 Secondary Information Sources
 Internal Data Sources
 Government Sources
 Periodicals/Book Sources
 Commercial (Fee-Based) Sources

4-17
 Collecting Environmental
Data and Information (2 of 2)
 Primary Data Collection
 Direct Observation
 Focus Groups
 Surveys
 Experiments

 Overcoming Problems in Data Collection

4-18
 Discussion Question

 Do you think the Internet has made it easier or more

difficult to collect marketing data and information? Why?
How might the major data collection issues of today
compare to the issues that occurred in the pre-Internet era?

4-19