Transcript Document

Chapter 2
Alternative Approaches to
Marketing Intelligence
© 2005 Thomson/South-Western
1
Profiling Competitors
Background
* Company identification? Location? Brief history?
* Affiliates? How company is organized? When did it last alter its structure?
* Shares outstanding? Ownership (insiders, institutions, major shareholders)?
Finance
* Statistics and performance analysis? Sales by division? Profitability by business
unit/product line?
* Banks/investment banking firms used?
* Stock market data? Current market value?
* Ratios and industry comparisons?
* Cash flow analysis? Assets and return on assets? Capitalization? Working
capital?
Products
* Products and services offered? Market position by product? Product strengths
and
weaknesses?
* New product introductions?
* R&D expenditures and apparent interests of technical personnel? Analysis of the
company’s design and development process?
* Patents held and pending?
* Product features and quality? Technical sophistication?
2
Profiling Competitors
Pricing
* General pricing policies?
* Special selling arrangements?
* Licensing and joint venture agreements?
* Product costs?
Markets
* Market segments served? Markets targeted? Degree of penetration?
Segment
growth and potential for future growth?
* How does company view the direction of the industry?
* Markets and geographic areas targeted for expansion?
* Advertising, marketing, and sales efforts including budgets and ad agencies
used?
* Foreign trade? Recent orders? Government contracts?
Facilities
* Location? Size? Domestic vs. foreign?
* Capacity? Capacity utilization? Announced capacity expansions?
* Product mix by plant? Shipments and profitability data?
* Capital investments? Equipment purchases?
* Number of production lines and shifts?
3
The Environments Affecting Marketing & Marketing Research
Dimensions
Information
Systems-Based
1. Focus
General
Specific
2. Purpose
Understanding of competitive
forces which drive the industry
Understanding how competitors
may influence the success of a
given project
3. Time horizon
On-going
Bound by the time constraints
imposed by the project
4. Definition of
competitors
Given by firms which produce
substitute products; traditional
industry boundaries; intraindustry definition (broad)
Restricted to those competitors
relevant to the specific project
(narrow)
5. End results
Assessment of general nature of
competition in the industry;
strength/weakness profile of
specific competitors; industry
analysis document
Strength/weakness profiles of
relevant competitors based on
assessment of the potential of
project success
Project-Based
4
The Environments Affecting Marketing & Marketing Research
Dimensions
Information
Systems-Based
Project-Based
6. Utilization
of output
Input for annual strategic planning
efforts
Input for the formulation and
implementation of a given
project’s plans
7. Organizational
levels involved
Ideally, all; typically corporate
Any level in the organization,
initially; restricted to project team,
during implementation stage;
possibly many
8. Number of
persons involved
Large
Typically small-project team
9. Who collects
information
Staff and line
Project team; tap staff expertise
where necessary
10. Storage and
access
Computer-based system (ideal)
Report--then integrated into
computer base
11. Complexity
Many variables
Less complex; restricted to
project success factors
12. Degree of
structure
Rhythmic; prescribed procedures
Each problem is different-unstructured and irregular
5
The Environments Affecting Marketing
Dimensions
Information
Systems-Based
Project-Based
13. Nature of
information
Integrated; historical, accurate,
forecasts
Tailor-made for problem;
often used only one time
14. Communication
of information
Relatively difficult
Relatively simple report
15. Appraisal job
Difficult
Less difficult; readily applicable
toproject objectives
16. Costs
High
Varies but low
6
Figure 1: Components of an MIS or Decision Support System
Data System
Model System
Dialog System
Information
7
Marketing Intelligence System Components
* Data System -- processes and methods used to capture, receive and
store data from internal and external sources. Consumer, competitor,
general economic, industry and demographic information modules are
typical elements of data systems.
* Model System -- programs which allow the user to manipulate the stored
data. Programs include simple summing, complex statistical analysis,
and optimization algorithms. Operational, tactical, and strategic formal
decision models are used by entry, mid, and upper-level marketing
management respectively.
* Dialog System -- language systems that permit managers to develop
individual models and reports without the assistance of a programmer.
8
Data Mining
 Data Mining -- the analysis of very large databases, derived from:
 Scanner data
 Data base marketing
 Direct marketing
 Techniques? -- a mix of old and new:
 Regression
 Neural networks
 Privacy Issues? -- information and choice:
 Display your practices
 e.g., allow Web site visitors to opt-in or opt-out
9