1. Marketing Management
By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha
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SUMMARY by
Chapter 3
Capturing Marketing insights
and Spotting Market Trends
To provide insight into an inspiration for marketing decision making, companies must
possess comprehensive, up-to-date information about macro trends as well as micro
trends particular to their business. This chapter deals with various modes of obtaining
this information and also looks into the major macroeconomic forces that affect
MIS marketing decisions.
(Marketing
Information MIS (Marketing Information System)
System) MIS can provide data e.g. Swiss eat most chocolates, Greeks eat most cheese. It relies
on internal company records, marketing intelligence activities and Market Research.
Consists of people, MIS provides information on market happenings and changes in environment. Purposes
equipment and of MIS have been noted below.
procedures, to
gather, sort, • Train the sales force for intelligence gathering by observing competitors
activities and listening to customer comments.
analyze, evaluate
• Motivate retailers and distributors to pass intelligence. E.g. mystery shoppers to
and distribute identify customer treatment and possible flaws.
needed, timely and • Network externally using competitor’s annual reports, talking with their
accurate retailers, distributors and employees, attending shareholder meetings. It should
be done ethically and legally.
information to
• Use government sources (Census, NSSO reports) or purchase data from outside
marketers.
suppliers (AC-Nielsen, etc)
• Create a panel of largest, sophisticated and important customers for feedback.
• Use online forums, sites offering customer and expert reviews, Customer
compliant sites,

2. Chapter 3 - Capturing Marketing insights and Spotting Market
Trends
Internal Company Records
• Order to Payment cycle - Customer places order for goods -> Sales team sends
invoice to various departments -> Sales team back orders out of stock items ->
Suppliers send goods and sales team pays suppliers -> Sales team delivers order and
receives payment. Purpose is to minimize number and duration of cycles.
• Sales Information System - Keeping constant track of sales, customers, etc. It can
help in identifying trends.
• Database / Data warehousing / Data Mining - Separate databases are there for
products, salespersons and customers. Purpose is to analyze (mine) data using
statistical methods and discover trends.
Analyzing the
Macro
Major Macro Environmental Forces
Environment
Demographic
Fad – 16.7% of World population in India; Male to Female ratio of 933:1000
Unpredictable, Population Age mix : median age of 23.8 years, 34% b/w 12 and 25yrs, 24% b/w 25 and
short-lived, without 34 years
Literacy level: 65.38% literate, 75.8% males and 54.16% females, 76% literacy between
any economic or
15-24yrs age group, 64.5% literacy between 25-34yrs age group.
social significance
Trend -
Sequence of events
Economic
that have Purchasing Power depends on income, savings, prices, credit availability. India’s GDP is
momentum and $1.2 trillion, per capital income of $3100
durability, reveals Income distribution: 77.7% of urban households have income up to Rs3000/month while
only 2.1% have income more than Rs 10,000/month.
the future.
Categories of Indian consumers: Destitute ( less than Rs16,000 annually, inactive
Megatrend – participants in market exchange), Aspirants ( Rs 16,000 to Rs22,000, new entrants in
Large social and consumption system), Climbers, (Rs 22,000 to Rs 45,000, have desire and willingness to
economic influence, buy but has limited cash), Consuming Class ( Rs 45, 000 to Rs 2,15,000, majority have
slow in formation money and are willing to pay), Rich ( more than Rs 2,15 000, have money and own a
variety of products).
but has lasting
Trend shows increasing % of Consumers and Climbers while a decreasing % of Destitute
effect. and Aspirants.
Social-Cultural
Society shapes beliefs, values, demands, and requirements. It affects dress codes, food
habits, brand preferences. Trend shows an increasing role of children on purchasing
decisions e.g. bicycles, computers, wrist watches, shoes and other FMCG goods.

3. Chapter 3 - Capturing Marketing insights and Spotting Market
Trends
Natural
Deterioration of environment is a significant concern e.g. Greenhouse Effect, Ozone
layer and fossil fuel depletion. Government concerns in this aspect are Euro-2
emissions norms and CNG.
Although majority feels necessity of environmental friendly products, they do not buy
because
(a) Perception of green good being of inferior quality and (b) Perception that good does
not contribute majorly to the environment.
Corporate Environmentalism is recognizing the importance of environmental issues
What is the affecting the firm and integrating those in its strategic plans is fast gaining ground. E.g.
Focus on Non-renewable sources like Jatropha oil, Pollution Control Systems like
difference landfills, recycling centers and focus on CNG initiatives.
between a
Fad and a Technological
Four major trends are
(a) Accelerated Pace of Change: e.g. Apple selling 23.5 million in 2006
Trend? (b) Unlimited Opportunities for Innovation e.g. Developments in Bio-tech,
A fad becomes a telecommunication, Robotics, aid vaccines, contraceptive pills.
trend when it (c) Varying R & D Budget: e.g. Increasing R & D in Pharmaceutical companies like Cipla,
Dr. Reddy’s, and Ranbaxy
affects a large
(d) Increasing regulation of technological change e.g. Drugs and cosmetic act, control
number of people, on clinical trial, standard for drugs.
has functional
value, has lesser
number of Political and Legal
Two major trends are
substitutes, and has
(a) Increase in business legislation: to protect companies from unfair competition, to
other trends
protect consumers from unfair business practices, to protect society from unbridled
promoting it. business behavior and to charge businesses with social costs created by their products
or processes
(b) Growth of special interest groups and improvements like the Consumer Protection
Act.