Professional Documents
Culture Documents
Understanding Markets,
Market Demand, and the
Marketing Environment
Chapter Questions
What are the components of a modern
marketing information system?
How can marketers use intelligence systems
and marketing research?
How can demand be more accurately
measured and forecasted?
What are some important macro-
environmental developments?
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What is a
Marketing Information System?
A marketing information system consists
of people, equipment, and procedures to
gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information to
marketing decision makers.
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Internal Records
Order-to-payment cycle – send orders,
prepare invoices, transmit copies to other
departments, back-orders, out-of-stock items
Sales information system – timely and
accurate reports on current sales
Databases, warehousing,
data mining – combining
data from customer,
product, salesperson
and other databases
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What is a
Marketing Intelligence System?
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Steps to Quality Marketing
Intelligence
Train sales force to scan for new developments
Motivate channel members to share intelligence
Hire external experts to collect intelligence
Network externally
Utilize a customer advisory panel
Utilize government data sources
Purchase information from outside suppliers
Utilize online customer feedback systems to
collect competitive intelligence
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What is Marketing Research?
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The Marketing Research Process
Present findings
Step 1: Define the Problem
Types of Research
Exploratory
Descriptive
Causal
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Step 2: Develop the Research Plan
Data Research
Sources Approach
Research Sampling
Instruments Plan
Contact
Methods
Data sources
Secondary
Primary
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Research Approaches
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Research Instruments
Questionnaires
Qualitative Measures – word associations,
visualization, projective techniques, laddering
Technological Devices – galvanometers,
eye cameras, audiometers, GPS
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Questionnaire Do’s and Don’ts
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Sampling Plan
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Contact Methods
Mail Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview
Marketing Research Process -
Contd.
Step 3. Collect the information
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Characteristics of
Good Marketing Research
Scientific method
Research creativity
Multiple methods
Interdependence
Value and cost of information
Healthy skepticism
Ethical marketing
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Pros and Cons of
Online Research
Advantages Disadvantages
Inexpensive Small samples
Versatility problems
Inconsistencies
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Forecasting and
Demand Measurement
Which market to measure?
Potential market
Available market
Target market
Penetrated market
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Market Demand Functions
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Estimating Current Demand:
Area Market Potential
Market-Buildup
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Estimating Current Demand:
Area Market Potential
Multiple-Factor Index
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Estimating Current Demand:
Total Market Potential
Calculations
Multiple potential number of buyers by
average quantity each purchases times
price
Chain-ratio method
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Sales Forecast Methods
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Analyzing the Macroenvironment:
Needs and Trends
Fad
Trend
Megatrend
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Major Forces in the Environment
Demographic
Political-legal Economic
Technological Socio-cultural
Natural
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Population and Demographics
Population growth
Population age mix
Ethnic markets
Educational groups
Household patterns
Geographic shifts in population
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Perspective on the Global
Demographic Environment
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Economic Environment and
Consumer Psychology
Income Distribution
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Social-Cultural Environment
Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe
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Natural Environment
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Technological Environment
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The Political-Legal Environment
Business legislation
Growth of special interest groups
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