Gathering Information and

Measuring Market Demand

by

1-1
Kotler on
Marketing
Marketing is
becoming a battle
based more on
information than
on sales power.

1-2
 Components of MIS (Marketing
Information System)
• Major responsibility for identifying significant market
place changes falls to the company’s marketers.
• Marketers also have extensive information about
how consumption patterns.
– Swiss consume the most chocolate
– Greeks eat the most cheese
– Per capita consumption of ice cream in Pakistan is
0.5litres. Turkey had this 15years ago and now their
consumption is 2.5litres.
 Marketing Information System
• A marketing information system (MIS) consists of
people, equipment, and procedures to gather, sort,
analyze, evaluate, and distribute needed, timely, and
accurate information to marketing decision makers.

• It is developed from
– Internal Company Records
– Marketing Intelligence Activities
– Marketing Research
1. INTERNAL RECORD SYSTEMS

• The Order-to-Payment Cycle

• Sales Information Systems
• Databases, Data Warehouses
And Data-Mining (customer
data base)

1-5
Can you name a company that uses
targeted mailings to promote new
products, or regional offerings?

1-6
2. THE MARKETING INTELLIGENCE
SYSTEM
• A Marketing Intelligence System is a set of
procedures and sources used by managers
to obtain everyday information about
developments in the marketing
environment.

• Internal Records systems supplies result

data, but the marketing intelligence system
supplies happenings data.
1-7
2. THE MARKETING INTELLIGENCE
SYSTEM
• A company can collect Market Intelligence by the
following
– Trade publications, talking to customers, suppliers, and
distributors
– Training and motivationg the sales force to spot and
report new developments.
– Purchasing competitors products
– Advisory Panels
– Mystery shoppers.
– Government data sources
– Purchasing information from outside suppliers.
– Online customer feed back systems
1-8
What are some of the potential
hazards a company might face by
relying too heavily on distributors,
retailers, or other
intermediaries for
market intelligence?

1-9
3. MARKETING RESEARCH SYSTEM

• Marketing Research
– The systematic design, collection,
analysis, and reporting of data and
findings relevant to a specific marketing
situation facing the company.

– Globally, it’s a $16.5 billion industry !

1-10
MARKETING RESEARCH SYSTEM
• Suppliers of Marketing Research
– Engaging students or professors to
design and carry out projects
– Using the Internet
– Checking out rivals
– Syndicated-service research firms
(AC Nielson)
– Custom marketing research firms
– Specialty-line marketing research
firms
1-11
 The Marketing Research Process

Defining
Defining the
the Developing
problem
problem and
and Developing Collect
Collect the
the
research the
the research
research information
research plan
plan information
objectives
objectives

Present
Present the
the Analyze
Analyze the
the
findings
findings information
information
 SCENARIO
• PIA is looking for new ways to serve its
passengers and is reviewing many ideas for its
first class passengers.
• Ideas are
– To supply an internet connection with limited
access to web pages and email messaging
– To offer 24 channels of satellite cable TV
– To offer a 50-CD audio system that lets each
passenger create a customized play list of music
and movies to enjoy during the flight
MARKETING RESEARCH SYSTEM

• Step 1: Define the Problem, the

Decision Alternatives, and the
Research Objectives
– Not too narrow / not too broad
– Research problem “Will offering an
in-flight internet service create
enough incremental preference and
profit for PIA to justify its cost against
other possible investments?

1-14
 MARKETING RESEARCH SYSTEM
• Step 1 cont
– Research Objectives
• What types of first class passengers would respond
most to using an in flight internet service.

• How many are likely to use this service

• How many extra passengers will choose PIA

• How much long term goodwill will this service add

 MARKETING RESEARCH SYSTEM

••Sheds
Shedslight
lighton
onproblem
problem--
Exploratory suggest
Research suggestsolutions
solutionsor
or
new
newideas.
ideas.

Descriptive
Research ••Ascertain
Ascertainmagnitudes.
magnitudes.

••Test
Testcause-
cause-and-effect
and-effect
Causal relationships.
relationships.
Research ••Tests
Testshypotheses
hypothesesaboutaboutcause-
cause-
and-effect
and-effectrelationships.
relationships.
MARKETING RESEARCH SYSTEM

• Step 2: Develop the Research Plan

– Data Sources (Primary and
Secondary)
– Research Approaches
• Observational Research (Researchers
might meander around first class
lounges or fly on competitors planes to
observe in flight service

1-17
 MARKETING RESEARCH SYSTEM
– Research Approaches cont
• Focus Group Research
• Surveys
• Behavioral Data (purchasing behavior) (PIA might
analyze the customer data base of first class
passengers)
• Experimental Research (to test)
– Research Instruments
• Questionnaires
• Qualitative Measures (shadowing, interviewing)
• Mechanical Devices (galvanometers, eye camera, TV
meter)
 MARKETING RESEARCH SYSTEM
– Sampling Plan
• Sampling unit : Who is to be surveyed?
• Sample size: How many people should be surveyed?
• Sampling procedure: How should the respondents be
chosen
 Table 5-3: Probability and Nonprobability Samples
A. Probability Sample

Simple random sample Every member of the population has an

equal chance of selection

Stratified random The population is divided into mutually

sample exclusive groups (such as age groups),
and random samples are drawn from
each group
Cluster (area) sample The population is divided into mutually
exclusive groups (such as city blocks),
and the researcher draws a sample of
the groups to interview

Continued on next slide . . .

1-20
 Table 5-3: Probability and Nonprobability Samples
(Continued)
B. Nonprobability
Sample
Convenience sample The researcher selects the most
accessible population members

Judgment sample The researcher selects population

members who are good prospects for
accurate information

Quota sample The researcher finds and interviews a

prescribed number of people in each of
several categories

1-21
MARKETING RESEARCH SYSTEM

• Step 3: Collect the Information

– Most Expensive
– Most prone to errors

• Step 4: Analyze the Information

1-22
MARKETING RESEARCH SYSTEM
• Step 5: Present the Findings
– The chief reasons for using in-flight Internet
service are to pass the time surfing and to
send and receive messages from colleagues
and family
– About 5 will use @ Rs. 1500, 10 will use @
Rs. 900
– Will help to strengthen the brand image ,
gain some passengers, and customer good
will.
• Step 6: Make the Decision
1-23
FORECASTING AND DEMAND
MEASUREMENT
• Survey of Buyers’ Intentions
• Composite of Sales Force Opinions
• Expert Opinion
• Past Sales Analysis
• Market Test Method

1-24