Gathering marketing information

Gathering marketing information - Transcript

Gathering Marketing Gathering Marketing Information


Marketing is becoming a battle Marketing is becoming a battle based more on information than on sales power

Learning Objectives Learning Objectives

What are the components of a modern marketing information system What constitutes good marketing research How can marketing decision support systems help marketing managers make better decisions How can demand be more accurately measured and forecasted

MIS Probes for Information MIS Probes for Information
What decisions do you regularly make What information do you need to make these
decisions What information do you regularly get What special studies do you periodically request What information would you want that you are not getting now What are the four most helpful improvements that could be made in the present marketing information system

MARKETING INFORMATION 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 information needs develop the needed information and distribute that information in a timely fashion

The role of the MIS is to assess the manager s

The information is developed through
internal accounting records marketing intelligence activities marketing decision support analysis marketing research system

INTERNAL RECORD SYSTEM INTERNAL RECORD SYSTEM

The internal records system supplies
results data i e reports on orders sales prices costs inventory levels receivables payables etc
The Order to Payment Cycle Sales Information Systems Databases Data Warehouses And Data Mining

Today companies organize information in databases
customer databases product databases salesperson databases and then combine data from the different databases decision makers

Databases Data Warehouses and Databases Data Warehouses and Data Mining

Companies warehouse these data for easy accessibly to By hiring analysts skilled in sophisticated statistical methods
companies can mine the data and garner fresh insights into Neglected customer segments Recent customer trends Other useful information

The customer information can be cross tabbed with product
and salesperson information to yield still deeper insights

Data Mining

The process of searching through computer files to detect patterns Focuses on identifying relationships that are not obvious to marketers The data is stored in a huge database called a data warehouse Can be an efficient way to make sense of huge amounts of data Can help create customer profiles pinpoint reasons for customer loyalty or the lack thereof analyze the potential returns on changes in pricing or promotion and sales forecasts

Business Intelligence

Competitive Intelligence

Process of gathering information and analyzing it to improve business strategies tactics and daily operations Form of business intelligence that focuses on finding information about competitors using published sources interviews observations by salespeople and suppliers in the industry government agencies public filings and other secondary sources including the Internet

MARKETING INTELLIGENCE SYSTEM MARKETING INTELLIGENCE SYSTEM

The marketing intelligence system is

a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment Sales representatives are the company s eyes and ears they are positioned to pick up information missed by other means

Motorola understands needs of its Motorola understands needs of its Chinese customers

Steps to Improve Marketing Intelligence Steps to Improve Marketing Intelligence



Train and motivate sales force Motivate channel members to share intelligence Network externally Utilize customer advisory panel Utilize government data resources Purchase information Collect customer feedback online

MARKETING DECISION SUPPORT MARKETING DECISION SUPPORT SYSTEM

A growing number of organizations are

using a marketing decision support system to help their marketing managers make better decisions A MDSS is a coordinated collection of data systems tools and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action

Marketing and sales software programs



BRANDAID CALLPLAN DETAILER GEOLINE MEDIAC PROMOTER ADCAD CONVERSTORY

Quantitative Tools Used in Marketing Decision Quantitative Tools Used in Marketing Decision Support Systems
Statistical Tools 1 Multiple regression A statistical technique for estimating 1 a best fitting equation showing how the value of a dependent variable varies with changing values in a number of independent variables 2 Discriminant analysis A statistical technique for classifying an object or persons into two or more categories Example A llarge retail chain store can arge Example determine the variables that discriminate between successful and unsuccessful store locations successful 3 Factor Analysis A statistical technique used to statistical determine the few underlying dimensions of a larger set of inter correlated variables 4 Cluster Analysis 4 5 Conjoint Analysis 5 6 Multi dimensional scaling

MARKETING RESEARCH MARKETING RESEARCH SYSTEM

Marketing Research is the systemic design
collection analysis and reporting of data and findings relevant to a specific marketing situation facing the company Philip Kotler

According to American Marketing Association
M R is the systemic gathering recording and analyzing of data about problems related to the marketing of goods and services

Suppliers of Marketing Research Suppliers of Marketing Research
Engaging students or professors to design and carry out projects Using the Internet Checking out rivals Syndicated service research firms Custom marketing research firms Specialty line marketing research firms

MARKETING RESEARCH PROCESS MARKETING RESEARCH PROCESS

Define the problem and research objectives

Developing the research plan Collect the information Analyze the information Present the findings

The Marketing Research Process The Marketing Research Process
Step 1 Define the Problem the Decision Alternatives and the Research Objectives Step 2 Develop the Research Plan Data Sources Research Approaches
Observational research Ethnographic research Focus group research Survey research Behavioral data Experimental research Questionnaires Mechanical devices Qualitative measures

Research Instruments

Types of Questions Types of Questions
A Closed end questions
Dichotomous Multiple choice Likert scale Semantic differential Importance scale Rating scale Intention to buy scale B Open end Questions Completely unstructured Word association picture Sentence completion story completion Thematic Apperception Test

DEVELOPING THE RESEARCH PLAN DEVELOPING THE RESEARCH PLAN

Sampling Plan

Sampling Unit Who is to survey Sampling Size How many to survey Sampling Procedure How to select Probability or Non probability Method which specific method Sampling Media How to reach to your respondents Telephone Mail Personally internet

Probability and Non probability Probability and Non probability Samples
A Probability Sample
Simple random sample Every member of the Every population has an equal chance of selection population Stratified random sample The population is divided Stratified into mutually exclusive groups such as age groups and random samples are drawn from each group each Cluster area sample The population is divided The into mutually exclusive groups such as city blocks and the researcher draws a sample of the groups to interview the

Probability and Non probability Probability and Non probability Samples
B Non probability Sample
Convenience sample The researcher selects the Convenience most accessible population members most Judgment sample The researcher selects Judgment population members who are good prospects for accurate information for Quota sample The researcher finds and interviews Quota a prescribed number of people in each of several categories several

Marketing Research System Marketing Research System

Step 3 Collect the Information Step 4 Analyze the Information Step 5 Present the Findings Step 6 Make the Decision

MEASURING MARKET DEMAND MEASURING MARKET DEMAND
Which market to measure market offer

Potential Market have sufficient level of interest in a Available Market who have interest income and
access to a particular offer

Qualified available market Target Market or Served Market a co can go for
serving whole available market or can concentrate on certain segments

Market Demand total volume that would be bought by a

DEMAND MEASUREMENT DEMAND MEASUREMENT

defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing programme Market Potential It is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment Market Forecast Only one level of industry marketing expenditure will actually occur The market demand corresponding to this level is market forecast

Company Demand Company Sales Potential Company
Sales Forecast

Forecasting and Demand Measurement

ESTIMATING FUTURE DEMAND ESTIMATING FUTURE DEMAND
I What People Say
Survey of Buyers Intentions Composite of Sales Force Opinions Expert Opinion II What People Do Market Test Method III What People Have Done Historical Approach A Time Series Analysis B Statistical Methods

ESTIMATING FUTURE DEMAND ESTIMATING FUTURE DEMAND
III What People Have Done
Historical Approach A Time Series Analysis Consists of breaking down past time series into four components trend cycle seasonal and erratic and projecting these components into the future

ESTIMATING FUTURE DEMAND ESTIMATING FUTURE DEMAND
III What People Have Done Historical Approach B Statistical Methods S2 S1 S1 S0 S1 S0 S2 Sales of the next period S1 Sales of the current period S0 Sales of the past period
i Trend Projection Method

ESTIMATING FUTURE DEMAND ESTIMATING FUTURE DEMAND

III What People Have Done Historical Approach B Statistical Methods ii Multiple Regression Analysis Q Sales is expressed as a function of a number of independent demand variables Q F X1 X2 X3 X4 Xn

Techniques
Jury of executive Jury opinion opinion

Benefits
Opinions come from executives in many different departments quick inexpensive

Limitations
Managers may lack sufficient knowledge and experience to make meaningful predictions

Delphi technique

Group of experts can accurately predict long term events such as technological breakthroughs

Time consuming expensive

Sales force Sales composite composite

Salespeople have expert customer product and competitor knowledge quick inexpensive

Inaccurate forecasts may result from low estimates of salespeople concerned about their influence on quotas

Survey of buyer Survey intentions intentions

Useful in predicting short term and intermediate sales for firms that serve only a few customers

Intentions to buy may not result in actual purchases timeconsuming expensive

Techniques Market test

Benefits Provides realistic information on actual purchases rather than on intent to buy

Limitations Alerts competition to new product plans timeconsuming expensive

Trend analysis

Quick inexpensive effective with stable customer demand and environment

Assumes the future will continue the past ignores environmental changes

Exponential Exponential smoothing smoothing

Same benefits as trend analysis but emphasizes more recent data

Same limitations as trend analysis but not as severe due to emphasis on recent data