Transcript 2.03 PowerPoint Notes

SEM1 2.03
Acquire Foundational Knowledge Of
Marketing Information Management To
Understand Its Nature & Scope
VOCABULARY
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Facts – something that actually exists; reality; truth
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Estimates – an approximate judgment or calculation
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Predictions – a forecast of something to happen
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Relationships – a connection, association, or
involvement.
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Marketing Information – data collected from internal
sources, external sources or marketing research
TYPES OF INFORMATION USED IN MARKETING
DECISION MAKING
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Salespeople
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A company’s sales team generates a great deal of useful
data for marketers
Salespeople keep records from which marketers can
learn things such as:
Who the company’s current and potential customers are
 What current and potential customers want (products, customer
service, etc.)
 Data about completed sales – what products are selling, and in
which geographic territories, target market segments, etc.
 How actual sales stack up to the company’s goals and budgets
 How sales compare to those of other companies in the same
industry
 What the sales staff is doing and how much it is spending to
make sales calls (travel, food, lodging, etc.)
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TYPES OF INFORMATION USED IN MARKETING
DECISION MAKING
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Customers
Marketers can also learn a lot from the business’
customers
 A single sales invoice (itemized statement of money
owed for a good or service) can tell marketers:
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 Who
a customer is
 What industry the customer is in
 How much the customer has spent with the business this year
 What method of payment the customer prefers
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Most businesses also keep careful customer records,
tracking sales in unit and dollar amounts and noting
how each customer uses the business’ products
TYPES OF INFORMATION USED IN MARKETING
DECISION MAKING
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Competitors
Beating the competition is a task that is always in the
forefront of a marketer’s mind
 It’s important for companies to know what’s going on
with competing businesses when it comes to making
marketing decisions
 Sometimes, it’s difficult to get data about competitors
since they don’t readily share their information
 However, for many companies, public financial data are
available at the click of a button on the company web
site
 Marketers can also take note of easily observable data,
such as a competitor’s current product offerings or
promotional campaigns
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TYPES OF INFORMATION USED IN MARKETING
DECISION MAKING
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Suppliers and distributors
 In addition to customers and competitors, marketers can gather quite a bit of
data from their companies’ suppliers and distributors.
 A supplier, also called a vendor, is someone from whom a business purchases
goods or services.
 Example:
 An orange grower in Florida may serve as a supplier for many venues
 If the orange crop isn’t going to be good this year, employees at the orange
grove can notify venue marketers, and they can use the data to plan
accordingly.
 Most likely, the price of oranges will go up.
 Distributors are channel members who help to sell a business’s products.
 Example:
 A wholesale club, such as Sam’s or Costco, then, is a distributor for the
orange grower and can provide useful data to the orange grove as well.
 The wholesaler can let the orange grove’s marketers know how well their
product is selling, what feedback customers are giving, etc.
TYPES OF INFORMATION USED IN MARKETING
DECISION MAKING
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News and trade journals
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Marketers can learn a lot just by paying attention to current events.
For example, if the economy is struggling, marketers can keep track
of news reports to see if it’s getting better or worse.
This can help them make decisions about what products to offer
and at what prices.
Many industries also have industry-specific publications known as
trade journals.
In the film and television industry, for instance, Variety is a popular
trade publication.
Reading trade journals keeps marketers up to date on what’s
happening in their industries and helps them to make betterinformed decisions for their products and companies.
WAYS MARKETERS USE MARKETING
INFORMATION
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Identify realistic goals
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Develop product strategies
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SMART – specific, measurable, achievable, realistic, timebound
Ex. Sales, market share, budgets
What to offer
What level of customer service to provide
When to offer new products
Developing pricing strategies
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What to charge for a product is as important as the product
If priced too high, customers won’t buy
If priced too low, “cheap” image may discourage buying
Determine right price and when to change prices
Mark down
 Sale – permanent or promotional discount
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WAYS MARKETERS USE MARKETING
INFORMATION
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Developing promotional strategies
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Marketers must decide what to say to customers, in what
way, and how often to repeat message
Internet sales?
In store sales?
Television (expensive) vs. radio vs. print
Developing “place” strategies
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Getting products into customers’ hands
How much of the product to buy or create and what
channels of distribution to use
Sales reports can provide useful data based on past
performance to gauge future need
Where do customers like to shop for certain products
Ex. A certain brand of sports shirts might sell better in Belk
than it does at Wal-Mart
WAYS MARKETERS USE MARKETING
INFORMATION
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Making budgeting decisions
 Marketers
must allocate funds wisely
 Use data to estimate costs for each product
 Use internal data about the company’s financials to
help them make wise budgeting decisions
 Ex. If there isn’t enough money available, the
development of a new product may need to be
delayed
WAYS MARKETERS USE MARKETING
INFORMATION
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Identifying problems or issues
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Developing, pricing, promotion and placing products
take a lot of time and effort
Know what adjustments must be made over time
Problems or issues
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The product itself may have design flaws or other issues or
need repackage or redesign to keep “fresh”
Are customers receiving the level of after-sale service
expected?
Vendors/suppliers – as prices and circumstances
change over time, the business may need to switch
suppliers or negotiate new contracts with existing
ones
 Salespeople – support and training, additional sales
material, additional sample products to keep
customers buying
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WAYS MARKETERS USE MARKETING
INFORMATION
 Evaluating results
 Marketers
must evaluate the outcomes of each
decision they make
 Evaluating negative outcomes can help them
avoid making the same mistakes in the future
 Evaluating positive outcomes can give insights
into methods and strategies that work well for the
product or company
 Sales reports are key data sources
 Where
sales are good or poor, how they’re changing,
how they relate to competitors’ sales
IMPACT OF MARKETING INFORMATION ON
MARKETERS
Using data wisely helps marketers to create
more competitive and successful products for
their companies
 Use data to meet customers needs and wants
 Satisfied customers become repeat customers
– repeat customers are less costly
 Data saves companies money and helps them
to run more efficiently; make more cost-effective
decisions
 Savings contribute to the company’s bottom line
which means SUCCESS
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