Transcript Acquire foundational knowledge of marketing

Performance Indicator 1.05
Acquire foundational knowledge of
marketing-information management
to understand its nature and scope.
Vocabulary:
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Marketing Information – regular, planned collection, analysis,
and presentation of information for use in making marketing
decisions.
Relationships - The bonds, both actual and perceptual, that
are created between the customer, the marketer, and the
brand.
Primary data - comes from new research the organization
carries out on its own initiative—a marketing research study or
focus group, for example.
Secondary data - comes from research that is already
available—internal financial records, sales invoices, and
public investment information, to name just a few sources.
Vocabulary:
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Facts – data that can be verified. Ex: Earth is round, a minute
is 60 seconds, consumers are purchasing less DVD’s.
Estimates – Approximations of data. Educated guess. Ex:
You have an accident and take your car to the repair shop.
The shop will give you an estimate on the cost to fix your car.
Businesses do the same thing. They create a budget needed
for a new product or a promotional plan they wish to create.
They estimate how much money will be spent and gained in
this venture.
Prediction – also called projections are forecasts that people
make about the future. Ex: Weather. Businesses can make
projections about sales the next few months based on how
they are currently doing or last’s year’s information.
Three types of information used in
marketing decision making
 Customer
 Marketing
Mix
 Business Environment
http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all&_r=0
Customer Information
 Age
 Attitudes
 Gender
 Primary
 Income
 Education
 Family
size
 Home ownership
 Address
 Occupation
 How money is spent
needs
 Product purchases
 Purchase frequency
 Brand preferences
 Information needs
 Media preferences
 Shopping behavior
Marketing Mix Information
 Basic
Products
 Product Features
 Services
 Product packaging
 Guarantees
 Repairs
 Credit Choice
 Discounts
 Promotion Methods
Business Environment Information
 Type
of competition
 Competitors’ strengths
 Competitors’ strategies
 Economic conditions
 Government regulations
 New technology
 Consumer
protection
 Ethical issues
 Tax policies
 Proposed laws
 International markets
Why is Marketing Information Needed?
To identify:
1. potential customers
2. potential products
3. marketing opportunities
4. solve marketing problems
5. implement marketing plans
6. monitor marketing performance.
The Impact of Marketing
Information on Marketers
 Marketing
research is used when a business needs
to solve problems.
 Helps answer questions about what to produce, at
what price to sell the products, who will buy the
products, and how to promote the products
 Helps businesses plan their future operations to
increase sales and profits.
 Understand markets.
Ways Marketers Use Marketing
Information
 Analysis----the
process of summarizing, combining,
or comparing information so that decisions can be
made.
 Analysis example:
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Planning a promotional budget
Analyzing the effectiveness of one retailer in a channel of
distribution
Analyzing the costs of marketing activities for national and
international activities
Ways Marketers Use Marketing
Information
 Product
Example: Stouffer’s Lean Cuisine—13 years
of market research
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Develop product
Test package design
Hold pilot sales in large cities to test market first
 Track
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what is happening in current markets
Determine major competitors
What major competitors are offering
Which products consumers prefer
Customer satisfaction with product
Information contained in sales and
expense reports that is monitored
for marketing decision-making.
 Market
Share Analysis — the percentage of all sales
within a market that is held by one brand / product
or company. Normally measured by sales revenue
(dollars sold) or sales volume (the number of units
sold)
 Sales Volume Analysis — A detailed study of an
organization's sales, in terms of units or revenue, for
a specified period .
 Accounting Information analyzed
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Spending/Costs to produce and sell products
Profitability/ Sales – Total Costs
Information contained in sales and
expense reports that is monitored
for marketing decision-making.
 Sales
 How
much did they have to discount the product
to achieve the sale?
 What expenses went into each sale?
 Inventory/How
inventory
 Payroll
 How
much product is left in
much commission did they have to pay the
sales rep?
Information in reports provided by
salespeople that is monitored for
use in marketing decision-making.
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Request & Complaint reports - products customers
requested and problems customers reported
Lost sales reports - cancelled orders or under stocked
items
Call reports - what happened in each sales call
Activity reports - all travel, phone calls and in person
sales calls for a given period of time
Retail audits to measure market sales, competitor’s
sales, market share, prices, special offers, stock levels by
week or day
Product information reports– types of products that sell
best at various times of year; colors or sizes of products
customers prefer
Information about customers
monitored for marketing decisionmaking.
 Demographic
data (age, gender, ethnicity,
job, income, marital status)
 Buying habits (time of day, repeat products
purchased, amount spent on each
transaction—full price or on sale, types of
products)
 Ex:
Diapers and beer purchased by men on
Thursdays and Saturdays
 Ex: Saturday is when most people do major
grocery shopping
Information about customers
monitored for marketing decisionmaking.
 Credit
record: do customers pay their bills on
time
 Customer requests (what products or
varieties are requested that you don’t carry)
 Receipts (is a certain neighborhood or ZIP
code frequenting your establishment more
than others)
Explain information about
competitors that is monitored for
marketing decision-making.
 USP’s
(unique selling points) of our product vs.
competition to find our advantage. Is that
advantage sustainable, (long lasting)?
 Financial records for public companies that you
compete with (i.e. annual reports)
 Insight into competitors’ strengths, weaknesses, and
future plans (new products, marketing campaigns)
 Market share analysis
 Sales volume data
Procedures for identifying
information to monitor for marketing
decision-making.
 Identify
data needed for decision-making
 Create a plan for collecting, storing and analyzing
that data
 Compile a list of secondary sources of data
 Retrieve the data you need
 Analyze/use data to make decisions