Transcript Chapter 5 Gathering Information and Measuring Market Demand

Chapter 5
Gathering Information
and Measuring Market
Demand
by
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Dr. Saleh Alqahtani
Kotler on
Marketing
Marketing is
becoming a
battle based
more on
information
than on sales
power.
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Dr. Saleh Alqahtani
Chapter Objectives
• In this chapter, we focus on the following
questions:
• 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?
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Dr. Saleh Alqahtani
The Components of a Modern
Marketing Information System
• 10 useful questions for
determining the information
needs of marketing managers.
• 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?
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Dr. Saleh Alqahtani
The Components of a Modern
Marketing Information System
• What information would you want that
you are not getting now?
• What information would you want daily?
Weekly? Monthly? Yearly?
• What magazines and trade reports
would you like to see on a regular basis?
• What topics would you like to be kept
informed of?
• What data analysis programs would you
want?
• What are the four most helpful
improvements that could be made in the
present marketing information system?
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Dr. Saleh Alqahtani
Internal Record
Systems
• The Order-to-Payment
Cycle
• Sales Information
Systems
• Databases, Data
Warehouses And DataMining
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Dr. Saleh Alqahtani
Marketing Intelligence
System
• “is
a set of procedures
and sources used by
managers to obtain
everyday information
about developments in
the marketing
environment.”
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Dr. Saleh Alqahtani
Marketing Research
Process
Defining the
problem and
research
objectives
Developing
the research
plan
Present the
findings
Collect the
information
Analyze the
information
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Dr. Saleh Alqahtani
Defining the Problem &
Research Objectives
Exploratory
Research
•Sheds light on problem suggest solutions or
new ideas.
Descriptive
Research
•Ascertain magnitudes.
Causal
Research
•Test cause- and-effect
relationships.
•Tests hypotheses about causeand-effect relationships.
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Dr. Saleh Alqahtani
Research Approaches
Observational
Focus-group
Survey
Behavioral
Experimental
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Dr. Saleh Alqahtani
Good Marketing Research
Is scientific
Is creative
Uses multiple methods
Realizes the interdependence of
models & data
Acknowledges the cost & value
of information
Maintains “healthy” skepticism
Is ethical
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Dr. Saleh Alqahtani
Marketing Decision Support
System (MDSS)
• Marketing & sales software programs
• BRANDAID
• CALLPLAN
• DETAILER
• GEOLINE
• MEDIAC
• PROMOTER
• ADCAD
• CONVERSTORY
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Dr. Saleh Alqahtani
Demand
Company
Demand
Market
Demand
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Dr. Saleh Alqahtani
Ninety Types of Demand
Measurement (6 x 5 x 3)
World
Space
U.S.A.
level
Region
Territory
Customer
All sales
Industry sales
Company sales
Product
level
Product line sales
Product form sales
Product item sales
Short run
Dr. Saleh Alqahtani
Medium run Long run
Time level
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Forecasting and
Demand Measurement
•Multiple-Factor Index
Method
−Brand development
index (BDI)
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Dr. Saleh Alqahtani
Forecasting and
Demand Measurement
• Composite of Sales Force Opinions
• Expert Opinion
• Group discussion method
• Pooling of individual estimates
• Past-Sales Analysis
−
−
−
−
Time-series analysis
Exponential smoothing
Statistical demand analysis
Econometric analysis
• Market-Test Method
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Dr. Saleh Alqahtani