Transcript Acquire foundational knowledge of marketing

Marketing 1.05 MIM
Three types of information used in
marketing decision making
• Customer
• Marketing mix
• Business Environment
Customer Information
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Age
Gender
Income
Education
Family size
Home
ownership
• Address
• Occupation
• How money is
spent
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• Attitudes
• Primary needs •
• Product
purchases
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• Purchase
frequency
• Brand
preferences
Information
needs
Media
preferences
Shopping
behavior
Marketing Mix
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Basic Products
Product Features
Services
Product packaging
Guarantees
Repairs
Credit Choice
Discounts
Promotion Methods
Business Environment
• Type of competition
• Competitors’
strengths
• Competitors’
strategies
• Economic conditions
• Government
regulations
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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:
– 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
–Develop product
–Test package design
–Hold pilot sales in large cities to
test market first
Ways Marketers Use Marketing
Information
• Track: 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
– 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 much product is left in
inventory
• Payroll
– How 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.
• 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
Information in reports provided by
salespeople that is monitored for use
in marketing decision-making.
• 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 that is
monitored for marketing decision-making.
• 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
• 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 decisionmaking.
• 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