Transcript Acquire foundational knowledge of marketing

Acquire foundational knowledge of
marketing-information management to
understand its nature and scope
Marketing
Indicator
1.05
REVIEW
Marketing Information
Management (MIM) – the
process and methods used to
gather information, analyze it,
and report findings related to
marketing goods and services.
WHY IS MARKETING RESEARCH
IMPORTANT?
• Businesses that do not pay attention to
what consumers are buying and why are
likely to make costly marketing mistakes.
• Information obtained from research helps
businesses increase sales and profits.
MARKETING INFORMATION
SYSTEMS
• Marketing Information Systems (MIS) – a
set of procedures and methods that
regularly generates, stores, analyzes and
distributes information for use in making
marketing and other business decisions.
• Most MIS rely heavily on:
– Data about current customers
– Overall product sales reports
– Inventory levels
MARKETING INFORMATION
SYSTEMS
• Marketers use MIS to:
– Design advertising campaigns
– Develop promotional plans
– Sell directly to customers
MARKETING INFORMATION SYSTEMS
• Data that should be included in MIS:
– Customer profile data, such as:
• Previous marketing studies regarding buying
behavior
• Shopping patterns
• Customer demographics
• Lifestyles research
– Company records, such as:
• Sales results
• Expenses
• Supplier data
• Production schedules
MARKETING INFORMATION
SYSTEMS
• Data that should be included in MIS (cont’d):
– Government data, such as:
• Price trends
• New regulations and laws
• Future projections for the economy
•Marketing research reports that are produced
and sold by research firms.
Three types of information used in
marketing decision making
1. Customer
2. Marketing mix
3. Business Environment
Customer Information
• Age
• Gender
• Income
• Education
• Family size
• Home
ownership
• Address
• Occupation
• How money • Brand
is spent
• Attitudes
• Primary
needs
• Product
purchases
• Purchase
frequency
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 • New technology
• Competitors’
• Consumer protection
strengths
• Ethical issues
• Competitors’
• Tax policies
strategies
• Proposed laws
• Economic conditions • International
• Government
markets
regulations
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.
MARKETING RESEARCH ANSWERS
THESE QUESTIONS:
• What products to produce
• At what price to sell the products
• Who will buy the products
• How the products will be promoted
• Helps businesses solve marketing problems
• Gauge the potential of new ideas
• Keep track of current trends in the marketplace
The Impact of Marketing
Information on Marketers
• Marketing research is used when a business
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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.
Companies keep track of what happening
in current markets.
Ways Marketers Use Marketing
Information
• Analysis----the process of summarizing, combining, or comparing
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information so that decisions can be made.
Analysis example:
1. Planning a promotional budget
2. Analyzing the effectiveness of one retailer in a channel of distribution
3. Analyzing the costs of marketing activities for national and international
activities
• 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
• Track what is happening in current markets
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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 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
– Spending
– Profitability
• Sales
– Discount on sale?
– What expenses went into each sale?
• Cost/Inventory
• Payroll
– Commission on sale?
Information in reports provided by
salespeople that is monitored for use
in marketing decision-making.
• Request & Complaint reports/products customers
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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
that is monitored for marketing
decision-making.
• Demographic data (age, gender, ethnicity)
• Buying habits (time of day, repeat products,
amount spent—full price or on sale, types of
products)
– Ex: Diapers and beer purchased by men on Thursdays and
Saturdays
– Ex: Saturday is day most people do major grocery shopping
Credit record – Job, Income level, Marital status
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• Customer requests (what products or varieties are
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requested that you don’t carry)
Receipts (is a certain neighborhood or ZIP code
frequenting your establishment more than others)
MARKETING RESEARCH
DETERMINES COMPETITION:
• Who are the company’s major
competitors?
• What its competitors are offering. (not just
product: Promotions/Financing/Service
etc)
• Which products its competitors are
offering.
• How satisfied customers are with its
competitors products.
Explain information about
competitors that is monitored for
marketing decision-making.
1. USP’s (= unique selling points) of our
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product vs. competition to find our
advantage. Is that advantage
sustainable?
Financial records for public companies
(GE, Ford, Apple)
Insight into company’s strengths,
weaknesses, and future plans (new
products, marketing campaigns)
Market share analysis
Sales volume data
MARKETING RESEARCH IS MOST
OFTEN USED BY COMPANIES TO:
• Determine consumers’ attitudes and preferences
• Test product features
• Determine market size and growth potential
• Learn about competitive products
• Determine buying cycles
• Understand how the company is perceived by the public
Procedures for identifying information
to monitor for marketing decisionmaking.
1. Identify needed data
2. Create a plan for collecting, storing and
analyzing data
3. Compile a list of secondary sources
providing needed data
4. Retrieve needed data
5. Analyze/use data