Gathering Marketing Information

8/8/2019 Gathering Marketing Information

1/34

Gathering MarketingGathering Marketing

InformationInformation


2/34

Marketing is becoming a battleMarketing is becoming a battle

based more on informationbased more on informationthan on sales power.than on sales power.


3/34

Learning ObjectivesLearning Objectives

WhatWhat areare thethe componentscomponents ofof aa modernmodernmarketingmarketing informationinformation system?system?

WhatWhat constitutesconstitutes goodgood marketingmarketingresearch?research?

HowHow cancan marketingmarketing decisiondecision supportsupport

systemssystems helphelp marketingmarketing managersmanagersmakemake betterbetter decisions?decisions?

HowHow cancan demanddemand bebe moremore accuratelyaccuratelymeasuredmeasured andand forecasted?forecasted?


4/34

MIS Probes forInformationMIS ProbesforInformation

Whatdecisions do youregularly make?Whatdecisions do youregularly make? Whatinformation do youneedtomaketheseWhatinformation do youneedtomakethese

decisions?decisions?

Whatinformation do youregularly get?Whatinformation do youregularly get? Whatspecialstudiesdo youperiodicallyWhatspecialstudiesdo youperiodically

request?request?

Whatinformation would you wantthatyouareWhatinformation would you wantthatyouarenotgettingnow?notgettingnow? WhatarethefourmosthelpfulimprovementsWhatarethefourmosthelpfulimprovements

thatcould bemadeinthepresentmarketingthatcould bemadeinthepresentmarketing

informationsystem?informationsystem?


5/34

MARKETING INFORMATIONMARKETING INFORMATION

SYSTEM (MIS)SYSTEM (MIS) ConsistsConsists ofof people,people, equipment,equipment, andand proceduresprocedures totogather,gather, sort,sort, analyze,analyze, evaluate,evaluate, andand distributedistribute needed,needed,timely,timely, andand accurateaccurate informationinformation toto marketingmarketingdecisiondecision makersmakers..

TheThe rolerole ofof thethe MISMIS isis toto assessassess thethe managersmanagersinformationinformation needs,needs, developdevelop thethe neededneeded information,information,andand distributedistribute thatthat informationinformation inin aa timelytimely fashionfashion..

TheThe informationinformation isis developeddeveloped throughthrough--internalinternal accountingaccounting records,records,

--marketingmarketing intelligenceintelligence activities,activities,

--marketingmarketing decisiondecision supportsupport analysisanalysis

--marketingmarketing researchresearch systemsystem..


6/34

INTERNAL RECORD SYSTEMINTERNAL RECORD SYSTEM

The internal records system suppliesThe internal records system suppliesresults data (i.e. reports on orders,results data (i.e. reports on orders,

sales prices, costs, inventory levels,sales prices, costs, inventory levels,receivables, payables etc.)receivables, payables etc.)

The Order-to-PaymentCycle

SalesInformationSystems

Databases,DataWarehouses AndData-Mining


7/34


8/34

Databases,DataWarehousesandDatabases,DataWarehousesandDataMiningDataMining

Today companiesorganizeinformationindatabasesToday companiesorganizeinformationindatabasescustomerdatabases,productdatabases,salespersoncustomerdatabases,productdatabases,salespersondatabasesdatabasesandthencombinedatafromthedifferentandthencombinedatafromthedifferentdatabases.databases.

Companieswarehousethesedatafor easy accessibly toCompanieswarehousethesedatafor easy accessibly todecisionmakers.decisionmakers.

By hiringanalystsskilledinsophisticatedstatisticalmethods,By hiringanalystsskilledinsophisticatedstatisticalmethods,companiescan mine thedataandgarnerfreshinsightscompaniescan mine thedataandgarnerfreshinsightsinto:into:

Neglectedcustomersegments.Neglectedcustomersegments. Recentcustomertrends.Recentcustomertrends. Otherusefulinformation.Otherusefulinformation.

Thecustomerinformationcan becrossThecustomerinformationcan becross--tabbedwithproducttabbedwithproduct

andsalespersoninformationto yieldstilldeeperinsights.andsalespersoninformationto yieldstilldeeperinsights.


9/34

Data MiningData Mining TheprocessofsearchingthroughcomputerTheprocessofsearchingthroughcomputer

filestodetectpatternsfilestodetectpatterns FocusesonidentifyingrelationshipsthatareFocusesonidentifyingrelationshipsthatare

notobvioustomarketersnotobvioustomarketers

ThedataisstoredinahugedatabasecalledaThedataisstoredinahugedatabasecalledadata warehousedata warehouse

Can bean efficientway tomakesenseofCan bean efficientway tomakesenseofhugeamountsofdatahugeamountsofdata

Canhelpcreatecustomerprofiles,pinpointCanhelpcreatecustomerprofiles,pinpointreasonsforcustomerloyalty orthelackreasonsforcustomerloyalty orthelackthereof,analyzethepotentialreturnsonthereof,analyzethepotentialreturnsonchangesinpricingorpromotion,andsaleschangesinpricingorpromotion,andsalesforecastsforecasts


10/34

Business IntelligenceBusiness Intelligence ProcessofgatheringinformationandProcessofgatheringinformationand

analyzingittoimprove businessstrategies,analyzingittoimprove businessstrategies,tactics,anddaily operationstactics,anddaily operations

Competitive IntelligenceCompetitive Intelligence FormofbusinessintelligencethatfocusesFormofbusinessintelligencethatfocusesonfindinginformationaboutcompetitorsonfindinginformationaboutcompetitorsusingpublishedsources,interviews,usingpublishedsources,interviews,

observations by salespeopleandsuppliersobservations by salespeopleandsuppliersintheindustry,governmentagencies,intheindustry,governmentagencies,publicfilingsandothersecondary sourcespublicfilingsandothersecondary sourcesincludingtheInternetincludingtheInternet


11/34

MARKETING INTELLIGENCE SYSTEMMARKETING INTELLIGENCE SYSTEM

TheThe marketingmarketing intelligenceintelligence systemsystem isisaa setset ofof proceduresprocedures andand sourcessources usedused

byby managersmanagers toto obtainobtain everydayeverydayinformationinformation aboutabout developmentsdevelopments ininthethe marketingmarketing environmentenvironment.. (Sales(Salesrepresentativesrepresentatives areare thethe companyscompanys

eyeseyes andand ears,ears, theythey areare positionedpositionedtoto pickpick upup informationinformation missedmissed bybyotherother meansmeans..


12/34

MotorolaunderstandsneedsofitsMotorolaunderstandsneedsofitsChinesecustomersChinesecustomers


13/34

StepstoImproveMarketingIntelligenceStepstoImproveMarketingIntelligence

TrainandmotivatesalesforceTrainandmotivatesalesforce MotivatechannelmemberstoshareintelligenceMotivatechannelmemberstoshareintelligence

Network externallyNetwork externally Utilizecustomeradvisory panelUtilizecustomeradvisory panel UtilizegovernmentdataresourcesUtilizegovernmentdataresources

PurchaseinformationPurchaseinformation

CollectcustomerfeedbackonlineCollectcustomerfeedbackonline


14/34

MARKETING DECISION SUPPORTMARKETING DECISION SUPPORT

SYSTEMSYSTEMAA growinggrowing numbernumber ofof organizationsorganizations areare

usingusing aa marketingmarketing decisiondecision supportsupport systemsystem

toto helphelp theirtheir marketingmarketing managersmanagers makemakebetterbetter decisionsdecisions..

AA MDSSMDSS isis aa coordinatedcoordinated collectioncollection ofofdata,data, systems,systems, toolstools andand techniquestechniques withwith

supportingsupporting softwaresoftware andand hardwarehardware bybywhichwhich anan organizationorganization gathersgathers andandinterpretsinterprets relevantrelevant informationinformation fromfrombusinessbusiness andand environmentenvironment andand turnsturns itit intointo

aa basisbasis forfor marketingmarketing actionaction..


15/34

Marketingandsalessoftwareprograms

BRANDAIDCALLPLANDETAILER

GEOLINEMEDIACPROMOTER

ADCADCONVERSTORY


16/34

QuantitativeToolsUsedinMarketingDecisionQuantitativeToolsUsedinMarketingDecisionSupportSystemsSupportSystems

Statistical ToolsStatistical Tools11.. MultipleMultiple regressionregression:: AA statisticalstatistical techniquetechnique forfor estimatingestimating

aa bestbest fittingfitting equationequation showingshowing howhow thethe valuevalue ofof aadependentdependent variablevariable variesvaries withwith changingchanging valuesvalues inin aanumbernumber ofof independentindependent variablesvariables..

22.. DiscriminantDiscriminant analysisanalysis:: AA statisticalstatistical techniquetechnique forforclassifyingclassifying anan objectobject or or personspersons intointo twotwo or or moremorecategoriescategories.. ExampleExample:: AA largelarge retailretail chainchain storestore cancandeterminedetermine thethe variablesvariables thatthat discriminatediscriminate betweenbetweensuccessfulsuccessful andand unsuccessfulunsuccessful storestore locationslocations..

33.. FactorFactor AnalysisAnalysis:: AA statisticalstatistical techniquetechnique usedused totodeterminedetermine thethe fewfew underlyingunderlying dimensionsdimensions ofof aa largerlarger setsetofof interinter--correlatedcorrelated variablesvariables..

44.. ClusterCluster AnalysisAnalysis

55.. ConjointConjoint AnalysisAnalysis

66.. MultiMulti--dimensionaldimensional scalingscaling


17/34

MARKETING RESEARCHMARKETING RESEARCH

SYSTEMSYSTEM MarketingMarketing ResearchResearch isis thethe systemicsystemic design,design,collection,collection, analysisanalysis andand reportingreporting ofof datadata andandfindingsfindings relevantrelevant toto aa specificspecific marketingmarketing

situationsituation facingfacing thethecompanycompany..(Philip(Philip KotlerKotler))

AccordingAccording toto AmericanAmerican MarketingMarketing AssociationAssociationMM..RR.. isis thethe systemicsystemic gathering,gathering, recordingrecording andandanalyzinganalyzing ofof datadata aboutabout problemsproblems relatedrelated toto thethemarketingmarketing ofof goodsgoods andand servicesservices..


18/34

SuppliersofMarketing ResearchSuppliersofMarketing Research

EngagingstudentsorprofessorstodesignEngagingstudentsorprofessorstodesignandcarry outprojectsandcarry outprojects

UsingtheInternetUsingtheInternet CheckingoutrivalsCheckingoutrivals

SyndicatedSyndicated--serviceresearchfirmsserviceresearchfirms

CustommarketingresearchfirmsCustommarketingresearchfirms SpecialtySpecialty--linemarketingresearchfirmslinemarketingresearchfirms


19/34

MARKETING RESEARCH PROCESSMARKETING RESEARCH PROCESS

Define the problem and research objectives

Developing the research plan

Collect the information

Analyze the information

Present the findings


20/34

TheMarketing Research ProcessTheMarketing Research ProcessStep 1:Definethe Problem,theDecision Alternatives,Step 1:Definethe Problem,theDecision Alternatives,

andthe Research Objectivesandthe Research Objectives

Step 2:Developthe Research PlanStep 2:Developthe Research Plan

DataSourcesDataSources

Research ApproachesResearch Approaches

ObservationalresearchObservationalresearch EthnographicresearchEthnographicresearch

FocusgroupresearchFocusgroupresearch

Survey research

Behavioraldata

Experimentalresearch

ResearchInstrumentsResearchInstruments QuestionnairesQuestionnaires

MechanicaldevicesMechanicaldevices

QualitativemeasuresQualitativemeasures


21/34

TypesofQuestionsTypesofQuestionsA.A. ClosedClosedend questionsend questions

DichotomousDichotomous MultiplechoiceMultiplechoice LikertscaleLikertscale SemanticdifferentialSemanticdifferential

ImportancescaleImportancescale RatingscaleRatingscale IntentionIntention--toto--buy scalebuy scale

B. OpenB. Open--endQ

uestionsendQ

uestions Completely unstructuredCompletely unstructured Wordassociation,pictureWordassociation,picture Sentencecompletion,story completionSentencecompletion,story completion

Thematic ApperceptionTestThematic ApperceptionTest


22/34

DEVELOPING THE RESEARCH PLANDEVELOPING THE RESEARCH PLAN

SamplingSampling PlanPlanSamplingSampling UnitUnit(Who(Who isis toto surveysurvey?)?)

SamplingSampling SizeSize (How(How manymany toto surveysurvey?)?)

SamplingSampling ProcedureProcedure (How(How toto selectselect?)?)ProbabilityProbability oror NonNon--probabilityprobability MethodMethod

(which(which specificspecific methodmethod ?)?)

SamplingSampling MediaMedia (How(How toto reachreach toto youryour

respondentsrespondents?)?)Telephone/Mail/Personally/internetTelephone/Mail/Personally/internet


23/34

Probability and NonProbability and Non--probability Samplesprobability Samples

A.A. Probability SampleProbability Sample

Simple random sampleSimple random sample--Every member of theEvery member of the

population has an equal chance of selectionpopulation has an equal chance of selection

Stratified random sampleStratified random sample--The population is dividedThe population is dividedinto mutually exclusive groups (such as ageinto mutually exclusive groups (such as age

groups), and random samples are drawn fromgroups), and random samples are drawn from

each groupeach group

Cluster (area) sampleCluster (area) sample The population is dividedThe population is dividedinto mutually exclusive groups (such as cityinto mutually exclusive groups (such as city

blocks), and the researcher draws a sample ofblocks), and the researcher draws a sample of

the groups to interviewthe groups to interview


24/34

Probability and NonProbability and Non--probability Samplesprobability Samples

B.B. NonNon--probability Sampleprobability Sample

Convenience sampleConvenience sample--The researcher selects theThe researcher selects the

most accessible population membersmost accessible population membersJudgment sampleJudgment sample-- The researcher selectsThe researcher selects

population members who are good prospectspopulation members who are good prospects

for accurate informationfor accurate information

Quota sampleQuota sample--The researcher finds and interviewsThe researcher finds and interviews

a prescribed number of people in each ofa prescribed number of people in each of

several categoriesseveral categories


25/34

Marketing ResearchSystemMarketing ResearchSystem

Step 3: CollecttheInformation Step 4: AnalyzetheInformation Step 5: Presentthe Findings Step 6:Makethe Decision


26/34

MEASURING MARKET DEMANDMEASURING MARKET DEMANDW

hich market to measure :W

hich market to measure :

Potential Market (have sufficient level of interestPotential Market (have sufficient level of interestin a market offer)in a market offer)

Available Market (who have interest, income andAvailable Market (who have interest, income andaccess to a particular offer)access to a particular offer)

Qualified available marketQualified available market

Target Market or Served Market (a co. can go forTarget Market or Served Market (a co. can go forserving whole available market or canserving whole available market or canconcentrate on certain segments)concentrate on certain segments)

Penetrated Market (set of buyers who are buyingPenetrated Market (set of buyers who are buying

the co.s product)the co.s product)


27/34

DEMAND MEASUREMENTDEMAND MEASUREMENT MarketDemandMarketDemand total volumethatwould be boughtby atotal volumethatwould be boughtby a

definedcustomergroupinadefinedgeographicalareaindefinedcustomergroupinadefinedgeographicalareainadefinedtimeperiodinadefinedmarketingadefinedtimeperiodinadefinedmarketingenvironmentunderadefinedmarketingprogramme.environmentunderadefinedmarketingprogramme.

MarketPotentialMarketPotential Itisthelimitapproached by marketItisthelimitapproached by marketdemandasindustry marketing expendituresapproachdemandasindustry marketing expendituresapproachinfinity foragivenmarketing environment.infinity foragivenmarketing environment.

MarketForecastMarketForecast-- Only onelevelofindustry marketingOnly onelevelofindustry marketingexpenditurewillactually occur. Themarketdemandexpenditurewillactually occur. Themarketdemandcorrespondingtothislevelismarketforecast.correspondingtothislevelismarketforecast.

Company Demand, Company Sales Potential, CompanyCompany Demand, Company Sales Potential, CompanySales ForecastSales Forecast


28/34

Forecasting and Demand

Measurement


29/34

ESTIMATING FUTURE DEMANDESTIMATING FUTURE DEMAND

I.What People Say.I.What People Say.Survey of Buyers IntentionsSurvey of Buyers Intentions

Composite of Sales Force OpinionsComposite of Sales Force Opinions

Expert OpinionExpert Opinion II.What People DoII.What People DoMarket Test MethodMarket Test Method

III. What People Have Done.III. What People Have Done.

(Historical Approach)(Historical Approach)A. Time Series AnalysisA. Time Series Analysis

B. Statistical MethodsB. Statistical Methods


30/34


III.What People Have Done.III.What People Have Done.(Historical Approach)(Historical Approach)

A. Time Series AnalysisA. Time Series Analysis Consists of breaking down past timeConsists of breaking down past time

series into four components (trend,series into four components (trend,

cycle, seasonal, and erratic) andcycle, seasonal, and erratic) andprojecting these components into theprojecting these components into thefuture.future.


31/34


III.What People Have Done.III.What People Have Done.

(Historical Approach)(Historical Approach)


(i)(i) Trend Projection Method :Trend Projection Method :

S2 = S1 +S2 = S1 + (S1(S1 -- S0) S1S0) S1

S0S0

S2 = Sales of the next periodS2 = Sales of the next periodS1 = Sales of the current periodS1 = Sales of the current period

S0 = Sales of the past periodS0 = Sales of the past period


32/34


III.What People Have Done.III.What People Have Done.

(Historical Approach)(Historical Approach)


(ii) Multiple Regression Analysis :(ii) Multiple Regression Analysis :

Q (Sales) is expressed as a functionQ (Sales) is expressed as a functionof a number of independent demandof a number of independent demand

variablesvariables

Q = F ( X1, X2, X3, X4Q = F ( X1, X2, X3, X4--------------------Xn )Xn )


33/34

Techniques Benefits Limitations

Jury of executiveJury of executive

opinionopinion

Opinions come from executives

in many different departments;

quick; inexpensive

Managers may lack sufficient

knowledge and experience to

make meaningful predictions

Delphi techniqueDelphi technique Group of experts can accuratelypredict long-term events such as

technological breakthroughs

Time-consuming; expensive

Sales forceSales force

compositecomposite

Salespeople have expert

customer, product, and

competitor knowledge; quick;

inexpensive

Inaccurate forecasts may result

from low estimates of

salespeople concerned about

their influence on quotas

Survey of buyerSurvey of buyer

intentionsintentions

Useful in predicting short-term

and intermediate sales for firms

that serve only a few customers

Intentions to buy may not result

in actual purchases; time-

consuming; expensive


34/34

Techniques Benefits Limitations

Market testMarket test Provides realistic

information on actual

purchases rather than on

intent to buy

Alerts competition to new

product plans; time-

consuming; expensive

Trend analysisTrend analysis Quick; inexpensive;

effective with stable

customer demand and

environment

Assumes the future will

continue the past; ignores

environmental changes

ExponentialExponential

smoothingsmoothing

Same benefits as trend

analysis, but emphasizes

more recent data

Same limitations as trend

analysis, but not as severe

due to emphasis on recent

data

Gathering Marketing Information

Documents

Transcript of Gathering Marketing Information