Download - Kotler14e ippt ch3
3Collecting
Information and Forecasting
Demand
1
What information you can use?Where to find related information?
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Chapter Questions What are the components of a modern
marketing information system? What are useful internal records? What makes up a marketing intelligence
system? What are some influential macro
environment developments? How can companies accurately measure
and forecast demand?
What is a Marketing Information System?
A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
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Assessing Marketing Information Needs
The marketing information system
Case Study: Michigan Economic Development Corporation (MEDC)
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Studied demographic information of visitors that helped MEDC
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Table 3.2 Information Needs Probe What decisions do you regularly make? What information do you need to make these
decisions? What information do you regularly get? What studies do you periodically request? What information would you want that you are not
getting now? What are the most helpful improvements that
could be made in the present marketing information system?
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Internal Records
Order-to-payment cycle: Improve the speed, accuracy, and efficiency of the cycle
Sales information system: Accurate reports on current sales
Databases, warehousing, data mining: Organize information into customer, product, and salesperson
Database Management
Categories its customers into “Buzz”, “Jill”, “Barry”, and “Ray”. p.93
Precision Marketing - resulted in positive response rates
What is a Marketing Intelligence System?
A marketing intelligence system is a set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment. e.g. POS (point-of-sales)
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Steps to Quality Marketing Intelligence
Train sales force to scan for new developments Motivate channel members (distributors, retailers)
to share intelligence Hire external experts to collect intelligence Network externally Utilize a customer advisory panel Utilize government data sources Purchase information
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Collecting Marketing Intelligence on the Internet
Independent customer goods and service review forums
Distributor or sales agent feedback sites Combination sites offering customer reviews
and expert opinions Customer complaint siteshttp://www.complaints.com/directory/2005/july/1/8.htm
Public blogs opinion
Analyzing the Macroenvironment:Needs and Trends
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Fad (short-lived without social, economic, and political significance)
Trend (reveal the shape of the future, providing strategic direction)
Megatrend (large social, economic, political, and technological change is
slow to form)
The Marketing Environment
Marketing Environment The macroenvironment consists of the larger
societal forces that affect the microenvironment. Demographic Economic Natural Technological Political Cultural
The Company’s Microenvironment
The company Suppliers Marketing intermediaries
Customers Competitors Publics
Population and Demographics
Population growth Population age mix Ethnic markets Educational groups Household patterns
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Perspective on the Global Demographic Environment
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Source: If the world were a village, 2002
Economic Environment
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Consumer Psychology
Income Distribution
Income, Savings, Debt, Credit
Economic Environment and Consumer Psychology
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Starwood’s Aloft hotel chain blends urban chic with affordable prices
Mindless spending is out, comparison shopping is in
Income DistributionFour industry structures: Subsistence economies: few opportunities
for marketers Raw-material-exporting economies: eg:
Saudi Arabia for oil Industrializing economies: India and
Philippines, with a new rich class and a growing middle class
Industrial economies: Western Europe with rich markets for all sorts of goods
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Economic EnvironmentChanges in Income Income distribution
Upper-class consumers Middle-class consumers Working-class consumers Underclass consumers
The Company’s Macroenvironment
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Social-Cultural Environment
Views of themselves: generation different Views of others: concerns for social problems Views of organizations Views of society: some want to defend society
(preservers), take what they from it (takers), some want to change it (changers), some are looking for something deeper (seekers), others want to leave it (escapers)
Views of nature: awareness of nature’s fragility and fitness activities
Views of the universe: US. Citizens are monotheistic
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Table 3.4 Most Popular American Leisure Activities Reading TV Watching Spending time with
family Going to movies Fishing
Computer activities Gardening Renting movies Walking Exercise
See page 101
Socio-Cultural Influences
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Natural Environment
Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections
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Keys to Avoiding Green Marketing Myopia page 104
Consumer Value Positioning Calibration (measure) of Consumer
Knowledge Credibility of Product Claims: Be honest and
authentic
Consumer Environmental Segments
1. Genuine Greens (15%)2. Not Me Greens (18%): Pro-green
attitude but behaviors are only moderate
3. Go-with-the-Flow Greens (17%): some behaviors are easy to do
4. Dream Greens (13%): care but doesn’t have the knowledge and resources to take action
5. Business First Greens (23%) 6. Mean Greens (13%): express no
attitudes or behaviors but knowledgeable
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Technological Environment
Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change
The Political-Legal Environment
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Business Legislation: Protect companies from unfair competition, unfair business
practices, unbridled business behaviors…
Growth of Special Interest Groups: Consumerism movement organized
citizens and government to strengthen the rights and powers of buyers in relationship
to sellers
Forecasting and Demand Measurement
How can we measure market demand? Potential market: Consumers are interested in a
market offer but not enough of income and access to the product
Available market: Consumers have interest, income and access to a particular offer
Target market: Qualified available market that company decides to pursue
Penetrated market: Consumers are buying the company’s product
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Ninety Types of Demand Measurement(6×5×3)
A Vocabulary for Demand Measurement
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Market Demand: Total volume that would be bought by a defined consumer group
Market Forecast: Market demand corresponding to one level of industry marketing expenditure that actually occur
Market Potential: The limit approach by market demand as industry marketing expenditures approach infinity
Company Demand: Company’s estimated share of market demand at alternative level of company marketing effort
Company Sales Forecast: Expected level of company sales based on a chosen marketing plan in an assumed marketing environment
Company Sales Potential: Sales limit approached by company demand as company marketing effort increases
Market Demand Functions
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Upper limit of Mkt Potential
Estimating Current Demand: Total Market Potential
Calculations Multiple potential number of buyers by
average quantity each purchases times price Chain-ratio method
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Estimating Current Demand: Area Market Potential
Market-Buildup: Identifying all the potential buyers in each market and estimating their potential purchase (for business marketers)
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Estimating Current Demand: Area Market PotentialMultiple-Factor Index for consumer marketers
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The lower the BDI, the higher the market opportunities-room to grow the brand
Brand Development Index (BDI)
BDI measures the relative sales strength of a brand within a specific market area
a: the percentage of a brand total sales in a specific market area
b: the percentage of the total population in that market area
Estimating Future Demand
Macroeconomic forecast? How Industry forecast? How Company sales forecast
Estimating Future Demand
Survey of Buyers’ Intentions Composite of Sales Force Opinions Expert Opinion: Dealers, distributors,
suppliers, marketing consultants, and trade associations
Past-Sales Analysis Market-Test Method: In particular best for new
product or established product into a new distribution channel or territory.
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Case: Microsoft
Questions: 1. Evaluate Microsoft’s strategy in good and
poor economic times2. Discuss the pros and cons of Microsoft's
most recent “I’m a PC” campaign. Is Microsoft doing a good thing by acknowledging Apple’s campaign (get a Mac) in its own marketing message? Why or why not?
For Review
What are the components of a modern marketing information system?
What are useful internal records? What makes up a marketing intelligence
system? What are some influential macroenvironment
developments? How can companies accurately measure and
forecast demand?
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