gathering marketing information
TRANSCRIPT
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Gathering MarketingGathering Marketing
InformationInformation
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Marketing is becoming a battleMarketing is becoming a battle
based more on informationbased more on informationthan on sales power.than on sales power.
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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?
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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?
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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..
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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
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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.
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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
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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
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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..
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MotorolaunderstandsneedsofitsMotorolaunderstandsneedsofitsChinesecustomersChinesecustomers
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StepstoImproveMarketingIntelligenceStepstoImproveMarketingIntelligence
TrainandmotivatesalesforceTrainandmotivatesalesforce MotivatechannelmemberstoshareintelligenceMotivatechannelmemberstoshareintelligence
Network externallyNetwork externally Utilizecustomeradvisory panelUtilizecustomeradvisory panel UtilizegovernmentdataresourcesUtilizegovernmentdataresources
PurchaseinformationPurchaseinformation
CollectcustomerfeedbackonlineCollectcustomerfeedbackonline
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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..
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Marketingandsalessoftwareprograms
BRANDAIDCALLPLANDETAILER
GEOLINEMEDIACPROMOTER
ADCADCONVERSTORY
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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
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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..
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SuppliersofMarketing ResearchSuppliersofMarketing Research
EngagingstudentsorprofessorstodesignEngagingstudentsorprofessorstodesignandcarry outprojectsandcarry outprojects
UsingtheInternetUsingtheInternet CheckingoutrivalsCheckingoutrivals
SyndicatedSyndicated--serviceresearchfirmsserviceresearchfirms
CustommarketingresearchfirmsCustommarketingresearchfirms SpecialtySpecialty--linemarketingresearchfirmslinemarketingresearchfirms
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MARKETING RESEARCH PROCESSMARKETING RESEARCH PROCESS
Define the problem and research objectives
Developing the research plan
Collect the information
Analyze the information
Present the findings
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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
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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
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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
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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
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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
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Marketing ResearchSystemMarketing ResearchSystem
Step 3: CollecttheInformation Step 4: AnalyzetheInformation Step 5: Presentthe Findings Step 6:Makethe Decision
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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)
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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
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Forecasting and Demand
Measurement
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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
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ESTIMATING FUTURE DEMANDESTIMATING FUTURE DEMAND
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.
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ESTIMATING FUTURE DEMANDESTIMATING FUTURE DEMAND
III.What People Have Done.III.What People Have Done.
(Historical Approach)(Historical Approach)
B. Statistical MethodsB. Statistical Methods
(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
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ESTIMATING FUTURE DEMANDESTIMATING FUTURE DEMAND
III.What People Have Done.III.What People Have Done.
(Historical Approach)(Historical Approach)
B. Statistical MethodsB. Statistical Methods
(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 )
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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
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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