Marketing 1.05 Marketing 1.05 Acquire foundational knowledge of Acquire foundational knowledge of

marketing-information marketing-information management tomanagement to

understand its nature and scopeunderstand its nature and scope

Three types of information Three types of information used in marketing decision used in marketing decision makingmaking•Customer Customer (demo, psycho, (demo, psycho,

behav)behav)

•Marketing mixMarketing mix

•Business EnvironmentBusiness Environment

Customer Information Customer Information

Marketing MixMarketing Mix

• Basic Products• Product Features• Services• Product packaging• Guarantees• Repairs• Credit Choice• Discounts• Promotion Methods

Business EnvironmentBusiness Environment

Why is Marketing Why is Marketing Information Needed?Information Needed?

•To identify potential customers,

•Develop new products, •marketing opportunities,• solve marketing problems,•implement marketing plans,•monitor marketing

performance.

The Impact of Marketing The Impact of Marketing Information on MarketersInformation 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.• Companies keep track of what

happening in current markets.

Ways Marketers Use Marketing Ways Marketers Use Marketing Information: Internal SourcesInformation: Internal Sources•Customer profile – ex?•Company records- sales records, expenses, supplier data, production and operation schedules, performance information (sales, costs, quality, and customer satisfaction), quarterly inventory status (indicates increase and decrease in sales for a particular product) etc.

•Constantly monitoring internal factors identifies problems that might need to be addressed.

External sourcesExternal sources• Competitors’ records Competitors’ records – prices, products, – prices, products,

and market shareand market share

• Government data Government data – price trends, new – price trends, new regulations, laws, and future projections for regulations, laws, and future projections for the economythe economy

• Trade and Professional Associations Trade and Professional Associations – – trade journals, newsletters, or research trade journals, newsletters, or research reports.reports.

• Business PublicationsBusiness Publications-The Wall Street -The Wall Street Journal, Forbes, Business Week, etcJournal, Forbes, Business Week, etc

Activity 1: Market ResearchActivity 1: Market Research

•Get out clockGet out clock

•Get with your 9 o’clock Get with your 9 o’clock appointmentappointment

•Complete MIM 1.05 wkst using the Complete MIM 1.05 wkst using the internetinternet

•When complete come back to When complete come back to your seat – your seat – you have 20 minutesyou have 20 minutes

Warm up: 1.05A ReviewWarm up: 1.05A Review1.1.Why is it essential for companies to do Why is it essential for companies to do

marketing research?marketing research?

2.2. In your notes, it mentions that MIM helps In your notes, it mentions that MIM helps solve problems; what are 3 problems that a solve problems; what are 3 problems that a company might need to solve? Explaincompany might need to solve? Explain

3.3.What are two things that sales reports can What are two things that sales reports can tell you about your company? Why is it tell you about your company? Why is it important? Explain each in detailimportant? Explain each in detail

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.

• Sales Volume Analysis — A detailed study of an organization's sales, in terms of units or revenue, for a specified period .

• Accounting Information • Sales/Discounts• Salespeople – how effective are they?• Inventory/Cost• Payroll – Commission on sale?

Information in reports provided by salespeople that is monitored for use in marketing decision-making.• Request/complaint reports• Lost sales reports• Call reports• Activity reports• Retail audits – measure market sales,

competitor’s sales, market share, prices, special offers, stock levels by week or day to day

• Product information– 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, popular 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

Information about customers that Information about customers that is monitored for marketing is monitored for marketing decision-making (cont)decision-making (cont)

• Credit recordCredit record

• Customer requests (what products or Customer requests (what products or varieties are requested that you varieties are requested that you don’t carry)don’t carry)

• Receipts/invoices (is a certain Receipts/invoices (is a certain neighborhood or ZIP code neighborhood or ZIP code frequenting your establishment more frequenting your establishment more than others; preferences of products)than others; preferences of products)

Explain information about competitors that is monitored for marketing decision-making.•USP’s (unique selling points) of

our product vs. competition to find our advantage.

•Financial records for public companies

• Insight into company’s strengths, weaknesses, and future plans

•Market share analysis•Sales volume data

Procedures for identifying information to monitor for marketing decision-making.

• Identify needed data

•Create a plan for collecting, storing and analyzing data

•Compile a list of secondary sources providing needed data

•Retrieve needed data

•Analyze/use data

Marketing Research – Taste the Marketing Research – Taste the RainbowRainbow• As marketers you are going to do research on skittles; As marketers you are going to do research on skittles;

you will be asked a serious of questions – answer you will be asked a serious of questions – answer them completely.them completely.

• You will find out:You will find out:– EstimationsEstimations– Favorite flavor Favorite flavor – Affects on color choiceAffects on color choice– DO NOT EAT BEFORE ACTIVITY IS DONE!DO NOT EAT BEFORE ACTIVITY IS DONE! IF YOU ARE IF YOU ARE

PLAYING AROUND YOU WILL RECEIVE A DETENTIONPLAYING AROUND YOU WILL RECEIVE A DETENTION– Turn in to binTurn in to bin

• WHEN COMPLETE work on WHEN COMPLETE work on MARKET RESEARCH MARKET RESEARCH wkst from yesterday, wkst from yesterday, VIRTUAL BUSINESS VIRTUAL BUSINESS or or MAGIC SQUARESMAGIC SQUARES