Kotler14e ippt ch3

3Collecting

Information and Forecasting

Demand

1

What information you can use?Where to find related information?

Copyright © 2012 Pearson Education 3-3

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.


Assessing Marketing Information Needs

The marketing information system

Case Study: Michigan Economic Development Corporation (MEDC)


Studied demographic information of visitors that helped MEDC


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?


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)



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


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

http://www.complaints.com/directory/2005/july/1/8.htm

http://www.complaints.com/directory/2005/july/1/8.htm

Analyzing the Macroenvironment:Needs and Trends


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


Perspective on the Global Demographic Environment


Source: If the world were a village, 2002

Economic Environment


Consumer Psychology

Income Distribution

Income, Savings, Debt, Credit

Economic Environment and Consumer Psychology


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


Economic EnvironmentChanges in Income Income distribution

Upper-class consumers Middle-class consumers Working-class consumers Underclass consumers

The Company’s Macroenvironment


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


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



Natural Environment

Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections


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



Technological Environment

Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change

The Political-Legal Environment


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


Ninety Types of Demand Measurement(6×5×3)

A Vocabulary for Demand Measurement


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


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


Estimating Current Demand: Area Market Potential

Market-Buildup: Identifying all the potential buyers in each market and estimating their potential purchase (for business marketers)


Estimating Current Demand: Area Market PotentialMultiple-Factor Index for consumer marketers


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.


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?
