Part 2 / Chapter 3
MKTG302 MARKETING MANAGEMENT
PART 2. CAPTURING MARKETING
INSIGHTS
Part 2 / Chapter 3
Outline
Chapter 3. Collecting Information and Forecasting
Demand
Chapter 4. Conducting Marketing Research
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PART 2. CAPTURING MARKETING INSIGHTS
Chapter 3. Collecting Information
and Forecasting Demand
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Questions
What are the components of a modern marketing
information system?
What are useful internal records for a marketing
information system?
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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Making marketing decisions in a
fast-changing world is both an art
and a science.
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Marketing Information System
A marketing information system (MIS) 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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Marketing Information System
Questions to ask to marketing managers:
What decisions do you regularly make?
What information do you need to make these decisions?
What information do you regularly get?
What special studies do you periodically request?
What information would you want that you are not getting now?
What information would you want daily? Weekly? Monthly? Yearly?
What online or offline newsletters, briefings, blogs, reports, or magazines would
you like to see on a regular basis?
What topics would you like to be kept informed of?
What data analysis and reporting programs would you want?
What are the four most helpful improvements that could be made in the present
marketing information system?
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Internal Records
ORDER-TO-PAYMENT CYCLE
SALES INFORMATION SYSTEMS
DATABASES, DATA WAREHOUSING, AND DATA
MINING
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Marketing Intelligence
The 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.
The internal records system supplies results data, but the
marketing intelligence system supplies happenings data.
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Marketing Intelligence
8 actions to improve marketing intelligence
Train and motivate the sales force to spot and report new developments
Motivate distributors, retailers, and other intermediaries to pass along
important intelligence
Hire external experts to collect intelligence
Network internally and externally
Set up a customer advisory panel
Take advantage of government-related data resources
Purchase information from outside research firms and vendors
Purchase information from outside research firms and vendors
Collect marketing intelligence on the internet
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Marketing Intelligence
COLLECTING MARKETING INTELLIGENCE ON THE
INTERNET
Independent customer goods and service review forums
Distributor or sales agent feedback sites
Combo sites offering customer reviews and expert
opinions
Customer complaint sites
Public blogs
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Analyzing the Macroenvironment
FAD
TREND
MEGATREND
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Analyzing the Macroenvironment
Firms must monitor six major forces in the broad
environment:
demographic
economic
social-cultural
natural
technological
political-legal
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Analyzing the Macroenvironment
The Demographic Environment
Worldwide population growth
Population age mix
Ethnic and other markets
Educational groups
Household patterns
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Analyzing the Macroenvironment
The Economic Environment
Consumer psychology
Income distribution
Income, savings, debt, and credit
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Analyzing the Macroenvironment
The Sociocultural Environment
Views
Views of ourselves
Views of others
Views of organizations
Views of society
Views of nature
Views of universe
Core cultural values
Subcultures
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Analyzing the Macroenvironment
The Natural Environment
Corporate environmentalism recognizes the need to integrate
environmental issues into the firms strategic plans. Trends for
marketers to be aware of include the shortage of raw materials,
especially water; the increased cost of energy; increased pollution
levels; and the changing role of governments.
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Analyzing the Macroenvironment
The Technological Environment
Accelerating pace of change
Unlimited opportunities for innovation
Varying R&D budgets
Increased regulation of technological change
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Analyzing the Macroenvironment
The Political - Legal Environment
Increased business legislation
Growth of special-interest groups
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Forecasting & Demand
Measurement
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THE MEASURES OF THE MARKET DEMAND
Potential Market: The potential market is the set of consumers
with a sufficient level of interest in a market offer.
Available Market: The available market is the set of consumers
who have interest, income, and access to a particular offer.
Target Market: The target market is the part of the qualified
available market the company decides to pursue.
Penetrated Market: The penetrated market is the set of
consumers who are buying the companys product.
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Forecasting & Demand
Measurement
VOCABULARY FOR DEMAND MEASUREMENT
Market Demand
Market Forecast
Market Potential
Company Demand
Company Sales Forecast
Company Sales Potential
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Forecasting & Demand
Measurement
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ESTIMATING CURRENT DEMAND
Total market potential is the maximum sales available to
all firms in an industry during a given period, under a
given level of industry marketing effort and environmental
conditions.
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Forecasting & Demand
Measurement
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ESTIMATING FUTURE DEMAND
Forecasting is the art of anticipating what buyers are
likely to do under a given set of conditions.
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Keywords
Marketing information system (MIS), internal record, orderto-payment cycle, sales information system (SIS),
database, data warehousing, data mining, marketing
intelligence system, fad, trend, megatrend,
macroenvironment, demographics, economic environment,
sociocultural environment, forecasting, demand
measurement,
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PART 2. CAPTURING MARKETING INSIGHTS
Chapter 4. Conducting Marketing
Research
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Questions
What is the scope of marketing research?
What steps are involved in conducting good marketing
research?
What are the best metrics for measuring marketing
productivity?
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Marketing Research is conducted
to make the best possible tactical
decisions in the short run and
strategic decisions in the long run.
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The Scope of Marketing Research
Marketing research is the function that links the
consumer, customer, and public to the marketer through
information. - American Marketing Association
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The Scope of Marketing Research
Marketing research is all about generating
insights.
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The Scope of Marketing Research
How to run marketing research?
Engaging students or professors to design and carry out
projects
Using the internet
Checking out rivals
Tapping into marketing partner expertise
Tapping into employee creativity and wisdom
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The Scope of Marketing Research
Marketing research firms fall into three categories:
Syndicated-service research firms
Custom marketing research firms
Specialty-line marketing research firms
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The Marketing Research Process
Define the
problem
and
research
objectives
Develop
the
research
plan
Collect the
information
Analyze the
information
Present the
findings
Make the
decision
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The Marketing Research Process
STEP 1: DEFINE THE PROBLEM, THE DECISION
ALTERNATIVES, AND THE RESEARCH OBJECTIVES
Marketing managers must be careful not to define the
problem too broadly or too narrowly for the marketing
researcher.
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The Marketing Research Process
STEP 2: DEVELOP THE RESEARCH PLAN
Data sources
Research approaches
Research instruments
Sampling methods
Contact methods
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The Marketing Research Process
STEP 3: COLLECT THE INFORMATION
The data collection phase of marketing research is
generally the most expensive and error-prone.
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The Marketing Research Process
STEP 4: ANALYZE THE INFORMATION
The next-to-last step in the process is to extract findings
by tabulating the data and developing summary
measures.
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The Marketing Research Process
STEP 5: PRESENT THE FINDINGS
As the last step, the researcher presents the findings.
Researchers are increasingly asked to play a proactive,
consulting role in translating data and information into
insights and recommendations for management.
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The Marketing Research Process
STEP 6: MAKE THE DECISION
Some organizations use marketing decision support
systems to help their marketing managers make better
decisions.
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Measuring Marketing Productivity
Marketing research must assess the efficiency and
effectiveness of marketing activities. Two complementary
approaches to measuring marketing productivity are:
(1) marketing metrics to assess marketing effects and
(2) marketing-mix modeling to estimate causal
relationships and measure how marketing activity affects
outcomes.
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Measuring Marketing Productivity
MARKETING METRICS
Marketing metrics is the set of measures that helps
marketers quantify, compare, and interpret their
performance.
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Measuring Marketing Productivity
SAMPLE MARKETING METRICS
External
Internal
Awareness
Market share
Number of complaints
Consumer satisfaction
Distribution/availability
Total number of customers
Perceived quality/esteem
Loyalty/retention
Relative perceived quality
Awareness of goals
Commitment to goals
Active innovation support
Staffing/skill levels
Desire to learn
Willingness to change
Freedom to fail
Relative employee satisfaction
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Measuring Marketing Productivity
MARKETING-MIX MODELING
Marketing-mix models analyze data from a variety of
sources, such as retailer scanner data, company
shipment data, pricing, media, and promotion spending
data, to understand more precisely the effects of specific
marketing activities.
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Measuring Marketing Productivity
MARKETING DASHBOARDS
Marketing dashboards are a concise set of
interconnected performance drivers to be viewed in
common throughout the organization.
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Measuring Marketing Productivity
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Keywords
Marketing research, research firm categories, methods of
marketing research, marketing research process, define
problem and objective, research plan, collecting
information, analyzing information, presenting findings,
making decision, measuring marketing productivity,
marketing metrics, marketing-mix modeling, marketing
dashboard
