1. Understanding Market Demand and the Environment
MARKETING MANAGEMENT
Understanding Market Demand and the Environment

2. Chapter Questions What is important to know?
What data can be employed?
How can demand be forecasted and measured?
What are some important macro-environmental forces?

3. Background on Industry
What are the trends in the industry?
Sales amounts
Growth rate
Profit margins
Industry trends
Types of products

4. Background on Industry
BASED ON THAT INFORMATION
THEN…
Is this an area we should enter?
Where are the opportunities?
What should we be doing to stand out?
(What is our competitive advantage?)
Is that position profitable or sustainable?

5. Internal Data Sources Sales Information Marketing Research Marketing
Intelligence
Commercial
Data Sources

6. Secondary Commercial Data Sources
A.C. Nielsen
SAMI/Burke
Ipsos-Reid
Simmons
NDP Group
Dun &
Bradstreet’s

7. The Marketing Research Process
Define the problem
Develop research plan
Make
decision
Collect information
Analyze information
Present findings

8. Research Flowchart Understanding of problem
EXPLORATORY or SECONDARY RESEARCH
Poor
Good
Objective answers by asking?
OBSERVATIONAL
RESEARCH No
Yes
FOCUS GROUPS
Need estimates
of prevalence? No
SURVEY
Yes

9. Market Demand Functions

10. Market Demand Functions

11. Estimating Future Demand
Survey of Buyers’ Intentions
Composite of Sales Force Opinions
Expert Opinion
Past-Sales Analysis
Market-Test Method

12. Environmental Forces Demographic Economic Social-Cultural
Technological
Natural
Political-Legal

13. Mattel Markets in China

14. Age versus Cohort effects
Age differences –
chronological
Cohort effects –
when you were born

15. Age versus Cohort effects

16. Use Data in Marketing Plan
What can these data sources tell you?
Demand estimates
Trends
MARKETING PLAN:
What can we learn about demand for the product or service?
Explain it!

17. GROUP DISCUSSION: Toy business
What have been the key success factors for Toyland?
Where is Toyland vulnerable?
What should they watch out for?
What recommendation would you make to the owner going forward?
What should they be sure to do with their marketing?

18. GROUP DISCUSSION: Sirius/XM
What have been the key factors for satellite radio?
What should they watch out for?
What should they be sure to do with their marketing?