Presentation on theme: "Acquire foundational knowledge of marketing-information management to understand its nature and scope Marketing Indicator 1.05."— Presentation transcript:
1Acquire foundational knowledge of marketing-information management to understand its nature and scopeMarketingIndicator 1.05
2REVIEWMarketing Information Management (MIM) – the process and methods used to gather information, analyze it, and report findings related to marketing goods and services.
3WHY IS MARKETING RESEARCH IMPORTANT? Businesses that do not pay attention to what consumers are buying and why are likely to make costly marketing mistakes.Information obtained from research helps businesses increase sales and profits.
4MARKETING INFORMATION SYSTEMS Marketing Information Systems (MIS) – a set of procedures and methods that regularly generates, stores, analyzes and distributes information for use in making marketing and other business decisions.Most MIS rely heavily on:Data about current customersOverall product sales reportsInventory levels
5MARKETING INFORMATION SYSTEMS Marketers use MIS to:Design advertising campaignsDevelop promotional plansSell directly to customers
6MARKETING INFORMATION SYSTEMS Data that should be included in MIS:Customer profile data, such as:Previous marketing studies regarding buying behaviorShopping patternsCustomer demographicsLifestyles researchCompany records, such as:Sales resultsExpensesSupplier dataProduction schedules
7MARKETING INFORMATION SYSTEMS Data that should be included in MIS (cont’d):Government data, such as:Price trendsNew regulations and lawsFuture projections for the economyMarketing research reports that are produced and sold by research firms.
8Three types of information used in marketing decision making CustomerMarketing mixBusiness Environment
9Customer Information Age How money is spent Brand preferences Gender AttitudesInformation needsIncomePrimary needsEducationMedia preferencesFamily sizeProduct purchasesHome ownershipShopping behaviorPurchase frequencyAddressOccupation
11Business Environment Type of competition New technology Competitors’ strengthsConsumer protectionEthical issuesCompetitors’ strategiesTax policiesProposed lawsEconomic conditionsInternational marketsGovernment regulations
12Why is Marketing Information Needed? To identify:1. potential customers2. potential products3. marketing opportunities4. solve marketing problems5. implement marketing plans6. monitor marketing performance.
13MARKETING RESEARCH ANSWERS THESE QUESTIONS: What products to produceAt what price to sell the productsWho will buy the productsHow the products will be promotedHelps businesses solve marketing problemsGauge the potential of new ideasKeep track of current trends in the marketplace
14The Impact of Marketing Information 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 productsHelps businesses plan their future operations to increase sales and profits.Understand markets.Companies keep track of what happening in current markets.
15Ways Marketers Use Marketing Information Analysis----the process of summarizing, combining, or comparing information so that decisions can be made.Analysis example:Planning a promotional budgetAnalyzing the effectiveness of one retailer in a channel of distributionAnalyzing the costs of marketing activities for national and international activitiesProduct Example: Stouffer’s Lean Cuisine—13 years of market researchDevelop productTest package designHold pilot sales in large cities to test market firstTrack what is happening in current marketsDetermine major competitorsWhat major competitors are offeringWhich products consumers preferCustomer satisfaction with product
16Information 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. Normally measured by sales revenue or sales volume (the number of units sold)Sales Volume Analysis — A detailed study of an organization's sales, in terms of units or revenue, for a specified period .Accounting InformationSpendingProfitabilitySalesDiscount on sale?What expenses went into each sale?CostInventoryPayrollCommission on sale?
17Information in reports provided by salespeople that is monitored for use in marketing decision-making.Request & Complaint reports/products customers requested and problems customers reportedLost sales reports/ cancelled orders or under stocked itemsCall reports/what happened in each sales callActivity reports/ all travel, phone calls and in person sales calls for a given period of timeRetail audits to measure market sales, competitor’s sales, market share, prices, special offers, stock levels by week or dayProduct information reports– types of products that sell best at various times of year; colors or sizes of products customers prefer
18Information about customers that is monitored for marketing decision-making. Demographic data (age, gender, ethnicity)Buying habits (time of day, repeat products, amount spent—full price or on sale, types of products)Ex: Diapers and beer purchased by men on Thursdays and SaturdaysEx: Saturday is day most people do major grocery shoppingCredit recordJobIncome levelMarital statusCustomer requests (what products or varieties are requested that you don’t carry)Receipts (is a certain neighborhood or ZIP code frequenting your establishment more than others)
19MARKETING RESEARCH DETERMINES COMPETITION: Who are the company’s major competitors?What its competitors are offering. (not just product: Promotions/Financing/Service etc)Which products its competitors are offering.How satisfied customers are with its competitors products.
20Explain information about competitors that is monitored for marketing decision-making. USP’s (unique selling points) of our product vs. competition to find our advantage. Is that advantage sustainable?Financial records for public companies (GE, Ford, Apple)Insight into company’s strengths, weaknesses, and future plans (new products, marketing campaigns)Market share analysisSales volume data
21MARKETING RESEARCH IS MOST OFTEN USED BY COMPANIES TO: Determine consumers’ attitudes and preferencesTest product featuresDetermine market size and growth potentialLearn about competitive productsDetermine buying cyclesUnderstand how the company is perceived by the public
22Procedures for identifying information to monitor for marketing decision-making. Identify needed dataCreate a plan for collecting, storing and analyzing dataCompile a list of secondary sources providing needed dataRetrieve needed dataAnalyze/use data