Presentation on theme: "Acquire foundational knowledge of marketing-information management to understand its nature and scope Marketing Marketing Indicator 1.05 Indicator 1.05."— Presentation transcript:
Acquire foundational knowledge of marketing-information management to understand its nature and scope Marketing Marketing Indicator 1.05 Indicator 1.05
REVIEW Marketing Information Management (MIM) – the process and methods used to gather information, analyze it, and report findings related to marketing goods and services.
WHY 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.
MARKETING 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 customers – –Overall product sales reports – –Inventory levels
MARKETING INFORMATION SYSTEMS Marketers use MIS to: – –Design advertising campaigns – –Develop promotional plans – –Sell directly to customers
MARKETING INFORMATION SYSTEMS Data that should be included in MIS: – –Customer profile data, such as: Previous marketing studies regarding buying behavior Shopping patterns Customer demographics Lifestyles research – –Company records, such as: Sales results Expenses Supplier data Production schedules
MARKETING INFORMATION SYSTEMS Data that should be included in MIS (contd): – –Government data, such as: Price trends New regulations and laws Future projections for the economy Marketing research reports that are produced and sold by research firms.
Three types of information used in marketing decision making Customer Customer Marketing mix Marketing mix Business Environment Business Environment
Customer Information Age Age Gender Gender Income Income Education Education Family size Family size Home ownership Home ownership Address Address Occupation Occupation How money is spent How money is spent Attitudes Attitudes Primary needs Primary needs Product purchases Product purchases Purchase frequency Purchase frequency Brand preferences Brand preferences Information needs Information needs Media preferences Media preferences Shopping behavior Shopping behavior
Business Environment Type of competition Type of competition Competitors strengths Competitors strengths Competitors strategies Competitors strategies Economic conditions Economic conditions Government regulations Government regulations New technology New technology Consumer protection Consumer protection Ethical issues Ethical issues Tax policies Tax policies Proposed laws Proposed laws International markets International markets
Why is Marketing Information Needed? To identify: 1. potential customers 2. potential products 3. marketing opportunities 4. solve marketing problems 5. implement marketing plans 6. monitor marketing performance.
MARKETING RESEARCH ANSWERS THESE QUESTIONS: What products to produce At what price to sell the products Who will buy the products How the products will be promoted Helps businesses solve marketing problems Gauge the potential of new ideas Keep track of current trends in the marketplace
The 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 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 Information Analysis----the process of summarizing, combining, or comparing information so that decisions can be made. Analysis example: – –Planning a promotional budget – –Analyzing the effectiveness of one retailer in a channel of distribution – –Analyzing the costs of marketing activities for national and international activities Product Example: Stouffers Lean Cuisine13 years of market research – –Develop product – –Test package design – –Hold pilot sales in large cities to test market first Track what is happening in current markets – –Determine major competitors – –What major competitors are offering – –Which products consumers prefer – –Customer satisfaction with product
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. 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 Information – –Spending – –Profitability Sales – –Discount on sale? – –What expenses went into each sale? Cost Inventory Payroll – –Commission on sale?
Information in reports provided by salespeople that is monitored for use in marketing decision-making. Request & Complaint reports/products customers requested and problems customers reported Lost sales reports/ cancelled orders or under stocked items Call reports/what happened in each sales call Activity reports/ all travel, phone calls and in person sales calls for a given period of time Retail audits to measure market sales, competitors sales, market share, prices, special offers, stock levels by week or day Product information reports– 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, amount spentfull 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 Credit record – –Job – –Income level – –Marital status Customer requests (what products or varieties are requested that you dont carry) Receipts (is a certain neighborhood or ZIP code frequenting your establishment more than others)
MARKETING RESEARCH DETERMINES COMPETITION: Who are the companys 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.
Explain information about competitors that is monitored for marketing decision-making. USPs (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 companys strengths, weaknesses, and future plans (new products, marketing campaigns) Market share analysis Sales volume data
MARKETING RESEARCH IS MOST OFTEN USED BY COMPANIES TO: Determine consumers attitudes and preferences Test product features Determine market size and growth potential Learn about competitive products Determine buying cycles Understand how the company is perceived by the public
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