Dr. Saleh Alqahtani 1 Chapter 5 Gathering Information and Measuring Market Demand by

Dr. Saleh Alqahtani 2 Kotler on Marketing Marketing is becoming a battle based more on information than on sales power.

Dr. Saleh Alqahtani 3 Chapter Objectives In this chapter, we focus on the following questions: What are the components of a modern marketing information system? What constitutes good marketing research? How can marketing decision support systems help marketing managers make better decisions? How can demand be more accurately measured and forecasted?

Dr. Saleh Alqahtani 4 10 useful questions for determining the information needs of 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? The Components of a Modern Marketing Information System

Dr. Saleh Alqahtani 5 The Components of a Modern Marketing Information System What information would you want that you are not getting now? What information would you want daily? Weekly? Monthly? Yearly? What magazines and trade reports would you like to see on a regular basis? What topics would you like to be kept informed of? What data analysis programs would you want? What are the four most helpful improvements that could be made in the present marketing information system?

Dr. Saleh Alqahtani 6 Internal Record Systems The Order-to-Payment Cycle Sales Information Systems Databases, Data Warehouses And Data- Mining

Dr. Saleh Alqahtani 7 Marketing Intelligence System “ is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.”

Dr. Saleh Alqahtani 8 Marketing Research Process Defining the problem and researchobjectives Defining the problem and researchobjectivesDeveloping the research planDeveloping plan Collect the information information Analyze the information information Present the findings findings

Dr. Saleh Alqahtani 9 Defining the Problem & Research Objectives Exploratory Research Descriptive Research Causal Research Test cause- and-effect relationships. Tests hypotheses about cause- and-effect relationships. Test cause- and-effect relationships. Tests hypotheses about cause- and-effect relationships. Sheds light on problem - suggest solutions or new ideas. Sheds light on problem - suggest solutions or new ideas. Ascertain magnitudes.

Dr. Saleh Alqahtani 10 Research Approaches Behavioral Focus-group Survey Experimental Observational

Dr. Saleh Alqahtani 11 Good Marketing Research ¶ Is scientific · Is creative ¸ Uses multiple methods ¹ Realizes the interdependence of models & data º Acknowledges the cost & value of information » Maintains “healthy” skepticism ¼ Is ethical

Dr. Saleh Alqahtani 12 Marketing Decision Support System (MDSS) Marketing & sales software programs BRANDAID CALLPLAN DETAILER GEOLINE MEDIAC PROMOTER ADCAD CONVERSTORY

Dr. Saleh Alqahtani 13 Demand Market Demand Company Demand

Dr. Saleh Alqahtani 14 Ninety Types of Demand Measurement (6 x 5 x 3) All sales Company sales Product line sales Product form sales Product item sales Industry sales Product level level Territory Region U.S.A. Customer World Spacelevel Short runMedium runLong run Time level

Dr. Saleh Alqahtani 15 Forecasting and Demand Measurement Multiple-Factor Index Method − Brand development index (BDI)

Dr. Saleh Alqahtani 16 Forecasting and Demand Measurement Composite of Sales Force Opinions Expert Opinion Group discussion method Pooling of individual estimates Past-Sales Analysis − Time-series analysis − Exponential smoothing − Statistical demand analysis − Econometric analysis Market-Test Method