2 Three types of information used in marketing decision making CustomerMarketing mixBusiness Environment
3 Customer Information Age Brand preferences How money is spent Gender Information needsAttitudesIncomePrimary needsMedia preferencesEducationProduct purchasesFamily sizeShopping behaviorHome ownershipPurchase frequencyAddressOccupation
5 Business Environment Type of competition New technology Competitors’ strengthsConsumer protectionEthical issuesCompetitors’ strategiesTax policiesProposed lawsEconomic conditionsInternational marketsGovernment regulations
6 Why is Marketing Information Needed? To identify:1. potential customers2. potential products3. marketing opportunities4. solve marketing problems5. implement marketing plans6. monitor marketing performance.
7 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 productsHelps businesses plan their future operations to increase sales and profits.Understand markets.
8 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 budgetAnalyzing the effectiveness of one retailer in a channel of distributionAnalyzing the costs of marketing activities for national and international activities
9 Ways Marketers Use Marketing Information Product Example: Stouffer’s Lean Cuisine—13 years of market researchDevelop productTest package designHold pilot sales in large cities to test market first
10 Ways Marketers Use Marketing Information Track: what is happening in current marketsDetermine major competitorsWhat major competitors are offeringWhich products consumers preferCustomer satisfaction with product
11 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 (dollars sold) 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 analyzedSpending/Costs to produce and sell productsProfitability/ Sales – Total Costs
12 Information contained in sales and expense reports that is monitored for marketing decision-making. How much did they have to discount the product to achieve the sale?What expenses went into each sale?Inventory/How much product is left in inventoryPayrollHow much commission did they have to pay the sales rep?
13 Information 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 call
14 Information in reports provided by salespeople that is monitored for use in marketing decision-making.Activity 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
15 Information about customers that is monitored for marketing decision-making. Demographic data (age, gender, ethnicity, job, income, marital status)Buying habits (time of day, repeat products purchased, amount spent on each transaction—full price or on sale, types of products)Ex: Diapers and beer purchased by men on Thursdays and SaturdaysEx: Saturday is when most people do major grocery shoppingCredit record: do customers pay their bills on timeCustomer 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)
16 Explain 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, (long lasting)?Financial records for public companies that you compete with (i.e. annual reports)Insight into competitors’ strengths, weaknesses, and future plans (new products, marketing campaigns)Market share analysisSales volume data
17 Procedures for identifying information to monitor for marketing decision-making. Identify data needed for decision-makingCreate a plan for collecting, storing and analyzing that dataCompile a list of secondary sources of dataRetrieve the data you needAnalyze/use data to make decisions