2 CompetitionWhen products have limited differences, businesses try to compete for sales emphasizing such things as their name, availability, or price.You see this often when businesses compete in an oligopoly – few businesses offer very similar productsExample Airline industryCompetition is becoming more and more intense for most businesses. No matter what type of competition they are facing
3 Data External Internal External information- provides an understanding of factors outside of the organizationMarketers cannot plan effectively without understanding consumers, competitors, the economy, and other changes around themTrade and Professional AssociationBusiness PublicationsCommercial Data and Information ServiceGovernment ReportsExamples of these include US Census Bureau, The Wall Street Journal, and the Dun & Bradstreet business databaseInternal information- is information developed from activities that occur within the organizationBusinesses must keep detailed and accurate records – Three Types1. Customer Records & Sales Information2. Production & Operations Reports3. Performance InformationThis can all be used for internal marketing information
4 Market Information Systems An organized method of collecting, storing, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisionsThe method includes five steps1. Decision Making- the purpose of an MKIS is to improve decision making2. Output- the result of analysis given to decision makers3. Analysis- the process of summarizing, combining, or comparing information4. Storage- the resources used to maintain information so it can be used when needed5. Input- information that goes into the system for decision making
5 Using Marketing Research Marketing research- is a procedure designed to identify solutions to specific marketing problems through the use of scientific solvingThe scientific method is used to ensure that a careful and objective procedure is followed in order to develop the best possible solution1. Define the problem2. Analyze the Situation3. Develop a Data-Collection ProcedurePrimary Data- information collected for the first timeSecondary data- information already collected for another purpose4. Gather Information5. Propose a solution
6 Marketing ResearchRandom sampling ensures that everyone in the population has an equal chance of being selected in the sample.Numerical data is much easier for researchers to analyze than non-numerical data.The most important part of a marketing research report is the accuracy of the information and the presentation of the results of the research.
7 Collecting Primary Data Ways to Collect Primary DataConducting SurveysMaking Observationscollects information by recording actions without interacting or communicating with the participantPerforming ExperimentsA carefully designed and controlled situation in which all important factors are the same except the one being studied is an experimentTest Marketsare specific cities or geographic areas in which marketing experiments are conductedSimulationsare experienced when researchers create the situation to be studied
8 SurveysA planned set of questions to which individuals or groups of people respondTwo Types of questionsClosed-ended questions- offer two or more choicesOpen ended questions- allows respondents to develop their own answersOften used when researchers are attempting to identify the problem
9 Types of Information Needed for Effective Marketing Decisions Most businesses today recognize that different customers have different wants and needs.The business environment includes information about types of competition, economic conditions, and government regulationsInformation about consumers consists of age, gender, brand preference, and incomeInformation about the marketing mix elements consists of product features, promotional message, and priceEffective marketing information reduces the risk of decision making.
10 Additional InfoThe most important performance measure for a company is to compare actual performance with expected or planned performance.KNOW THE VOCABBe able to:Name the three categories of important types of internal information and briefly describe each.Name the 5 steps of the marketing scientific method and give a description of each.