1. GATHERING INFORMATION AND MEASURING MARKET DEMAND
CHAPTER 4
GATHERING INFORMATION AND MEASURING MARKET DEMAND

2. Important Topics of This Chapter
Modern MIS.
Marketing research process.
Marketing decision support system(MDSS).
Forecasting and demand measurement.
Estimating current demand.
Estimating future demand.

3. MODERN MARKETING INFORMATION SYSTEM
MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
Internal Record System:
Order-to-payment cycle:
Orders and invoices (EDI), fax and s
Sales information systems:
Sales force automation (SFA)

4. MODERN MARKETING INFORMATION SYSTEM
Marketing Intelligence System:
It is set of procedures and sources to obtain
everyday information about marketing
environment. Four steps to improve the
quality:
Training/motivating the sales force
Motivate distributors, retailers and customers to send necessary information
Mystery Shoppers
Syndicated research firms:
A.C.Nielsen
Internal information centers:
Collect information .
Customer advisory panels

5. MARKETING RESEARCH SYSTEM
Designing, collection, analysis, reporting and disseminating of information relevant to marketing problems:
Suppliers of Marketing Research:
research department
research firms-custom and specialty(field service)
on line services
universities
syndicated research firms
Specialty line marketing research firms

6. MARKETING RESEARCH PROCESS
Define the Problem and Research Objectives:
exploratory research
descriptive research
causal research.
Developing Research Plan:
Data sources
secondary
primary data
Research approaches
observational
focus group research
survey research
behavioral data
Experimental

7. MARKETING RESEARCH PROCESS (CONT.)
Developing Research Plan (cont.)
Research instruments-questionnaires
closed-ended
open-ended
mechanical
sampling plan:
probability
non-probability.
contact methods:
mail survey
telephone survey
personal interviews(arranged or intercept).
Internet

8. MARKETING RESEARCH PROCESS (CONT.)
Data Collection:
Interviewer errors
Response errors
Data Analysis:
Quantitative tools-multivariate techniques
Present findings:
Frequency counts
Analysis of statistical results
Recommendations
Managerial Implications
Final research report

9. MARKETING RESEARCH PROCESS (CONT.)
The Characteristics of Good Marketing research:
Scientific method:
Hypothesis testing
Research creativity:
Innovative research
Multiple methods:
Sources of better information
Interdependence of models and data
Value and cost of information:
Value of information
Healthy skepticism:
Assumptions
Ethical marketing

10. MARKETING RESEARCH PROCESS (CONT.)
Overcoming Barriers:
A narrow conception of research:
Some managers think it is a fact finding operations
Uneven caliber of marketing researchers
Late and occasional erroneous findings:
Some managers do not trust the findings
Personality differences:
Line and staff people

11. MARKETING DECISION SUPPORT SYSTEM
MDSS is a coordinated collection of data with
supporting software by which an organization
gathers and interprets relevant information. It
includes internal and external information,
state of the art data base approach, application
models(call plan, detailer, brandaid, mediac,
geolone, promoter, adcad, cover story), user
friendly computer language, graphic features.

12. STATISTICAL TOOLS Multivariate Techniques: Simulation Models:
Discriminant Analysis
Factor Analysis
Cluster Analysis
Conjoint Analysis
Multidimensional Scaling-perceptional map
Simulation Models:
Markov-process model
Queuing model
New-product pretest models
Sales-response models

13. FORECASTING AND DEMAND MEASUREMENT
The Measurement of market demand:
Product level:
Product line and brands
Time level:
Short, medium and long term
Market level:
Domestic and global

14. FORECASTING AND DEMAND MEASUREMENT
Which Market to measure:
Potential:
Total number of consumers
Available:
Group of consumers who has interest
Qualified;
Consumers who have money and interest
Target:
Company wants to attract
Penetrated:
Consumers who are buying companies product

15. A VOCABULARY FOR DEMAND MEASUREMENT
Market Demand:
Market demand is the total volume that would be bought by a defined customer group:
Market demand function:
It is the difference between potential, forecasted and actual sales.
Market forecast:
Demand estimates
Market potential:
Limit of market demand
Company demand:
Company’s market demand in a given time period
Company sales forecast:
Expected sales level of the company
Company sales quota:
Defining and stimulating sales
Sales budget:
Expected sales volume and current purchasing, production and cash flow decision

16. ESTIMATING CURRENT DEMAND
total market potential(Q=nqp)
market forecast
sales(demand) potential
sales(demand) forecast

17. ESTIMATING CURRENT DEMAND (CONT.)
Total Market Potential:
Suspect pool
Prospect pool
Area Market Potential
Market-buildup method:
Difficult to gather information
Standard Industrial Classification (SIC)
North American Industrial Classification (NAICS)
Multiple factor index method:
Buying Power Index:
BPI=.5Y + .3 R + .2P Where:
Y=income, R=retail sales, P=population
Industry Sales and market Share:
A. C. Nielsen reports

18. ESTIMATING FUTURE DEMAND
Survey of Buying Intentions/Purchase Probability Scales
SRC of the University of Michigan
Sales Force Composites/opinions
Expert Opinions
Past-Sales Analysis
Time series analysis
Exponential smoothing
Statistical demand analysis
Econometric analysis
Market Test Method
New product introduction