Marketing Indicator 1.03

Acquire foundational knowledge of Acquire foundational knowledge of marketing-information marketing-information

management tomanagement tounderstand its nature and scopeunderstand its nature and scope

MarketingMarketing Indicator Indicator

1.031.03

Three types of information Three types of information used in marketing decision used in marketing decision makingmaking

• Customer Customer

• Marketing mixMarketing mix

• Business EnvironmentBusiness Environment

Customer InformationCustomer Information

Marketing MixMarketing Mix

• Basic Products• Product Features• Services• Product packaging• Guarantees• Repairs• Credit Choice• Discounts• Promotion Methods

Business EnvironmentBusiness Environment

Why is Marketing Information Needed?Why is Marketing Information Needed?

• To identify potential customers, potential products, marketing opportunities, solve marketing problems, implement marketing plans, and monitor marketing performance.

The Impact of Marketing The Impact of Marketing Information on MarketersInformation 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 Ways Marketers Use Marketing InformationInformation• Analysis----the process of summarizing, combining, or comparing

information so that decisions can be made. • Report• Examples include

– Planning a promotional budget.– Effectiveness of one retailer in a channel of distribution.– Costs of marketing activities for national and international activities.

• Example: Stouffer’s Lean Cuisine—13 years of market research– Develop product– Test package design– Hold pilot sales in large cities

• Track what is happening in current markets– Determine major competitors– What major competitors are offering– Which products consumers prefer– Customer satisfaction with product

Reports Businesses use in Reports Businesses use in MIMMIM• External:External:

– Government Reports, Business Publications, Government Reports, Business Publications, Commercial Data, Information ServicesCommercial Data, Information Services

• Internal:Internal:– Marketing PlansMarketing Plans– Performance Sheet Performance Sheet

•Balance sheets, Cash flow statements, Income Balance sheets, Cash flow statements, Income statements (Quarterly, Annual)statements (Quarterly, Annual)

– Customer Records and sales InformationCustomer Records and sales Information• Inventory Status, Demographic reports (Quarterly Inventory Status, Demographic reports (Quarterly

Annual)Annual)

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?

•HELPS IDENTIFY ANY POTENTIAL PROBLEMS

Information in reports provided by salespeople that is monitored for use in marketing decision-making.• Request/complaint reports• Lost sales reports• Call reports• Activity reports• Retail audits – measure market sales,

competitor’s sales, market share, prices, special offers, stock levels by week or day to day

• Product information– types of products that sell best at various times of year; colors or sizes of products customers prefer– THIS INFORMATION IS USED TO IMPROVE THE

EFFECTIVENESS OF THE SALESPEOPLE!

Information about customers that is monitored for marketing decision-making.• Demographic data (age, gender, ethnicity)• Buying habits (time of day, repeat products, amount

spent—full 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 don’t carry)

• Receipts (is a certain neighborhood or ZIP code frequenting your establishment more than others)

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?

• Financial records for public companies (GE, Ford, Apple)

• Insight into company’s strengths, weaknesses, and future plans (new products, marketing campaigns)

• Market share analysis• Sales volume data

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