1-1 Gathering Information and Measuring Market Demand by

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Gathering Information and Gathering Information and Measuring Market DemandMeasuring Market Demandbyby

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Kotler on Marketing

Marketing is becoming a battle based more on information than on sales power.

Components of MIS (Marketing Information System)

• Major responsibility for identifying significant market place changes falls to the company’s marketers.

• Marketers also have extensive information about how consumption patterns. – Swiss consume the most chocolate– Greeks eat the most cheese– Per capita consumption of ice cream in Pakistan is

0.5litres. Turkey had this 15years ago and now their consumption is 2.5litres.

Marketing Information System

• A marketing information system (MIS)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.

• It is developed from – Internal Company Records– Marketing Intelligence Activities– Marketing Research

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1. INTERNAL RECORD SYSTEMS

• The Order-to-Payment Cycle• Sales Information Systems• Databases, Data Warehouses

And Data-Mining (customer data base)

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Can you name a company that uses Can you name a company that uses targeted mailings to promote new targeted mailings to promote new products, or regional offerings?products, or regional offerings?

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2. THE MARKETING INTELLIGENCE SYSTEM

• A Marketing Intelligence System is a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment.

• Internal Records systems supplies result data, but the marketing intelligence system supplies happenings data.

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• A company can collect Market Intelligence by the following – Trade publications, talking to customers, suppliers, and

distributors– Training and motivationg the sales force to spot and

report new developments. – Purchasing competitors products– Advisory Panels– Mystery shoppers. – Government data sources– Purchasing information from outside suppliers. – Online customer feed back systems

2. THE MARKETING INTELLIGENCE SYSTEM

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What are some of the potential What are some of the potential hazards a company might face by hazards a company might face by relying too heavily on distributors, relying too heavily on distributors, retailers, or other retailers, or other intermediaries for intermediaries for market intelligence?market intelligence?

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3. MARKETING RESEARCH SYSTEM

• Marketing Research– The systematic design, collection,

analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

– Globally, it’s a $16.5 billion industry !

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MARKETING RESEARCH SYSTEM• Suppliers of Marketing Research

– Engaging students or professors to design and carry out projects

– Using the Internet– Checking out rivals– Syndicated-service research firms

(AC Nielson)– Custom marketing research firms– Specialty-line marketing research

firms

The Marketing Research Process

Defining theDefining theproblem andproblem and

researchresearchobjectivesobjectives

Defining theDefining theproblem andproblem and

researchresearchobjectivesobjectives

DevelopingDevelopingthe researchthe research

planplan

DevelopingDevelopingthe researchthe research

planplanCollect the Collect the informationinformationCollect the Collect the informationinformation

Analyze theAnalyze theinformationinformationAnalyze theAnalyze theinformationinformation

Present thePresent thefindingsfindings

Present thePresent thefindingsfindings

SCENARIO

• PIA is looking for new ways to serve its passengers and is reviewing many ideas for its first class passengers.

• Ideas are– To supply an internet connection with limited

access to web pages and email messaging– To offer 24 channels of satellite cable TV– To offer a 50-CD audio system that lets each

passenger create a customized play list of music and movies to enjoy during the flight

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MARKETING RESEARCH SYSTEM

• Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives– Not too narrow / not too broad– Research problem “Will offering an

in-flight internet service create enough incremental preference and profit for PIA to justify its cost against other possible investments?

• Step 1 contd– Research Objectives

• What types of first class passengers would respond most to using an in flight internet service.

• How many are likely to use this service

• How many extra passengers will choose PIA

• How much long term goodwill will this service add


ExploratoryResearch

DescriptiveResearch

CausalResearch

•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.•Ascertain magnitudes.


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• Step 2: Develop the Research Plan– Data Sources (Primary and

Secondary)– Research Approaches

• Observational Research (Researchers might meander around first class lounges or fly on competitors planes to observe in flight service


– Research Approaches contd• Focus Group Research• Surveys• Behavioral Data (purchasing behavior) (PIA might

analyze the customer data base of first class passengers)

• Experimental Research (to test)– Research Instruments

• Questionnaires• Qualitative Measures (shadowing, interviewing)• Mechanical Devices (galvanometers, eye camera, TV

meter)


– Sampling Plan• Sampling unit : Who is to be surveyed? • Sample size: How many people should be surveyed? • Sampling procedure: How should the respondents be

chosen


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A.A. Probability SampleProbability Sample

Simple random sampleSimple random sample Every member of the population has an Every member of the population has an equal chance of selectionequal chance of selection

Stratified random Stratified random samplesample

The population is divided into mutually The population is divided into mutually exclusive groups (such as age groups), exclusive groups (such as age groups), and random samples are drawn from and random samples are drawn from each groupeach group

Cluster (area) sampleCluster (area) sample The population is divided into mutually The population is divided into mutually exclusive groups (such as city blocks), exclusive groups (such as city blocks), and the researcher draws a sample of and the researcher draws a sample of the groups to interviewthe groups to interview

Table 5-3: Probability and Nonprobability Samples

Continued on next slide . . .

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B.B. Nonprobability Nonprobability SampleSample

Convenience sampleConvenience sample The researcher selects the most The researcher selects the most accessible population membersaccessible population members

Judgment sampleJudgment sample The researcher selects population The researcher selects population members who are good prospects for members who are good prospects for accurate informationaccurate information

Quota sampleQuota sample The researcher finds and interviews a The researcher finds and interviews a prescribed number of people in each of prescribed number of people in each of several categoriesseveral categories

5-3: Probability and Nonprobability Samples (Continued)

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• Step 3: Collect the Information– Most Expensive– Most prone to errors

• Step 4: Analyze the Information


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• Step 5: Present the Findings– The chief reasons for using in-flight Internet

service are to pass the time surfing and to send and receive messages from colleagues and family

– About 5 will use @ Rs. 1500, 10 will use @ Rs. 900

– Will help to strengthen the brand image , gain some passengers, and customer good will.

• Step 6: Make the Decision


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FORECASTING AND DEMAND MEASUREMENT

• Survey of Buyers’ Intentions• Composite of Sales Force Opinions• Expert Opinion• Past Sales Analysis • Market Test Method

Documents

1-1 Gathering Information and Measuring Market Demand by