Marketing Essentials

Pratibha Gupta
IIPM-BBA
8.10.10
Introduction
Meaning and Pervasiveness of Marketing –
 Marketing deals with identifying and meeting human
and social needs.
 Marketing is “Meeting needs profitably”
 Marketing is an organizational function and a set of
process for creating ,communicating an delivering
value to customers and for managing customers
relationships in ways that benefit the organization and
its stake-holders.
Nature and Scope of marketing
Here we cover all the points which are included in
complete Marketing Process.

 Exchange and Transaction

 What is Marketed ?
 Who Markets ?
Exchange an Transaction
 Exchange is the process of obtaining a desired
product from someone by offering something in
return
 Transaction is trade of values between two or more
parties, this is the end stage of Exchange.
What is Marketed
 (1) Goods
 (2) Services
 (3) Events
 (4) Experience
 (5) Persons
 (6) Places
 (7) Properties
 (8) Organizations
 (9) Information
 (10) Ideas
Who Markets
 Marketer

 Marketer is someone who seeks response( attention, a

purchase, a vote, a donation) from another party
called Prospect.
 Marketerare skilled in stimulating demand for
a company’s product
 They have task – “demand management”
 demand states are possible-
 Negative demand – (A) channels
 Non existing demand – Noise absorber
 Latent demand – Environment regulator
 declining demand – Fashion apparel
 Irregular demand - medicine
 Full demand – FMCG
 Overfull demand – Movie ticket for 3 idiots
 Unwholesome demand - Drugs
Market
 Marketers use the term “Market” to cover various
grouping of customer. As –
 Resources market
 Manufacturer market
 Intermediary market
 Consumer market
 Government market
 Key Customer Markets-
 (a) Consumer Markets- where goods goes to the user
 (b) Business Markets- Goods are sold to industries as raw
materials
 (c) Global Markets- selling goods out of parental country
 (d) Nonprofit and Governmental Markets- Customers
have limited purchasing power
 Market place – Physical Place
 Market space – digital Space
 Meta-Market – different interrelated businesses
collectively known as Meta- market
How Businesses and Marketing (In
India) are changing
 Changing Technology
 Deregulation
 Privatization
 Customer Empowerment
 Customization
 Heightened competition
 Industry convergence
 Retail Transformation
 Disintermediation
Marketing Philosophies
 Production concept
 Product concept
 Selling concept
 Marketing concept
The Holistic Marketing Concept
 It takes care of all the dimension which comes in
between to the marketing process in any direct or
indirect manner.
 Holistic Marketing recognizes that “everything
matters”
 Holistic Marketing concept is based on the
development, design, an implementation of marketing
programs, processes and activities that recognizes
their breadth and interdependencies.
Holistic Marketing
 Relationship Marketing
 Customer/ Channel/ Partners
 Integrate Marketing
 Product/ Price/ Place/ Promotion
 Internal Marketing
 Marketing department/ Senior Manager/ Other department
 Social Responsible Marketing
 Ethics/ Environment/ Legal/ Community
 Social marketing concept holds that the
organization’s task is to determine the needs, wants
and interests of target markets and to deliver desired
satisfaction more effectively and efficiently than
competitors in a way that preserve or enhance the
consumer’s and society’s well- being
Lecture
Core concept of marketing
 There are 9 core concept or bricks which
make the complete structure of
marketing.
1, Needs, wants and demand
 Needs are the basic human requirement
 Needs become wants when they are
directed to specific objects that might
satisfy the need.
 Demands are wants for specific products
backed by an ability to pay.

 Marketers create needs ??

2, Target markets, positioning and
segmentation
 Segment is group of people share same
requirement and profile.
 Marketer select segment according to
highest opportunity, ability to serve and
getting highest returns.
 Stand of offering in target market’s mind
set becomes the positioning.
3, Offering and Brands
 Set of benefit put by marketer to fulfill
need of marketer becomes – offering
 Brand is an offering from known source
4, Value and Satisfaction
 Value is perceived tangible and intangible
benefits and cost to customer. value can
be seen primarily as combination of
quality, service and price known as “
customer value triad”.
 Judgement by customer comparing
expectation with the product and service
sactual performances.
5, Marketing channels
 Source to reach to target market –
 A, Communication channel
 B, Distribution channel
 C, Service channel
6, Supply chain
 Supply chain describes channel from raw
material to component to final product
that are carried to final consumer.
7, Competition
 Includes all the actual and potential rival
offerings and substitutes that a buyer
might consider
8, Marketing environment
 Surrounding in which marketer works
 It is of 2 types –
 A, Macro environment
 B, Micro environment
9, Marketing planning
 Logical process that a company follow to
fulfill need of target customers in
profitable manner.
What is “Marketing Environment”
 Factors, that surrounds, and have impact
on whole marketing process directly or
indirectly, creates Marketing Environment.
Why scan environment
Marketing Environment
Internal Environmental Factors –

 Factors present inside the company

 Affect Individual company
 Under managerial control
 E.g.
 Human Resources
 Understanding between departments
External Environment Factors
 Micro Environment-
 Present outside of the company
 Affect Individual company
 Under Managerial control

Includes
 A, Competitors
 B, Suppliers / distributors
 C, Public Pressure Group
 D, Customers
 Macro Environment-
 Present Outside of company
 Out of managerial control
 Affect not only individual company but all
industry
Includes
 1, Economic
 2, demographic
 3, Technological
 4, Socio-Culture
 5, Political / Legal
 6, Global
1, Economic Forces
 Income-
 Ability to spend
 Product on which customer will spend vary
 Dual income families have high demand for life-style
and luxury products
 Inflation-
 An increase in price without corresponding increase
in wages.
 Decrease purchase power
 Should be countered by assuring product and
services are produced effectively
 Recession –
 period of economic activity when income, production,
and employment tend to fall.
 Interest Rate –
 Higher interest rate decrease new business
opportunities and vice versa.
 Lower interest rate is one sure way to spur consumer
purchase
 Exchange Rate –
 Export is more profitable when the currency of the
export country is weaker than the currency of
importing country.
2, Technological Factors
 The economy’s growth rate is affected by
how many major new technologies are
discovered.

 Marketers should monitor –

 Accelerating pace of change
 Unlimited opportunities for innovations
 Varying R&D budgets
 Increased regulation of technical change
3, Socio-Cultural Factors
 Values
 Time-Starved Customers
 Multiple Lifestyles
 The changing structures of families
4, Demographic Factors
 World wide population growth
 Population age mix
 Educational group
 Household pattern
 Geographical shift in population
5, Political/Legal Environment
 Composed of laws, political agencies an
pressure groups

 E.g. Ban on selected products

 Recycling law
 American subsidiaries
 Singur – TATA case
6, Nature Environment
 Shortage of raw material
 Increase energy cost
 Anti-pollution pressure
 Changing role of government
Competitive Environment
 The competitive environment consists the
number of competitors a company faces, the
relative size of competitors, and the degree of
interdependence within the industry.

 Competitor may offer same product to cater

customer need or can come with improved or
complete new product.

 So, competitors – in terms of pricing, new

product developed, service offered, and the like –
represent an environmental force that managers
must monitor and to which they must be
prepared to respond
Competition may get intense because
of
 (A) Globalization
 (B) Technology improvement
 (C) Changed buying behavior / attitude
Stake
Holder
 Stake-Holders –
 Any constituencies in the organization’s environment
that are affected by the organization’s decision .these
groups have a stake in or are significantly influenced by
what the organization does. In turn these group can
influence organizations

 The more obvious and secure relationship manament

share with stake holders, the more influence manager
will have on organizations outcome.
 Because relationship with stake holders
 Improve predictability of environmental
changes
 More successful innovations

 How can these relationships be manage?

 1, identify stakeholders
 2, Identify there interest with organization
 3, Identify how critical each stake holder is and
how uncertain the external environment is.
STP
 S – Segmentation
 T – Target
 P - Positioning
S - Segmentation
A market segment consists group of
customers who share a similar set of
needs and wants.
Levels of market segment
 Mass marketing
 Segmentation
 Niche marketing
 Local marketing
 Customization
Basis for Segmentation
 Geographic
 Demographic
 Psychographic
 Behavioral
Geographic Segmentation
Call for dividing the market into different
geographical units such as nations, states,
regions, countries, cities or neighborhood.
 The company can operate in one or few
areas, or operate in all but pay attention
to local variation.
Demographic Segmentation
 Age and life stage
 Gender
 Income
 Generation
 Social class
Psychographic Segmentation
 Psychographics is the science of using
psychology and demographics to better
understanding of customer.
 Buyers are divided on basis of –
 Personality trait
 Lifestyle
 Value
Behavioral Segmentation
 Decision roles
 Behavioral variables
 Decision Roles
 Initiators
 Influencers
 Deciders
 Buyers
 Users
 Behavioral Variables
 Occasions
 Benefits
 User status
 Usage rate
 Buyer readiness stage
 Loyalty status
 Attitude
Market segment must be
 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable
T - Targeting
 Single segment concentration
 Selective specialization
 Product specialization
 Market specialization
 Full market coverage
 What is CRM
 CRM is a process of managing detailed
information about individual customers
and carefully managing all customer
“Touch Points” to maximize customer
loyalty.

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 Why do we require Loyal Customers?
 Acquiring new customer can cost five
times more than the cost involved in
retaining a current customer.
 Higher the no. of Loyal Customers =
Higher profit and less efforts

 Why will customer be loyal?

When we will provide him a profitable
deal.

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 Total Customer Satisfaction
 Satisfaction is a person’s feeling of
pleasure or disappointment resulting from
comparing a product’s perceived
performance ( or outcome ) in relation to
his or her expectations.

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  If performance falls short, customer is
dissatisfied

 If performance exceeds expectations,

customer is highly satisfied or delighted.

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 Building customer relationship
 Relationship building process has 4 stages
–
 1, Identify
 2, Differentiate
 3, Interact
 4, Customize

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 Identify
 This step requires the company to locate
and contact a large no of its customers
directly and know as much detail about
them as possible. This includes their
names, addresses, phone no., account
details, habits, preferences etc.

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  Every interaction with the customer
through any channel should be seen as an
opportunity to learn about them and this
knowledge has to be used to serve them
better.

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 Differentiate
 Customer can be differentiated on the
basis of the value they represent and also
on their needs.
 The more valuable customers are, the
more the company should be interested in
retaining them.

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 Interact
 The purpose of interaction is to learn more
about customers starting with more
valuable customers.
 Can be done while customer make
purchase, use service or even when they
make complain, through formal surveys,
telephone interaction or self service
channel like web, call centers or ATM.

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 Customize
 Customization is done on the basis of what
customer has indicated during his
interaction, it improves the ability to fit
the product and service to this customers
exact need.

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 The study of individuals, groups, or
organizations and the processes they use
to select, secure, use, and dispose of
products, services, experiences, or ideas
to satisfy needs and the impacts that
these processes have on the consumer
and society
There are four main applications of
consumer behavior
 The most obvious is for marketing strategy—i.e.,
for making better marketing campaigns
 A second application is public policy
 Third application which is Social marketing
involves getting ideas across to consumers rather
than selling something
 As a final benefit, studying consumer behavior
should make us better consumers.
Why do people shop?
 1.Personal motives
 1a, Role playing
 1b, Diversion
 1c, Self-Gratification
 1d, Learning about new trends
 1e, Physical activity
 1f, Sensory stimulation
 2,Social motives
 2a, Social experience outside home
 2b, Communication
 2c, Peer group attraction
 2d, Status and authority
 2e, Pleasure bargaining
Factors affecting consumers decision
making
 1,Demographic
 1a, Gender
 1b, Age
 1c, Occupation
 1d, Education
 1e, Family size
 1f, Income
 2, Psychological factor
 2a, Motives
 2b, Perception
 2c, Learning
 2d, Attitude
 2e, Personality
 3, Environmental factors
 3a, Physical environment
 3b, Social environment
 3c, Sub-Culture, Social class
 4, Life-style
 4a, Activities and interest
 4b, Nature of occupation
 4c, Availability of leisure
Consumer decision process
 Need recognition
 Information search
 Evaluation of alternatives
 Purchase decision
 Post-purchase decision
Marketing Research
 - Formal studies of specific problems and
opportunities.
 - Marketing Research is the systematic
design, collection, analysis and reporting
of data and findings relevant to a specific
marketing situation facing the company.
 Types of marketing research –
 Ad-hoc research – focused on specific
marketing problem and collect data at one
point in time from one sample of respondents
 Continuous research interview – The same
respondents are interviewed repeatedly.
Informations are gathered from these
respondents repeatedly ,thus it is possible to
track changes within the same set of audience
over a period of time
Marketing Research process
Developing the research plan
 Cost
 Data source
 Primary
 Secondary
 Research approach
 Observational research
 Focus-Group research
 Survey research
 Experimental research
 Research instruments
 Questionnaire
 Mechanical Instruments
 Sampling Plan
 Sampling Unit – Who is to be surveyed
 Sampling Size – How many ppl shd b surveyed
 Sampling procedure – How shd the
respondents be chosen
 Contact method
 Mail questionnaire
 Telephone interview
 Personal interview
 Arranged interview
 Intercept interview
Lecture
Product Life Cycle
 Introduction – a period of slow sales
growth as the product is introduced in the
market. Profits are non-existent because
of heavy expenses on product introduction
 Growth – a period of rapid market
acceptance and substantial profit
improvement.
 Maturity – a slowdown in sales growth
because the product has achieved
acceptance by most potential buyers.
Profits stabilize or decline because of
increased competition.
 Decline – sales shows a downward drift
and profit erode.
New product development
 Categories of New products –
 1, New – to – the world
 2, New Product Line
 3, Addition to existing Product line
 4, Improvement and revisions of existing
product
 5, Repositioning
 6, Cost reductions.
Steps for New Product Development
 Idea generation
 Idea screening
 Concept development and testing
 Marketing strategy development
 Business analysis
 Product development
 Market testing
 Commercialization
Product
 A Product is anything that can be offered
to market to satisfy a want or need.
Product Levels:
 Core Benefit
 Basic Product
 Expected Product
 Augmented Product
 Potential Product
 Core benefit – Warmth
 Basic Product – Sweater
 Expected Product – Soft, Dark Colour,
Sweater
 Augmented Product – Free scratch card
 Potential Product – Shawl with 50%
discount
Product Classification
 A, Durability and Tangibility
 B, Consumer goods classification
 C, Industrial goods classification
A, Durability and Tangibility
 Nondurable Goods – Beer, Soap etc.
 Durable Goods – House, car
 Service – Intangible, inseparable, variable
and perishable.
 Eg. Hair cut, appliance repair.
Consumer Goods Classification.
 Convenience goods
 Shopping goods
 Specialty goods
 Unsought goods.
Industrial Goods Classification
 Material and Parts
 Capital Item
 Supplies and business services
Product System
 Group of diverse but related items that
function in a compatible manner.
Product mix
 Set of all products and items a particular
seller offers for sale. A product mix consist
various product line
 Product width
 Product length
 Product depth
 Consistency
Branding and Packaging
 Branding
 Co-Branding
 Ingredient Branding
Packaging
 All the activities of designing and
producing the container for a product
 Levels -
 Primary
 Secondary
 Shipping
Benefits
 Convenience
 Promotional value
 Styling
 Self service
 Consumer affluence
 Company and brand image
 Innovation apportunity
Labeling
 Identify the product
 Grade the product
 Describe usage and method
 Describe ingredients
 Handling process
Pricing methods
 Mark up pricing
 Target-return pricing
 Perceived value pricing
 Value pricing
 Going rate pricing
 Auction type pricing
Pricing strategies
 Geographical pricing
 Price discount and allowances
 Promotional pricing
 Differentiated pricing
 Product mix pricing
Geographical pricing
 Barter
 Compensation deal
 Buy back agreement
 offset
Price Discount and Allowances
 Cash discount
 Quantity discount
 Functional discount
 Seasonal discount
 allowance
Promotional Pricing
 Loss-Leader pricing
 Special-Event pricing
 Cash- rebates
 Low interest financing
 Warranties and service contracts
 Psychological discount
Differentiated pricing
 Customer-segment pricing
 Product form pricing
 Image pricing
 Channel pricing
 Location pricing
 Time pricing
Product mix pricing
 Product line pricing
 Optional feature pricing
 Captive product pricing
 Two-Part pricing
 By-Product pricing
 Product- bundling pricing
Promotion
 Marketing communication are the means
by which firms attempt to inform,
persuade, and remind consumers –
directly or indirectly – about the product
and brands that they sell.
 Marketing communication represents the
voice of the brand.
 Marketing communication mix consist of
six major models of communication –
 Advertising
 Sales promotion
 Events and experiences
 Public relation and Publicity
 Direct marketing
 Personal selling
Advertising
 Used to build up long term image for a
product
 Effectively reach geographically disperse
buyers
 Pervasive – can be repeated several times
 Amplifies expressiveness – can be
dramatized
 Impersonality monologue
Sales promotion
 Give short run effect.
 Communication
 Incentive
 invitation
Public relations and publicity
 High credibility
 Dramatization
 Ability to catch buyers off guard
Events and experiences
 Relevant – involvement of customers
 Implicit – more of an indirect “soft sell”
Direct marketing
 Customized
 Up-to –date
 interactive
Personal selling
 Personal interaction
 Cultivation – personal relationship springs
up
 response
Managing marketing
communication
 Mission
 Money
 Message
 Media
 Measurement
Mission
 Setting marketing communication goal
Money
 Stage in PLC
 Market share and consumer base
 Competition
 Product sustainability
Message
 Message generation
 Message evaluation
 Message execution
 Social responsibility review
Media
 Reach, frequency, impact
 Major media type
 Specific media vehicle
 Media timing
 Geographical media allocation
Measurement
 Communication impact
 Sales impact
Guerrilla marketing
 Also known as attack and ambush marketing,
guerrilla marketing is a type of promotional
marketing that incorporates a series of creative
and strategic techniques used to build and
maintain public awareness surrounding a person,
place, product, or event. guerrilla marketing
utilizes the power of social interactions to execute
non-traditional marketing campaigns that drive
sales, increase name awareness and create long-
term buzz around a specific business
 guerrilla marketing is used by many
marketing, advertising, public relations
and promotional event marketing
agencies.
 Guerrilla, marketing became popular in
the 1970s
Strategies
 Attack marketing uses a number of
different strategies to create memorable
interactions between businesses and
consumers, including use of:
 Promotional Staff to interact with
consumers
 Non-traditional marketing techniques
Digital Marketing
 Digital Marketing is the promoting of
brands using all forms of digital
advertising channels to reach consumers.
This now includes Television, Radio,
Internet, mobile and any other form of
digital media
 Digital Marketing – Pull vs. Push
 There are 2 different forms of digital
marketing
 Pull
 Pull digital marketing technologies involve
the user having to seek out and directly
select (or pull) the content, often via web
search. Web site/blogs and streaming
media (audio and video) are good
examples of this. In each of these
examples, users have a specific link (URL)
to view the content
 Push
 Push digital marketing technologies involve both
the marketer (creator of the message) as well as
the recipients (the user). Email, SMS, RSS are
examples of push digital marketing. In each of
these examples, the marketer has to send (push)
the messages to the users (subscribers) in order
for the message to be received. In the case of
RSS, content is actually pulled on a periodic basis
(polling), thus simulating a push
Green Marketing
 According to the American Marketing
Association, green marketing is the
marketing of products that are presumed
to be environmentally safe. Thus green
marketing incorporates a broad range of
activities, including product modification,
changes to the production process,
packaging changes, as well as modifying
advertising
 Eg . Nerolac paints,
 Vediocon
 New Delhi, capital of India, was being
polluted at a very fast pace until Supreme
Court of India forced a change to
alternative fuels. In 2002, a directive was
issued to completely adopt CNG in all
public transport systems to curb pollution.
Social Marketing
 Social marketing is the systematic
application of marketing, along with other
concepts and techniques, to achieve
specific behavioral goals for a social good.
Social marketing can be applied to
promote merit goods, or to make a society
avoid demerit goods and thus to promote
society's well being as a whole.
 For example, this may include asking
people not to smoke in public areas,
asking them to use seat belts, or
prompting to make them follow speed
limits
 The primary aim of social marketing is
"social good", while in "commercial
marketing" the aim is primarily "financial".
This does not mean that commercial
marketers can not contribute to
achievement of social good
History
 Social marketing began as a formal
discipline in 1971, with the publication of
"Social Marketing: An Approach to Planned
Social Change" in the Journal of Marketing
by marketing experts Philip Kotler and
Gerald Zaltman.
Viral Marketing
 Viral marketing and viral advertising,
(buzzwords), refer to marketing
techniques that use pre-existing social
networks to produce increases in brand
awareness or to achieve other marketing
objectives (such as product sales) through
self-replicating viral processes, analogous
to the spread of virus or computer viruses.
 It can be word-of-mouth delivered or
enhanced by the network effects of the
Internet. Viral promotions may take the
form of video clips, interactive Flash
games, advergames, ebooks, brandable
software, images, or even text messages.
History
 Among the first to write about viral marketing on
the Internet was media critic Douglas Rushkoff in
his 1994 book . The assumption is that if such an
advertisement reaches a "susceptible" user, that
user will become "infected" (i.e., accept the idea)
and will then go on to share the idea with others
"infecting them," in the viral analogy's terms. As
long as each infected user shares the idea with
more than one susceptible user on average
 the number of infected users will grow
according to a , whose initial segment
appears exponential.
Examples
 Early in its existence (perhaps between
1988 and 1992), the television show
Mystery Science Theater 3000 had limited
distribution. The producers encouraged
viewers to make copies of the show on
video tapes and give them to friends in
order to expand viewership and increase
demand for the fledgling Comedy Central
network. During this period the closing
credits included the words "Keep
circulating the tapes
Methods
 Internet Search Engines & Blogs
 Target Marketing Web Services
 Social Media Interconnectivity
 Industry specific organization contributions
 Television & Radio
Interactive marketing
 Interactive Marketing refers to the
evolving trend in marketing whereby
marketing has moved from a transaction-
based effort to a conversation.
 The definition of interactive marketing
comes from John Deighton at Harvard,
who says interactive marketing is the
ability to address the customer, remember
what the customer says and address the
customer again in a way that illustrates
that we remember what the customer has
told us
 Interactive marketing is not synonymous
with online marketing, although
interactive marketing processes are
facilitated by internet technology. The
ability to remember what the customer
has said is made easier when we can
collect customer information online and we
can communicate with our customer more
easily using the speed of the internet
 Interactive Marketing allows customers
to participate in a Brand's process to build
its image in a certain market or target
group's minds. Thanks to the consumer's
ability to "interrupt" a Brand's
communications and to complement or
modify it's messages to fit his or her own
and personal perception, the process of
building the Brand itself is crowd sourced
among its main target group, with or
without the Brand Manager's intervention
B2B Marketing
 Business Marketing is the practice of
individuals, or organizations, including
commercial businesses, governments and
institutions, facilitating the sale of their
products or services to other companies or
organizations that in turn resell them, use
them as components in products or
services they offer, or use them to support
their operations
Business marketing vs. consumer
marketing
 business marketing generally entails
shorter and more direct channels of
distribution.
 the negotiation process between the buyer
and seller is more personal in business
marketing
 A B2B sale is to an organization. And in
that simple distinction lies a web of
complications that differ because of the
organizational structure.
Bottom of the pyramid marketing
 Making the products available to the poor
 consumers with incomes less than $2 per day can
be a viable and a profitable segment to market
for MNCs.
 Companies have drafted different strategies to
penetrate in the bottom of pyramid as –
 Keep your product offer small
 Cut the frills
 Lift their economy
Political marketing
Morph marketing
 As because many new products everyday
entering into the market survival and that
too with generating required profit is
becoming a tough matter for companies.
 So, product differentiation is the way
everyone is looking for
 Companies are adding services with their
products.
 This approach is known as morph
marketing.
Marketing Information System
 MIS consist of people, equipments, and
procedure to gather, sort, analyze,
evaluate, and distribute needed, timely,
and accurate information to marketing
decision makers. A marketing information
system is developed from –
 (A) Internal company record
 (B) Marketing intelligence activities
 (C) Marketing research
(A) Internal company record
 Gives reports on orders, sales, prices,
costs, inventory levels, receivables,
payables and so on.
 Types are-
 Order-to-payment cycle
 Sales information system
 Data base, data mining, data warehousing
(B) Marketing intelligence
activities
 Marketing Intelligence system is a set of
procedures and sources managers use to
obtain everyday information about
development in marketing environment.

 Internal record system supplies result-

data, but the marketing intelligence
system supplies happening data.
Steps to improve marketing
intelligence
 A company can train and motivate the
sales force to spot and report new
developments
 A company can motivate distributors,
retailers, and other intermediaries to pass
along important intelligence.
 A company can network externally
 A company can set up customer advisory
panel
 A company can take advantage of
government data resources
 A company can purchase information from
outside suppliers
 A company can use online customers
feedback systems to collect competitive
intelligence
(C) Marketing Research
 Types of marketing research –
 Ad-hoc research – focused on specific
marketing problem and collect data at one
point in time from one sample of respondents
 Continuous research interview – The same
respondents are interviewed repeatedly.
Informations are gathered from these
respondents repeatedly ,thus it is possible to
track changes within the same set of audience
over a period of time
Marketing Research
 - Formal studies of specific problems and
opportunities.
 - Marketing Research is the systematic
design, collection, analysis and reporting
of data and findings relevant to a specific
marketing situation facing the company.
Marketing Research process
Developing the research plan
 Cost
 Data source
 Primary
 Secondary
 Research approach
 Observational research
 Focus-Group research
 Survey research
 Experimental research
 Research instruments
 Questionnaire
 Mechanical Instruments
 Sampling Plan
 Sampling Unit – Who is to be surveyed
 Sampling Size – How many ppl shd b surveyed
 Sampling procedure – How shd the
respondents be chosen
 Contact method
 Mail questionnaire
 Telephone interview
 Personal interview
 Arranged interview
 Intercept interview
Sales Forecasting
 Sales potentials are quantitative estimates
of the maximum possible sales
opportunities present in particular market
segments open to a specified company
selling a good or service during a stated
future period.
 The estimate for sales potentials indicates
how much a company could sell if it had
all the necessary resources and desire to
use them,
 Sales forecast is related different estimate
– it indicates how much a company with a
given amount of resources can sell if it
implement a particular marketing program
Sales Forecasting method
 Jury of executive opinion
 Poll of sales force opinion
 Project of post sales
 Time series analysis
 Exponential smoothing
 Evaluation of past sales projection methods
 Survey of customers’ buying plans
 Regression Analysis
Jury of executive opinion
 Steps –
 1, High ranking executives estimate probable
sales.
 2, Average estimate is calculated.

 Merits –
 1, Quick and easy way
 2, Way to pool experience and judgment.
 3, Used for young company
 4, Used when adequate sales and marketing
statistics are missing
 Demerits
 1, Based on opinion, factual evidence is
sketchy
 2, Adds to the work load of key executives
 3, difficult to breakdown into estimates of
probable sales by products, by time intervals,
by customers, and so on.
Poll of sales force opinion
 Individual sales personnel forecast for
their territories; then individual forecasts
are combined and modified, as
management thinks is necessary, and
form company’s sales forecast.

 Merits
 1, Greater confidence in sales people
 2, Easy to breakdown according to product,
territories, customers, middleman and sales
force.
 Demerits –
 Tend to be overly optimistic or overly
pessimistic about sales prospect
 Unaware of broad change taking place in
economy and of trend in business
 Personnel deliberately underestimate so that
quotas are reached more easily.
Projection of past sales

 Next year’s sales =

This year’s sales

 This year’s sales X
Last year’s sales
 Time series analysis – This procedure
involves isolating and measuring four chief
types of sales variation.
 Long term trends
 Cyclical changes
 Seasonal variations
 Irregular fluctuation
 Exponential Smoothing

 Next year’s sales =

 (This year’s sales) + (1- )(this year’s forecast)
 Demerits
 Sales history is the sole factor influencing
future sales
 No allowance is made for significant
changes made by marketing program or
by its competitors.
 Nor is allowance made for sharp and rapid
upswing or downturns in business activity
Survey of customers’ buying plans
 Mainly used in B2B.
Regression Analysis
 Determines and measures the association
between company sales and other
variables.

 Major steps are –

 Identify variables causally related to company
sales
 Determine or estimate the value of these
variables related to sales
 Derive the sales forecast from these customers