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CAPTURING

MARKETING INSIGHTS

Collecting Information
Marco Mabute

Marketing Information
System

A 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.
Assess the information needs
Develop needed information
Analyze information
Distribute information

Marketing Information
System

MIS provides information to the


companys marketing and other
managers and external partners
such as suppliers, resellers, and
marketing service agencies.
A good MIS balances the information
users would like to have against
what they need and what is feasible
to offer.

Developing Marketing
Information

Marketers can obtain information


from:
Internal data
Marketing intelligence
Marketing Research

Internal Data

Internal databases are electronic


collections of consumer and market
information obtained from data
sources within the company network,
including accounting, marketing,
customer service, and sales
departments.

Internal Records
Order-to-payment cycle
Sales information system
Databases, warehousing, data
mining

Advantages and Disadvantages of Internal


Databases

Advantages:
Can be accessed more quickly
Less expensive
Disadvantages:
Incomplete information
Wrong form for decision making
Timeliness of information
Amount of information
Need for sophisticated equipment and
techniques

Marketing Intelligence
Marketing intelligence is the
systematic collection and analysis of
publicly available information about
competitors and developments in the
marketplace.
The goal of marketing intelligence is
to:
Improve strategic decision making,
Assess and track competitors
actions, and

Steps to Improve Marketing Intelligence


Train sales force to scan for new
developments
Motivate channel members to share
intelligence
Network externally
Utilize a customer advisory panel
Utilize government data sources
Collect customer feedback online
Purchase information

Collecting Marketing Intelligence on the


Internet

Independent customer goods and


service forum
Distributors or sales agents feedback
sites
Combo sites offering customer
review and expert opinion
Customers complaint sites
Public blogs

Analyzing the
Macroenvironment
Cinderella Constantino

Analyzing the
Macroenvironment

Needs and Trends


FAD is unpredictable, short-lived, and
without social, economic and political
significance.
TRENDS more predictable and durable
than fad. Its reveal the shape of the
future and can provide strategic
direction.
MEGATREND is a large social, economic,
political and technological change.

6 Major Forces in a Broad Environment


Demographic Environment
Economic Environment
Sociocultural Environment
Natural Environment
Technological Environment
Political Legal Environment

The Demographic
Environment

Monitor population including:


World wide population growth
Population age mix
Ethnic and other markets
Educational growth
Household patterns

The Economic Environment

Consumer psychology
Income distribution
Income, savings, debt and credit

The Sociocultural
Environment

Views
Views
Views
Views
Views
Views

of
of
of
of
of
of

ourselves
others
organizations
society
nature
universe

Other Cultural
Characteristics
HIGH PERSISTENCE OF CORE
CULTURE VALUES
The people living in a particular society
hold many
core beliefs and values that tend to
persist.

EXISTENCE OF SUBCULTURES
Each society containssubcultures,groups
with shared

The Natural Environment

Natural resources that are needed


as inputs by marketers or that are
affected by marketing activities
Water, forests, oil, coal, minerals

As resources become more scarce,


cost increase

The Technological
Environment

Accelerating pace of change


Unlimited opportunities for innovation
Varying R&D budgets
Increased regulation of technological
change

The Political Legal


Environment
Increase in business legislation
Growth of special interest group
consumerist movement organized
citizens and government to
strengthen the rights and powers of
buyers in relationship to sellers.

Forecasting Demand
Airon Dela Cruz

Forecast
Sales
Forecast

Human
Financ Manufactu PurchasiResources
e
ng
ring
Raise cash

Output

Supplies

Hire
Workers

The Measures of Market Demand

Market segments:

Potential Market sufficient level of interest


to an offer; not enough to define a market.
Available Market they have interest,
income, and access to an offer.
Qualified

Available Market set of consumers


who have interest, income, access, and
qualifications for the offer.

Target Market part of the qualified


available market the company decides to
pursue.
Penetrated Market already buying the

Demand Measurement
Vocabulary

Market Demand the total volume that


would be bought by a defined customer
group in a defined geographical area in a
defined time period in a defined
marketing environment under a defined
marketing program.
Market Forecast the market demand
corresponding to only one level of
industry marketing expenditure.

Demand Measurement
Vocabulary

Market Potential the limit


approached by market demand as
industry marketing expenditures
approach infinity.
Company Demand the companys
estimated share of market demand.
Company Sales Forecast the
expected level of company sales based
on a chosen marketing plan and an
assumed marketing environment.

Demand Measurement
Vocabulary

Company Sales Potential the limit


approached by company demand as
company marketing effort increases
relative to that of competitors.

Estimating Current Demand

Total Market Potential the maximum


sales available to all firms in an industry
during a given period.

Average
Potential BuyersQuantity of
X
Purchase

Price

Estimating Current Demand

Area Market Potential the market


potential of difference cities, states and
nations.

Market-Buildup Method identifying all


the potential buyers in each market and
estimating their potential purchases.
Multiple-Factor Index Method
identifying all the potential buyers in each
market by referring to a straightforward
index.

Estimating Current Demand

Industry Sales and Market Shares


the actual industry sales taking place in
the market.

Estimating Future Demand


Good forecasting is a key factor in
success.
All forecasts are built on one of three
information bases:
What people say
What people do
What people have done

Estimating Future Demand


Survey of Buyers Intentions
Composite of Sales Force Opinions
Expert Opinion
Past-sales Analysis
Market-test Method

Chapter
4

Conducting
Marketing Research
Fang Mengping(Alisa)
&
Li Tingting(Shirley)

Chapter Questions
What constitutes good marketing
research?
What are the best metrics for measuring
marketing productivity?
How can marketers assess their return on
investment of marketing expenditures?

Types of Marketing Research


Firms
ar
ke
tin
st
om

m
e

Cu

ic

they sell for a fee

Firms

rv

which

-se

information,

trade

ed
at

and

ic

consumers

nd
Sy

Gather

Specialty-line

Provide
specialized
research
services

Haired to carry out


specific projects. They
design the study and
report the findings

Step 1 Define the Problem, the


Decision Alternatives, and the
Research Objectives
Identify and clearly state what the problem is
and what can be done to solve the problem.
Be careful not to define the problem too broadly
or too narrowly for the marketing researcher.
Determine which problems are the most
important to solve at a given time.

Questionnaire Dos and Donts


Ensure questions are
free of bias
Make questions
simple
Make questions
specific
Avoid jargon
Avoid sophisticated
words
Avoid ambiguous
words

Avoid negatives
Avoid hypotheticals
Avoid words that
could be misheard
Use response bands
Use mutually
exclusive categories
Allow for other in
fixed response
questions

Step2 Developing the Research Plan


Pros and Cons of Online Research
Advantages
Inexpensive
Fast
Accuracy of data
Versatility

Disadvantages
Small samples
Skewed samples
Technological
problems
Inconsistencies

Step3 Collect the Information


Four major problems arise in surveys

01
Other respondents
refuse to
cooperate

02
03

Finally, some
interviewers will
be biased or
dishonest.

04

Some respondents
will be away from
home or otherwise
inaccessible and
must be contacted
again or replaced

Still others will


give biased or
dishonest answers

Ste
p

4
5
6

Analyze the Information

Ste
p

Present the Findings

Step

Make the Decision

Bringing Marketing
Research

to Life with personas

SECTION

Personas
are detailed profiled of one, or perhaps a
few, hypothetical target market consumer,
imagined in term of demographic,
psychographic, geographic or other
descriptive attitudinal or behavioral
information.

Collection Methods and


Techniques
Qualitative research is where you seek an
understanding of why things are a certain
way. For example, a researcher may stop a
shopper and ask them why they bought a
particular product or brand
Quantitative research refers to measuring
market phenomena in a numerical sense,
such as when a bank asks consumers to
rate their service on a scale of one to ten.

Analyse and Interpret the


Data
You must attach meaning to the data you
have collected during your market research
to make sense of it and to develop
alternative solutions that could potentially
solve your business problem
You should determine how the knowledge
you have gained through researching your
market can be applied and used to develop
effective business strategies.

RNB
RNB research specializes in qualitative and
quantitative customer market research.
It has experience in most major sectors,
particularly consumer product, media, retail,
financial services, food and beverages,
technology, telecommunications and internet
research.

Barriers Limiting the Use of


Marketing Research
A narrow conception of the research
Uneven caliber of researchers
Poor framing of the problem
Late and occasionally erroneous findings
Personality and presentational differences

Market Research Can Fail

Measuring Marketing
Productivity
Step 1 create short-term and long term
marketing goals
Step 2 track all time and resources
spent on your marketing campaigns
Step 3 monitor sales growth before
during and after each marketing
campaigns..

Step 4 implement track able platforms


for marketing campaign that have an
online component
Step 5 conduct surveys or interview to
determine brand awareness and discover
how customer or potential customer hear
about your business
Step 6 analyze your online and offline
trafic

Step 7 calculate your marketing return


on investment based on the amount of
resources spent on the campaign
compared to the revenue generated form
the campaign
Step 8 determine with marketing
campaign your result

What are Marketing Metrics?


Marketing metrics are the set of measures
that helps marketers quantify, compare, and
interpret marketing performance.

ROI: Return on Investment


Return on marketing investment (ROI) is a
metric used to measure the overall
effectiveness of a marketing campaign to
help marketers make better decisions about
allocating future investments.
equals the gain from a program minus the
cost of the program, divided by the cost of
the program.
ROI = (gain - cost) / cost

Marketing Metrics
External
Awareness
Market share
Relative price
Number of complaints
Customer satisfaction
Distribution
Total number of
customers
Loyalty

Internal

Awareness of goals
Commitment to goals
Active support
Resource adequacy
Staffing levels
Desire to learn
Willingness to change
Freedom to fail
Autonomy

What is Marketing-Mix
Modeling?
Marketing-mix models analyze data from a
variety of sources, such as retailer scanner
data, company shipment data, pricing,
media, and promotion spending data, to
understand more precisely the effects of
specific marketing activities.

The Data that Go Into Creating a


Marketing Mix Model include:
Economic data
Industry data
Category data
Advertising data
(including copy
testing)
Promotional data
Competitive data

Service data
Product data
Pricing data
Features &
performance
Market outcome data
Sales
Revenues
Profits

Marketing Dashboards
A marketing dashboard is a brief, detailed
compilation of all of the pertinent data about
a company's marketing efforts.
This data may include the results of past
campaigns in terms of return on investment
from sales revenue of the products being
advertised. It may also include customerbased data like brand recognition or
customer satisfaction levels with specific
marketing efforts.

A Customer-performance
Scorecoard
Records how well the company is doing
year after year on such customer-based
measures. Management should sent target
goals for each measure and take action
when results get out of bounds.

Sample Customer-Performance
Scorecard Measures
% of new customers to average #
% of lost customers to average #
% of win-back customers to average #
% of customers in various levels of satisfaction
% of customers who would repurchase
% of target market members with brand recall
% of customers who say brand is most preferred

A Stakeholder-performance
scorecard
Track the satisfaction of various
constituencies who have a critical interest in
and impact on the companys performance:
employees, suppliers, banks, distributors,
retailers, and stockholders.

Marketing Measurement Pathway