1) Marketing information system:

marketing information system include people, equipment & procedures to gether ,

sort, analyze, evaluate and distribute needed,
timely, and accurate information to marketing decision makers.
the company marketing information system should be the mixture of what manager
think they need, what they really need,
and what is economically feasible.
2) Internal Records:
to stop inportant opportunities and potential proplems, marketing managers rely
on internal reports of orders, sales, prices, costs,
inventory level, receivables, and payables. internal record system supplies RESU
LTS data.
*The order to payment cycle:
It is the heart of enternal record system. Sale representative, dealers
and customers send order to the firm. the sales department prepare
invoices, transmits copies to various departments, and back-orders out-of-stock
items. Many use the internet and extranets to improve the
speed , accuracy and efficiency of the order-to- paymernt cycle.
*Sale information system:
Marketing mangers need timely and accurate records on current sale. ( w
almart exmple)
*Database, Data Wharehousing, and Data Mining:
Companies organize their information into customer, product, and sales
person databases- and then combine their data.
customer database contains every customers name, address, past transaction, and
sometimes even demographic and psychogharips.
3) Marketing intelligence system:
Marketing intelligence system is a set of procedures and sources that managers u
se to obatin everyday information about developments
in the marketing environment. it supplies the HAPPENINGS data. managers collect
marketing intelligence in variety of different ways
such as by reading books, newpaper, and trade publication: talking to consumer,
suppliers, and distributors; monitoring social media on
the internat; and meeting with other company managers.
4) Steps in Q uality marketing intelligence:
* Train ant motivate the sales forces to spot and report new development
* Motivate distributors. retailors, and other intermeditories to pass along
inmportant intelligence
* Hire eternal experts to collects intelligence
* Network internally and externally
* Setup a customer advisory panel
* Take advantage of government related data resources
* Purchase infornation from outside research firms and vendors
5) Sources of collecting marketing intelligence through internet:
* Independent customer goods and services review forums
* Distributor or sale agent feed back sites
* Combo sites offering customer review and exper opinion
* Customer complain sites
* Public Blogs
6) Analyzing the microenvironment:
successful companies recognize andd respond profitably to unmet need and trends

Need & Trend

enterprising individuals and companies manages to creates new solution to unmet
needs.
* FADE: "unpredictable, short-lived, and without social, economic and politi
cal significance"
* TREND: "is more predictable and durable than fad; trends reveals the shape
of furture and can provide strategic direction"
* MEGATREND: "large social, economic, political, and technological change th
at is slow to form, and once in place, influences
us from some time-between seven and ten year
s, or longer.
7) Major forces in the environment:
* Demographic environment (explosive population growth monitor including the siz
e, growth rate of population in cities, regions, and
nations)
-worldwide population growth
-population age mix
-ethnic and other markets
-educational group
-household patterns
* Natural environment (lead to more resource depletion and population)
* Political-Legal environment (leads to consumer to call for new laws)
-increase in business legislation
-growth of special interest groups
* Technological environment (stimulate new technologies solutions and product
s)
-accelerating pace of change
-unlimited opportunities for innovation
-varying R&D budget
-increase regulation of technological change
* Economic environment (avalible purchasing power an an economy )
-consumer psychology
-income distribution
-income, saving, debt, and credit
* Social-cultural (actually change attitudes and behaviour)
-view of ourself
-view of others
-view of organization
-view of society
-view of nature
-view of the universe
8) Forecasting and Demand Measurement:
Understanding the marketing environment and conducting marketing research can he
lp to identify marketing opportunities.
The company must then measure and forecast the size,growth,and profit potential
ofeach new opportunity.
Sales forecasts preparedby marketing are used by finance to raise cash for inves
tment and operations;by manufacturingto establish
capacity and output;by purchasing to acquire the right amount ofsupplies;and by
human resources to hire the needed workers.
Ifthe forecast is off the mark,the company will faceexcess or inadequate invento
ry.Since it s based on estimates ofdemand,managers need

to define what they mean by market demand.

*The Measures of Market Demand :
ways to break down the market
potential market
is the set ofconsumers with a sufficient level ofint
erest in a marketoffer.However,their interest is enough to define a
market unless they also have sufficientincome and a
ccess to the product.
available market
is the set ofconsumers who have interest,income,and
access to aparticular offer.The company or government may
restrict sales to certain groups;aparticular state
might ban motorcycle sales to anyone under 21 years ofage.Eligibleadults
constitute
the qualified available market the set ofconsumers w
ho have interest,income,access,and qualifications for the market
offer.
target market
is the part ofthe qualified available market the co
mpany decides topursue.The company might concentrate
its marketing and distribution effort on theEastCo
ast.
penetrated market
is the set ofconsumers who are buying the company s p
roduct.
* A Vocabulary for Demand Measurement:
Market Demand
Market demand for a product is the total volume that would be bought by a define
d customer group in a defined geographical area in
a defined time period in adefined marketing environment under a defined marketin
g program.
Market Forecast
Only one level of industry marketing expenditure will actually occur.The market
demand corresponding to this level is called the
market forecast.
Market potential
Market potential is the limit approached by market demand as industry marketing
expenditures approach infinity for a given marketing
environment.
Company demand
Company demand is the company s estimated share ofmarketdemand at alternative leve
ls ofcompany marketing effort in a given time
period.It depends on how the company s products,services,prices,and communication
s are perceived relative to thecompetitors .
Company sales forecast
Company sales forecast is the expected level of company sales based on a chosen
marketing plan and an assumed marketing environment.
Company sales potential
Company sales potential is the sales limit approached by company demand as compa
ny marketing effort increases relative
to that ofcompetitors.Theabsolute limit ofcompany demand is,ofcourse,the market

potential.
* Estimating Current Demand
Total market potential
is the maximum sales available to allfirms in an industry during a given period,
under a given level ofindustry marketing effort
andenvironmental conditions.A common way to estimate total market potential is t
o multiply thepotential number ofbuyers by
the average quantity each purchases,times the price.
Area Market Potential:
Because companies must allocate their marketing budgetoptimally among their best
territories,they need to estimate the market potential
of different cities,states,and nations.Two major methods are the market-buildup
method,used primarily by business marketers,and the
multiple-factor index method,used primarily by consumer marketers.
Industry Sale And Market Share:
Besides estimating total potential and area potential,a company needs to know th
e actual industry sales taking place in its market.
This means identifying competitors and estimating their sales.
Another way to estimate sales is to buy reports from a marketing research firm t
hat audits totalsales and brand sales.
* Estimating Furture Demand :
SURVEY OF BUYERS INTENTIONS
Forecasting is the art ofanticipating what buyers arelikely to do under a given
set ofconditions.Surveys also inquire into consumers present
and future personal finances and expectations about the economy
COMPOSITE OF SALES FORCE OPINIONS
When buyer interviewing is impractical,thec ompany may ask its sales representat
ives to estimate their future sales.
EXPERT OPINION
Companies can also obtain forecasts from experts,including dealers,distributors,
suppliers,marketing consultants,and trade associations.
Dealer estimates are subject to the same strengths and weaknesses as sales force
estimates.Many companies buy economic and industry
forecasts from well-known economic-forecasting firms that have more data availab
le and more forecasting expertise.
Occasionally,companies will invite a group of experts to prepare a forecast.The
experts exchange views and produce an estimate as a
group (group-discussion method ) or individually,in which case another analyst m
ight combine them into a single estimate
(pooling ofindividual esti-mates).Further rounds ofe stimating and refining fol
low (the Delphi method).
PAST-SALES ANALYSIS
Firms can develop sales forecasts on the basis of past sales.time-series analysi
s breaks past time series into four components
(trend,cycle,seasonal,and erratic) and projects them into the future.Exponential
smoothing projects the next period s sales by combining an
average of past sales and the most recent sales,giving more weight to the latter
. Statistical demand analysis measures the impact of a set
ofc ausal factors (such as income,marketing expenditures,andprice) on the sales
level.Finally, econometric analysis builds sets of equations
that describe a systemand statistically derives the different parameters that ma

ke up the equations statisticallytatisticaldemand analysis

measures the impact ofa set ofcausal factors (such as income,marketing expenditu
res,andprice) on the sales level.Finally,econometric
analysis builds sets ofequations that describe a systemand statistically derives
the different parameters that make up the equations
statistically
MARKET-TEST METHOD
When buyers don t plan their purchases carefully,or expertsareunavailable or unrel
iable,a direct-market test can help forecast new-product
sales orestablished product sales in a new distribution channel or territory.