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Marketing Intelligence System. (MIS) Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute timely and accurate information to decision makers.
Marketing intelligence software can be deployed using an onpremises or software as a service (SaaS, or cloud-based) model.
Market Intelligence is the information relevant to a company’s markets, gathered and analyzed specifically for the purpose of accurate and confident decision-making in determining market opportunity, market penetration strategy, and market development metrics.
In today's price competitive environment, the successful business will be customer driven rather than product driven. They develop their product line and service menu first by testing them in the marketplace and then developing and broadening only as their information or intelligence system applies. A Market Intelligence System employs various methods of collecting valuable data or information that enables you to forecast the direction of your market. Primary data is the basis for your Market Intelligence System. Secondary data is the next level of information necessary for an effective system and comes from a variety of sources. Sales associates should be talking to each and every customer that comes into your business. Collecting data is important but knowing what you want from it and how you want to apply it is equally important to a successful Market Intelligence System. You must develop specific objective for the data you are collecting. The key to a successful Market Intelligence System is timely collection of relevant information and processing it quickly so it can be used to support your entire operation.
Marketing Intelligence System 3 .
gathered and analyzed specifically for the purpose of accurate and confident decision-making in determining market opportunity. 4 . and market development metrics. Market Intelligence is the information relevant to a company’s markets. market penetration strategy.
This gives information on strengths and weaknesses of each competitor in the territory. COMPETITION INTELLIGENCE. 5 . Coca Cola uses expert systems to make the retailers grow their business. personal demographic details. preferences or loyalties.Components of Marketing Intelligence System CUSTOMER INTELLIGENCE.This provides useful information on a customer’s business. the strategy and the tactics being used by them.
PURPOSE OF MARKETING INTELLIGENCE SYSTEM Customer satisfaction Creative and effective marketing strategy Realities of the company and its competitors Strengths and weaknesses Realities of the marketplace Opportunities and threats Competitive advantage Anticipate the competitive move and 6 develop competitive strategies .
DSS applications are systems and subsystems that help people make decisions based on data that is culled from a wide range of sources. 7 .com. typically for business purposes.DECISION SUPPORT SYSTEM The term refers to an interactive computerized system that gathers and presents data from a wide range of sources. Ex: cow farming Provider of such software is found in profitlogic.
The vendor can use a DSS to gather information from its own resources (using a tool such as OLAP) to determine if the company has the ability or potential ability to expand its business and also from external resources. Some decision support systems come very close to acting as artificial intelligence agents. The DSS will collect and analyze the data and then present it in a way that can be interpreted by humans. to determine if there is indeed a demand to meet. but the combination of integrated resources 8 working together. . such as industry data. Example: A national on-line book seller wants to begin selling its products internationally but first needs to determine if that will be a wise business decision. such as a database or a program that graphically represents sales figures. DSS applications are not single information resources.
Enrollment Productivity 3.Student Demands for Courses and Sections.The Decision Support System consists of three database modules. 4.Student Headcount and Characteristics 4. Student Success 9 .CITY COLLEGE OF NOIDA The Decision Support System is designed to help administrators. They are:1.Faculty and school planning classified projects Grants-proposals requests and position 3. 1.Campus 2. faculty and staff with data and information for Program review reports. 2.Scheduling of classes and Proposals to either expand or contract current class offerings.
The company launched two motor cycle models. According to Director’s report the company’s performance was as followsPeriod ended 2003 Period ended 2005 Production of two wheelers 317968 181935 Sales 315354 190561 Loss 38.in the life cycle segment followed by Freedom in the 100-110 cc segment in July 2002. why not? 10 . and TVS. is it possible for LML to take on the likes of Bajaj Auto. The company attributes it to the decline in geared two wheelers and abnormal rise in gearless scooters. He has hung around as scooters have lost the market to motorcycle.68 96. its principal activity being manufacture of industrial machinery for the synthetic fibre industry. Hero Honda.LML Ltd was incorporated as Lohia Machines Private Ltd in 1972. Mr Deepak Singhania. Now with just 5 percent market share and depletion of financial resources.25000 units per annum by 1998.31 These figures clearly show that the performance of the company is far from satisfactory.Do you think that marketing research can help LML to recover its lost ground? If yes how? If not. On account of steep downside due to circumstances beyond its control.Adreno and Energy. Q. the managing director of LML has fought many battles in the market and managed to survive despite products bombing and the technology top drying up following rifts with partner Piaggio of Italy. the company had to undertake restructuring its finances and fund mobilization by 31st March 2005. It was the second largest scooter manufacturer in India with a market share of 28% and output of 3.
determining how these attributes affect the customers in question. it is how those attributes are perceived. Though absolute attributes are important.Quality and Quantity of Market Information Quality. 11 . The attributes of market information quality and how they can be used as benchmarks to improve the effectiveness of information systems and to develop information quality strategies for all organizations. that defines information quality. highlighting which attributes are important and second. Identifying quality information involves two stages: first.The meaning of Market information quality lies in how the information is perceived and used by its customer. now and in the future. particularly for those in the information business.
Products and technologies come and go. By defining. assessing. modifying and redefining what information quality is and how it can best be managed.Managing information quality is a continual process. 12 . Quantity. Quantitative information is associated with conclusive research. high quality information today may be low quality information tomorrow. The multiple dimensions of information quality can be used to add structure to this inherent complexity. To compete requires a continual focus on definition and follow-through as regards information system design and operational processes.Quantity of information are intended to quantify or precisely measure a problem often using sophisticated statistical procedures and scientifically drawn samples. information can remain the vehicle rather than the impediment for achieving business success.
Decision Tree A decision tree is a graphical device depicting the sequences of action-event combinations. . The typical method of constructing such a tree as follows1. 2. List the possible results i. These are increased market share. All possible sequences of action-event combinations are shown in a systematic manner in a decision tree. The approach necessitates that the decision maker considers all possible 13 outcomes. There are three branches emanating from the circular node which represent the three possible outcomes or states of nature that can result. 3. Identify all possible courses action. states of nature’ of each course of action. no change in market share and reduced market share. The decision tree shows a simple decision of making a choice between two alternatives viz whether or not to open a new branch of a particular dry cleaning company. Assign probabilities to the different possible results for each given course of action. Calculate the pay-off of each possible combination of course of action and results. Structures the decision process and thus helps one in making a decision in a systematic manner. 4. Advantages1.e. Finally select the course of action that gives the maximum pay off. 5. 2.
As the information is presented in a quantitative form there is a risk that it may be taken as exact. As such they are unsuitable for minor decisions where their cost may exceed the benefit to be derived from then. Limitations 1. 2. The decision tree can be used with a computer which means that different assumptions can be used to ascertain their influence on the final outcomes. Decision trees need time and money to complete. 3. The information required for this approach may not be available because a particular decision was not taken before and hence there is no evidence on which the probability can be assumed 14 . 4.3. Helpful in communicating the decision making process to others in sufficient manner.
These are prior analysis. Posterior analysis involves the use of posterior probabilities while deciding on the course of action. While deciding which course of action should be chosen the decision maker uses prior probabilities only. For example a firm manufacturing readymade garments finds that certain garments are not selling in the market on account of their colour. It therefore has to use a different colour combination. In the meanwhile it has to revise its prior probabilities. 16 . This analysis deals with the strategic question of whether new information should be obtained and if so how much before deciding the course of action.Bayesian Concept If the analysis based on decision tree is not helpful to the management in its decision making a more sophisticated technique known as the Bayesian analysis can be tried out. There can be three types of analysis using the Bayesian approach. posterior analysis and pre posterior analysis.
This will be EMV(A1)= (Rs 10000000 * .1 . 17 .7 .ExamplePossible consumer reactions consumer reactions Alternative courses of action A1 10000000 1000000 -5000000 A2 0 0 0 Probabilities of P .2) = Rs 7000000 + Rs 100000 – 1000000 = Rs 6100000 EMV(A2)=Rs 0 EMVPI= EMV(C) – EMV(UC) = 7100000 – 6100000 = 1000000 This indicates that the marketing manager should decide to run the special promotion.7) + Rs 1000000 * .1)+ (-Rs 5000000*.2 Very favorable Favorable Unfavorable On the basis of this information prior analysis will give the expected monetary value. This is known as prior analysis as the expected monetary value is based on the assignment of probabilities.
the degree of uncertainty has declined.1 S3-Unfav. .000 Prior EMVPI was higher than posterior EMVPI.00.894 .000 Prior EMVPI = Rs 10. Outcome Prior P S1-very fav.0 Conditional P . .02 .064 . .10.0 Joint P . .Helpful in evaluating the worth of research before it 18 is undertaken.7 S2-fav.6 .03 . Pre-posterior Analysis.2 Total 1. The following table gives the posterior probabilities on the basis of additional information.Posterior Analysis uses both present and additional information.42 .47 Posterior P .1 1. This shows that on account of the new information.042 1.000 Posterior EMVPI = EMV(C) –EMV(UC) = Rs 9004000 + Rs 8794000 =Rs 2.3 .
6 . States of nature Test Results S1 S2 S3 T1 (+15%) . no increase in sales (T3).686 -50000000 0 .207 . a 5%increase in sales(T2) 3.1 .0 -5000000 1.29 A2 1.6 .042 1000000 .7 .1 T2 (+5%) .292 10000000 .8 A1 . He has now to obtain conditional probabilities of test markets.0 0 .47 T2 .894 .24 -Rs 88320 -Rs 368000 A1 A2 1.1 .3 .042 10000000 1000000 -5000000 0 10000000 No Market Test A2 Rs 8794000 A1 1000000 -5000000 0 Market Test T1 .0 .The marketing manager thinks that there are likely to be three test market outcomes: 1.3 .069 Rs 7102000 A1 A2 10000000 1000000 Rs 6192760 -Rs 80000 __________ Rs 6112760 T3 .1 Rs 6100000 .0 .724 .2 1. a 15% increase in sales(T1) 2.064 .1 T3 (+-0%) .
24 Marginal Probabilities .47 Test Results T2 T3 (+5%) (+-0%) .02 Marginal probabilities .29 .02 . this is the maximum amount that can be paid for this research.42/.7 .2 1.16 .01 .894 P(T1) P(S2/T1) = P(S2 AND T1) ____________= . These probabilities are revised by using Bayes rule.0 The prior probabilities of the possible outcomes can now be revised.47= .06 .03 S3 Unfavorable .064 P(T1) P(S3/T1)=P(S3 AND T1) ___________ P(T1) = .47=.042 It is possible to calculate the expected monetary value of imperfect information(EMVII) EMVII = EMVII –CI =Rs 92760 – 80000 =Rs12760. = Rs 92760-80000= Rs 12760. Since the expected monetary gain is positive.42 S2 Favorable .47= . it is advisable to undertake the test market.03/.States of nature T1 (+15%) S1 Very favorable .21 . P(S1/T1)= P(S1 AND T1) __________ = . 20 .07 .02/.1 .
Limitations1. 3. It facilitates representing and taking fuller account of the uncertainties related to models and parameter values. Advantages1. is a major advantage of Bayesian methods 21 . Bayesian method covers more information than traditional methods. A major advantage of the Bayesian analysis is that it enables to carry out the analysis in a sequential fashion. Bayesian analysis is an abstruse method and is more an academic exercise than a realistic decision method. The use of Bayesian techniques does not eliminate the need for sensitivity tests. One of the major benefits of the Bayesian approach is the ability to incorporate prior information. although currently underused. 6. Many a time the marketing researcher is given the direction by the management and is not associated with structuring of a problem. The ability to consider model uncertainty within a single framework. 4. 2. 5. While other stock assessment approaches use "prior" information by specifying levels or ranges of individual parameters for use in sensitivity analysis. The Bayesian approach forces the analyst to look at historical data sets or to canvass expert knowledge to determine what is known about the biological parameters and processes. 7.
competitors in the market etc. For these they need regular sales reports. The Market intelligence pertains to overall demand in the market. Thus marketing managers need to have an internal analysis to determine where does their own company stand. Planning an expansion without having the capacity of it is a waste of time. Generally a lot of marketing intelligence is gathered from internal sources itself such as customers. 22 . customer service expenses etc. the potential of the market. Marketing intelligence – The second kind of information which will be needed is the business environment or in other words market intelligence.Types of Market Information Internal company information – What is the first thing you will analyze if asked to expand the organization? It would be the strength and capability of the organization to expand. margin reports. Marketing intelligence from these sources is important to grasp any day to day changes happening in the business environment. costing. All these can be obtained through MIS and it is the first type of information a marketing manager looks for. purchase reports. suppliers and distributors.
the most important information which a marketing manager can receive is “What a customer wants”. This kind of information can be expensive to gather but is worth the expense. Market Research – While internal information and market intelligence is important. 23 . Major changes in industries happen mainly because they are in touch with their end customers and they know what their customer wants.Types of Market Information For example – A television company will expect lots of sales in a festive environment and your distributors will probably inform you that they will be needing discount in this time. industry information can also be found by professional organizations such as ORG MARG and others. Thus during a festive environment you have to use Price discounts as a sales promotion tactic and at the same time ensure having a higher inventory of televisions. Furthermore. Thus time to time market and consumer research is needed for new product ideas as well as expected improvement in processes.
Furthermore. If it fails because of poor support from distributors and suppliers. And finally if the end customer does not accept the marketing plan then his market research was improper. If the plan fails. then his internal company information was improper. With these three information. If the marketing plan fails because of internal problems. then he has to determine which of the above information is improper. a marketing manager has enough knowledge to go ahead with his marketing plan. predicting how a market will respond to any changes being made in the marketing plan can be answered by your end customers only and not by your distributors and suppliers. then his marketing intelligence was incorrect. This is why a lot of organizations conduct trial runs. 24 .
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