r 3

te
p
Ch a Collecting Information and
Forecasting Demand
 Discussion Questions
1. What are the components of a modern
marketing information system?
2. What are useful internal records for such a
system?
3. What makes up a marketing intelligence system?
4. What are some influential macroeconomic
developments?
5. How can companies accurately measure and
forecast demand?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 of 28
 Collecting Information
Customers

External Factors
Competitors

Ghost Shoppers

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 28

 Marketing Information System
People
Procedures

Equipment
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Marketing Information System
Internal Records

Marketing Research

Insight

Marketing Intelligence
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Internal Records
Order-to-Payment Cycle

Databases / Data Mining

Sales Information
Systems
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 Marketing Intelligence
News and Trade Publications

Meet with customers,

suppliers, distributors,
and other managers
Monitor social
media sites
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 Improving Marketing Intelligence
Sales Force Establish industry network

External Experts Customer Advisory Panel

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Marketing Intelligence & the Internet

Independent Online Forums

Distributor or sales agents feedback sites

Customer review and expert opinion

sites

Customer complaint sites

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 28

Using Marketing Intelligence
Share Information

Quickly

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10 of 28

Analyzing the Macroenvironment

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Major Environmental Forces

Demographics Economic

Technological

Natural Political-Legal
Sociocultural
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 Demographic Environment

Worldwide population growth

Population age mix

Ethnic and other markets

Educational Groups

Household patterns

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 28

Economic Environment

Consumer
Psychology

Income
Distribution
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 Sociocultural
Environment

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Natural Environment

Environmental Regulations

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Technological Environment

Accelerated pace of change

Unlimited opportunities

R&D Spending

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Political-Legal Environment
Government Agencies

Laws

Special Interest Groups

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Needs and Trends

Fad

Trend

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 28

 The World as a Village
If the world were a village of 100 people:

61 – Asian (20 Chinese, 17 Indian)

18 – Unable to read (33 have cell phones)
18 – Under 10 years of age (11 over 60 years old)
18 – Cars in the village
63 – Inadequate sanitation
67 – Non-Christian
30 – Unemployed or underemployed
53 – Live on less than $2 a day
26 – Smoke
14 – Obese
01 – Have AIDS

Source: David J. Smith and Shelagh Armstrong, If the World Were a Village: A
Book About the World’s People, 2 nd ed. (Tonawanda, NY: Kids Can Press,
2002)
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 28
Forecasting and Demand Measurement

Market
- Size
- Growth
- Profit potential

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 Estimating Future Demand

Sales Force Opinions

Buyer’s Intentions Forecasting

Past Sales Analysis

Expert Opinions
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 28
Market Types
Potential Market

Available Market

Target Market

Penetrated Market

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 .2
e 3
u r
F ig
Ninety Types of Demand Measurement

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 28

 Demand Measurement
Market Demand

Company Demand
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 .3
e 3
u r
F ig
Market Demand Functions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 28

 Estimating Current Demand
Area market potential
Total market potential
Average
Potential Average
X purchase X
Buyers price
quantity

Chain-ratio method
Average percentage of income spent on:

Demand Expected % of
Alcoholic
for new X Population X Food X Beverages X X spending on
beverages
light beer Light beer

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 28

 Marketing Debate
Is Consumer Behavior More a Function of a Person’s Age or Generation?
One of the widely debated issues in developing marketing programs that
target certain age groups is how much consumers change over time.
Some marketers maintain that age differences are critical and that the
needs and wants of a 25-year-old in 2010 are not that different from
those of a 25-year-old in 1980. Others argue that cohort and generation
effects are critical, and that marketing programs must therefore suit the
times.
Take a position: Age differences are fundamentally more important than
cohort effects versus Cohort effects can dominate age differences.

Marketing Discussion
Age Targeting
What brands and products do you feel successfully “speak to you”
and effectively target your age group? Why? Which ones do not?
What could they do better?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 28 of 28