Understanding Markets, Market Demand, and the Marketing Environment

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Chapter 5 Understanding Markets, Market Demand,
and the Marketing Environment
PowerPoint by Yu Hongyan Business School of Jilin
University
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What Types of Decisions Do Marketers Make?

• Example Restaurant to be located in
• the Qianjin Square (location decision)
• Here are some marketing decisions we need to make
• Target options- JLU shopper OR Tourists
• Menu Breakfast Lunch Dinner AND/OR Late
  Night
• Sit down OR fast food (or takeout/delivery)
• Prices Super Cheap, Cheap, Average, High, OR
  Super High
• How to advertise?

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Objectives

• Marketing Information System
• Demand measurement and forecasting
• Microenvironmental Trends and Forces

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Marketing Information System

• It is defined as . . .
• people, equipment, and procedures that gather,
  sort, analyze, evaluate, and distribute needed,
  timely, and accurate information to marketing
  decision makers.

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Marketing Information System
Marketing Environment Target markets Marketing
channels Competitors Publics Macro- environmen
t forces
Developing Information
Assessing information needs
Internal reports
Marketing intelligence
Marketing Managers Analysis Planning Implement-
ing Controlling
Distributing information
Marketing decision support analysis
Marketing research
Marketing Decisions and Communications
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Marketing Information System (contd)

• Internal Records Systems
• Order-to-payment cycle is key
• Timely sales reports help to better manage
  inventory
• Customer, product, salesperson and other
  databases can be mined for fresh insights
• VMI(vendor-managed inventory)

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Marketing Information System (contd)

• Marketing intelligence system
• A set of procedures and sources used by
  Manager??????
• Not result data but happenings data
• Collect information by
• Reading books,newspaper, trade publications
• Talking to customers, supplies, and distributors
• Checking Internet sources,
• Meeting with other company managers

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Marketing Information System (contd)
Training and motivating the sales force
Motivating channel members to
share info
Buying info from commercial data
sources
Improving the quality of marketing intelligence
Collectingcompetitive intelligence
Developing a customer advisory panel
Establishing a marketing information center
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Marketing Information System (contd)

• Marketing Research
• As the systematic design,collection, analysis,
  and reporting of data and findings that are
  relevant to a specific marketing situation facing
  the company

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Marketing Information System (contd)

• Marketing Research is the process of designing,
  gathering, analyzing and reporting of information
  that may be used to solve a specific marketing
  problem.
• Burns and Bush, 2000

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Marketing Information System (contd)

• Marketing Research
• The Structure of The MR Industry
• Internal Suppliers
• Have their own formal departments
• at least a single individual responsible for
  marketing research
• Have their own formal marketing research
  department

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Marketing Information System (contd)

• Marketing Research
• External Suppliers
• Syndicated Services research firm Infoscan
• Custom marketing research firms
• Specially-line marketing research firms
• Field Services
• Market Segment Specialists
• Data Entry Services
• Sample Design Distribution Services
• Data Analysis Services
• Specialized Research Technique Services

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Marketing Information System (contd)

• The Marketing Research Process

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Marketing Information System (contd)

• Marketing Research
• A case of marketing research Taxi mobile
• Invitation
• Marketing proposal
• Qualitative researchfocus group
• Quantitives researchmall intercept interview
• Data edit in Spss or excel
• Written Report and oral report

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Marketing Information System (contd)

• Marketing research
• Step 1 Define the problem and research objective
• Problem???
• Objective
• Brand awareness
• Usage of mobile
• New concept of tax driver mobile
• The kinds of Marketing research
• Exploratory research
• Descriptive research
• Causal research

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Marketing Information System (contd)

• Marketing research
• Step 2 Develop the research plan
• Decisions on Data Sources
• Research Approaches
• Research Instruments
• Sampling Plan
• Contact Methods

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Data Sources

• Primary data
• Secondary data, look at the book
• For taxi case, which is primary data and which is
  secondary data?

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Research Approaches
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Research Instruments
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Laddering techniques

• Laddering techniques involve the creation,
  reviewing and modification of hierarchical
  knowledge, often in the form of ladders (i.e.
  tree diagrams).

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Sampling Plan

• Sampling unit
• Sample size
• Sampling procedure
• Probability sampling
• Unprobability sampling

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Contact Methods

• In home interview
• Mall intercept interview
• Traditional telephone interview
• Computer assisted telephone interview CATI
• Mail survey
• Drop off survey
• On-line interview

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Marketing Information System (contd)

• Marketing Research
• Step 3 Collect information Field work
• Step 4 Analyze the information Tabulate the data
• Statistical technique
• Frequency
• Chart
• Mean, mode, and correlation, regression
• Step 5 present the findings Presentation

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Marketing Information System (contd)

• Marketing Decision Support System (MDSS)
• It is defined as . . .
• A coordinated collection of data, systems,
  tools, and techniques with supporting software
  and hardware by which an organization gathers and
  interprets information from businesses and the
  environment and turns it into a basis for
  marketing action.

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2. Forecasting and Demand Measurement

• Market Measurement
• Demand Measurement
• Estimating Current Demand
• Estimating Future Demand

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2. Forecasting and Demand Measurement (contd)
Please give EX.

• Essential Aspects
• The market
• Market demand
• Company demand and sales forecasts
• Current demand
• Future demand

• Market
• Potential market
• Available market
• Target market (served market)
• Qualified available market
• Penetrated market

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2. Forecasting and Demand Measurement (contd)

• What will you do when not satisfied
• Try to attract more buyers from its target market
• Lower the qualification of potential buyers
• Expand its available market by adding
  distribution or lowering price
• Try to expand the potential market by advertising
  to prospect

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2. Forecasting and Demand Measurement (contd)

• Demand Measurement

Figure 5-2 Market Demand Functions
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2. Forecasting and Demand Measurement (contd)

• Essential Aspects
• The market
• Measuring demand
• Company demand and sales forecasts
• Current demand
• Future demand

• Market demand
• Market minimum
• Market forecast
• Market potential
• Market forecast
• Market potential

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2. Forecasting and Demand Measurement (contd)

• Essential Aspects
• The market
• Measuring demand
• Company demand and sales forecasts
• Current demand
• Future demand

• Company demand
• Company sales forecast
• Sales quota
• Sales budget
• Company sales potential

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2. Forecasting and Demand Measurement (contd)

• Essential Aspects
• The market
• Measuring demand
• Company demand and sales forecasts
• Current demand
• Future demand

• Total market potential
• Area market potential
• Market-buildup method

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2. Forecasting and Demand Measurement (contd)

• Essential Aspects
• The market
• Measuring demand
• Company demand and sales forecasts
• Current demand
• Future demand

• Many Forecasting Methods
• Buyer intentions survey
• Composite of sales force opinions
• Expert opinion
• Past-sales analysis
• Market-test method

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3. Macroenvironmental Trends And Forces
Demographic
Environment
Ethnic Markets
Population Age Mix
Educational Groups
Household Patterns
Rise of Micromarkets
Geographic Population Shifts
Worldwide Populations Growth
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3. Macroenvironmental Trends And Forces (contd)
Economic Environment
Income Distribution
Savings, debt, and credit availability
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3. Macroenvironmental Trends And Forces (contd)
Natural Environment
Changing role of governments
Shortage of raw materials
Anti-pollution pressures
Increased energy costs
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3. Macroenvironmental Trends And Forces (contd)
Accelerating pace of technological change
Unlimited opportunities for innovation
Varying RD budgets
TechnologicalEnvironment
Increased regulation of technological change
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3. Macroenvironmental Trends And Forces (contd)
Political-Legal Environment
Legislation regulating business
Growth of special interest groups
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3. Macroenvironmental Trends And Forces (contd)
Socio-Cultural Environment
World views held by consumers
High persistence of core values
Existence of subcultures
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Thank you very much!
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