Marketing 1.05 MIM Three types of information used in marketing decision making

1. Marketing 1.05 MIMThree types of information used in marketing decision making • Customer • Marketing mix • Business Environment

2. Customer Information • Age • Gender • Income • Education • Family size • Home ownership • Address • Occupation • How money is spent • Attitudes • Primary needs • Product purchases • Purchase frequency • Brand preferences • Information needs • Media preferences • Shopping behavior

3. Marketing Mix • Basic Products • Product Features • Services • Product packaging • Guarantees • Repairs • Credit Choice • Discounts • Promotion Methods

4. Business Environment • Type of competition • Competitors’ strengths • Competitors’ strategies • Economic conditions • Government regulations • New technology • Consumer protection • Ethical issues • Tax policies • Proposed laws • International markets

5. Why is Marketing Information Needed? • To identify: 1. potential customers 2. potential products 3. marketing opportunities 4. solve marketing problems 5. implement marketing plans 6. monitor marketing performance.

6. The Impact of Marketing Information on Marketers • Marketing research is used when a business needs to solve problems. • Helps answer questions about what to produce, at what price to sell the products, who will buy the products, and how to promote the products • Helps businesses plan their future operations to increase sales and profits. • Understand markets.

7. Ways Marketers Use Marketing Information • Analysis----the process of summarizing, combining, or comparing information so that decisions can be made. • Analysis example: • Planning a promotional budget • Analyzing the effectiveness of one retailer in a channel of distribution • Analyzing the costs of marketing activities for national and international activities • Product Example: Stouffer’s Lean Cuisine—13 years of market research • Develop product • Test package design • Hold pilot sales in large cities to test market first • Track what is happening in current markets • Determine major competitors • What major competitors are offering • Which products consumers prefer • Customer satisfaction with product

8. Information contained in sales and expense reports that is monitored for marketing decision-making. • Market Share Analysis — the percentage of all sales within a market that is held by one brand / product or company. Normally measured by sales revenue (dollars sold) or sales volume (the number of units sold) • Sales Volume Analysis — A detailed study of an organization's sales, in terms of units or revenue, for a specified period . • Accounting Information analyzed • Spending/Costs to produce and sell products • Profitability/ Sales – Total Costs • Sales • How much did they have to discount the product to achieve the sale? • What expenses went into each sale? • Inventory/How much product is left in inventory • Payroll • How much commission did they have to pay the sales rep?

9. Information in reports provided by salespeople that is monitored for use in marketing decision-making. • Request & Complaint reports/products customers requested and problems customers reported • Lost sales reports/ cancelled orders or under stocked items • Call reports/what happened in each sales call • Activity reports/ all travel, phone calls and in person sales calls for a given period of time • Retail audits to measure market sales, competitor’s sales, market share, prices, special offers, stock levels by week or day • Product information reports– types of products that sell best at various times of year; colors or sizes of products customers prefer

10. Information about customers that is monitored for marketing decision-making. • Demographic data (age, gender, ethnicity, job, income, marital status) • Buying habits (time of day, repeat products purchased, amount spent on each transaction—full price or on sale, types of products) • Ex: Diapers and beer purchased by men on Thursdays and Saturdays • Ex: Saturday is when most people do major grocery shopping • Credit record: do customers pay their bills on time • Customer requests (what products or varieties are requested that you don’t carry) • Receipts (is a certain neighborhood or ZIP code frequenting your establishment more than others)

11. Explain information about competitors that is monitored for marketing decision-making. • USP’s (unique selling points) of our product vs. competition to find our advantage. Is that advantage sustainable, (long lasting)? • Financial records for public companies that you compete with (i.e. annual reports) • Insight into competitors’ strengths, weaknesses, and future plans (new products, marketing campaigns) • Market share analysis • Sales volume data

12. Procedures for identifying information to monitor for marketing decision-making. • Identify data needed for decision-making • Create a plan for collecting, storing and analyzing that data • Compile a list of secondary sources of data • Retrieve the data you need • Analyze/use data to make decisions