Kotler Keller PhillipKevin Lane Marketing Management 14e

Collecting Information and Forecasting Demand Chapter 3

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 3 of 28 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 HallSlide 4 of 28 Collecting Information Customers Competitors External Factors

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 5 of 28 Marketing Information System People Equipment Procedures

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 6 of 28 Insight Marketing Information System Marketing Research Marketing Intelligence Internal Records

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 7 of 28 Internal Records Order-to-Payment Cycle Databases / Data Mining Sales Information Systems

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 8 of 28 Marketing Intelligence News and Trade Publications Meet with customers, suppliers, distributors, and other managers Monitor social media sites

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 9 of 28 Improving Marketing Intelligence Sales Force External Experts Establish industry network Customer Advisory Panel

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 10 of 28 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 HallSlide 11 of 28 Using Marketing Intelligence Share Information Quickly

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 12 of 28 Analyzing the Macroenvironment

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 13 of 28 Needs and Trends Fad Megatrend Trend

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 14 of 28 Major Environmental Forces Economic Sociocultural Natural Technological Political-Legal Demographics

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 15 of 28 Demographic Environment Worldwide population growth Population age mix Ethnic and other markets Educational Groups Household patterns

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 16 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 Worlds People, 2 nd ed. (Tonawanda, NY: Kids Can Press, 2002)

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 17 of 28 Economic Environment Consumer Psychology Income Distribution

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 18 of 28 OurselvesOthers Universe Organizations Society Nature Sociocultural Environment

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 19 of 28 Natural Environment Environmental Regulations

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 20 of 28 Technological Environment Accelerated pace of change Unlimited opportunities R&D Spending

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 21 of 28 Political-Legal Environment Special Interest Groups Government Agencies Laws

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 22 of 28 Forecasting and Demand Measurement Market -Size -Growth -Profit potential

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 23 of 28 Market Types Potential Market Available Market Target Market Penetrated Market

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 24 of 28 Figure 3.2 Ninety Types of Demand Measurement

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 25 of 28 Demand Measurement Market Demand Company Demand

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 26 of 28 Figure 3.3 Market Demand Functions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 27 of 28 Estimating Current Demand Area market potential Total market potential Potential Buyers Average purchase quantity Average price XX Chain-ratio method Demand for new light beer Population Average percentage of income spent on: XXFoodXBeveragesX Alcoholic beverages X Expected % of spending on Light beer

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 28 of 28 Estimating Future Demand Sales Force Opinions Forecasting Past Sales Analysis Buyers Intentions Expert Opinions