GATHERING INFORMATION AND MEASURING MARKET DEMAND

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CHAPTER 4

• GATHERING INFORMATION AND MEASURING MARKET DEMAND

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Important Topics of This Chapter

• Modern MIS.
• Marketing research process.
• Marketing decision support system(MDSS).
• Forecasting and demand measurement.
• Estimating current demand.
• Estimating future demand.

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MODERN MARKETING INFORMATION SYSTEM

• Marketing Information System
• MIS consists of people, equipment, and procedures
  to gather, sort, analyze, evaluate, and
  distribute needed, timely, and accurate
  information to marketing decision makers.
• Internal Record System
• Order-to-payment cycle
• Orders and invoices (EDI), fax and e-mails
• Sales information systems
• Sales force automation (SFA)

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MODERN MARKETING INFORMATION SYSTEM

• Marketing Intelligence System
• It is set of procedures and sources to obtain
• everyday information about marketing
• environment. Four steps to improve the
• quality
• Training/motivating the sales force
• Motivate distributors, retailers and customers to
  send necessary information
• Mystery Shoppers
• Syndicated research firms
• A.C.Nielsen
• Internal information centers
• Collect information .
• Customer advisory panels

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MARKETING RESEARCH SYSTEM

• Marketing Research
• Designing, collection, analysis, reporting and
  disseminating of information relevant to
  marketing problems
• Suppliers of Marketing Research
• research department
• research firms-custom and specialty(field
  service)
• on line services
• universities
• syndicated research firms
• Specialty line marketing research firms

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MARKETING RESEARCH PROCESS

• Define the Problem and Research Objectives
• exploratory research
• descriptive research
• causal research.
• Developing Research Plan
• Data sources
• secondary
• primary data
• Research approaches
• observational
• focus group research
• survey research
• behavioral data
• Experimental

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MARKETING RESEARCH PROCESS (CONT.)

• Developing Research Plan (cont.)
• Research instruments-questionnaires
• closed-ended
• open-ended
• mechanical
• sampling plan
• probability
• non-probability.
• contact methods
• mail survey
• telephone survey
• personal interviews(arranged or intercept).
• Internet

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MARKETING RESEARCH PROCESS (CONT.)

• Data Collection
• Interviewer errors
• Response errors
• Data Analysis
• Quantitative tools-multivariate techniques
• Present findings
• Frequency counts
• Analysis of statistical results
• Recommendations
• Managerial Implications
• Final research report

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MARKETING RESEARCHPROCESS (CONT.)

• The Characteristics of Good Marketing research
• Scientific method
• Hypothesis testing
• Research creativity
• Innovative research
• Multiple methods
• Sources of better information
• Interdependence of models and data
• Value and cost of information
• Value of information
• Healthy skepticism
• Assumptions
• Ethical marketing

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MARKETING RESEARCH PROCESS (CONT.)

• Overcoming Barriers
• A narrow conception of research
• Some managers think it is a fact finding
  operations
• Uneven caliber of marketing researchers
• Late and occasional erroneous findings
• Some managers do not trust the findings
• Personality differences
• Line and staff people

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MARKETING DECISION SUPPORT SYSTEM

• MDSS is a coordinated collection of data with
• supporting software by which an organization
• gathers and interprets relevant information. It
• includes internal and external information,
• state of the art data base approach, application
• models(call plan, detailer, brandaid, mediac,
• geolone, promoter, adcad, cover story), user
• friendly computer language, graphic features.

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STATISTICAL TOOLS

• Multivariate Techniques
• Discriminant Analysis
• Factor Analysis
• Cluster Analysis
• Conjoint Analysis
• Multidimensional Scaling-perceptional map
• Simulation Models
• Markov-process model
• Queuing model
• New-product pretest models
• Sales-response models

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FORECASTING AND DEMAND MEASUREMENT

• The Measurement of market demand
• Product level
• Product line and brands
• Time level
• Short, medium and long term
• Market level
• Domestic and global

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FORECASTING AND DEMAND MEASUREMENT

• Which Market to measure
• Potential
• Total number of consumers
• Available
• Group of consumers who has interest
• Qualified
• Consumers who have money and interest
• Target
• Company wants to attract
• Penetrated
• Consumers who are buying companies product

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A VOCABULARY FOR DEMAND MEASUREMENT

• Market Demand
• Market demand is the total volume that would be
  bought by a defined customer group
• Market demand function
• It is the difference between potential,
  forecasted and actual sales.
• Market forecast
• Demand estimates
• Market potential
• Limit of market demand
• Company demand
• Companys market demand in a given time period
• Company sales forecast
• Expected sales level of the company
• Company sales quota
• Defining and stimulating sales
• Sales budget
• Expected sales volume and current purchasing,
  production and cash flow decision

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ESTIMATING CURRENT DEMAND

• total market
  potential(Qnqp)
• 
  market forecast
• sales(demand)
  potential
• 
  sales(demand) forecast

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ESTIMATING CURRENT DEMAND (CONT.)

• Total Market Potential
• Suspect pool
• Prospect pool
• Area Market Potential
• Market-buildup method
• Difficult to gather information
• Standard Industrial Classification (SIC)
• North American Industrial Classification (NAICS)
• Multiple factor index method
• Buying Power Index
• BPI.5Y .3 R .2P Where
• Yincome, Rretail sales,
  Ppopulation
• Industry Sales and market Share
• A. C. Nielsen reports

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ESTIMATING FUTURE DEMAND

• Survey of Buying Intentions/Purchase Probability
  Scales
• SRC of the University of Michigan
• Sales Force Composites/opinions
• Expert Opinions
• Past-Sales Analysis
• Time series analysis
• Exponential smoothing
• Statistical demand analysis
• Econometric analysis
• Market Test Method
• New product introduction