Understanding Marketing Information Management

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Unit 1.05
Understanding Marketing Information Management
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DEVELOPING/IMPROVING PRODUCTS

• Businesses need to obtain and analyze a wide
  variety of mktg. info. in order to make decisions
  for the future.
• One way that businesses use this information is
  to develop new products and improve existing
  products in order to satisfy customers needs.

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MAKING MKTG. DECISIONS

• In order to make marketing decisions that will
  keep them competitive, businesses are constantly
  gathering information about customers
  preferences and why customers buy certain
  products.

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MONITORING ECONOMIC TRENDS

• Businesses obtain marketing information in order
  to monitor economic trends, but they are NOT able
  to change those trends.
• Businesses do NOT use marketing information to
  prepare sales invoices.

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EFFECT OF COMPETITION

• In order for a business to understand why a
  product that has been a strong seller for a long
  time is now losing its popularity, they study
  marketing information.
• They need to see how rival products are doing and
  how they are affecting the product.

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IDENTIFYING PROBLEMS

• Mktg. info. is data available inside (internal)
  and outside (external) the business.
• Internal info. monitored includes inventory
  reports, sales records, customers feedback from
  surveys, etc.

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COMPARING CURRENT/PAST INFO.

• Comparing current past marketing information
  can often reveal problems, such as a sudden drop
  in sales of a particular product.

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REVIEWING EXTERNAL INFO.

• A drop in sales may indicate the business needs
  to provide new/improved products or increase
  promotional efforts.
• Businesses need to review various forms of
  external mktg. info. to effectively investigate
  competitors, evaluate market share, and analyze
  economic changes.

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EFFECTIVENESS OF SALESPEOPLE

• Sales reports contain a variety of info.
  businesses often use to improve the effectiveness
  of salespeople.
• Info. about s of new customers, of customers
  lost, cost of selling, time spent with each
  customer, etc.

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PROVIDING ASSISTANCE

• A business can determine if the salesperson is
  effective, or might need assistance/more training
  to better market the product. The business can
  develop materials providing the detailed info.
• Such action will help the salesperson to work
  more effectively with customers

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POPULAR PRODUCTS

• A business that monitors its sales and
  customers buying habits overtime can determine
  which products are not popular and not selling.
• By knowing the status of products, the business
  can make informed decisions about its product
  mix.

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DELETE SLOW MOVERS

• A business may decide to offer popular products
  in other colors and sizes, or it may decide to
  delete slow-moving items from its product mix.
• Research methods are the ways in which a business
  obtains marketing information.

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QUARTERLY INVENTORY STATUS

• By monitoring inventory, a business can
  determine how well a product is selling.
• If the status report indicates inventory for the
  item is turning slowly, then the business knows
  sales are down and might drop the product.

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FINANCIAL REPORTS

• Accounts-payable reports annual income
  statements summarize data related to financial
  aspects of the business.
• Neither report would indicate changes in a
  products sales. Such info. comes from the
  inventory status report.

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CUSTOMER INVOICES

• Customers invoices provide info. about a
  specific customers buying habits/preferences.
• Invoices might reveal certain customers buy a
  certain qty. of a particular product 4 times/mo.
  Knowing this, the business can customize
  promotions take steps to ensure it has
  sufficient products on hand when needed.

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REVIEW

• Annual Income Statement
• Quarterly Inventory Status
• Sales Reports
• Customers Feedback

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6. What does a business need in order to
understand why a product that has been a strong
seller for a long time is now losing its
popularity?

• A. marketing information
• B. sales records
• C. secondary data
• D. purchasing documents

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• Marketing Information
• They need to see how rival products are doing
  and how they are affecting the product.

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29. What is one way that businesses use marketing
information?

• To develop new products
• To determine credit scores
• To change economic trends
• To prepare sales invoices

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• To develop new products
• Marketing is dynamic ever changing. Business
  must keep up to date with what customers want
  need.

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30. What does continuously monitoring
international marketing information enable
businesses to do?

• Investigate competitors
• Identify problems
• Evaluate market share
• Analyze economic changes

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• B. Identify Problems
• Eliminate slow movers.

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31. What is one way that many businesses use the
marketing information contained in sales reports?

• To monitor expense accounts
• To qualify potential new customers
• To improve the effectiveness of salespeople
• To develop negotiating techniques

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• C. Improve effectiveness of salespeople
• Provide assistance extra training.

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32. By monitoring its sales and its customers
buying habits, what is a business often able to
identify?

• Popular products
• Research methods
• Economic resources
• Competitors activities

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• A. Popular products
• What items are sold most often?

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33. XYZ Company noticed that the sales of iPads
in blue have increased in sales. What can the
business determine about the iPads?

• Popular products
• Research methods
• Economic resources
• Competitors activities

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• A. Popular products
• If theyre sold out theyre popular!

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34. What type of internal report would indicate
to a business that sales for a specific product
have dramatically dropped over the past three
months?

• Market demographics analysis
• Accounts-payable summary
• Annual income statement
• Quarterly inventory status

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• D. Quarterly inventory status
• Items are remaining on the shelves.

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35. What type of marketing data can a business
obtain by reviewing its inventory reports and
customers invoices?

• Product quality
• Customers credit limits
• Customers product preferences
• Actual market share

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• C. Customers product preferences
• What is the customer buying or not buying?