kotler05exs understanding markets market demand and the marketing environment 1
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Kotler05exs Understanding Markets Market Demand and the Marketing Environment 1TRANSCRIPT
To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 5©2003 Prentice Hall, Inc.
Chapter 5Chapter 5
Understanding Markets, Understanding Markets, Market Demand, and the Market Demand, and the Marketing EnvironmentMarketing Environment
PowerPoint by Karen E. JamesPowerPoint by Karen E. JamesLouisiana State University - ShreveportLouisiana State University - Shreveport
To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 5©2003 Prentice Hall, Inc.
ObjectivesObjectives
Identify the major components of a marketing system.
Understand how marketers can improve marketing decisions through intelligence systems, marketing research, and marketing decision support systems.
To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 5©2003 Prentice Hall, Inc.
ObjectivesObjectives
Learn how demand can be more accurately measured and forecasted.
Understand key demographic, economic, natural, technological, political-legal, and socio-cultural developments.
To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
A Marketing Information System is defined as . . .
“people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.”
To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
Marketing Information Systems compile information from:
– Internal records systems
– Marketing intelligence systems
– Marketing research
– Marketing decision support analysis
To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
Improving the Quality of Marketing Intelligence System Data Requires:
– Training and motivating sales force to report developments
– Motivating channel members to share important intelligence
– Collecting competitive intelligence
To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
Improving the Quality of Marketing Intelligence System Data Requires:
– Developing a customer advisory panel
– Purchasing information from commercial data sources
– Establishing a marketing information center within the company
To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
The Marketing Research Process:
– Defining the problem and research objectives
– Developing the research plan– Collecting the information– Analyzing the information– Presenting the findings– Making the decision
To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
Developing the Research Plan Involves:
– Gathering secondary and primary data– Selecting one or more research
approaches for primary data collection– Using the appropriate research instrument– Developing a sampling plan– Determining subject contact methods
To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
Approaches for primary data collection include:
– Observational research– Focus-group research– Survey research– Behavioral data– Experimental research
To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 5©2003 Prentice Hall, Inc.
Supporting Marketing Supporting Marketing DecisionsDecisions
A Marketing Decision Support System 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 business and the environment and turns it into a basis for marketing action.”
To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 5©2003 Prentice Hall, Inc.
Forecasting and Forecasting and Demand MeasurementDemand Measurement
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 5©2003 Prentice Hall, Inc.
Forecasting and Forecasting and Demand MeasurementDemand Measurement
Essential Aspects
The market
Measuring demand
Company demand and sales forecasts
Current demand
Future demand
Market demand– Market minimum– Market forecast– Market potential– Nonexpansible vs.
expansible markets– Primary vs.
secondary demand Market forecast
Market potential
To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 5©2003 Prentice Hall, Inc.
Forecasting and Forecasting and Demand MeasurementDemand Measurement
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 5©2003 Prentice Hall, Inc.
Forecasting and Forecasting and Demand MeasurementDemand Measurement
Essential Aspects
The market
Measuring demand
Company demand and sales forecasts
Current demand
Future demand
Total market potential
Area market potential
– Market-buildup method
To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 5©2003 Prentice Hall, Inc.
Forecasting and Forecasting and Demand MeasurementDemand Measurement
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 5©2003 Prentice Hall, Inc.
Macroenvironmental Macroenvironmental Trends and ForcesTrends and Forces
Demographic Environment
– Worldwide population growth– Population age mix– Ethnic markets– Educational groups– Household patterns– Geographic population shifts– Rise of micromarkets
To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 5©2003 Prentice Hall, Inc.
Macroenvironmental Macroenvironmental Trends and ForcesTrends and Forces
Economic Environment
– Income distribution
– Savings, debt, and credit availability
To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 5©2003 Prentice Hall, Inc.
Macroenvironmental Macroenvironmental Trends and ForcesTrends and Forces
Natural Environment
– Shortage of raw materials
– Increased energy costs
– Anti-pollution pressures
– Changing role of governments
To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 5©2003 Prentice Hall, Inc.
Macroenvironmental Macroenvironmental Trends and ForcesTrends and Forces
Technological Environment
– Accelerating pace of technological change
– Unlimited opportunities for innovation
– Varying R&D budgets– Increased regulation of
technological change
To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 5©2003 Prentice Hall, Inc.
Macroenvironmental Macroenvironmental Trends and ForcesTrends and Forces
Political-Legal Environment
– Legislation regulating business
– Growth of special interest groups
To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 5©2003 Prentice Hall, Inc.
Macroenvironmental Macroenvironmental Trends and ForcesTrends and Forces
Socio-Cultural Environment
– World views that consumers hold of themselves, others, society, organizations, nature, and the universe
– High persistence of core values
– Existence of subcultures