Collecting Information and

Forecasting Demand

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 Hall

Slide 2 of 28

Collecting Information
Customers

Competitors

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

External Factors

Slide 3 of 28

Marketing Information System

People
Procedures

Equipment
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 4 of 28

What decisions do you regularly make?

What information do you need to make these decisions?
What information do you regularly get?
What special studies do you periodically request?
What information would you want that you are not getting now?
What information would you want daily? Weekly? Monthly? Yearly?
What online or offline newsletters, briefings, blogs, reports, or
magazines would you like to see on a regular basis?
What topics would you like to be kept informed of?
What data analysis and reporting programs would you want?
What are the four most helpful improvements that could be made in
the present marketing information system?

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 5 of 28

Marketing Information System

Internal Records

Marketing Research

Insight

Marketing Intelligence
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 6 of 28

Internal Records
Order-to-Payment Cycle

Databases / Data Mining

Sales Information Systems

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 7 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 Hall

Slide 8 of 28

Improving Marketing Intelligence

Sales Force

External Experts
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Establish industry network

Customer Advisory Panel

Slide 9 of 28

Improving Marketing Intelligence: The More

Specific Way
Train and Motivate the Workforce to spot and report new
developments
Motivate distributors, retailers, and other intermediaries to
pass along important intelligence
Hire external experts to collect intelligence
Network internally and externally
Set up customer advisory panel
Take advantage of government related data resources
Purchase information from outside research firms and
vendors
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 10 of 28

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 11 of 28

Collecting Marketing Intelligence on 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 Hall

Slide 12 of 28

Using Marketing Intelligence

Share Information

Quickly

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 13 of 28

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 14 of 28

Analyzing the Macroenvironment

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 15 of 28

Needs and Trends

Megatrend
Fad

Trend
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 16 of 28

Major Environmental Forces

Demographics

Economic
Technological

Natural

Political-Legal
Sociocultural

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 17 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 Hall

Slide 18 of 28

Economic Environment

Consumer
Psychology

Income
Distribution
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 19 of 28

Ourselves

Nature

Others

Sociocultural
Environment
Society

Universe

Organizations
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 20 of 28

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 21 of 28

Natural Environment

Environmental Regulations

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 22 of 28

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 23 of 28

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 24 of 28

Technological Environment
Accelerated pace of change
Unlimited opportunities
R&D Spending
Regulations in Use of
Technology

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 25 of 28

Political-Legal Environment
Government Agencies
Laws

Special Interest Groups

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 26 of 28

Forecasting and Demand Measurement

Market
- Size
- Growth
- Profit potential

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 27 of 28

Market Types
Potential Market
Available Market
Target Market
Penetrated Market

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 28 of 28

Ninety Types of Demand Measurement

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 29 of 28

Demand Measurement
Market Demand

Company Demand
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 30 of 28

Market Demand Functions

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 31 of 28

Estimating Current Demand

Area market potential

Total market potential

Potential
Buyers

Average
purchase
quantity

Average
price

Chain-ratio method
Average percentage of income spent on:
Demand
for new
light beer

X Population X

Food

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Beverages

Alcoholic
beverages

Expected % of
X spending on
Light beer

Slide 32 of 28

Estimating Future Demand

Sales Force Opinions

Buyers Intentions

Past Sales Analysis

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Forecasting

Expert Opinions
Slide 33 of 28