Marketing 1.05 MIM Three types of information used in marketing decision making Customer Marketing mix Business Environment

Customer Information Age How money is spent Brand preferences Gender Attitudes Information needs Income Primary needs Education Media preferences Family size Product purchases Home ownership Shopping behavior Purchase frequency Address Occupation

Marketing Mix Basic Products Product Features Services Product packaging Guarantees Repairs Credit Choice Discounts Promotion Methods

Business Environment Type of competition New technology Competitors’ strengths Consumer protection Ethical issues Competitors’ strategies Tax policies Proposed laws Economic conditions International markets Government regulations

Why is Marketing Information Needed? To identify: 1. potential customers 2. potential products 3. marketing opportunities 4. solve marketing problems 5. implement marketing plans 6. monitor marketing performance.

The Impact of Marketing Information on Marketers Marketing research is used when a business needs to solve problems. Helps answer questions about what to produce, at what price to sell the products, who will buy the products, and how to promote the products Helps businesses plan their future operations to increase sales and profits. Understand markets.

Ways Marketers Use Marketing Information Analysis----the process of summarizing, combining, or comparing information so that decisions can be made. Analysis example: Planning a promotional budget Analyzing the effectiveness of one retailer in a channel of distribution Analyzing the costs of marketing activities for national and international activities Product Example: Stouffer’s Lean Cuisine—13 years of market research Develop product Test package design Hold pilot sales in large cities to test market first Track what is happening in current markets Determine major competitors What major competitors are offering Which products consumers prefer Customer satisfaction with product

Information contained in sales and expense reports that is monitored for marketing decision-making. Market Share Analysis — the percentage of all sales within a market that is held by one brand / product or company. Normally measured by sales revenue (dollars sold) or sales volume (the number of units sold) Sales Volume Analysis — A detailed study of an organization's sales, in terms of units or revenue, for a specified period . Accounting Information analyzed Spending/Costs to produce and sell products Profitability/ Sales – Total Costs Sales How much did they have to discount the product to achieve the sale? What expenses went into each sale? Inventory/How much product is left in inventory Payroll How much commission did they have to pay the sales rep?

Information in reports provided by salespeople that is monitored for use in marketing decision-making. Request & Complaint reports/products customers requested and problems customers reported Lost sales reports/ cancelled orders or under stocked items Call reports/what happened in each sales call Activity reports/ all travel, phone calls and in person sales calls for a given period of time Retail audits to measure market sales, competitor’s sales, market share, prices, special offers, stock levels by week or day Product information reports– types of products that sell best at various times of year; colors or sizes of products customers prefer

Information about customers that is monitored for marketing decision-making. Demographic data (age, gender, ethnicity, job, income, marital status) Buying habits (time of day, repeat products purchased, amount spent on each transaction—full price or on sale, types of products) Ex: Diapers and beer purchased by men on Thursdays and Saturdays Ex: Saturday is when most people do major grocery shopping Credit record: do customers pay their bills on time Customer requests (what products or varieties are requested that you don’t carry) Receipts (is a certain neighborhood or ZIP code frequenting your establishment more than others)

Explain information about competitors that is monitored for marketing decision-making. USP’s (unique selling points) of our product vs. competition to find our advantage. Is that advantage sustainable, (long lasting)? Financial records for public companies that you compete with (i.e. annual reports) Insight into competitors’ strengths, weaknesses, and future plans (new products, marketing campaigns) Market share analysis Sales volume data

Procedures for identifying information to monitor for marketing decision-making. Identify data needed for decision-making Create a plan for collecting, storing and analyzing that data Compile a list of secondary sources of data Retrieve the data you need Analyze/use data to make decisions