Acquire foundational knowledge of marketing-information management to understand its nature and scope Marketing Marketing Indicator 1.05 Indicator 1.05

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

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

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

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

Why is Marketing Information Needed? To identify potential customers, potential products, marketing opportunities, solve marketing problems, implement marketing plans, and 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. Companies keep track of what happening in current markets.

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

Reports Businesses use in MIM External: External: –Government Reports, Business Publications, Commercial Data, Information Services Internal: Internal: –Marketing Plans –Performance Sheet Balance sheets, Cash flow statements, Income statements (Quarterly, Annual) Balance sheets, Cash flow statements, Income statements (Quarterly, Annual) –Customer Records and sales Information Inventory Status, Demographic reports (Quarterly Annual) Inventory Status, Demographic reports (Quarterly Annual)

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 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 – –Spending – –Profitability Sales – –Discount on sale? – –What expenses went into each sale? Cost Inventory Payroll – –Commission on sale? HELPS IDENTIFY ANY POTENTIAL PROBLEMS

Information in reports provided by salespeople that is monitored for use in marketing decision-making. Request/complaint reports Lost sales reports Call reports Activity reports Retail audits – measure market sales, competitor’s sales, market share, prices, special offers, stock levels by week or day to day Product information– types of products that sell best at various times of year; colors or sizes of products customers prefer – –THIS INFORMATION IS USED TO IMPROVE THE EFFECTIVENESS OF THE SALESPEOPLE!

Information about customers that is monitored for marketing decision- making. Demographic data (age, gender, ethnicity) Buying habits (time of day, repeat products, amount spent—full price or on sale, types of products) – –Ex: Diapers and beer purchased by men on Thursdays and Saturdays – –Ex: Saturday is day most people do major grocery shopping Credit record – –Job – –Income level – –Marital status 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? Financial records for public companies (GE, Ford, Apple) Insight into company’s 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 needed data Create a plan for collecting, storing and analyzing data Compile a list of secondary sources providing needed data Retrieve needed data Analyze/use data