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

Three types of information used in marketing decision making Customer (demo, psycho, behav) Customer (demo, psycho, behav) 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, Develop new products, marketing opportunities, solve marketing problems, implement marketing plans, 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: Internal Sources Customer profile – ex? Company records- sales records, expenses, supplier data, production and operation schedules, performance information (sales, costs, quality, and customer satisfaction), quarterly inventory status (indicates increase and decrease in sales for a particular product) etc. Constantly monitoring internal factors identifies problems that might need to be addressed.

External sources Competitors’ records – prices, products, and market share Competitors’ records – prices, products, and market share Government data – price trends, new regulations, laws, and future projections for the economy Government data – price trends, new regulations, laws, and future projections for the economy Trade and Professional Associations – trade journals, newsletters, or research reports. Trade and Professional Associations – trade journals, newsletters, or research reports. Business Publications-The Wall Street Journal, Forbes, Business Week, etc Business Publications-The Wall Street Journal, Forbes, Business Week, etc

Activity 1: Market Research Get out clock Get out clock Get with your 9 o’clock appointment Get with your 9 o’clock appointment Complete MIM 1.05 wkst using the internet Complete MIM 1.05 wkst using the internet When complete come back to your seat – you have 20 minutes When complete come back to your seat – you have 20 minutes

Warm up: 1.05A Review 1. Why is it essential for companies to do marketing research? 2. In your notes, it mentions that MIM helps solve problems; what are 3 problems that a company might need to solve? Explain 3. What are two things that sales reports can tell you about your company? Why is it important? Explain each in detail

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. Sales Volume Analysis — A detailed study of an organization's sales, in terms of units or revenue, for a specified period. Accounting Information Sales/Discounts Salespeople – how effective are they? Inventory/Cost Payroll – Commission on sale?

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

Information about customers that is monitored for marketing decision-making. Demographic data (age, gender, ethnicity) Buying habits (time of day, repeat products, popular 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

Information about customers that is monitored for marketing decision- making (cont) Credit record Credit record Customer requests (what products or varieties are requested that you don’t carry) Customer requests (what products or varieties are requested that you don’t carry) Receipts/invoices (is a certain neighborhood or ZIP code frequenting your establishment more than others; preferences of products) Receipts/invoices (is a certain neighborhood or ZIP code frequenting your establishment more than others; preferences of products)

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. Financial records for public companies Insight into company’s strengths, weaknesses, and future plans 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

Marketing Research – Taste the Rainbow As marketers you are going to do research on skittles; you will be asked a serious of questions – answer them completely. As marketers you are going to do research on skittles; you will be asked a serious of questions – answer them completely. You will find out: You will find out: –Estimations –Favorite flavor –Affects on color choice –DO NOT EAT BEFORE ACTIVITY IS DONE! IF YOU ARE PLAYING AROUND YOU WILL RECEIVE A DETENTION –Turn in to bin WHEN COMPLETE work on MARKET RESEARCH wkst from yesterday, VIRTUAL BUSINESS or MAGIC SQUARES WHEN COMPLETE work on MARKET RESEARCH wkst from yesterday, VIRTUAL BUSINESS or MAGIC SQUARES