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Lectures Marketing management: Chapter 3 - ThS. Nguyễn Tiến Dũng

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Lectures Marketing management - Chapter 3: Collecting information and forecasting demand provides students with the knowledge: Components of a modern marketing, information system, internal records, marketing intelligence, analyzing the macroenvironment, forecasting and demand measurement. Invite you to refer to the disclosures.

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CHAPTER 3 COLLECTING INFORMATION AND

FORECASTING DEMAND

Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn

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Chapter Questions

● What are the components of a modern

marketing information system?

● What are useful internal records for such a

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Chapter Main Contents

Information System

2. Internal Records

3. Marketing Intelligence

4. Analyzing the Macroenvironment

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Types of Marketing Information

● Internal & External

● Event and research information

● Statistics-based & market research-based

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1 Components of an MIS

● MIS (Marketing Information System)

● A marketing information system consists of people,

equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to

marketing decision makers

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2 Internal Records

● Order-to-payment cycle

● Sales information system

● Databases, warehousing, data mining

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3 Marketing Intelligence System

● Definition of Marketing Intelligence System

● Collecting Marketing Intelligence on the

Internet

● Communicating and Acting on Marketing

Intelligence

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Definition of Marketing Intelligence System

A marketing intelligence system is a set of procedures

and sources that managers use to obtain everyday

information about developments in the marketing

environment

The internal records system supplies results data, but the marketing intelligence system supplies happenings data.

● Methods:

● reading books, newspapers, and trade publications;

● talking to customers, suppliers, and distributors;

● monitoring social media on the Internet;

● meeting with other company managers.

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Improving Marketing Intelligence

report new developments

intermediaries to pass along important intelligence.

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Collecting Marketing Intelligence on the Internet

● Independent customer goods and service review forums: Epinions.com, RateItAll.com,

ConsumerReview.com and Bizrate.com …

● Distributor or sales agent feedback sites

● Combination sites offering customer reviews and expert opinions

● Customer complaint sites

● Public blogs

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4 Analyzing Macroenvironments

● Identifying the Major Forces

● The Sociocultural Environment

● The Natural Environment

● The Technological Environment

● The Political-Legal Environment

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Needs and Trends

● Fads: unpredictable, short-lived, and without

social, economic, and political significance.”

● Trends

● a more predictable and durable than a fad;

● reveal the shape of the future and can provide

strategic direction.

● Example: health and nutrition awareness has brought

increased government regulation and negative

publicity for firms seen as peddling unhealthy food.

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Trends Shaping the Business Landscape

● Profound shifts in centers of

● Management shifts from art

to science

● Increase in scrutiny of big business practices

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Population and Demographics

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Economic Environment

● Income Distribution

● Savings, Debt, and Credit

● Four types of economies based on the industrial structure:

subsistence economies like Papua New Guinea, with

few opportunities for marketers;

raw-material-exporting economies like Democratic

Republic of Congo (copper) and Saudi Arabia (oil), with good markets for equipment, tools, supplies, and luxury goods for the rich;

industrializing economies like India, Egypt, and the

Philippines, where a new rich class and a growing

middle class demand new types of goods; and

industrial economies like Western Europe, with rich

markets for all sorts of goods.

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Social-Cultural Environment

● High persistence of core cultural values

Core beliefs and values are passed from parents

to children and reinforced by social institutions— schools, churches, businesses, and

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Natural Environment

● Shortage of raw materials

● Increased energy costs

● Anti-pollution pressures

● Governmental protections

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Keys to Avoiding Green Marketing Myopia

● Consumer Value Positioning

● Calibration of Consumer Knowledge

● Credibility of Product Claims

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Technological Environment

● Pace of change

● Opportunities for innovation

● Varying R&D budgets

● Increased regulation of change

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The Political-Legal Environment

● Business legislation is intended to protect companies

from unfair competition, protect consumers from unfair

business practices,protect society from unbridled

business behavior, and charge businesses with the social costs of their products or production processes.

The consumerist movement organized citizens and

government to strengthen the rights and powers of buyers

in relationship to sellers.

● Privacy issues and identity theft will remain public policy hot buttons as long as consumers are willing to swap

personal information for customized products—from

marketers they trust.

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5 Forecasting and Demand Measurement

● Types of Markets

● Forecasting Methods

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Types of markets

The potential market is the set of consumers

with a sufficient level of interest in a market offer

The available market is the set of consumers

who have interest, income, and access to a

particular offer

consumers who have interest, income, access,

and qualifications for the market offer.

The target market is the part of the qualified

available market the company decides to pursue

The penetrated market is the set of consumers

who are buying the company’s product.

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Types of Demand Measurement

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A Vocabulary for Demand Measurement

volume that would be bought by a defined

customer group in a defined geographical

area in a defined time period in a defined

marketing environment under a defined

marketing program

industry marketing expenditure will actually occur The market demand corresponding to

this level is called the market forecast.

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Estimating Current Demand

sales available to all firms in an industry

during a given period, under a given level of industry marketing effort and environmental conditions

● Example:

● Detergent

● Instant noodles

● Books

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Area Market Potential

The market-buildup method calls for

identifying all the potential buyers in each

market and estimating their potential

purchases

● It produces accurate results if we have a list of all potential buyers and a good estimate of what

each will buy

North American Industry Classification System

(NAICS)

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● Multiple-Factor Index Method

● Buying Power Index

● BPI = w1.F1 + w2.F2 + w3.F3

● Brand Development Index

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Buying Power Index (BPI)

● A drug manufacturer wants to estimate the

market size in Virginia for a drug

● The single-factor model:

● It might assume the market potential for drugs is directly related to population size

● If the state of Virginia has 2.28 percent of the

U.S population,

● Virginia might be a market for 2.28 percent of

total drugs sold.

● A single factor is rarely a complete indicator of

sales opportunity

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● The Multiple-factor Model

● It is assumed that the drug demand depends on population, the retail sales, and disposable personal income.

● F1 = Virginia per-capita income / US per-capita income = 2.00%

● 2.044 means the Virginia’s drug sales = 2.044 percent of the

nation’s drug sales

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● Industry sales and market shares

● Besides estimating total potential and area

potential, a company needs to know the actual industry sales taking place in its market This

means identifying competitors and estimating

their sales.

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Estimating Future Demand

● Survey of buyers’ intentions

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Some Techniques to Forecast

● Survey of buyers’ intentions

● Composite of sales force opinions

● Expert opinion

● Past-sales analysis

● Market-test method

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