chapter 3 Flashcards
marketing information system (MIS)
consists of all information needed about people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision-makers. it relies on internal company records and the marketing intelligence system.
internal company records
to spot important opportunities and potential problems, marketing managers rely on internal reports of orders, sales, prices, costs, inventory levels, receivables, and payables. internal records and database systems are the order-to-payment cycle, sales information systems, and databases, data warehousing, data mining.
customer database
an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sales, or customer relationship management.
database marketing
the process of building, maintaining, and using customer
databases and other databases (products, suppliers, resellers) to contact, transact with, and build relationships with customers.
data warehouse
where information captured by the company is organised and marketers can capture, query, and analyse data to draw inferences about individual customers’ needs and responses.
data mining
used by marketing analysts to extract from the mass of data useful insights about customer behaviour, trends, and segments.
marketing intelligence system
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 happening data. a company can take eight possible actions to improve the quantity and quality of its marketing intelligence.
marketing research
the function that links the consumer, customer, and public to the marketer through information - information used to identify marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance, and improve understanding of marketing as a process. marketing research includes addressing the issue, designing the method for collecting information, managing, and implementing the data collection process, analysing the results, and communicating the findings and their application.
the marketing research process
- define the problem, the decision alternatives, and the research objectives.
- develop the research plan.
- collect the data
- analyse the information
- present the findings
- make the decision
secondary data
data that were collected for another purpose and already exist somewhere.
primary data
data freshly gathered for a specific purpose or product.
observational research
gathers data by observing unobtrusively as customers shop or consume products.
ethnographic research
uses concepts and tools from anthropology and other social science disciplines to provide deep cultural understanding of how people live and work.
focus group research
a gathering of six to ten people carefully selected for demographic, psychographic, or other considerations and convened to discuss various topics at length for a small payment. researchers must avoid generalising this small group to the whole population.
survey research
used to assess people’s knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population.
behavioural research
analyses of the traces customers leave of their purchasing behaviour in store scanning data, catalogue purchases, and customer databases.
experimental research
research designed to capture cause-and-effect relationships by eliminating competing explanations of the findings.
questionnaire
consists of a set of questions presented to respondents. the most common research instrument to gather primary data because of its flexibility. it is possible to ask closed-end and open-end questions.
qualitative measures
relatively indirect and unstructured. this research instrument can be especially useful to explore customers’ perceptions. respondents may reveal more about themselves in the process, because of the use of word associations, projective techniques, visualisation, brand personification, and laddering.
technological devices
can measure the interest or emotions to a specific ad or picture.
contact methods
the marketer must decide how to contact the subjects.
mail contacts
can reach people who would not give personal interviews or whose repose might be biased or distorted by the interviewers.
telephone contacts
gathers information quickly. also, it is possible to clarify a question.
personal contacts
the interviewer can ask more questions and observe body language.
online contacts
research via the internet.
advantage: inexpensive, expansive, honest, and thoughtful, versatile.
disadvantage: small and skewed samples, online panels and communities can suffer excessive turnover, and online market research can suffer technological problems and inconsistencies.
potential market
the set of consumers with a sufficient level of interest in a market offer.
available market
the set of consumers who have interest, income, and access to a particular offer.
target market
the part of the qualified available market the company decides to pursue.
penetrated market
the set of consumers who are buying the company’s product.
market demand (function)
the total 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. it is not a fixed number, but rather a function of the stated conditions.
market share
the selective demand for the product in the market.
expansible market
is much affected in size by the level of industry marketing expenditures.
non-expansible market
is not much affected in size by the level of industry marketing expenditures.
market-penetration index
an index to compare the current and potential levels of market demand. a low index indicates substantial growth potential for all firms. a high index suggests it will be expensive to attract the few remaining prospects.
market forecast
the market demand corresponding to the level of industry expenditure.
market potential
the limited approach by market demand as industry marketing expenditures approach infinity for a given marketing environment.
company demand
the company’s estimated share of market demand at alternative levels of company marketing effort in a given time period.
company sales forecast
the expected level of company sales based on a chosen marketing plan and an assumed marketing environment.
sales quota
the sales goal set for a product line, company division, or sales representative.
sales budget
a conservative estimate of the expected volume of sales, primarily for making current purchasing, production, and cash flow decisions.
company sales potential
the sales limit approached by company demand as company marketing effort increases relative to that of competitors. the absolute limit is the market potential.
total market potential
maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions.
area market potential
estimate the market potential of different cities, states, and nations. two methods are the market-build-up method (identifying all potential buyers in each market and estimating their potential purchases) and the multiple-factor index method.
forecasting
the art of anticipating what buyers are likely to do under a given set of conditions. good forecasting for future demand is the key to success. there are five methods: a survey of buyers’ intentions, the composite of sales force opinions, expert opinion, past-sales analysis, and the market-test method.
fad
an unpredictable, short-lived, and without social, economic, and political significance.
trend
a direction or sequence of events with momentum and durability. a trend can provide strategic direction.
megatrend
a large social, economic, political, and technological change that if slow to form, and once in place, influences us for some time (7-10 years).
core beliefs
beliefs passed from parents to their children.
secondary beliefs
values more open to change.
subcultures
groups with shared values and beliefs.
