Chapter 3

Question 1

It refers to the systematic collection, analysis, interpretation, storage and dissemination of the market information, from both the internal and external sources, to the marketers on a regular, continuous basis.

Answer 1

Marketing Information System

Question 2

(4) Components of Marketing Information System

Answer 2

1. Internal Records
2. Marketing Intelligence System
3. Marketing Research
4. Marketing Decision Support System

(I3Ms)

Question 3

Marketing managers rely on internal reports related to customer orders, sales, price levels, cost, inventory levels, receivable and payables.

Answer 3

Internal Records

Question 3

It’s a set of procedures and data sources used by marketing managers to sift information from the environment that they can use in their decision making.

Answer 3

Marketing Intelligence System

Question 4

Mainly focuses on:
-Order-to-payment Cycle
-Sales information System

Answer 4

Internal Records

Question 4

The systematic collection, organization, analysis and interpretation of the primary or the secondary data to find out the solutions to the marketing problems.

Answer 4

Marketing Research

Question 5

Marketing Information came from:
-Publications
-Networking
-Personal Interactions
-Observations and internet

Answer 5

Marketing Intelligence System

Question 6

It is a system supported by software and hardware to gather information from business and environment.

Answer 6

Marketing Decision Support System

Question 7

It is based on the analysis of past demand for that product or service in the present market condition.

Answer 7

Demand forecasting

Question 8

It is a technique for estimation of probable demand for a product or services in the future.

Answer 8

Demand forecasting

Question 9

It should be done on a scientific basis and facts and events related to forecasting should be considered.

Answer 9

Demand forecasting

Question 10

Factors Influencing Demand Forecasting

Answer 10

Seasonality
Competition
Geography
Economy
Types of Goods

(SCGET)

Question 11

(6) Types of Demand Forecasting

Answer 11

-Passive Demand Forecasting
-Active Demand Forecasting
-Short-term Demand Forecasting
-Medium to Long-term Demand Forecasting
-External Macro Level Demand Forecasting
-Internal Business Level Demand Forecasting

(PASMEI)

Question 12

It is carried out for stable businesses with very conservative growth plans. Simple extrapolations of historical data are carried out with minimal assumptions. This is a rare type of forecasting limited to small and local businesses.

Answer 12

Passive Demand Forecasting

Question 13

It is carried out for scaling and diversifying businesses with aggressive growth plans in terms of marketing activities, product portfolio expansion and consideration of competitor activities and external economic environment.

Answer 13

Active Demand Forecasting

Question 14

It is carried out for a shorter term period of 3 months to 12 months.

Answer 14

Short-term Demand Forecasting

Question 15

It is typically carried out for more than 12 months to 24 months in advance (36-48 months in certain businesses).

Answer 15

Medium to Long-term Demand Forecasting

Question 16

This type of forecasting deals with the broader market movements which depend on the macroeconomic environment.

Answer 16

External Macro Level Demand Forecasting

Question 17

This forecasting is carried out for evaluating the strategic objectives of a business like product portfolio expansion, entering new customer segments, technological disruptions, a paradigm shift in consumer behavior and risk mitigation strategies.

Answer 17

External Macro Level Demand Forecasting

Question 18

One of the most important steps of the Demand Forecasting process is the ____________________ for Demand Forecasting.

Answer 18

Selection of the appropriate demand forecasting

Question 18

This type of Forecasting deals with internal operations of the business such as product category, sales division, financial division, and manufacturing group.

Answer 18

Internal Business Level Demand Forecasting

Question 19

Demand can be forecasted using ___________ methods or ___________methods.

Answer 19

Qualitative or Quantitative

Question 20

(6) Methods in Demand Forecasting

Answer 20

(3) Qualitative Methods:
-The Delphi Technique
-Sales Force Opinion
-Market Research

(3) Quantitative Methods:
-Trend Projection Method
-Barometric Technique
-Econometric Forecasting Technique

Question 21

(3) Qualitative Methods:

Answer 21

-The Delphi Technique
-Sales Force Opinion
-Market Research

Question 22

(3) Quantitative Methods:

Answer 22

-Trend Projection Method
-Barometric Technique
-Econometric Forecasting Technique

Question 23

A panel of experts are appointed to produce a Demand Forecast. Each expert is asked to generate a forecast of their assigned specific segment.

Answer 23

The Delphi Technique

Question 24

The Sales Manager asks for inputs of expected demand from each Salesperson in their team. Each Salesperson evaluates their respective region and product categories and provides their individual customer demand.

Answer 24

Sales Force Opinion

Question 25

In this technique, customer specific surveys are deployed to generate potential demand.

Answer 25

Market Research

Question 26

It can be effectively deployed for businesses with a large sales data history of typically more than 18 to 24 months. This historical data generates a “time series” which represents the past sales and projected demand for a specific product category under normal conditions by a graphical plotting method or the least square method.

Answer 26

Trend Projection Method

Question 27

It is based on the principle of recording events in the present to predict the future. This is accomplished by analyzing the statistical and economic indicators.

Answer 27

Barometric Technique

Question 28

It utilizes autoregressive integrated moving-average and complex mathematical equations, to establish relationships between demand and factors that influence the demand. An equation is derived and fine-tuned to ensure a reliable historical representation. Finally, the projected values of the influencing variables are inserted into the equation to generate a forecast.

Answer 28

Econometric Forecasting Technique