FMM3 Flashcards
What is a marketing information system?
A marketing information system (MIS) consists of people, equipment, and procedures to
gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. It relies on internal company records,marketing intelligence activities, and marketing research.
A company can take eight possible actions to improve the quantity and quality of its marketing intelligence. Which are they?
- Train and motivate the sales force to spot and report new developments
- Motivate distributors, retailers, and other intermediaries to pass along important intelligence
- Hire external experts to collect intelligence.
- Network internally and externally
- Set up a customer advisory panel
- Take advantage of government-related data resources
- Purchase information from outside research firms and vendors
Name five main ways marketers can research competitors product strengths and weaknesses online
- Independent customer goods and service review forums
- Distributor or sales agent feedback sites
- Combo sites offering customer reviews and expert opinions
- Customer complaint sites
- Public blogs
What are fads, trends and megatrends?
A fad is “unpredictable, short-lived, and without social, economic, and political significance”
A trend is “a direction or sequence of events with momentum and durability, and is more predictable
and durable than a fad”
A megatrend is “a large social, economic, political, and technological change [that] is slow to
form, and once in place, influences us for some time between seven and ten years, or longer.”
Name five factors included in the demographic environment
- Population growth
- Age mix
- Ethnic diversity
- Educational groups
- Household patterns
What is the potential market, the available market, the target market and the penetrated market?
The potential market is the set of consumers with a sufficient level of interest in a market offer. However, their interest is not enough to define a market unless they also have sufficient income and access to the product.
The available market is the set of consumers who have interest, income, and access to a particular 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.
What is the book definition of market demand?
Market demand for a product is 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.
What is the book definition of the market minimum and market potential?
What is the distance between these two called?
Market minimum is the demand that would occur without any demand-stimulating expenditures.
Market potential is the point beyond which demand-stimulating expenditures no longer increase demand.
The distance between the market minimum and the market potential shows the overall marketing sensitivity of demand.
What is the book definition of the market penetration index?
The market penetration index is the result of comparing the current and potential levels of market demand. A low index indicates substantial growth potential for all the firms. A high index suggests it will be expensive to attract the few remaining prospects.
What is the book definition of the share-penetration index?
Comparing current and potential market shares yields a firms share-penetration index. If this index is low, the company can greatly expand its share.
What is the book definition of a sales quota?
A sales quota is the sales goal set for a product line, company division, or sales representative.
What is the book definition of the total market potential?
Total market potential is the maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions.
Name two common ways of estimating the total market potential
- Multiplying the potential number of buyers by the average quantity each purchases, times the price.
- The chain-ratio method, which multiplies a base number by several adjusting percentages (for example, “Demand for the new light beer x Average percentage of amount spent on food that is spent on beverages x etc…”
Which analyses are commonly included in a forecast of future demand?
Companies commonly prepare a macroeconomic forecast first, followed by an industry forecast,
followed by a company sales forecast.
Which are the three components of a marketing information system?
(a) an internal records system, which includes information on the order-to-payment cycle and sales information systems
(b) a marketing intelligence system, a set of procedures and sources used by managers to obtain everyday information about pertinent developments in the marketing environment
(c) a marketing research system that allows for the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation.
