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Ch a Collecting Information and
Forecasting Demand
Discussion Questions
1. What are the components of a modern
marketing information system?
2. What are useful internal records for such a
system?
3. What makes up a marketing intelligence system?
4. What are some influential macroeconomic
developments?
5. How can companies accurately measure and
forecast demand?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 of 28
Collecting Information
Customers
External Factors
Competitors
Ghost Shoppers
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Marketing Information System
People
Procedures
Equipment
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Marketing Information System
Internal Records
Marketing Research
Insight
Marketing Intelligence
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Internal Records
Order-to-Payment Cycle
Databases / Data Mining
Sales Information
Systems
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Marketing Intelligence
News and Trade Publications
Meet with customers,
suppliers, distributors,
and other managers
Monitor social
media sites
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Improving Marketing Intelligence
Sales Force Establish industry network
External Experts Customer Advisory Panel
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Marketing Intelligence & the Internet
Independent Online Forums
Distributor or sales agents feedback sites
Customer review and expert opinion
sites
Customer complaint sites
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Using Marketing Intelligence
Share Information
Quickly
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Analyzing the Macroenvironment
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Major Environmental Forces
Demographics Economic
Technological
Natural Political-Legal
Sociocultural
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Demographic Environment
Worldwide population growth
Population age mix
Ethnic and other markets
Educational Groups
Household patterns
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Economic Environment
Consumer
Psychology
Income
Distribution
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Sociocultural
Environment
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Natural Environment
Environmental Regulations
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Technological Environment
Accelerated pace of change
Unlimited opportunities
R&D Spending
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Political-Legal Environment
Government Agencies
Laws
Special Interest Groups
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Needs and Trends
Fad
Trend
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The World as a Village
If the world were a village of 100 people:
61 – Asian (20 Chinese, 17 Indian)
18 – Unable to read (33 have cell phones)
18 – Under 10 years of age (11 over 60 years old)
18 – Cars in the village
63 – Inadequate sanitation
67 – Non-Christian
30 – Unemployed or underemployed
53 – Live on less than $2 a day
26 – Smoke
14 – Obese
01 – Have AIDS
Source: David J. Smith and Shelagh Armstrong, If the World Were a Village: A
Book About the World’s People, 2 nd ed. (Tonawanda, NY: Kids Can Press,
2002)
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Forecasting and Demand Measurement
Market
- Size
- Growth
- Profit potential
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Estimating Future Demand
Sales Force Opinions
Buyer’s Intentions Forecasting
Past Sales Analysis
Expert Opinions
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Market Types
Potential Market
Available Market
Target Market
Penetrated Market
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Ninety Types of Demand Measurement
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Demand Measurement
Market Demand
Company Demand
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Market Demand Functions
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Estimating Current Demand
Area market potential
Total market potential
Average
Potential Average
X purchase X
Buyers price
quantity
Chain-ratio method
Average percentage of income spent on:
Demand Expected % of
Alcoholic
for new X Population X Food X Beverages X X spending on
beverages
light beer Light beer
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Marketing Debate
Is Consumer Behavior More a Function of a Person’s Age or Generation?
One of the widely debated issues in developing marketing programs that
target certain age groups is how much consumers change over time.
Some marketers maintain that age differences are critical and that the
needs and wants of a 25-year-old in 2010 are not that different from
those of a 25-year-old in 1980. Others argue that cohort and generation
effects are critical, and that marketing programs must therefore suit the
times.
Take a position: Age differences are fundamentally more important than
cohort effects versus Cohort effects can dominate age differences.
Marketing Discussion
Age Targeting
What brands and products do you feel successfully “speak to you”
and effectively target your age group? Why? Which ones do not?
What could they do better?
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