2. Example: Campbell Soup
Suffered from double whammy effect
Consumption
Market Share
Anthropological research (Studied human behavior)
Face-to-face interaction, Live-alongs, Eat-alongs
The key insight? Millennials loved spices and ate more exotic food than
their parents—they just couldn’t cook it at home
Solution: Campbell’s Go! Soup ready-to-eat ~ a new product line with 6
flavors
3. Marketing Information Systems (MIS)
One of Marketers’ responsibilities: identifying major marketplace changes
One of Marketers’ powers: information on consumption patterns
MIS relies on:
Internal company records
Marketing intelligence activities
Marketing research
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
4. Internal Company Records
(Results Data)
The Order-to -Payment Cycle
Customer Firm (Sales Department) Other departments
Sales Information Systems
Timely and accurate reports on current sales
Web cookies Targeted marketing
Yellow Mustang instead of Red Mustang ~ Careful interpretation needed
Databases, Data Warehousing, and Data Mining
Marketing Insight ~ Digging into Big Data (4Vs)
5. Marketing Intelligence
(Happenings Data)
The Marketing Intelligence System
8 actions to improve Marketing Intelligence:
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 (Mystery shoppers)
Network internally and externally (w.r.t competitors)
Set up a customer advisory panel
Take advantage of government-related data resources (Statistical Bureau)
Purchase information from outside research firms and vendors
6. Marketing Intelligence
(Happenings Data)
8th step: Collecting Marketing Intelligence on the Internet
Independent customer goods and service review forums
Eat Sleep Repeat, ConsumerReview.com
Distributor or sales agent feedback sites
Amazon.com
Combo sites offering customer reviews and expert opinions
Customer complaint sites
Public blogs
Coordination
7. Analyzing the Macro-environment
Needs and trends
Fad, Trend, and Megatrend
6 major forces in the environment:
The demographic environment
The economic environment
The sociocultural environment
The natural environment
The technological environment
The political-legal environment
8. The Demographic Environment
Population, Gender, Education, Income
Population age mix (Mexico Young population, Italy Oldest)
Ethnicity (Japan vs. USA)
Educational groups
Household patterns
9. The Economic Environment
Consumer psychology
4 types of industrial structures
Subsistence economies ~ with few opportunities for marketers
Raw-material-exporting Economies ~ with good markets for equipment, tools,
supplies, and luxury goods for the rich
Industrializing economies ~ where a new rich class and a growing middle class
demand new types of goods
Industrial economies ~ with rich markets for all sorts of goods
10. The Economic Environment
Income distribution patterns
very low incomes
mostly low incomes
very low, very high incomes
low, medium, high incomes
mostly medium incomes Lamborghini
targets pattern#3
11. The Social-cultural Environment
World-views regarding relationships
Views of ourselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe
Core Cultural Values
Core beliefs
Secondary beliefs
Sub-cultures
13. The Technological Environment
Failure to adapt
Accelerating Pace of Change
Unlimited Opportunities for Innovation
Varying R&D Budgets
Increased Regulation of Technological Change
14. The Political-Legal Environment
Increased business legislation
Growth of special interest groups
Consumerist movement (privacy issues)
Laws, Govt. Agencies,
and Pressure groups
Organizations and
individuals
15. Forecasting and demand measurement
Forecasting
Size, growth, and potential of an opportunity
The measures of market demand
The potential market
The available market
The target market
The penetrated market
If sales are low, the
company can adjust the
market demand
16.
17. Vocabulary for Demand Measurement
Market
Market demand
Market minimum
Marketing sensitivity of demand
Market penetration index
Share penetration index
Market forecast
Market potential
Product penetration percentage
Company
Company demand
Company sales forecast
Sales quota
Sales budget
Company sales potential
18.
19. Estimating Current Demand
Total Market Potential
How to calculate no. of buyers?
Step-1: Total population
Step-2: Eliminate non-buyers (low income and education)
Remaining are considered potential
TMP = No. of buyers Avg. quantity purchased Avg. Price
21. Estimating Current Demand
Area Market Potential
Market build-up method ~ identify potential buyers and their purchases
Multiple-factor index model ~ population, income, education
Industry Sales and Market Shares
Actual industry sales in the whole market
Competitors identification
Competitors’ sales estimation ~ Share of wallet
22. Estimating Future Demand
Macroeconomic forecast
Inflation
Unemployment
Interest rates
Imports and exports
Industry forecast ~ based on GDP
Company sales forecast ~ based on market share of wallet
Forecasting is based on:
What people say, what people do, what people have done
23. Estimating Future Demand
What people say?
Surveys ~ purchase probability scale, likert scale
Sales force opinions
Expert opinions
What people do and have done?
Market-test method
Past-sales analysis
