3. 3
Introduction to the Marketing-decision
• Marketing decisions are the most important decisions made by managers.
can categorized as
• What consumer segments to serve?
• What products/services
• At what prices,
• Through which channels,
• What type and amounts of promotion
ü product improvement
ü increasing market share
ü attracting new audiences
ü handling the competition
These decisions determine a firm’s marketing posture and other decision areas.
Decisions By Existing Firms
Decisions by New Firms
4. 4
• Marketing Decision Making Process
üIdentify a problem or opportunity
üdefine the problem or opportunity
üidentify alternative courses of action
üselect a specific course of action
• Quality of Marketing Decisions is determined by the
amount and accuracy of information used to make
decision.
Introduction to the Marketing-decision Environment
5. 5
• Marketing Information System (MkIS)is the milestone
for any marketing decision.
• Which provides decision maker an appropriate
marketing information and data.
• Reliable source of information
• Appropriate tools for information processing
• System for information management
Introduction
Reduce uncertainty
and error in decision
making
7. Marketing Information System
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• 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.
• Deals with information related to pricing, packaging, new
product development, distribution, media, promotion, market
share, customer preferences, life style, etc.
8. A marketing information system
consists of a structured, interacting
complex of persons, machines, and
procedures designed to generate an
o r d e r l y f l o w o f p e r t i n e n t
information
The structure and procedure of the entire
organization’s communication process
MKIS is careful development of master
plan for information flow
9. Objectives of MkIS
Ø Securing access to adequate,
accurate, timely, pertinent decision
info to marketers and marketing
experts data about;
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customers
other forces in marketing
environment
suppliers
competitors
Marketing mix
Technologies
10. 10
increasing competitiveness & market share
identifying business development opportunities
implementing a consumer-oriented approach
Importance of Marketing Information
System
conducting thorough demand & supply analysis
identifying and managing business risks
14. MARKETING INFORMATION SYSTEM COMPONENTS
Internal Records
(Data Bases)
• b u i l d e x t e n s i v e
internal data base,
electronic collections
of consumers and
market information
obtained from data
source within the
company network.
Marketing
Intelligence
• makes it possible to
better understand your
c u r r e n t b u s i n e s s
s i t u a t i o n , m a r k e t
c h a n g e s , t r e n d s ,
competitors’ strategies,
recent innovations, and
consumer preferences.
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Marketing
Research
• present a specific problem as
your current business goal
and investigate all the details
necessary for developing a
solution.
Decision
Support System
• Analyze the data to
t a k e b e t t e r
marketing decisions.
15. Internal Records (Data Bases)
• P r o v i d e i n s i g h t a b o u t
marketing capability of firm.
• Know your company’s strength
• K n o w y o u r c o m p a n y ’s
weakness
• Data from inside the organization
• Easiest & quick to find
• Data sources include;
• invoices
• transmit copies,
• billing documents
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16. Internal Records
•sales database
•Cash flow data
•Customer database
•Premium
•Economic
•Product database
•Stocks out
•Stock available
•Financial database
•Operations database
•Employees database
•Salesperson database
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17. • Is collected data that provide the broader view of the company’s existing
market.
• Consists information and insights about customers, competitors, problems,
regulatory authorities, the potential for new products, and any other market
info.
• It gathers data externally providing you a holistic view of the entire market.
• MI provide key insights into the behavioral patterns of the business
environment.
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Marketing Intelligence
18. Marketing Intelligence
• includes the information about;
• the changing market trends
• competitor’s pricing strategy
• change in the customer’s tastes and preferences
• new products launched in the market
• promotion strategy of the competitor, etc.
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19. Marketing Intelligence Activities
Market Analysis
• the process of gathering information about a market within an industry.
• pay constant attention to how your customers behave, what they are looking for and
how they perceive your product, the change in their preferences throughout product
life cycle.
• Intelligence methods
• Conducting surveys, focus groups, & analyzing customer data to understand
customer preferences, needs, and buying behavior.
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20. Critical Market Information
20
T h i s i n f o r m a t i o n
enables the marketer to
better understand his/her
customers and market
conditions
•Who are my potential customers?
•What are my customers’ shopping and buying habits?
•How large is my target market?
•How much are potential customers willing to pay?
•Who are role players in the market?
•How they access, interpret and adopt commercial ads?
21. Customer segmentation Analysis:
• Process of finding insights on demographics, psychographics, and
behavior that define specific segments of customers.
• to create targeted marketing campaigns.
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Marketing Intelligence Activities
Customer
Segment
Need Size income Willingness to
pay
Sales
growth
attractiveness Marketing
strategy
Price seeker
Innovation seeker
Durability seeker
22. Marketing Intelligence Activities
Competitor analysis:
• Studying the strengths and
weaknesses of competitors to
identify opportunities and
threats in the market.
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How to conduct competitors analysis?
üIdentify your competitors
üSet evaluation criteria
üGather information on current and potential competitors
üCompare your position on the bases of those criteria
üIdentify your unique identity/strategy
24. Industry analysis:
• Involves specific information about the
current state of the industry
• Analyzing trends, regulations, and economic
factors that affect the industry to identify
opportunities and threats.
• Projection of the industry trends
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Marketing Intelligence Activities
üSWOT
üPorter’s Five Forces Analysis
üExternal factor matrix
üInternal factor matrix
25. Marketing Intelligence Activities
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Social media monitoring:
• Tracking social media conversations and mentions of the brand to
understand customer sentiment and identify potential issues.
Website analytics:
• Analyzing website traffic and user behavior to optimize website
design and content.
Sales forecasting:
• Predicting future sales based on historical data, market trends,
and other factors to make informed business decisions.
26. Marketing Intelligence Activities
Product research and development:
• Conducting research to identify new product opportunities and
improve existing products based on customer feedback.
Brand tracking:
• Monitoring brand awareness, perception, and loyalty to identify
areas for improvement.
Marketing performance measurement:
• Tracking the effectiveness of marketing campaigns and adjusting
strategies based on results.
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27. Marketing Research
• Marketing research is the function which links the consumer, customer, and
public to the marketer through information—information used to identify and
define marketing opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and improve
understanding of marketing as a process.
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