Performance Indicator 1.05

1. Performance Indicator 1.05 Acquire foundational knowledge of marketing-information management to understand its nature and scope.

2. Vocabulary: • Marketing Information – regular, planned collection, analysis, and presentation of information for use in making marketing decisions. • Relationships - The bonds, both actual and perceptual, that are created between the customer, the marketer, and the brand. • Primary data - comes from new research the organization carries out on its own initiative—a marketing research study or focus group, for example. • Secondary data - comes from research that is already available—internal financial records, sales invoices, and public investment information, to name just a few sources.

3. Vocabulary: • Facts – data that can be verified. Ex: Earth is round, a minute is 60 seconds, consumers are purchasing less DVD’s. • Estimates – Approximations of data. Educated guess. Ex: You have an accident and take your car to the repair shop. The shop will give you an estimate on the cost to fix your car. Businesses do the same thing. They create a budget needed for a new product or a promotional plan they wish to create. They estimate how much money will be spent and gained in this venture. • Prediction – also called projections are forecasts that people make about the future. Ex: Weather. Businesses can make projections about sales the next few months based on how they are currently doing or last’s year’s information.

4. Three types of information used in marketing decision making • Customer • Marketing Mix • Business Environment http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all&_r=0

5. Customer Information • Age • Gender • Income • Education • Family size • Home ownership • Address • Occupation • How money is spent • Attitudes • Primary needs • Product purchases • Purchase frequency • Brand preferences • Information needs • Media preferences • Shopping behavior

6. Marketing Mix Information • Basic Products • Product Features • Services • Product packaging • Guarantees • Repairs • Credit Choice • Discounts • Promotion Methods

7. Business Environment Information • Type of competition • Competitors’ strengths • Competitors’ strategies • Economic conditions • Government regulations • New technology • Consumer protection • Ethical issues • Tax policies • Proposed laws • International markets

8. Why is Marketing Information Needed? To identify: 1. potential customers 2. potential products 3. marketing opportunities 4. solve marketing problems 5. implement marketing plans 6. monitor marketing performance.

9. The Impact of Marketing Information on Marketers • Marketing research is used when a business needs to solve problems. • Helps answer questions about what to produce, at what price to sell the products, who will buy the products, and how to promote the products • Helps businesses plan their future operations to increase sales and profits. • Understand markets.

10. Ways Marketers Use Marketing Information • Analysis----the process of summarizing, combining, or comparing information so that decisions can be made. • Analysis example: • Planning a promotional budget • Analyzing the effectiveness of one retailer in a channel of distribution • Analyzing the costs of marketing activities for national and international activities

11. Ways Marketers Use Marketing Information • Product Example: Stouffer’s Lean Cuisine—13 years of market research • Develop product • Test package design • Hold pilot sales in large cities to test market first • Track what is happening in current markets • Determine major competitors • What major competitors are offering • Which products consumers prefer • Customer satisfaction with product

12. Information contained in sales and expense reports that is monitored for marketing decision-making. • Market Share Analysis — the percentage of all sales within a market that is held by one brand / product or company. Normally measured by sales revenue (dollars sold) or sales volume (the number of units sold) • Sales Volume Analysis — A detailed study of an organization's sales, in terms of units or revenue, for a specified period . • Accounting Information analyzed • Spending/Costs to produce and sell products • Profitability/ Sales – Total Costs

13. Information contained in sales and expense reports that is monitored for marketing decision-making. • Sales • How much did they have to discount the product to achieve the sale? • What expenses went into each sale? • Inventory/How much product is left in inventory • Payroll • How much commission did they have to pay the sales rep?

14. Information in reports provided by salespeople that is monitored for use in marketing decision-making. • Request & Complaint reports - products customers requested and problems customers reported • Lost sales reports - cancelled orders or under stocked items • Call reports - what happened in each sales call • Activity reports - all travel, phone calls and in person sales calls for a given period of time • Retail audits to measure market sales, competitor’s sales, market share, prices, special offers, stock levels by week or day • Product information reports– types of products that sell best at various times of year; colors or sizes of products customers prefer

15. Information about customers monitored for marketing decision-making. • Demographic data (age, gender, ethnicity, job, income, marital status) • Buying habits (time of day, repeat products purchased, amount spent on each transaction—full price or on sale, types of products) • Ex: Diapers and beer purchased by men on Thursdays and Saturdays • Ex: Saturday is when most people do major grocery shopping

16. Information about customers monitored for marketing decision-making. • Credit record: do customers pay their bills on time • Customer requests (what products or varieties are requested that you don’t carry) • Receipts (is a certain neighborhood or ZIP code frequenting your establishment more than others)

17. Explain information about competitors that is monitored for marketing decision-making. • USP’s (unique selling points) of our product vs. competition to find our advantage. Is that advantage sustainable, (long lasting)? • Financial records for public companies that you compete with (i.e. annual reports) • Insight into competitors’ strengths, weaknesses, and future plans (new products, marketing campaigns) • Market share analysis • Sales volume data

18. Procedures for identifying information to monitor for marketing decision-making. • Identify data needed for decision-making • Create a plan for collecting, storing and analyzing that data • Compile a list of secondary sources of data • Retrieve the data you need • Analyze/use data to make decisions