chapter3 ppt by group 2 final

7/23/2019 Chapter3 Ppt by Group 2 Final

1/71

By: Arka GoswamiArunangshu Ray

Eshan Sadasivan

Kinsuk Ghatak

Shreyansh Singh

Sourav Ghosh

Scanning the MarketingEnvironment,

Forecasting Demand

and Conducting MarketingResearch

1


2/71

Understand marketing Information system. Understand Maro and Miro environmenta!

fators.

Understand fundamenta!s of marketingresearh. Understand market demand and foreasting

.

Objectives

5-2


3/71

MIS consists of peope ,e!uipments " procedures togather " ana#$e time# " accurate information formarketing decision makers%

5-3

Marketing Information S#stem


4/71

Interna Records:

". Sa!es Information :#a!id info from sa!es teamhe!$s to deve!o$ $roduts.

%. &rder to $aymenty!e :Gives !earunderstanding a'out theustomer.

(. )ata'asemanagement : *or

gathering detai!ed ustomerinformation+$urhasehistory, fre-ueny et.

MarketingInteigence&

". Government/u'!ished )ata'Census,(SSO etc%)

%. )ata form int. and

e0t. soures(. E0terna! e0$erts

'*C(ieson, Mkt% ResearchCompanies, I+MR)

1. Internet'mouthshut%comConsumerRevie-%com)

2. 3om$!aint sites and$u'!i '!ogs.

5-4


5/71

3-5

Interna Records

Saes Information

S#stemMarketing managers need timely and accurate reports on current

sales.

Wal-Mart

knows the sales of each product by store and total each evening.

enables it to transmit nightly orders to suppliers for new shipments

of replacement stock.

Wal-Mart shares its sales data with its larger suppliers such as P&Gand expects P&G to re-supply Wal-Mart stores in a timely manner.

Wal-Mart has entrusted P&G with the management of its inventory.

utsourcing


6/71

.i$$a /ut caims to have&the !argest fast4food ustomer data warehouse in the wor!d,with 15 mi!!ion U.S. househo!ds6or 'etween 15 and 25 $erent

of the U.S. market.

7he mi!!ions of ustomer reords are g!eaned from $oint4of4sa!etransations at its restaurants.

/i88a 9ut an s!ie and die data 'y:

favorite to$$ings, date of ast order, or 'y whether you ordera saad -ith #our pepperoni pi$$a%Using its dataarehouse Miner, /i88a 9ut has not on!y 'een a'!e to $urgee0$ensive du$!iates from its diret4mai! am$aigns, 'ut canaso target its marketing to 0nd the best coupon o1ersfor each househod and predict the success ofcampaigns

2he .I33* /42 Case & CustomerDatabase Management " *na#sis


7/71

A!! the fators and fores in;uening the om$any


8/71

!arget"onsumers

Product

Place Price

Promotion

Purcha

sing

#&$

Pro

ductio

n

Mark

eting

"ompetitors

%ntermediaries

Publics

&upp

lie

rs

$emographic

'conomic

!echnological

(atural

Political)egal

ocial"ultural

'ngineering

)ogistics

*inance

+ccounting

Bruce C. Bailey 19985-8


9/71

2he Macroenvironment2he Macroenvironment

$emographic$emographic

!echnological!echnological

"ultural"ultural 'conomic'conomic

PoliticalPolitical

(atural(atural

*orces that hape

pportunitiesand Pose !hreats

to a "ompany

*orces that hape

pportunitiesand Pose !hreats

to a "ompany

5-9


10/71

5-

10

Demographic Environment

Worldwide Population GrowthWorldwide Population Growth

Population Age Mix Population Age Mix

Ethnic Markets Ethnic Markets

Household PatternsHousehold Patterns

Educational GroupsEducational Groups

Geographical Shifts in PopulationGeographical Shifts in Population

Shift from Mass to MicromarketsShift from Mass to Micromarkets


11/71

.opuation *ge Mi5 :Me0io ? India et has veryyoung $o$u!ation and heneKoo! Marketing.

Ethnic Market: @a$an hasC @a$anese $eo$!e,USA :more than C 'orn inother ountries, India a!so

has a very diverse$o$u!ation in terms ofre!igion.

Educationa 6roups& )e$endingon !iteray rate and eduation'akground the marketing strategyneeds to 'e modiDed. A$$!ia'!e forSouth Asian+India,/ak,BAfrian +igeria, Ethio$ia, Egy$t

3ountries. Marketing and sa!es of'ooks and eduationa! materia!sde$end a !ot on these fators.

/ousehod .atterns: Rura! andUr'an /o$u!ation distri'ution. More

nu!ear fami!ies than the Fointfami!ies in today


12/71

Meting .ot 7S Saad +o-

Aording to the %555 ensus:

the U.S. $o$u!ation of 89:%8mi!!ion was 98C white.Afrian Amerians onstituted ;


13/71

/urhasing $ower of an eonomyde$ends on these fators. Basedon that Mktg. strategy has to 'e

o'tained.

In;ation a!so has a maFor ro!e to$!ay in this ase. 3onsumer'eomes hoosy > Bargain for'etter dea!s.

Reession, 7a0es, Bank Rates,E0hange rates, Market Si8e,)emand et. are some of theother fators a=etingmarketing.

5-

13

Economic Environment

%ncome $istribution%ncome $istribution

Subsistence economiesSubsistence economies

Ra-material-e!"ortin# economiesRa-material-e!"ortin# economies

$n%ustriali&in# economies$n%ustriali&in# economies

$n%ustrial economies$n%ustrial economies

avings, $ebt, &

"redit +vailabilityavings, $ebt, &

"redit +vailability

e.#. 'a"ua ne (uinea ) 'oor country

e.#. *i%%le east+ ,ustralia+

Sout ,rica

e.#. #roin# economies li/e $n%ia+

Bra&il+ #y"t+Cina etc.

e.#. estern uro"e

countries+ S, etc.


14/71

5-

14

(atura EnvironmentaFactors

(atural'nvironment

igherPollution

)evels

igherPollution

)evels

%ncreased "ostsof 'nergy

%ncreased "ostsof 'nergy

hortage of#aw Materials

hortage of#aw Materials

"hanging #oleof Government

"hanging #oleof Government

e.#. eli #oernments

initiatie or C(

"oere% eicles

6ill acilitate

com"anies ocusin#

on non-"ollutin#

sources o ener#yirms "lyin# teir tra%e

in reneable sources o

ener#y ill #ro


15/71

2echnoogica Environment

+cceleratingPace

of"hange+cceleratingPace

of"hange

.nlimitedpportunities

for%nnovation.nlimitedpportunities

for%nnovation

%ncreased

#egulation%ncreased

#egulation

%ssuesinthe!echnological

'nvironment%ssuesinthe!echnological

'nvironment

/arying

#&$0udgets/arying

#&$0udgets

ime beteen i%ea an% its

im"lementation is %ecreasin# .

Sectors li/e robotics+

"armaceuticals+ nironment+

accines etc.

*ore un%s bein# allocate% to

researc,+ SS,$

5-

15


16/71

India > Mauritius have treaty on 7a0ation.

A om$any investing in India need not togive

Any ta0 here. 7hus Mauritius is onsidered as7a0 9aven for many Investors in India.

Ethis > Soia! Res$onsi'i!ity

Inreased egis!ation > Enforement

.oitica>?egaEnvironment

5-

1


17/71

Socia@CuturaEnvironment

f

rgani1ations

frgani1ations

f

(ature

f(ature

f

neself

f

neself

f

ociety

f

ociety

fthe niversefthe niverse fthersfthers

/iews

!hat 'xpress

/alues

/iews

!hat 'xpress

/alues

5-

17


18/71

Core " Secondar#Cutura 7aues &

Marketers do try toin;uene the seondaryva!ues of youth whih aremore o$en to hange.ike : )on


19/71

McDonadAsrestaurants

around the wor!d served'eef in their 'urgers .7hisated as a deterrentinitia!!y in India. But !ateron they hanged theirstrategy and ame u$ with

vegeta'!e $roduts too toater theIndian soiety. 7hey evenhanged their !ogo here.

(este ontroversy in"5


20/71

7he miro environment refers to the foresthat are !ose to the om$any and a=et itsa'i!ity to serve its ustomers.

It in!udes the om$any itse!f, its su$$!iers,marketing intermediaries, ustomer marketsand $u'!i.

Microenvironment

5-

20


21/71

Compan#: A!! de$artmentswithin the organi8ation

Suppiers &A om$any re!ies onother su$$!iers and vendors forsu$$!ies.

Intermediaries &Banks, #3sand other soures to Dnaneo$erations who!esa!ers andretai!ers, /R ageny et.

Customers&individua! or anorgani8ation that $urhases the$rodut.

Competitors &om$anies withsimi!ar o=erings for goods andservies.

.ubics &Grou$s that may havea signiDant im$at onmarketing ativities.

Micro environmentaeements

5-

21


22/71

*ores and ationinside the Drm that

a=et the marketingo$erations.

3om$osed of interna!stakeho!ders and

funtiona! areaswithin theorgani8ation.

5-22

Interna EnvironmentaEements


23/71

Forecasting "Demand

Measurement


24/71

It is the Drst ste$ of marketer for eva!uatingmarket o$$ortunities

Market )emand for a $rodut is the tota!vo!ume that wou!d 'e 'ought 'y a deDned

ustomer grou$ in a deDned geogra$hia! areain a deDned time $eriod in a deDnedmarketing environment under a deDnedmarketing $rogram.

It is not a D0ed num'er, rather a funtion of a!!stated onditions. 7herefore it is termed asMarket )emand *untion.

5-24

Market Demand


25/71

,ll sales

Com"any sales

'ro%uct line sales

'ro%uct orm sales'ro%uct item sales

$n%ustry sales

Productlevel

!erritory

#egion

"ountry

"ustomer

Worldpacelevel

Sort *e%ium :on#

!ime frame

(inet# 2#pes of DemandMeasurement ': 5 B 5


26/71

5-2


27/71

5-27


28/71

2#pes of Market

; .otentia market4 suNient interest 'utinsuNient inome or aess

; *vaiabe market> set of ustomers withsuNient inome, interest and aess.

; 2arget market> -ua!iDed ustomer withinavai!a'!e market whih the om$anydeides to $ursue +Market for $e$$er s$ray

; .enetrated market> set of ustomersa!ready 'uying the $rodut.

5-28


29/71

Marketing .otentia and MarketForecast 'de0nition)

Marketing .otentiais the !imita$$roahed 'y Market demand as industrymarketing e=ort +E0$enditures goes toinDnity, for a given environment.

7he Market )emand orres$onding to thee0$eted e=ort is a!!ed the MarketForecast. &n!y one of the many $ossi'!e

!eve!s of industry marketing e=ort+e0$enditure wi!! atua!!y our.

5-29


30/71

Figure& Market DemandFunctions

5-30


31/71

It is the ratio of 3urrent market to /otentia!market.

hen M/I is !ow 9igh &$$ortunity

Eg: 7ennis In India hen M/I is high ow &$$ortunity

Eg: 3riket In India

5-31

Market .enetration Inde5&


32/71

Compan# Demand

3om$any )emand is the 3om$any


33/71

Compan# Saes Forecast

hen the marketer has estimated 3om$any demand, ne0t task is todetermine the e0$eted !eve! of om$any sa!es 'ased on a hosenmarketing $!an and an assumed marketing environment4 whih is deDnedas 3om$any Sa!es *oreast.

hih one omes DrstO

44Marketing $!an or Sa!es foreastO

*irst foreast, then $!anP this theme is va!id for non4e0$ansi'!e om$anydemand or ases where foreast means an estimate of nationa! eonomiativity.

7he reverse theme is va!id for a!! e0$ansi'!e market or where foreastmeans an estimate of om$any sa!es.

Sa!es -uota P Sa!es goa! set for a $rodut !ine, om$any division or sa!esre$resentative. &ften set s!ight!y higher than estimated sa!es. Sa!es Budget4 Estimate of e0$eted vo!ume of sa!es for making urrent

$urhasing, $rodution and ash ;ow deisions. Set s!ight!y !ower thansa!es foreast.

5-33


34/71

Compan# Saes .otentia

3om$any Sa!es /otentia! is the sa!es !imita$$roahed 'y the om$any demand as theom$any marketing e=ort inreases re!ativeto that of 3om$etitors.

Idea!!y a om$any may get "55C of itsmarket. A'so!ute !imit is ahieved when itgra's the entire market $otentia!.

5-34


35/71

Estimating currentdemand7he $ratia! ways to estimate urrent market demand are4

7ota! market $otentia!: ma0 sa!es avai!a'!e to a!! Drms in an industry during a given$eriod under a given !eve! of industry marketing e=ort and environmenta! onditions.

7ota! market $otentia!Q $otentia! no. of 'uyers 0 avg. -uantity $urhased 'y eah'uyer 0 $rie

Method for o'taining /otentia! no of 'uyers4I 'y e!iminating the re!utant grou$ +who wi!! not 'uy the $rodut from tota! no of

$o$u!ation.

II &r, 'y 3hain ratio method: whih invo!ves mu!ti$!ying a 'ase fator 'y severa!adFusta'!e $erentages.

9ow to a!u!ate tota! market $otentia! for ie4ream among ur'an A)U7S:

Q Ur'an $o$u!ation a'ove " 0 $ersona! disretionary inome $er a$ita 0 averageC of disretionary inome s$ent on food 0 average C of amount s$ent on foodthat is s$ent on dairy $roduts 0 e0$eted C of amount s$ent on dairy $rodutsthat wi!! 'e s$ent on ie ream.

5-35


36/71

Area market $otentia!: Sine om$any musta!!oate their marketing 'udget o$tima!!y among

their 'est territories, they need to estimatemarket $otentia! of di=erent ities, nation. MaFor methods are4

i Market 'ui!d4u$ method: It dea!s withidentifying a!! $otentia! 'uyers in eah market >estimate their $otentia! $urhases.

5-3

Market *nnuaSaes'inMiion)

(o ofestabishments

.otentia saesperestabis

hments

*% M% .%

Market " " "5 5

Market % 2 % "5 "55

Market ( " ( 2 "2

Market 1 2 " 2 %2

%55


37/71

ii Mu!ti$!e fator inde0 method *or onsumer om$anies where ustomer 'ase is

too high, the ado$t this method to estimate market

$otentia! 'y using e0isting market inde0es ordeve!o$ing their own market inde0es.

Many om$anies om$ute other area inde0es as aguide in a!!oating marketing resoures.

Brand deve!o$ment inde0 +B)I: hih is the ratioof 'rand sa!es to ategory sa!es, e0$ressed in C.

here B)I is !ess, that indiates 'rand is re!ative!y!ess deve!o$ed here ie there is a so$e for

inreasing 'rand sa!es.

5-37


38/71


39/71

iii Industry sa!es > market shares:

A om$any a!so needs to identify their

om$etitors > their market sa!es. 7heom$any an then om$are > eva!uate its$erformane.

Severa! survey re$orts may 'e onsu!ted in

this regard.

5-39


40/71

Estimating Future Demand

Forecastingis an art of antii$ating what 'uyersare !ike!y to do under a given set of onditions

( way $roessT

". Maroeonomi foreast

%. Industry *oreast (. 3om$any Sa!es foreast hat peope sa# hat peope do

hat peope have done

5-40


41/71

hat $eo$!e sayO Surve#of Buyer +7rend, y!e, season, erratiand future $roFetion

E5ponentia Smoothing> $ast and reent sa!e

Statistica Demand> 3ausa! fators +inome, $rie,marketing e0$enditure

Economic *na#sis> E-uations 'ased mode!

5-41


42/71

hat is MarketingResearchG

Marketing research is the systematidesign, o!!etion, ana!ysis, and

re$orting of data and Dndings re!evant

to a s$eiD marketing situation faingthe om$any.

5-42


43/71

5-43

h# Market ResearchG


44/71

5-44


45/71

2he Marketing Research .rocess

eine te "roblem

eelo" researc "lan

Collect inormation

,naly&e inormation

'resent in%in#s

*a/e

%ecision

5-45


46/71

Step ;& De0ne the

.robem )eDne the $ro'!em S$eify deision a!ternatives

State researh o'Fetives

5-4


47/71


eine te "roblem

eelo" researc "lan

Collect inormation

,naly&e inormation

'resent in%in#s

*a/e

%ecision

5-47


48/71

Step 8& Deveop the Research.an

ata

Sources

Contact

*eto%s

Researc

$nstruments

Sam"lin#

'lan

Researc

,""roac

5-48


49/71

Data Sources

Interna! E0terna!

Seondary )ata

+A!ready E0ists

/rimary )ata

+*resh!y Gathered*or A S$eiD /ur$ose

5-49


50/71

Research *pproaches


51/71

Researhers gather fresh data 'y o'serving the re!evantators and settings.

It an 'e done 'y sometimes instruting onsumers tore$ort their ativities and write them down when

$rom$ted or through informa! interview sessions.

Observationa Research

5-51


52/71

Ethnogra$hi researh is a a$$roah that uses one$ts andtoo!s from anthro$o!ogy and other soia! sienes to $rovideinsight into how $eo$!e !ive and work. It immersesresearhers into the !ives of onsumer and he!$s them

unover unartiu!ated desires that might not have surfaedin other researhes.

E0am$!e:

After o'serving $o$u!arity of 3hinese harater te0tmessaging in Shanghai, Motoro!a introdued A(% to

inor$orate diret 3hinese te0t in$ut.

Ethnographic Research

5-52


53/71

A fous grou$ is agathering of to "5 $eo$!earefu!!y se!eted 'yresearhers 'ased on

ertain demogra$hi,$syhogra$hi, or other

onsiderations and 'roughttogether to disuss various

to$is of interest at !ength.

/artii$ants are norma!!y$aid a sma!! sum forattending

Focus 6roups

5-53


54/71

Surveys are used for desri$tive researh to !earn a'out$eo$!e


55/71

3onsumer


56/71

Huestion 2#pes

ere are to ty"es o =uestions tat are "resente%to customers>

"losed end; icotomous; *C?; :i/ert Scale; Semantic irential; $m"ortant Scale; Ratin# scale

pen end

; nstructure%; 6or% association; Sentence com"letion; Story com"letion; 'icture

5-5


57/71

Samping .an

Sam$!ing unit: ho is to 'e surveyedO Sam$!e si8e: 9ow many $eo$!e shou!d 'e

surveyedO Sam$!ing $roedure: 9ow shou!d the

res$ondents 'e hosenO

5-57


58/71


eine te "roblem

eelo" researc "lan

Collect inormation

,naly&e inormation

'resent in%in#s

*a/e

%ecision

5-58


59/71

Contact methods

*ail ?uestionnaire

ele"one

$nterie

'ersonal

$nterie


60/71


eine te "roblem

eelo" researc "lan

Collect inormation

,naly&e inormation

'resent in%in#s

*a/e

%ecision

5-0


61/71


eine te "roblem

eelo" researc "lan

Collect inormation

,naly&e inormation

'resent in%in#s

*a/e

%ecision

5-1

REFI(ED .ERSO(*S 2rac Rues


62/71

REFI(ED .ERSO(*S> 2rac Rues

St i t f


63/71

Strict foo-ers

(ame& Dr% 6anesh .rasad

*ge& BB #ears

Occupation& .rofessor atICE

7ehice& .ersona car

Dai# Road 4sage& 88 kms

9e 'e!ieves that as a$rofessor it is hisres$onsi'i!ity to 'e a ro!emode!.

9e strit!y fo!!ows thetraN ru!es at any ost.

9e onduts awarenesssessions and seminars.

Being a res$onsi'!eiti8en, he ares for theo ommuters.

I wou!d !ike to see a

transformation in themindset of Indian iti8enstowards fo!!owing traNru!esJ


64/71

InJuenceabe b# others

(ame& Ramesh Kumar

*ge& 8L #ears

Occupation& Ca centerempo#ee

7ehice& Motor bike

Dai# Road 4sage& brained


65/71

/are>brained

(ame& 7ick# arora

*ge& ;N #ears

Occupation& Student

7ehice& Motor bike

Dai# Road 4sage& ;: kms

9e wants to enFoy theroad.

9e does not are a'outthese ru!es.

9e is o'sessed with hisnew 'ike and wants to$erform thri!!ing stunts.

9e wants to gra' theattention of $eo$!e.

In;uened 'y $eer$ressure.

ho ares dude, Fust

hi!!J


66/71


eine te "roblem

eelo" researc "lan

Collect inormation

,naly&e inormation

'resent in%in#s

Make

decision

5-

Measuring marketing


67/71

Measuring marketingproductivit#

5-7

Measuring marketing


68/71

Marketing metricsSet of measures that he!$s marketers to

-uantify, om$are, and inter$ret marketing

$erformane.

Marketing>mi5 modeing

Estimates asua! re!ationshi$s and measures

how marketing ativity a=ets outomes


5-8


69/71

Interna;Awareness of goa!s;3ommitment to goa!s

;Ative innovation su$$ort

;Resoure ade-uay;Ski!! !eve!s;)esire to !earn;i!!ingness to hange;*reedom to fai!;Autonomy;Re!ative em$!oyeesatisfation

E5terna; Awareness; Market share; Re!ative $rie; um'er of om$!aints; 3ustomer satisfation; )istri'ution;

7ota! num'er ofustomers; oya!ty

Sampe Marketing MetricsG

5-9

Measuring marketing


70/71

Marketing dashboardsA strutured way to disseminate the insights g!eaned frommarketing metris and marketing4mi0 mode!ing a$$roaheswithin the organi8ation.


5-70


71/71

Referenes : ". Marketing Management : Kot!er , Ke!!er %. www.$earson.om (. www.wiki$edia.org

1. www.$est!eana!ysis.om 2. www.marketingteaher.om . www.'u88!e.om

2hank #ou
http://www.pearson.com/http://www.wikipedia.org/http://www.pestleanalysis.com/http://www.marketingteacher.com/http://www.buzzle.com/http://www.buzzle.com/http://www.marketingteacher.com/http://www.pestleanalysis.com/http://www.wikipedia.org/http://www.pearson.com/

chapter3 ppt by group 2 final

Documents