Marketing-Information Marketing-Information Management LAP 12Management LAP 12

Data Do ItData Do ItNeed for Marketing DataNeed for Marketing Data

ObjectivesObjectives

Identify types of data that are useful toIdentify types of data that are useful tomarketers for decision making.marketers for decision making.

Describe ways that marketers use Describe ways that marketers use marketing data.marketing data.

Identify types of data that are useful Identify types of data that are useful to marketers for decision making.to marketers for decision making.

ObjectiveObjective

• Do you own an iPod or Do you own an iPod or mp3 player?mp3 player?

• What decisions had to What decisions had to be made?be made?

Decision Making Requires DataDecision Making Requires Data

• Which job to choose?Which job to choose?

• Many considerations Many considerations requiredrequired

Ice-cream Ice-cream ShopShop Insurance Insurance

AgencyAgency

• Make the best Make the best decisiondecision

Businesses Need DataBusinesses Need Data

• Make thousands of marketing Make thousands of marketing decisions each yeardecisions each year

• Must have data on hand for Must have data on hand for the best choicesthe best choices

Types of DataTypes of Data

Facts—data that Facts—data that can be verifiedcan be verified

The earth The earth is round.is round.

Predictions—forecasts Predictions—forecasts about the futureabout the future

Estimates—approximations Estimates—approximations or or ““educated guesseseducated guesses””

Repair estimate

$1,500.00

Sources of DataSources of Data

• Salespeople:Salespeople:

What products are sellingWhat products are selling

How sales stack up to How sales stack up to budgets and goalsbudgets and goals

Sources of DataSources of Data

• Customers:Customers:

Who they areWho they are

What they want/needWhat they want/need

How much they How much they spendspend

Sources of DataSources of Data

• Competitors:Competitors:

Public financial Public financial recordsrecords

Current product Current product offeringsofferings

Promotional Promotional campaignscampaigns

Mega CorpMega Corp Giant CorpGiant Corp

Sources of DataSources of Data

• Suppliers and distributorsSuppliers and distributors

Suppliers—sell goods or Suppliers—sell goods or services to a businessservices to a business

Distributors—sell a Distributors—sell a businessbusiness’’s goods or s goods or servicesservices

Sharing data throughout Sharing data throughout distribution channel can distribution channel can help everyone!help everyone!

Sources of DataSources of Data

• News and trade journalsNews and trade journals

Current eventsCurrent events

Industry newsIndustry news

Describe ways that marketers Describe ways that marketers use marketing data.use marketing data.

ObjectiveObjective

Ways Marketers Use DataWays Marketers Use Data

To identify realistic goalsTo identify realistic goals

SSMMAARRTT ==

sspecific, pecific, mmeasurable, easurable, aachievable, chievable, rrealistic, ealistic,

ttime-boundedime-bounded

For sales, market For sales, market share, budgets, etc.share, budgets, etc.

Ways Marketers Use DataWays Marketers Use Data

To develop product strategiesTo develop product strategies

• What products to offerWhat products to offer

• What new products to What new products to developdevelop

• What level of customer What level of customer service to provideservice to provide

Ways Marketers Use DataWays Marketers Use Data

To develop pricing strategiesTo develop pricing strategies

What to chargeWhat to chargeWhen to raise When to raise

or lower pricesor lower prices

PricesPricesPrices

Ways Marketers Use DataWays Marketers Use Data

To develop promotional strategiesTo develop promotional strategies

• What to sayWhat to say

• In what ways to say itIn what ways to say it

• How often to say itHow often to say it

Ways Marketers Use DataWays Marketers Use Data

To develop “placeTo develop “place”” strategies strategies

How much of the product How much of the product to buy or createto buy or create

What channels of What channels of distribution to usedistribution to use

Ways Marketers Use DataWays Marketers Use Data

To make budgeting decisionsTo make budgeting decisions

• Estimating costs Estimating costs for each productfor each product

• Allocating funds Allocating funds accordinglyaccordingly

Ways Marketers Use DataWays Marketers Use Data

To identify problems or issues withTo identify problems or issues with

• ProductProduct

• Customer serviceCustomer service

• Vendors/suppliersVendors/suppliers

• SalespeopleSalespeople

Ways Marketers Use DataWays Marketers Use Data

To evaluate resultsTo evaluate results

Positive outcomes— Positive outcomes— learn what to keep doinglearn what to keep doing

Negative outcomes— Negative outcomes— learn what not to dolearn what not to do

Impact of Data on MarketersImpact of Data on Marketers

• Overall—very positive Overall—very positive if used wisely!if used wisely!

• Helps marketers to:Helps marketers to: Create competitive Create competitive

productsproducts

Satisfy customersSatisfy customers

Make cost-effective Make cost-effective decisionsdecisions

Boost profitabilityBoost profitability

• What have you purchased within the past week?

• What types of data did marketers use to get it in your hands?

• Estimates used all the time

• Can be adjusted

• Quotes lowest cost for project approval

• Is this unethical?

MBAResearchAcknowledgments

Original DevelopersChristopher C. Burke,

Sarah Bartlett Borich, MBAResearch

Version 1.0

Copyright © 2011MBA Research and Curriculum Center®

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