Description
In economics, demand is an economic principle that describes a consumer's desire, willingness and ability to pay a price for a specific good or service. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship
Understanding Markets, Market Demand, and the Marketing Environment
©
2003 Prentice Hall, Inc.
Objectives
? Identify the major components of a marketing system. ? Understand how marketers can improve marketing decisions through intelligence systems, marketing research, and marketing decision support systems.
© 2003 Prentice Hall, Inc.
Objectives
? Learn how demand can be more accurately measured and forecasted. ? Understand key demographic, economic, natural, technological, political-legal, and socio-cultural developments.
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? A Marketing Information System is defined as . . .
“people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.”
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Marketing Information Systems compile information from:
– Internal records systems – Marketing intelligence systems – Marketing research – Marketing decision support analysis
©
2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Internal Records Systems
– Order-to-payment cycle is key – Timely sales reports help to better manage inventory – Customer, product, salesperson and other databases can be mined for fresh insights
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Improving the Quality of Marketing Intelligence System Data Requires:
– Training and motivating sales force to report developments – Motivating channel members to share important intelligence – Collecting competitive intelligence
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Improving the Quality of Marketing Intelligence System Data Requires:
– Developing a customer advisory panel – Purchasing information from commercial data sources – Establishing a marketing information center within the company
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? The Marketing Research Process:
– Defining the problem and research objectives – Developing the research plan – Collecting the information – Analyzing the information – Presenting the findings – Making the decision
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Developing the Research Plan Involves:
– Gathering secondary and primary data – Selecting one or more research approaches for primary data collection – Using the appropriate research instrument – Developing a sampling plan – Determining subject contact methods
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Approaches for primary data collection include:
– Observational research – Focus-group research – Survey research – Behavioral data – Experimental research
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? A Marketing Decision Support System is defined as a . . .
“coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets information from business and the environment and turns it into a basis for marketing action.”
© 2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Market demand ? Company demand and sales forecasts ? Current demand ? Future demand Market Potential market Available market Target market (served market) ? Qualified available market ? Penetrated market ? ? ? ?
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand ? Market demand
Market minimum Market forecast Market potential Nonexpansible vs. expansible markets – Primary vs. secondary demand – – – –
? Market forecast ? Market potential
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand ? Company demand ? Company sales forecast ? Sales quota ? Sales budget ? Company sales potential
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand
? Total market potential ? Area market potential
– Market-buildup method
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand ? Many Forecasting Methods:
– Buyer intentions survey – Composite of sales force opinions – Expert opinion – Past-sales analysis – Market-test method
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Demographic Environment
– Worldwide population growth – Population age mix – Ethnic markets – Educational groups – Household patterns – Geographic population shifts – Rise of micromarkets
© 2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Economic Environment
– Income distribution – Savings, debt, and credit availability
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Natural Environment
– Shortage of raw materials – Increased energy costs – Anti-pollution pressures – Changing role of governments
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Technological Environment
– Accelerating pace of technological change – Unlimited opportunities for innovation – Varying R&D budgets – Increased regulation of technological change
© 2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Political-Legal Environment
– Legislation regulating business – Growth of special interest groups
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Socio-Cultural Environment
– World views that consumers hold of themselves, others, society, organizations, nature, and the universe – High persistence of core values – Existence of subcultures
© 2003 Prentice Hall, Inc.
doc_550768266.pptx
In economics, demand is an economic principle that describes a consumer's desire, willingness and ability to pay a price for a specific good or service. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship
Understanding Markets, Market Demand, and the Marketing Environment
©
2003 Prentice Hall, Inc.
Objectives
? Identify the major components of a marketing system. ? Understand how marketers can improve marketing decisions through intelligence systems, marketing research, and marketing decision support systems.
© 2003 Prentice Hall, Inc.
Objectives
? Learn how demand can be more accurately measured and forecasted. ? Understand key demographic, economic, natural, technological, political-legal, and socio-cultural developments.
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? A Marketing Information System is defined as . . .
“people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.”
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Marketing Information Systems compile information from:
– Internal records systems – Marketing intelligence systems – Marketing research – Marketing decision support analysis
©
2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Internal Records Systems
– Order-to-payment cycle is key – Timely sales reports help to better manage inventory – Customer, product, salesperson and other databases can be mined for fresh insights
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Improving the Quality of Marketing Intelligence System Data Requires:
– Training and motivating sales force to report developments – Motivating channel members to share important intelligence – Collecting competitive intelligence
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Improving the Quality of Marketing Intelligence System Data Requires:
– Developing a customer advisory panel – Purchasing information from commercial data sources – Establishing a marketing information center within the company
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? The Marketing Research Process:
– Defining the problem and research objectives – Developing the research plan – Collecting the information – Analyzing the information – Presenting the findings – Making the decision
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Developing the Research Plan Involves:
– Gathering secondary and primary data – Selecting one or more research approaches for primary data collection – Using the appropriate research instrument – Developing a sampling plan – Determining subject contact methods
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? Approaches for primary data collection include:
– Observational research – Focus-group research – Survey research – Behavioral data – Experimental research
© 2003 Prentice Hall, Inc.
Supporting Marketing Decisions
? A Marketing Decision Support System is defined as a . . .
“coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets information from business and the environment and turns it into a basis for marketing action.”
© 2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Market demand ? Company demand and sales forecasts ? Current demand ? Future demand Market Potential market Available market Target market (served market) ? Qualified available market ? Penetrated market ? ? ? ?
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand ? Market demand
Market minimum Market forecast Market potential Nonexpansible vs. expansible markets – Primary vs. secondary demand – – – –
? Market forecast ? Market potential
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand ? Company demand ? Company sales forecast ? Sales quota ? Sales budget ? Company sales potential
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand
? Total market potential ? Area market potential
– Market-buildup method
©
2003 Prentice Hall, Inc.
Forecasting and Demand Measurement
Essential Aspects
? The market ? Measuring demand ? Company demand and sales forecasts ? Current demand ? Future demand ? Many Forecasting Methods:
– Buyer intentions survey – Composite of sales force opinions – Expert opinion – Past-sales analysis – Market-test method
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Demographic Environment
– Worldwide population growth – Population age mix – Ethnic markets – Educational groups – Household patterns – Geographic population shifts – Rise of micromarkets
© 2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Economic Environment
– Income distribution – Savings, debt, and credit availability
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Natural Environment
– Shortage of raw materials – Increased energy costs – Anti-pollution pressures – Changing role of governments
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Technological Environment
– Accelerating pace of technological change – Unlimited opportunities for innovation – Varying R&D budgets – Increased regulation of technological change
© 2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Political-Legal Environment
– Legislation regulating business – Growth of special interest groups
©
2003 Prentice Hall, Inc.
Macroenvironmental Trends and Forces
? Socio-Cultural Environment
– World views that consumers hold of themselves, others, society, organizations, nature, and the universe – High persistence of core values – Existence of subcultures
© 2003 Prentice Hall, Inc.
doc_550768266.pptx