Agenda

1
Agenda

• Article Reviews
• Marketing Insights?
• Lecture/Questions on Chapter 5
• Lecture/Questions on Chapter 9

2
Gathering Information and Measuring Market Demand

• Marty Gustafson
• EM 670S Chapter 5
• March 25, 2003

3
Marketing IS

• Marketing Information Systems consist of people,
  equipment and procedures to gather, sort,
  analyze, evaluate and distribute needed, timely
  and accurate information to decision makers.
• Has to be economically feasible
• Has to tell you what you want to know and what
  you dont think you need to know

4
Marketing IS

• Information is everywhere
• Internal Records
• Order information
• Inventory
• Sales price
• Cost to manufacture and deliver
• Service and technical support issues
• Sales Information
• Current sales data
• Contacts and preferences
• Databases, data warehouses

5
Market Intelligence System

• Whats Happening Out There?
• Procedures and Sources used to find developments
  and opportunities
• Newspapers
• Trade journals
• Talking to customers
• Talking to suppliers
• Talking to sales
• Internet sites

6
Market Intelligence System

• Martys first 30 minutes
• Newspapers
• Scan Wall Street Journal
• Scan Automotive News
• Detroit Free Press Automotive Section
• On-line
• Hoovers.com for company of the day
• Bizsites.com for plant openings and closings
• Industrial Info.com for new construction
• RIA association site
• Check in with three sales sources

7
Market Intelligence System

• Costs can be high -
• Newspapers
• Scan Wall Street Journal (79)
• Scan Automotive News (99)
• Detroit Free Press Automotive Section (Free)
• On-line
• Hoovers.com for company of the day (2000)
• Bizsites.com for plant openings and closings
  (Free)
• Industrial Info.com for new construction
  (12,000)
• RIA association site ( Membership)
• Check in with three sales sources

8
Other Methods

• Create a network of distributors retailers that
  can pass along important information
• Buy competitors products
• Read competitors published materials
• Trade shows
• Hire a firm

9
Sources for Marketing Plan

• Check out page 128
• Government
• Periodicals
• Books
• Commercial Data Sites

10
Market Research System

• Systematic design, collection, analysis and
  reporting of data and findings relevant to a
  specific marketing situation
• Hire firms (syndicated or custom)
• Book estimates 1-2 of Sales
• Ive spent 60,000 on individual projects

11
Market Research System

• Marketing Research Process is the Scientific
  Method applied to marketing
• Define Problem and Objectives
• Develop a Research Plan
• What data sources?
• Primary or secondary
• What type of research?
• Observational or focus group
• Surveys, questionnaires, interviews
• Experiments
• Web questions (Who is missing?)

12
Market Research System

• Marketing Research Process is the Scientific
  Method applied to marketing
• Collect the Information
• Most expensive part of process
• Analyze the Information
• Present the Findings
• Make a Decision
• Failure can occur if its not set up properly
• .New Coke introduction

13
Forecasting and Demand

• Marketing Research should show you where the
  opportunities are
• Know the market
• Market all actual and potential buyers
• Potential Market those with enough interest to
  buy
• Available Market those with enough interest,
  money and access to buy
• Target Market the part of the available market a
  company goes after
• Penetrated Market the people who buy

14
Forecasting and Demand

• Market Demand Function per Campaign
• Market Minimum (no campaign)
• Market Potential (upper limit)
• The distance between is the market sensitivity

15
Forecasting and Demand

• Company Demand
• Estimated share of market demand
• Company Sales Forecast
• Expected level of sales based on a chosen
  marketing program
• Estimating demand using one of many methods
• How do you come up with a sales forecast?
• Survey customers
• Ask sales
• Ask a third party

16
Knowing the Future

• Sometimes market research on your customers isnt
  enough. You need to know the same amount about
  your competition.

17
Dealing with Competition

• Marty Gustafson
• EM 670S Chapter 9
• March 25, 2003

18
Who is the Competition?

• Industry view
• Marketing view
• Companies that supply the same customer need

19
Analyzing Competitors

• Dominant
• Control the competition and can work with any
  strategy
• Strong
• Can also take independent action of competition
• Favorable
• Tenable
• Weak
• Non-viable

Where your company sits compared to the
competition can limit what your marketing
strategy can be
20
How to Outsmart them

• Watch the small companies
• Follow patent applications
• Track the industry experts
• Licensing agreements, alliances
• Follow changes in pricing
• Social changes

21
Follow a Strategy

• Market-Leaders (Coca-Cola, Microsoft, Walmart)
• Expand the total market by finding new users or
  new uses
• Defend your market share (GM, McDonalds)
• Have a good offense (bracket products)
• Expand your market share
• Market Challengers (Pepsi, Colgate, Ford)
• Attack the market leader
• Go after their price or product
• Go after the market they underperform in
• Blitz or Bypass
• Guerilla attack
• Attack smaller competitors that are 3, 4, 5
• Attack regional firms

22
Follow a Strategy

• Market Followers
• Duplicate the leader (counterfeit)
• Clone the leader but be just different enough
• Imitate the leader by copying the good things
• Adapt the leaders products through improvements
• Market-Nichers (Microbreweries)
• End-user specialists
• Customer-size specialists
• Geographic specialists
• Product-feature specialists
• Service specialists