Chapter

3
Collecting
Information and
Forecasting
Demand

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 Components of a
Modern Marketing
Information System (MIS)

 Internal company records

 Marketing intelligence activities
 Marketing research

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 Internal records
• Internal reports of
orders
• Sales
• Prices
• Costs
• Inventory levels
• Receivables
• Payables
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• The Order-to-Payment Cycle
– Fossil Australia
• Sales Information Systems
– Panasonic

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 Marketing intelligence
• Marketing intelligence system: a set of procedures and
sources that managers use to obtain everyday information
about developments in the marketing environment

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 Analyzing the Macroenvironment
• Needs and Trends

– Fad

– Trend

– Megatrend

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 External Marketing Environment
Major Forces in the environment

Demographic Natural

Economic Technological

Socio-cultural Political-legal

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 The Demographic Environment
• Worldwide population growth

• Population age mix

• Ethnic and other markets

• Educational groups

• Household patterns
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 FINDING GOLD AT THE BOTTOM
OF THE PYRAMID
• Creative solutions
• Reverse innovation
• In Bangalore, India, Narayana Hrudayalaya Hospital charges a flat fee of
$1,500 for heart bypass surgery that costs 50 times as much in the United
States. The hospital has low labor and operating expenses and an
assembly-line view of care that has specialists focus on their own area. The
approach works—the hospital’s mortality rates are half those of U.S.
hospitals. Narayana also operates on hundreds of infants for free and
profitably insures 2.5 million poor Indians against serious illness for 11
cents a month.

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The Economic Environment

CONSUMER PSYCHOLOGY

INCOME DISTRIBUTION

INCOME, SAVINGS, DEBT, CREDIT

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The Sociocultural Environment

Views of Views of
ourselves society

Views of Views of
others nature

Views of Views of the

organizations universe

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 The Sociocultural Environment

• Core cultural values

– Values are passed from parents to children
and reinforced by social institutions

• Subcultures
– Groups with shared values, beliefs,
preferences, and behaviors emerging from
their special life experiences or circumstances

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 The natural environment
• Corporate environmentalism
– Opportunities await those who can reconcile
prosperity with environmental protection

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The Technological Environment

Accelerating pace of change

Unlimited opportunities
for innovation

Varying R&D budgets

Increased regulation of
technological change

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The Political-Legal Environment

LAWS

GOVERNMENT AGENCIES

PRESSURE GROUPS

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 Forecasting and Demand
Measurement
• Market demand measures
– Potential market

– Available market

– Target market

– Penetrated market

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 Estimating Current Demand
• Total market potential
– Chain-ratio method

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 Estimating future demand
• Survey of buyers’ intentions
– Forecasting and purchase probability scale
• Composite of sales force opinions
• Expert opinion
• Past-sales analysis
• Market-test method

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