Download unit 1.05

Unit 1.05
Understanding Marketing
Information Management
DEVELOPING/IMPROVING
PRODUCTS
 Businesses
need to obtain and analyze a
wide variety of mktg. info. in order to make
decisions for the future.
 One
way that businesses use this
information is to develop new products
and improve existing products in order to
satisfy customers’ needs.
MAKING MKTG. DECISIONS
 In
order to make marketing decisions that
will keep them competitive, businesses are
constantly gathering information about
customers’ preferences and why
customers buy certain products.
MONITORING ECONOMIC
TRENDS
 Businesses
obtain marketing information
in order to monitor economic trends, but
they are NOT able to change those trends.
 Businesses
do NOT use marketing
information to prepare sales invoices.
EFFECT OF COMPETITION
 In
order for a business to understand why
a product that has been a strong seller for
a long time is now losing its popularity,
they study marketing information.
 They
need to see how rival products are
doing and how they are affecting the
product.
IDENTIFYING PROBLEMS
Mktg. info. is data available inside
(internal) and outside (external) the
business.
Internal info. monitored includes inventory
reports, sales records, customers’
feedback from surveys, etc.
COMPARING CURRENT/PAST
INFO.
Comparing current & past marketing
information can often reveal problems,
such as a sudden drop in sales of a
particular product.
REVIEWING EXTERNAL INFO.
A drop in sales may indicate the business
needs to provide new/improved products
or increase promotional efforts.
Businesses need to review various forms
of external mktg. info. to effectively
investigate competitors, evaluate market
share, and analyze economic changes.
EFFECTIVENESS OF
SALESPEOPLE
Sales reports contain a variety of info.
businesses often use to improve the
effectiveness of salespeople.
Info. about #’s of new customers, # of
customers lost, cost of selling, time spent
with each customer, etc.
PROVIDING ASSISTANCE
A business can determine if the
salesperson is effective, or might need
assistance/more training to better market
the product. The business can develop
materials providing the detailed info.
Such action will help the salesperson to
work more effectively with customers
POPULAR PRODUCTS
A business that monitors its sales and
customers’ buying habits overtime can
determine which products are not
popular and not selling.
By knowing the status of products, the
business can make informed decisions
about its product mix.
DELETE SLOW MOVERS
A
business may decide to offer popular
products in other colors and sizes, or it
may decide to delete slow-moving items
from its product mix.
 Research
methods are the ways in which
a business obtains marketing information.
QUARTERLY INVENTORY
STATUS
By monitoring inventory, a business
can determine how well a product is
selling.
If the status report indicates inventory
for the item is turning slowly, then the
business knows sales are down and
might drop the product.
FINANCIAL REPORTS
 Accounts-payable
reports & annual
income statements summarize data
related to financial aspects of the
business.
 Neither
report would indicate changes
in a product’s sales. Such info. comes
from the inventory status report.
CUSTOMER INVOICES
Customers’ invoices provide info. about
a specific customer’s buying
habits/preferences.
Invoices might reveal certain customers
buy a certain qty. of a particular product
4 times/mo. Knowing this, the business
can customize promotions & take steps
to ensure it has sufficient products on
hand when needed.
REVIEW
 Annual
Income Statement
 Quarterly
 Sales
Inventory Status
Reports
 Customers’
•
Feedback
6. What does a business need in order to
understand why a product that has been a strong
seller for a long time is now losing its popularity?
A. marketing information
B. sales records
C. secondary data
D. purchasing documents
A.
Marketing Information
They need to see how rival products are
doing and how they are affecting the
product.
29. What is one way that businesses use
marketing information?
A.
B.
C.
D.
To develop new products
To determine credit scores
To change economic trends
To prepare sales invoices
A.
To develop new products
Marketing is dynamic – ever changing.
Business must keep up to date with what
customers want & need.
30. What does continuously monitoring
international marketing information enable
businesses to do?
A.
B.
C.
D.
Investigate competitors
Identify problems
Evaluate market share
Analyze economic changes
B. Identify Problems
Eliminate slow movers.
31. What is one way that many businesses use the
marketing information contained in sales reports?
A.
B.
C.
D.
To monitor expense accounts
To qualify potential new customers
To improve the effectiveness of
salespeople
To develop negotiating techniques
 C.
Improve effectiveness of salespeople
 Provide
assistance – extra training.
32. By monitoring its sales and its customers’
buying habits, what is a business often able to
identify?
A.
B.
C.
D.
Popular products
Research methods
Economic resources
Competitors’ activities
 A.
Popular products
 What
items are sold most often?
33. XYZ Company noticed that the sales of iPads
in blue have increased in sales. What can the
business determine about the iPads?
A.
B.
C.
D.
Popular products
Research methods
Economic resources
Competitors’ activities
A. Popular products
If they’re sold out they’re popular!
34. What type of internal report would indicate to a
business that sales for a specific product have
dramatically dropped over the past three months?
A.
B.
C.
D.
Market demographics analysis
Accounts-payable summary
Annual income statement
Quarterly inventory status
 D.

Quarterly inventory status
Items are remaining on the shelves.
35. What type of marketing data can a business obtain
by reviewing its inventory reports and customers’
invoices?
A.
B.
C.
D.
Product quality
Customers’ credit limits
Customers’ product preferences
Actual market share
 C.
Customers’ product preferences

What is the customer buying or not
buying?