* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download But Will it Sell? Market-based Decision Systems Using SAS® Software
Product lifecycle wikipedia , lookup
Digital marketing wikipedia , lookup
Darknet market wikipedia , lookup
Youth marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Market penetration wikipedia , lookup
Neuromarketing wikipedia , lookup
Target audience wikipedia , lookup
Marketing channel wikipedia , lookup
Direct marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Market analysis wikipedia , lookup
Sensory branding wikipedia , lookup
Street marketing wikipedia , lookup
Market segmentation wikipedia , lookup
Green marketing wikipedia , lookup
Marketing research wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Advertising campaign wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Product planning wikipedia , lookup
Target market wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
But Will It Sell? Market-based Decision Systems Using SAS" Software Lee H. Evans, SAS Institute Inc., Cary, NC ABSTRACT process can be detined in six steps: The concept of strategic marketing planning has become of paramount imponance within corporate marketing program~. Marl<eters must rely heavily on analytical tools for proper execution of profitable programs. The SAS System Is a useful tool to increase the efficiency and effectiveness of your marl<eting coordination and analysis. 1. Analyze the Situation Assess and determine the needs of and opportunfties open to a company wfthin a broadly defined customer base. These are the "where are we now?' questions. 2. Set ObJectives. Determine how the customer base should be segm~ed, and develop a picture Of what market success looks like in each segment of the market •• the "where are we going?" questions. 3. Evaluate Alternatives. Look at eaCh product segment individually, and determine the market distribution concepts, strategies and plans to meet the objectives within each market segment. Then evaluate the costs and benefits of carrying out these programs in the marketplace. 4. Develop the Ptan. Creatively develop programs to address the needs of each market segment, including a timetable and a desired outcome. Spell the programs out in measurable terms within the structure of a specWic plan. 5. Implement the Program. Implement and communicate the marketing plans and programs through effective and coordinated efforts by all parts of the company. Allocate resources to a carefully calculated 'marl<eting mix' as definea in tha plan. 6. Monitor and Adjust. Continuously mon~or performance, evaluate benefits, forecast and make practical use of the Information to adjust and chenge to meet the needs of each market segment. The strategic marketing function is comprised of specnic analysis components. Use of the SAS System within each of these functional marketing components is emphasized. Examples of system components are used to illustrate the time-savlng features and increased effectiveness available to market analysts through use of the SAS System. Companies trying to become more market oriented are accomplishing the task by changing the way they think about their products and seflfices and more importantly changing the wey they make decisions about the direction for those products and seflfices. The new decision making methods are Often referred to collectively as strategic markellng planning (SMP). This paper provides an example of how companies may use one technology, the SAS System, as a tool within the SMP process. SCOPE OF STRATEGIC MARKETING PLANNING The Need for Strategy Your job depends on how effectively your company uses markeling tools to run the business. Suppose someone in your organization comes up with an idea for a new product or service •• a good idea But will it sell? This question tops a long list of strategy questions that must be considered before a product can be brought to market. All aress of the company - manufactUring, engineering, research and development, finance, sales or marketing must understand the meaning and usefulness of 'market oriented' planning. Read this carefully, I said market oriented, not marketing oriented. Market oriented means running a customer dtiven business, marketing oriented implies a terr~orIal dispute dominated by a group calling themselves the marketing department. Information Processing Considerations What Is SMP? StrategiC marl<eting planning means different things to ditferent businesses. A more logical approach may be to define what being 'strategic marketing oriented" means to a company - that is, you do not manage a company by focusing on R&D (an input), production (an output), or finance (a scoreboard), but rather by a thorough drMng orientation toward the market and the customer. SMP provides an organized approach toward this goal. and the 800 Markets are creatilte, dynamic, social and sometimes unpredictable things. Complex and expensive systems to predict and adjust to chenging markets are becoming the rule in business. Sometimes the eystem becomes the strategy, and this is a serious pillall in using information processing to run a marketing operation. The system must be designed to support the creative minds that will uttimately make the marketing deCIsions. sftuational analysis in the SMP process. Customer analysis is the study of customer behavior and buying preference wfthin each market segment and this is where the capabilities of the decision system are put to best use. The example below iilustrates a process cailed choropieth mapping whlch integrates several of the avallabie data analysis features. SAS software is a useful tool for making marketing decisions. Figure 1 illustrates the SMP Process Control Panel, a SAS/AF" interface that is used to assi,>! the marketer with each of the six steps in the SMP process, Examples for the market-based system help to clarify the structure and capabil~ieS of the market-based system, MP MARKET -BASED SYSTEII Situational Analysis Example: Markel Dispersion Conmand 1Ii==> SMP Process Control Panel (Please make a selection) Situation 2 Objectives 3 At ternatives 4 I I I 5 Plan l~lement 6 Monitor X Exit SHP System Figure 1: The SMP Process Control Panel I I I I I Choropleth maps are useful in demographic market studies to determine dispersion within segments. Typically. the maps display range-graded values for geographic areas by shading, coloring, or placing symbols on those areas. Choropleth maps eftectively analyze rates, statistical measures or per capna indICes. The decision system performs a variety of functions to help the analyst visualize the market 10 make more informed decisions. This example requires the decision system 10 process date in several ways to perform the chOropie1h analysis: 1. Raw data is read from an input file and put Into a SAS data set. The explosion of demographic data In consumer markets has resutted In increased use of relational data bases. SAS/DB2i1'Ml software is one example of a data base Interface that Is useful for this type of analysis. The advent of munl-engine archtteCIure within SAS software under Version 6 will further enhance the funclionainy of the decision system 2. this data set is merged with the appropriate SASlGRAPH" map data set and the obselVations are sorted. 3. PROC MEANS determines the number of points 10 plat for each geographical division. 4. The program locates the center of each geographical dMsion (a polygon). 5. The NORMAL distribution function generates a normally distributed pattern around the center of the geographical dMsion. This pattern is annotated on the map. STRATEGIC MARKETING PROCESS Analyzing the Situation Snuational analysis in market-oriented planning determines the position of your business in today's market The Snuatlonal analysis involvas five key components important to any group trying to develop a marketing strategy: Internal assessment competnor analysis industry analysis environment analysis customer analysis. Internal assessment, competitor analySiS, industry analysis and environment analysis are important processes In marketing decision systems. Systems to track customer satisfaction data, competnive products and prices, and finanCial and Industrial Innuences are easily tracked through interactive data systems, These systems may employ features of Screen Centrol Language through SAS/AF and SAS/FSpe software to manage user interaction. Customer analysis, however, is the most important part of 801 Figure 2 shows the rasuns of the market dispersion analysis based on customer demographic data. The exampie employs the data extraction, statistical analysis and graphiCS capabilities of the decision system to pravide a practical aid for understanding customer behavior in the market. used to analyze market share w~hin the decisions system Is referred to as a bubble plot. Bubble plots allow the analyst to conceptually see the size of each SBU within some perceptual space. Morl(et ;)ispersion Cl'>crople!1'I iMJppit>g This technique of analyzing market share w~hin segments is known as nonmetric muttldimensional scaling. The applications of this technique may include: " Identification of desirable product attributes " preferred combination of attributes • subsmute and differentiated products • viable segments w~hin a market • 'holes' In ttle maE1<et for new introductions. Figure 2 -- Market Sagi i I6C tab, N'IJi.yrJa A.utomobile lkIrt<et Shore -" Setting Objectives o Objective setting in market-oriented planning is integrally related to segmentation techniques. Segmentation stralegies are speCifIBd in strategic business units (SBU's) and are used to formulate the physical structure of markets. SBU's are often referred to as product market segments. Objeofives in marketing ara explained in terms of ttleses segments. --- Segment pt: 30-35 year olds The decision system helps the analyst address the three primary segmentation requirements, measurabirrty, accessibillty and subStantiability. The goal is to develop a strategic response to each segment; the responses may include differentiated marketing, undifferentiated marketing, or concentrated marketing depending on the characteristics uncovered using the decision system. FIgure 3 The plOt shown in Figure 3 provides data on the relative perception of automobiles in a particular product merket segment, 30-35 year old car buyers. Each automobile is represented by a "bubble". Bubbles correspond to maE1<et share and are plaoed on the perceplual diagram according to ordinal scaled input measures based on price and styling. An ImPOrient design consideration emerges when studying segmentation strategy; Segments must have different response functions to any indMduaJ combination of marlceling variables. The fact that a group Is different is Irrelevant - the group must respond differently in the market. The decision system reads input demographic data and automobile pricing data These measures are then interpreted by the GPLOT procedure and used as a prectical aid to help the analyst get a picture of the market. There are a number of computational issues related to muttidimensional scaling that should be undelSlood before interpreting the rasutts of this analysis. The example illustrates a simple use of muttlverlate techniques employed in market segmentation studies. The example discussed below illustrales a segmentation analysis using the decision system. The analysis helps the analyst test for the three segmentation requirements. Objective Setting Example: Market Segmentation The analysis of share siZll within each segment Is imporlent to the overall segmentation strategy. A facility 802 evaluating Alternatives collect, process, analyze and repon market research information. It is Intended to illustrate the capabilHles available to marketers through use of a SAS software based decision system. The process of evaluating atternatives in marketing is usually aimed at growth strategies. The idea is to use the sltuationalanalysis and objectives to choose a collection of products and services - a "marketing mix' -- that explo~s a company's strengtllS and weaknesses in a specific market segment. Managers must analyze the present marketing mix and evaluate current market targets and new market targets and allocate resources to those targets. New products and services must also be analyzed, and resources must be allocated to current and new market targets. Evaluating Alternatives: A Survey Research Example A popular analysiS method involves the use of an applied technique known as 'backward' market research. The premise of this approach Is to start where the process usually ends and then work backward. According to Alan R. Andreasen, Graduate School of Management at UClA, these are the 'required steps to successful 'backward' research: The number of approaches to market analysis at this stage can be staggering. Different companies have different strategies for developing the appropriate marketing mix. In current or new product development, a number of methods must be employed to effectively evaluate all the marketing attematives available before developing a marketing plan. In the end, there are four fundamental strategies that can be adopted for each business unti: 1. Determine how Ihe research resuks will be Implemented (which helps define the problem). 2. Determine what the final report will contain and what H should look like. • Market penetration (low risk) Specify the analyses. necessary to 'fill In the blanks' of the research report. market development (high risk) product development (low risk) divers~ication 4. Determine the data necessary to carry out the analySis. 5. Design instruments and a sampling plan to carry out the analysis. (high risk). Even In very small buSinesses, the sheer number and Importance of the available atternatives require an effective way to manage this process. The possibilitieS for implementing an automated market-bssed system· are especially important when evaluating marketing aHematives. 6. Do the field work required and always check the data Is meeting your needs. to see that 7. Market research is especially Imporlant to help managers make sound decisions during the process of evaluating attamatives. Marketing research studies can be classKied as being eHher basic or applied In nature. Basic research finds new knowledge regarding some aspect of the marketing system. In contrast, the purpose of applied research Is to assiat managers in making baffer decistons. Basic research studies tend to be thorough and complete while the depth of applied research depends upon the needs of.the deciston maker. Do the analysis and wrne the report. A common problem w~h this type of research approach is that tt IS time consuming for both the researcher and the manager. It requires more work by the sponsor up front but uttimataly is more useful. Thls example illustrates how the decision system can be used to speed up applied market research using the 'backward' methods. SAS software can easily be used to build data entry systems customized for verbal or written survey Instruments using the interactive abilities available within PROC FSEDIT. Figure 4 shOws a typical dela entry screen for a mall-out survey. The software has the capability of directly reproducing the actual survey form, but In most cases this Is nof the most effective way to Implement the data capture system. An Important part of most market research studies Is some sort of customer interview process. The interview Is usually implemented through a survey. The survey may be formal or Informal, subjective or objective, but must always be accurate. The market-baSed. system is ideal for conducting market research; ti can be used during all phsses 01 the research process. The system can be used as a tool for determining information needs, sampling design, instrumentation, data collection, data proceSSing, statistical analysis and repon generation. The data entry features available wHhln SAS/FSP" software enable the researcher to design the survey The discussion below provides an elemental)l look into methods used wHhin the decision system to design, 803 Instrument independent of the data capturing facility. Note Ihat the data entry screens were designed to follow the format of the written survey instrument, but also require only two key strokes per field for the data usefulness. Connand ===> 00001 proc format; , se....... ~, 'if. 00002 00003 J .. __ ...... <10- ..... ~$ . , , " , GIIr u .......T c....,~ "U .......... I: .,.n~ lIif .ocun ,0",lmdO ~, ....U""'" ........ 1""10 ], n . . . . . ~I""' ...,rol'l>'u " *'l>".~ 2 _. " yO .... ~ ..... ,..... 0." ...... 5: .,01." «""I ... a. '""If . . . . I... ! . . . . I, ... uo 1 H 0 eo .. c.. c ....... I""«or. t ... ,,,I,.. .......... hor • • r u_ ...."I'U •• ~, ,"or aT un ~, ... ywo to 1, ".. ,,0'" n""'.~.'. u..l" t, no _ ............... , ..... 00004 tt.n; 00005 ""'P o.~ ... u •• car <;""""•• , 00006 proc freq data:train; _r,..11 00007 00008 00009 00010 00011 00012 1 " . . . . _ 0 " " """,,~_u .~ .... _~ aT U"............., , ' ':~' t, ..... S(e1"'e. ' " I 1M. Y"'"r ..... _r .. uo ........ _.... n .... 1ft ....... ~. ." .. - , . 1, .... 1 1M U~ ... .r~..... ".on . . \'OUr .IU . . _ ."..... u In ..... " "u ",,~ "\!"" .. ,...odl.., .... n.t I: 1"** value code 1='YES· 2='NO'; l' ... 00014 format q23-q24 <o<1e_; label q23='Course Coord. Available?1 q24='CBT Handbooks Useful?t; table. q23*q24 I expected chlsq nopercent norow nocol i 00015 title1 00013 'Crcss~TabulBtion Results': 00016 title2 '1988 Training Survey Oata l 00017 run; Agure 4: Survey Data Capture Screen ; Figure 5: Code for chi-square Test entry person. (In most cases, a number followed by the ENTER kay). PROC FREO also offers us Fisher's exact test, originally developed fOr the .special case of a 2X2 table. The line labeled 2-Tail gives the p-value fOr the nuR end ahemative hypothesis. In this case, the pvalue is .00505, so you again reject the nuU hypothesis, just as you did when looking at the chisquare test. Other parts of the output correspond to other tests and are not discussed here. As any SAS user knows, the analysis and reponing facilkles available once the data has been coUected are fimitless. The analysis methods range from simple univariate analysis to complex multivariate techniques. Most inferential statistics in this type of applica1lon are based on some form of cross tabulation of variables COlleCted In the stuay. Figure 6 illustrates the SAS software code needed to implement one bivariate inference test, the chi-square test, which is appropriate lor examining the relationship between two nominal variables. h is shown here because of tts uS'efulness in analyzing crosstabulation tables. The preferred method of using 'backward' market r_arch is to present this type of analysis - using dummy data or a very lim~ed sample' - to the sponsor before beginning the Interviews. The marketbased decision system easily allows the researcher to re-define questions end alter analysis techniques to frt the needs of the stuay. Data collection screens are easily changed and analysis methOds may be implemented to f~ requirements of the analyst or supervising statistician. When performing a chi-square test, the null hypothesis is that the row and column variables are independent, while the alternative hypothesis is that the row and column variables are not independent. A test statistic Is calculated and compared to a critical value from a Chi-square distribution. This test is performed by invoking PROC FREO as shown in Figure 5. This example is comparing two responses to a questiOnnaire about training methods. We are trying to determine K there is a relationship between the availability of a course coordinator to assist students taking computerbased training (C8T) courses and whether students consider C8T handbooks useful. Both of the questions have yes/no responses, creating a 2X2 response matrix. Figure 6 ShOWS the resufis of the PROC FREO run. Notice that the p-value (labeled Prob) is 0.002, which rejects the nuU hypothesis. In other words, you conclude that there is enough evidence to Indicate a relationship between training coordinator availability and student handbOok 804 Develop the Plan The strategic marketing plan is the tool used 10 coordinate and communicate the objectives and functional plans tor each SBU. The kay component of any marketing plan is the strategy statement, which must concisely answer Ihree questiOns: • What segment are we targeting? • What competitors will we challenge? , Why will customers purchase our product? path method (CPM). Using PROC CPM, scheduling information and activHy relationships are analyzed to create the best possible marketing implementation schedule. Cross-Tabuilltlon Results 1988 Tra Inin\J su.-vey Dat>! rA8t..E Of Q23 BY Q2-4 Q23~CDU"SB Figure 7 shows a typical schedule produced by PROC CPM and Figure 8 shows the resutts of invoking PROC GANTT on the schedule. A variety of modeling and "what-if" analysis methods are available to those designing market-based decision systems. Cocr'dlm,eol" ",va-ilable?} Handttooks USI1lf'uI1J ~Icer fREQUENCY I cxr£<:TEi> IYES INO I ---------+----------------+ YES 65 I 13 I I SIL3 I tOTAL 19.1 I .. I 21 I 16 I I 27.7 I 9.3 I rOlAt:--------..;;-+-----i;-+ ,. ---------+--------~-------- l'IO n, Cl"ll•• -T.t.... '.tlon. ReSUlts '9&& T".'nlf\9 SU~ OIIU STATISTICS filII. TABLE OF Q23 BY OZ4 lO/II" PI"O<ItU ""'.1),,,1. 'N-J.O& Sclotodu,. STATISTIC VJ.UJ£ CKI_SQUARE 1..IXELUlOOD 9.399 II.... Tl(J CIH-$QUAA£ COIfT I /IIU lTV AOJ. eM 1- SQUARE H.4KrEL -IIA[IISZo.. eH I ~ SQUARE F!$fI(R'S (MeT trST ll-TAll..l 1$.901 1$.043 9.310 (Z-TAII..) • Inr"""""",,," 1<"10<1,, 0."'" tUl02 s . . . , fn" OiIs!!!n 1".'N.I... 0.001 0.", C.OOS CRAI'I[R'S n~.,,!otl COI'."~lDn l,.;n. "nhh Surt OlJutAa 06JI.IU& O'JUU' OlJVUa 05JtlLIl 08JUl85 ot!JUL&S OaJULes 07JelUla 01JtA.a& '- v b,.I)' sun. 01J~1 ~:: ..:~~~:~;1on PilI CONT I NC[/IICY COE:ff' IC t [ItT C.,.ly j,N,..UCIfI .-.c:TlVITV 0.00. O.OO! l.~ • ffnhl< 014UU& lCJUUI l1JUI.,$$ (JIiJULI& o&JuUla U..IU1.4. 10JULH 06JULla 1aJ'IUI. 01JUL. . (lTJtJl..t6 06JU!.Aa 01JUUI& 114111..46 10JUL1I1 liJUI.H llJUua S","PLE SIZE" 115 Figure 6: Results of chi-square Test Figure 7: CPM Schedule The rest of the plan provides a road map to guide the company to successful marketing implementation. The marketing plan usually consists of an analysis of the current marketing situation, threats and opportunHies, objectives, marketing strategies, action programs, budgets, timetables and controls. An Important contribution of the market-based decision system is "s abilHy to track and schedule implementation of marketing strategies. A number of techniques may be employed in marketing project management and are ideally suHed to the use of SAS/ORe software. The following example illustrates the SCheduling abil~ies of the marketbased system. ... ...,,,~, .. ....... ,....... " 1 ... ~" ...... , ••• ,.•••••1•• ...... 0_ ... " . . Plan Development Example: Marketing Program. Schedule ......, TIming of marketing programs is often as important as the design of the programs. It is Imperative that marketing programs be carried out according to a stratagic plan that involves announcements and release dates corresponding to the marketing environment. The decision system can coordinate the timetables for marketing Implementation through use of a number of scheduling methods. The ntathod illustrated here shows the use of the GANTT procedure to graphically represent the progress of marketing activ~les as may be scheduled by the crhlcal 805 - ......... ........ ...... _-.. " .. 1_'" ~.".~ Figure 8: Garrlt Chart of Marketing Activity Program ImplementatIon --- A va~ety of programs may be formulated to callY out strategic marl(eting plans. These programs may involve what are commonly referred to as the live P's: ';';;;j""'·;';:;··;'~';i'· . ~..!~.!M=r~~. '"' ....; ..: ....... ; iii>i:it .. " ;,,,., ....&n ... ' ~ ....... ",,"'ft, ~~ ..... \10,." Honlft IrU t.-u,,,,,, u t.t>~< .. <:.0_" .... , __ ... "'~ .... ~ or ~ •. .."..._"",••;,,:~~.:r:.,,:: ::.!~u ":~~':.;.;'w......"~"~;';.q" """~;.;.; .............. u••• ..... _", ..... c...'oud, - uu ...... _~'" .. i" ..., _ ~: a~'""" ........................ ><10, .. ""_TO ..................... . • • • • • " "_"e '_ _..__. . PrOduct price place promotion personal selling. _ ...... 1.. __ .... 00"_"_ _ C'''' _ efT I.... .... " '''_t,,,,, """ .........'e" ... """-'"'''' """"., ... : l' h)'1 ... , ..... I. __ .... •••••••• C"'OI.I.>I(>OT Oot. . .r _ ...., ,_, ,~, s._.. $ •• ~· t~ .... !n.. 'I... ,_, oN Figure 9: Direct Mall Interface There is a weahh of analysis that may be performed on any one of these implementation pOints. Research and modifICation on product line, price elasticity studies and econom~c modeling techniquas, distribution channels and scheduling systems, mass mailing and direct marketing strategies, and sales management and tracking systems may all be included In the decision system. maDing as well as the response levels to produce automated reports about the success of various mailings in the market. In this way, the system actually helps the analyst identity the optimal combination of attributes for direct mail success for allY particular market segment. Figure 10 Hiustrates some samples of tracking responses bum into the mailing system. This technique combines data analysis and user interaction tools to design a targeted, market·based implementation program to Increase sales revenue and prospecting etiectiveness. Direct mail is an area that has received tremendous attention in recent years. The high cost 01 personal selling and the need to increase the number 01 qualified prospects, and the large inlcrmation pools that exist for database marketers, have caused narrowly targeted direct mall to emerge .as an amazing source 01 new customers. SAS software lends ilse" to targeted mailing activllies through the use of data management tools w~hin the language and full screen interactive technology. PAOe FSLETTEA is ideally su~ed to Interact with larg<! data systems to provide tor etiiclent and trackable mailings. 1 _ _ .......... -..,.(: Program Implementation Example: Targeted Mailings la ..... ¢iOn "". I •• ' _. . ~~-. ~='T~ .... -''"'n~;~~; t~ nI "1"'" _.,..;", n 11( .•_'. l.tM~"""""''''''''_' ..........".".: 1 - ...............ft" .., _ •....,.«...... ..... "'1 .....,.. increased postage and labor costs require any direct mail system to identity target customers in niche marl(e\S easily. The beIIer the system is able to define customer attributes, the more likely the malling wiD succeed in reaching iIs intended audience. The objective of the system should be the quality and appropriateness 01 the message, nof the quantity 01 the lalters maDed. ""'l~ c ,,_ ..... 1'" .. ~~, figure 10: Direct Mall Reports Monitoring and Adjusting Figure 9 shows one sample screen trom the market·based system tl1at are designed to allow the analyst 10 target mailings to specijic customers. Depending upon the fields selected, a variety 01 databases are queried for information resuftlng in a final SAS data set reedy tor use by PROe FSlETTER. One 01 the most important parts of the SMP process involves the mon~oring of the market and tormulatlon of contingency plans to respond to the chang<!s within the market. As markets become more mature, they usually become.lncreaslngly competKive and dynamic; companies with the ability to edjust to dynamic markets will emerge as formidable compet~rs. On the other side, the system provides batch processing cepabilHies 10 search for "hookS" or Identijication variables whiCh track tile success of each mamng. The system keeps tabs on tile labor and materialS expenses tor each 806 There are risks associated wHh cost leadership as well as product differentiation. The ettective market competHor will develop thorough forecasting and monAoring techniques to respond 10 changes in price and product Slructure. Forecasting is simply the art of anticipating what buyers are likely to do under a given set of condnions. Forecasting techniques may be implemented at a number of stages throughout the SMP process, but the forecast based on historical behavior over time Is most importent now. The market-based decision system must combine sales and revenue data collection wijh well..:oordinated lorecasting methods to provide accurate information to direC! or chenge the marketing mix. The many forecastlng options available to the analyst through the decision system are based on the characterisllcs 01 the time series. Sales ligures over time may exhibij three important ciharecteristics including seasonality, trend, and autocorrelation. t .... ~.u .. nuuul'l1 $,'1" ' 0 1 - . . . ."U,,", . . . l)'PO t h ~_r . .tq 11,,14 .. _ . nu ,..... 'NTH_ or hU • • • a u. t Io,",_t• ., ....... cuU •• l ~t!!:~~.r!~::'::.t:!~~!:~~;:~.!:' UJ"_'~ not 1 ....""' . IIoh R....' _ ' Caution in USing forecasting lechniques within any automated marketing system is important. Forecasting shoUld not be a completely automated process. II should be implemented by qualijied analysts Who are familiar wnh the market as well as the various lechniques that may be employed to predict the behavior 01 lime series data. Figure 11: Time Series Forecasting System ice sales for the upcoming year generated from the decision system's forecasting model. Given lhese requirements. the market-based decision system may ba used 10 quickly and authorijatively aid the analyst to forecast What the market might do. The following examgle Hiustrates one forecasting application using SASlETS sollware. MonitOring Example: The Sales Forecast System Setec:Uon: Stepwise AutOflll9!'ouive. lin.,. TI"$"td BAGS If 1(( IH The example Hiustrates a simple autOmatic lorecasting application on sample sales revenue data. The application has been taken from the SASe Prototype Application: Forecasting, to show the Interactive capabilnies 01 the decision system along wtth the time series analysis methods available in SAS/ETS sollware. The data we are using reflect ice sales for the last four years with the objective 01 forecasting sales for the upComing year. After reviewing a plot 01 the Ume series and noting the seasonal pattern, you can use the decision system 10 pertorm a seasonal adjustment of the data so you can see the overall Irend of your sales. The SAS prototype provides an automatic forecasting option to quickly run a number of different models on Ihe data I~ or IIfIIIS Figure 12: Plot of Forecast Figure 11 shows Ihe main menu lor the time series forecasting whicih may be inlegrated into the decision system. The marketer can use the system to choose among forecasting aHematives, specity the location 01 the forecasting data, choose the data set to be forecasted. select the time series variable, make adjustments for seasonality, choose modeling methods and produce forecast output. The SASe Prototype Application: Forecasting provides a good example 01 how forecasting capabil~ies can be integrated into market-based decision systems. The advanced analyticat merhods available to the marketer wnhin the SAS software are too numerous to discuss here, but all the fools to SOlve complex forecasting problems may be buiH into the automated marketing system. The graphic output in Figure 12 Is produced to forecast 807 Evans, Sheila Fitzgerald (1986), SAS/GRAPH Scatter Maps. Proceedings of the SAS Users Group International Thirteenth Annual Conference, Cary, NC: SAS Instftute Inc. A WOAO OF CAUTION To often, the technology available to marketers is viewed as the uttimate source for decisions on business strategy. Marketing is one of those exciting fields that combines the science of concrate, analytical methods with creative ability. You must employ common sense to know what to do and when to do ft by developing a closeness to your customers. Kinnear, Thomas C. and Taylor, James R. (1987), Marketing Research: An Applied Approach, New York: McGraw-Hill Book Company Kofler, Philip (1986), Principles of Marketing, third edition, Englewood Cliffs, NJ: Prentice-Hall, A Division of Simon & Schuster, Inc. Although strategic marketing decisions are too important and too complex for gut.feel decision making, the automated systems developed should be designed to compliment and coordinate practical applications. View market·based decision systems as one tool toward your objectives, and make systems practical with an emphasis on the costs and benefits of implementation. Schlof>:hauer, Sandra D. and Littell, Ramon C. Ph. D. (1987), SAS System for Elemental}' Statistical Analysis, Cary, NC: SAS Instrtute Inc. Note: Examples and sample outpul: from the mtlf'ket-based deei&ion system de$Cribed in this paper have been chimged in the interest of confidentiality. CONCLUSION We have looked at the market·based decision system in the context of the strategiC marketing planning process form a generall>:ed, global perspeclive. This perspeclive has helped uS realim the almost lim~less design possibilities for SAS software based marketing decision systems. SAS, SASIAF, SAS/ETS, SAS/OF!, SASIFSP, and SAS/GRAPH ant registered trad9matks of SAS Institute Inc., Caty, He. USA. SAS/sTAT and SASIDB2 are lradematks of SAS Instituta Inc. The Interactive features now available along with database interfaces and analytical capabilfties aUowusers to build practical and efficient systems wfthin SAS software to manage the strategic marketing function. Specific examples including market dispersion analysis, segmentation analysis, survey research, statistical analysis, projecl scheduling, dlrecl mail, and sales forecasting have shown a few of the features available to market analysts who want to integrate these techniques into their overall system design. Automated strategic marketing planning systems Should ba viewed as tools to faster, cost·effective and practical marketing decisions. REFERENCES Alrecl<, Pamela L and Settle, Robart 6. (1985), The Survey Research Handbook, Homewood, IL Richard D. Irwin, Inc. Andreasen, Alan R. (1985), 'Backward' Matket Research, Harvard Business Review, Boston, MA: The President and Fellows of Harvard College. Brocklebank, J.C. and Dickey, OA (1986), SAS System for Forecasung Time Series, Cary, NC: SAS Institute Inc. 808