Understanding Markets Essay
Marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute information to people that make marketing decisions. Internal records are handled by sales representative and other staff included in the selling and shipping process. Marketing intelligence system is set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment. Marketing managers get that kind of information by reading the newspaper, books and trade publications, talking to customers, suppliers, distributors and checking internet resources. The marketing research process looks as followed: define the problem and research objectives, develop the research plan, collect the information, analyze the information, present the findings, and make a decision. Marketing research approaches are observational research, focus group research, survey research, behavioural research, experimental research.
The sampling plan is includes when you have to decide the sampling unit-who is to be surveyed?, the sample size-how many people should be surveyed?, sampling procedures-how should the respondents be chosen? A potential market is the set of customers who have a sufficient level of interest in a market offer. The available market is thus the set of customers, who have interest, income and access to the offer. The target market is the part of qualified available market. The penetrated market is a set of customers who are buying the company’s product. Market demand for a product is the total volume that would be bought by the define customer group in a defined geographical area.
The market forecast is what the company would like to see happen. The market potential is the limit approached by the market demand as industry marketing expenditures approach infinity for a given marketing environment. Company demand is the estimated share of market demand at alternative levels of company marketing effort in a given time period. The company sales forecast is the expected level of sales based on a chosen marketing plan. Sales quota is the sales goal set for a product line, company division or sales representative. Sales budget is a conservative estimate of the expected sales volume and it is also used to make purchasing decisions. Total market potential is the maximum amount of sales that might be available to all of the firms in an industry during a given period of time.
Area market potential is directed to the best territory. Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions. A trend is a direction of events that have some momentum and durability. In contrast a fad is unpredictable, short-lived and without social, economic and political significance. The following topics are closely related to making marketing decisions: demographic environment, worldwide population growth, population age mix, ethnic markets, educational groups, household patterns, geographical shifts in population, income distribution, savings, debt, and credit availability, outsourcing and free trade. Social cultural environment shapes believes, norms and values. It includes how people see themselves, how they view others, how they view the organization and the society, the view of nature and also the view of the universe.
This also includes the high persistence of core values, the existence of subcultures and the shifts of secondary cultural values through time. The natural environment is a concern because of the following: shortage of raw materials, increase in energy costs, anti-pollution pressures and the changing role in governments. The technological environment is shaping people’s lives like the change in technologies, the unlimited opportunities for innovation, carrying R&D budgets and the increase in regulation of the technological change. But also the political – legal environmental has increased the business legislations and the growth of special interest groups.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 21 November 2016
We will write a custom essay sample on Understanding Markets
for only $16.38 $12.9/page