What is a Market – Definition and Different types of Markets
A set up where two or more parties engage in exchange of goods, services and information is called a market. Ideally a market is a place where two or more parties are involved in buying and selling. The two parties involved in a transaction are called seller and buyer. The seller sells goods and services […]
Consultative Sales Approach to Customer Objections
Being a good Salesman does not come easily to everyone. Out of thousands who take up a career in sales, there are a few hundreds who turn out to be mediocre salesmen pushing the product and chasing sales target and many more leave the field altogether. There are few, who carve out a brilliant trajectory […]
How Cutting Edge Technology has Transformed the Sales and Marketing Function
Cutting Edge Technologies Have Revolutionized Sales and Marketing It would be an understatement to state that the use of cutting-edge technology has transformed the Sales and Marketing Function. Indeed, one can go as far as to say that the use of advanced technologies such as Big Data, Artificial Intelligence, and Data Analytics have revolutionized the […]
Routes to Strategic Growth: Organic or Inorganic Growth
Organic Growth Organic growth in management parlance refers to the growth of a company that occurs naturally. In other words, if a company grows through increased revenues and increased profitability on its own without resorting to mergers and acquisitions, then it is known to grow organically. For instance, companies like Infosys are known to shun […]
Designing and Implementing Branding Strategies
Customer based brand equity is created when brand knowledge comprising of brand awareness and brand image are at highest level in customer mind. Brand awareness level is raised in customer by first understanding consumer taste, preference and present level of awareness. This analysis leads to designing of marketing programs and outcomes of those programs are […]
In this dynamic market with the free flow of information and innovative marketing programs, needs and wants of consumers are always changing. As per capita income increases consumers are willing to explore more alternatives for purchase decision. Companies should be aware of changing situation all the time to take the right decision. This calls for development of sophisticated marketing information systems.
The information system consists of stakeholders, process and equipment to collect, analyze and proliferate information across relevant decision makers. The system is formulated using the internal company records, market research data and other intelligence gathering system. The internal system consists of analyzing information from product order to the delivery cycle and sales information systems.
In product order to the delivery system, companies analyze consumption of various brands and make sure inventory of raw materials as well as finished products are maintained at sufficient levels. This is to make sure that whole cycle is completed in the shortest time possible.
In the sales information systems, sales figure across different geographical centers are collected and analyzed to understand the consumption pattern. The data collected from the above process is analyzed to understand consumer behavior and develop products as well as programs to cater to consumer demand.
The marketing intelligence system requires a combination of people, system and procedure to gather market data. For the company, sales people are on the frontline to spot and report any trend prevailing in the market. The distribution channel also can provide companies with valuable information of the end user. However, sales people as well as distribution have to be train about spotting trends and then sending to the right people in the organization.
Sometimes companies send a decoy into to the supermarket as a potential customer to check customer service, another way of gathering intelligence. Companies also outsource intelligence gathering activities to agencies like A C Nielson.
If the marketing information system reports any issue or emerging trend then further analysis can be done through marketing research. The marketing research process consists of following; defining the problem, developing research plan, collecting data, analyzing data, presenting findings and implementing the decision. Each step has to be carefully planned and executed for market research to succeed. During problem defining process companies have to make sure that objective is not too vague, nor does it take researchers in the wrong direction.
Developing research plan consist of creating a blue print as to how the information collection is going to occur. Here particular focus has to be maintained on cost for not over shoot the benefits. The step includes reaching out to the target audience and collecting information.
Market researchers have various techniques and models at their disposal to analyze the collected data. Once market researchers are done with their analysis, findings have to be presented in a structure format as to answer the research objective questions. It is now for the top management to take the decision as the way forward from market research study.
In the world driven by technology, marketing managers are also making efforts to use the available resources. Marketing managers are routinely using the statistical tools like regression analysis, factor analysis, etc., models like markov process model, sales response models to support decision making process. Marketing managers are also using marketing and sales software, which helps in making day to day decision like pricing, budgeting, etc.
Once managers are able to finalize opportunities using marketing research and other technology backed models then next step forward is to calculate the market size, growth and other business model related attributes.
Managers estimate market demand for a given product by calculating total product sell per market segment, per defined customer set, in a finite time and under specific marketing strategy. From these managers calculate company’s market share vis-a-vis the competitor’s business plan.
Marketing managers have to admit it is the consumer’s market, which makes it important to gather information to understand their perception through available technology, market research and quantitative models. Understanding customers would help companies estimate total market demand for its products.
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