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Test Bank for Marketing Management, 16th edition by Philip Kotler.pdf

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Test Bank for Marketing Management, 16th edition by Philip K

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TESTBANKFOR m m




MARKETING MANAGEMENT 16THm m
m




EDITION BY KOTLER AND KELLE
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3. Collecting Information and m m m



Forecasting Demand m



ComponentsmofmamModernm InformationmSystem
• Makingmmarketingmdecisionsminmamfast-changingmworldmismbothmanmartmandmamscience.
• Marketersmhavemtwomadvantagesmformthe mtask:m(1) mdisciplinedmmethodsmformcollecting
informationmandm(2) mtimemspentminteractingmwithmcustomersmandmobservingmcompetitorsmand
m otherm outsidem groups.m Some mfirmsm havem marketingm Informationm systemsm thatm providem richm

detailmaboutmbuyermwants,mpreferences, mandmbehavior.

Marketersmalsomhavemextensiveminformationmaboutmhowmconsumptionmpatternsmvarymacrossmandm
withinmcountries.

Onmampermcapitamannualmbasis,mformexample,mthemIrishmconsumemthe mmostmchocolatem(24.7mlbs.),mC
zechsmthemmostmbeerm(131.7mliters),mthemFrenchmthemmostmwine m(45.7mliters),mandmGreeksmthemmos
tmcigarettesm(4,313).3mTablem3.1msummarizesmothermcomparisonsmacrossmcountries.mConsidermregio
nalmdifferences:mSeattle’smresidentsmbuymmore msunglassesmpermpersonmthanminmanymothermU.S.mcity;
m people m inm Saltm Lakem Citym (andm Utah)m eatm them mostm Jell-

O;mLongmBeach,mCA,mresidentsmeatmthemmostmicemcream;mandmNewmYorkmCitymdwellersmbuymthemmo
stm musicmCDs.4

Ammarketingminformationmsystemm(MIS) mconsistsmof mpeople,mequipment,mandmproceduresmtomgathe
r,msort,manalyze,mevaluate,mandmdistribute mneeded,mtimely,mandmaccurate minformationmtommarketin
gmdecisionmmakers.mItmreliesmonminternalmcompanymrecords,mmarketingmintelligence mactivities,mandm
marketingmresearch.

Themcompany’smmarketingminformationmsystemmshouldmcombinemwhatmmanagersmthinkmtheymneed,
m whatm they m really m need, m andm whatm ism economically m feasible.




INTERNALmRECORDS
Tomspotmimportantmopportunitiesmandmpotentialmproblems,mmarketingmmanagersmrelymonminternalm
reportsmof morders,msales,mprices,mcosts,minventorymlevels,mreceivables,mandmpayables.

The mOrder-tom-PaymentmCycle

Themheartmofmthe minternalmrecordsmsystemmismthemorder-to-
paymentmcycle.mSalesmrepresentatives, mdealers,mandmcustomersmsendmordersmtomthemfirm.mThemsale
smdepartmentmpreparesminvoices,mtransmitsmcopiesmtomvariousmdepartments,mandmback-ordersmout-
of-
stockmitems.mShippedmitemsmgenerate mshippingmandmbillingmdocumentsmthatmgomtomvariousmdepart
ments.mBecause mcustomersmfavormfirmsmthatmcanmpromise mtimelymdelivery,mcompaniesmneedmtompe
rformmthese mstepsmquicklymandmaccurately.

SalesmInformationmSystems
Marketingmmanagersmneedmtimelymandmaccuratemreportsmonmcurrentmsales.mWalmartmoperatesmams
alesmandminventorymdatamwarehousemthatmcapturesmdatamonmeverymitemmformeverymcustomer,mever
ymstore,meverymdaymandmrefreshesmitmeverymhour.

Companiesmthatmmakemgoodmusemofm“cookies,”mrecordsmofmWebmsitemusagemstoredmonmpersonalmbr
owsers,m are msmartm usersmof m targetedmmarketing.m Manym consumersm aremhappym tom cooperate:mN
ot


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onlymdomtheymnotmdeletemcookies,mbutmtheymalsomexpectmcustomizedmmarketingmappealsmandmdeals
m oncem theym acceptm them. mMarketers mmustm carefully m interpretm salesm data, mhowever, m tom avoidmdra

wingmwrongmconclusions.mMichaelmDellmillustrates:

“If myoumhavemthree myellowmMustangsmsittingmonmamdealer’smlotmandmamcustomermwantsmamredmone,m
themsalesmanmmaymbemreallymgoodmatmfiguringmoutmhowmtomsellmthemyellowmMustang.mSomthemyello
wmMustangmgetsmsold,mandmamsignalmgetsmsentmbackmtomthemfactorymthat,mhey,mpeoplemwantmyellow
m Mustangs.”




Databases,mDatamWarehousing,mandmDatamMining
ThemexplosionmofmdatambroughtmbymthemmaturationmofmthemInternetmandmmobilemtechnologymgivesm
companiesmunprecedentedmopportunitiesmtomengage mtheirmcustomers.mItmalsomthreatensmtomoverw
helmmdecisionmmakers.

“MarketingmInsight:mDiggingmintomBigmData”mdescribesmopportunitiesmandmchallengesminmmanagingm
massive mdatamsets

DiggingmIntomBigmData

Althoughmunverified,mone mpopularmestimatemsaysm90mpercentmof mthemdatamthatmhasmevermexistedm
wasmcreatedminmthempastmtwomyears.mInmonemyear,mpeople mstoredmenoughmdatamtomfillm60,00mLibrari
esmofmCongress.mYouTube mreceivesm24mhoursmofmvideomeverymminute.mThe mworld’sm4mbillionmmobile
m phone m usersmprovide m amsteadym sourcem ofmdata.m Manufacturersm arem puttingmsensorsm andm chipsm int

omappliancesmandmproducts,mgeneratingmevenmmore mdata.

Themdanger,mof mcourse,misminformationmoverload.mMoremdatamare mnotmbettermunlessmtheymcanmbemc
orrectlymprocessed,manalyzed,mandminterpreted.mInmpollmofmNorthmAmericanmseniormbusinessmexecu
tives,mmoremthanm90mpercentmreportedmcollectingmmoreminformation—
86mpercentmmoremonmaverage—
thanminmyearsmpast.mUnfortunately,mroughlymasmmanymsaidmtheymweremmissingmoutmonmnewmrevenu
e mgrowthmbecause mtheymcouldmnotmgathermthe mappropriate minsightsmfrommthose mdata.

SomemcompaniesmaremharnessingmBigmData.mUKmsupermarketmgiantmTescomcollectsm1.5mbillionmpiec
esmofmdatameverymmonthmtomsetmpricesmandmpromotions;mU.S.mkitchenwaremretailermWilliams-
Sonomamusesmitsmcustomermknowledgemtomcustomize mversionsmofmitsmcatalog.mAmazonmreportmgen
eratingm30mpercentmofmitsmsalesmthroughmitsmrecommendationmengine m(“Yoummaymalsomlike”).mMan
ymfinancialmbrandsmare mputtingmmore memphasismonmBigmData.

BankmofmAmericamismtrackingmspendingmandmdemographicmdatamandmtailoringmpromotions—
formexample,mofferingmback-to-
schoolmdealsmtomcardholdersmwithmchildren.mJPMorganmChasemhasmimprovedmcommunicationsmtomn
ewmcardholdersmtomgainmmore mengagement.

The mMarketingmIntelligence mSystem

Ammarketingmintelligencemsystemmismamsetmofmproceduresmandmsourcesmthatmmanagersmuse mtomobtai
nmeverydayminformationmaboutmdevelopmentsminmthe mmarketingmenvironment.mTheminternalmrecor
dsmsystemmsuppliesmresultsmdata,mbutmthemmarketingmintelligencemsystemmsuppliesmhappeningsmdat
a.mMarketingmmanagersmcollectmmarketingmintelligencembymreadingmbooks,mnewspapers,mandmtrade




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publications;mtalkingmtomcustomers,msuppliers,mdistributors,mandmothermcompanymmanagers;mandm
monitoringmonline msocialmmedia.
Marketingmintelligence mgatheringmmustmbe mlegalmandmethical.

Amcompanymcanmtakemeightmpossiblemactionsmtomimprovemthemquantitymandmqualitymofmitsmmarketin
gmintelligence.mAftermdescribingmthemfirstmseven,mwemdevotemspecialmattentionmtomthemeighth:mcolle
ctingmmarketingmintelligence monmthe mInternet.

Trainmandmmotivate mthe msalesmforce mtomspotmandmreportmnewmdevelopments.
Motivate mdistributors,mretailers,mandmothermintermediariesmtompassmalongmimportantmintellige
nce mHire mexternalmexpertsmtomcollectmintelligence.
Networkminternallymandmexternallym(asmreadmcompetitors'mpublichsedmreports…)
Setmupmamcustomermadvisorympanelm(Membersmofmadvisorympanelsmmightminclude mthemcompany’sml
argest,mmostmoutspoken,mmostmsophisticated, mormmostmrepresentativemcustomers.mGlaxoSmithKlin
e msponsoredmanmonlinemcommunitymdevotedmtomweightmloss,mwhere mmarketersmfeltmtheymlearnedmf
armmore mthanmtheymcouldmhavemgleanedmfrommfocusmgroupsmonmtopicsmfrommpackagingmitsmweight-
lossmpillmtomwhere mtomplace min-store mmarketing)
Takemadvantagemof mgovernment-relatedmdatamresources.mThe mU.S.mCensusmBureaumprovidesmanmin-
m depthm lookm atm them population mswings, mdemographicm groups,m regionalm migrations,m andm changingm

familymstructuremof mthe mmoremthanm311,591,917mpeople minmthemUnitedmStates.mCensusmmarketerm
NielsenmClaritasmSiteReportsmcross-
referencesmcensusmfiguresmwithmconsumermsurveysmandmitsmownmgrassrootsmresearchmformclientsmsu
chmasmThe mWeathermChannel,mBMW,mandmSovereignmBank.mSiteReportsmoffersmmoremthanm50mrepor
tsmandmmapsmthatmhelpmcompaniesmanalyzemmarkets,mselectmsitemlocations,mandmtargetmcustomersm
effectively
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rs.mCollectingmMarketingmIntelligence monmthe mInternet

Onlinemcustomermreviewmboards,mdiscussionmforums,mchatmrooms,mandmblogsmcanmdistributemonemc
ustomer’smexperiencesmormevaluationmtomothermpotentialmbuyersmand,mofmcourse,mtommarketersmse
ekingminformation.mHeremaremfivemplacesmtomfindmcompetitors’mproductmstrengthsmandmweaknesses
m online.




Independentmcustomermgoodsmandmservice mreviewmforums.mIndependentmforumsmincludemWebmsit
esmsuchmasmEpinions.com,mRateItAll.com,mConsumerReview.com, mandmBizrate.com.mBizrate.commco
llectsmmillionsmofmconsumermreviewsmofmstoresmandmproductsmeachmyearmfrommtwomsources:mitsm1.3
m millionm volunteerm membersm andm feedbackmfromm storesm thatm allowm Bizrate.commtom collectm itmdirec

tlymfrommcustomersmasmtheymbuy.
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m servicem reviews,m butm them storesm orm distributors mhave mbuiltm them sitesm themselves.m Amazon.commof

fersmanminteractivemfeedbackmopportunitymthroughmwhichmbuyers,mreaders,meditors,mandmothersmca
nmreviewmallmproductsmonmthe msite,mespeciallymbooks.
Combomsitesmofferingmcustomermreviewsmandmexpertmopinions.mCombinationmsitesmaremconcentrate
dminmfinancialmservicesmandmhigh-
techmproductsmthatmrequiremprofessionalmknowledge.mZDNet.commoffersmcustomermandmexpertmeva
luationsmof mtechnologymproductsmbasedmonmease mofmuse,mfeatures,mandmstability.
Customermcomplaintmsites.mCustomermcomplaintmforumsmare mdesignedmmainlymformdissatisfiedmcust
omers.




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