Marketing Information Systems Concepts & Significance

Rural Marketing Research Firms And Their Success Stories

Project Shakthi HUL MART Pradeep Kashyap Mobile Vans Sampark (1980s) Folk Art TATA Magic Insight Connect Khurram Askari Reliance Money Financial Products 1800 franchises 10 states Rural Relations Pradeep Lokhande
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Importance of Market Research

Non-homogenous market Small and different subsets Demographic, cultural, geographical, logistical Potentiality of each segment differs Understand differences for marketing strategies Challenge to identify & utilize sources of information Marketing research provides specialised and focussed information for decision making
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Decisions that require information support

Strategic Decisions - deals with
Objectives Resource policies Strategies

Involves - Senior Management Has long term impact Introduction of new products, starting new branch, adoption of new technology
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Examples of Strategic Decisions

Sales trend forecasting 5-year sales forecast M&A Decisions Assessment of capabilities New product line Customer analysis, competitor analysis Entry into new markets Company re-organization
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Management (Tactical) Decisions

Making market trend analysis
Identifying customers, markets based on demographics, consumer behaviour & trends

Conducting pricing analysis

Determining prices for products & services

Selecting credit line

Analysing performance of sales territories, distributor & dealer strengths

Allocating advertising
Analysis of advertising budgets
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Operational Decisions (simple, routine, structured)

Order processing
Entering, processing, tracking

Evaluating point-of-sale performance

Recording sales data

Selecting dealers
Collect dealer information

Hiring new supervisors

Conducting interview, appointing

Sales Orders
Presenting promotion ideas

Hiring & training sales force

Day-to-day scheduling of sales & promotional efforts, periodic analysis of sales volume by region, product, customer

Internal Reporting Systems

Historical data of events and results Backward looking, helps in diagnosis Data relating to day-to-day operations, up-to-minute reports Orders, sales, prices, costs, inventory, receivables, payables Order to Payment Cycle Orders received, Stock reports, sales invoices Sales invoices
Territory sales (product, size, pack, value, volume) Customer-wise sales (product, size, pack, value, volume)

Orders vs Invoices service levels Stock vs Orders stocks in line with demand patterns
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Internal Records Support To 4Ps

Product Item (brand) decision
Sales of existing products Profitability data Production cost analysis Idle capacity Request for new products

Price
Price determination or change
Cost data Company policies Dealer performance Discount structure

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Promotion
Personal Selling Team
Current market coverage Target coverage Production levels Budget

Advertising & sales

Previous allocations Sales and add expenditure data Sales force preferences Previous promotions
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Place
Channel decision
Product characteristics Standardization Perishability Bulk service requirements Unit price

Dealer appointment
Market coverage need Channel members Number & size Sales turnover

Channel management
Channel performance Channel conflicts (complaint data)
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Marketing Intelligence Systems

Supplies news about developments relating to
Customers Markets Competitors Products Government policies

Forward looking prognosis Sensory organ organization & environment

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Sales Force
Eyes & ears of organization Competitors information products, action Middlemen attitudes & performance Consumer preferences & buying approaches Train & motivate to gather & supply relevent information Periodical reports, meetings, seminars
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Middlemen
Information gathering Generate ideas Trouble shooters

Other Staff
Scan publications papers, journals, reports Internet sources Meetings, Conferences, seminars, workshops

Company
Industrial exhibitions Development Programmes Sponsoring Events
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Scanning the Rural Environment

Demographic Environment
639,000 Villages 743 million population 72% of Indian popilation 12% of world population 62% <1000 pop 3% > 5000 pop Pop < 500 have no shops Complexity of distribution & logistics Age-mix: 25% : 20-35; 25%: 5 14 Years
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Economic Environment
Income Distribution Million Population

Per capita consumption expenditure rising Expenditure pattern shifting from food to non-food Seasonal income, daily wage earners

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Socio-Cultural Environment
Individual & collective behaviour Regional influences Caste social status Sub-castes, more complicated Impacts housing patterns

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Natural Environment
Pucca houses Electricity Satellite television Two-wheelers, four-wheelers, tractors, less dependence on animals Power pumps Harvesters Less dependent on farming
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Technological Environment
HYV Fertilizers Tractors Improved irrigation Dairy hybrid animals White revolution, Green revolution Mobiles, Computers, TV
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Politico-Legal Environment
Earlier local, now national Panchayati Raj SEZ Reverse urbanization farm houses & real estate in rural areas NGOs education, political, legal awareness

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