Page 90 - Marketing Management

Collecting Information

and Forecasting Demand

Making marketing decisions in a fast-changing world is both an art and a
science. To provide context, insight, and inspiration for marketing decision making,
companies must possess comprehensive, up-to-date information about macro trends, as
well as about micro effects particular to their business. Holistic marketers recognize that the
marketing environment is constantly presenting new opportunities and threats, and they
understand the importance of continuously monitoring, forecasting, and adapting to that
environment.

The severe credit crunch and economic slowdown of 2008–2009 brought profound
changes in consumer behavior as shoppers cut and reallocated spending. Sales of
discretionary purchases like toys, apparel, jewelry, and home furnishings dropped.
Sales of luxury brands like Mercedes—driven for years by free-spending
baby boomers—declined by a staggering one-third.
Firms are adjusting the way they do business for more
Meanwhile, brands that offered simple, affordable
reasons than just the economy. Virtually every industry has been
solutions prospered. General Mills’s revenues from such favorites
touched by dramatic shifts in the technological, demographic,
as Cheerios, Wheaties, Progresso soup, and Hamburger Helper
social-cultural, natural, and political-legal environments. In this
rose. Consumers also changed how and where they shopped, and
chapter, we consider how firms can develop processes to identify
sales of low-priced private label brands soared. Virtually all and track important macroenvironment trends. We also outline
marketers were asking themselves whether a new age of prudence how marketers can develop good sales forecasts. Chapter 4 will
and frugality had emerged and, if so, what would be the appropriate review how they conduct more customized research on specific
response. marketing problems.

Components of a Modern

Marketing Information System

The major responsibility for identifying significant marketplace changes falls to the company’s
marketers. Marketers have two advantages for the task: disciplined methods for collecting informa-
tion, and time spent interacting with customers and observing competitors and other outside
groups. Some firms have marketing information systems that provide rich detail about buyer
wants, preferences, and behavior.

67