Exam Prep: TU Marketing
Topic: MKIS & Demand Forecasting

MKIS & Demand Forecasting

* Focus: Marketing Information Systems (MKIS) and the strategic assessment of market opportunities through demand measurement.

1. Core Definitions (Entry Points)

MKIS (Kotler) People, equipment, & procedures to gather, sort, analyze, and distribute needed, timely, accurate info.
Internal Record System Systematic arrangement of internal activities (sales/financial).
Mktg Intelligence System Collects daily info on changing environment (scanning).
Decision Support System Data Bank + Methods Bank + Model Bank for analysis.
Mktg Research System Systematic design, collection, analysis of specific situations.
Potential vs. Available Potential: Est. Max Sales. Available: Willing AND capable.
Target vs. Penetrated Target: Aimed at. Penetrated: Already buying successfully.
Market Demand Total quantity consumers are willing/able to buy at a specific price across space & time.

2. High-Yield Strategic Points

Need & Features of MKIS

  • Assists in budgeting, planning, & beating competition.
  • Ensures optimum utilization of resources.
  • Organized arrangement of people, processes, machines.
  • Provides timely, accurate, & ongoing data.

Est. CURRENT Demand

  • Total Market Potential: Buyers x Avg Qty x Price.
  • Market Build-up: Used for industrial buyers/requirements.
  • Market Factor Index: Uses weighted variables (population/income).

Est. FUTURE Demand

  • Executive Opinion: Relies on mgmt experience.
  • Opinion Surveys: Target consumers/sales force/experts.
  • Past Sales Trend: Scientific forecasting.
  • Market Tests: Eval products in specific new locations.

Nepal Context (Score High!)

Transitioning to a buyer's market. Decisions rely heavily on ad-hoc hunches and internal records. Formal research is nascent (mostly focused on ads).

3. Visual Blueprints (Must Draw!)

Model 1: 4-Component MKIS Framework
Marketing Information System Internal Record System Marketing Intelligence System Marketing Research System Decision Support System Marketing Decision Makers
Model 2: 7-Stage Research Process
1. Problem Definition 2. State Objectives 3. Develop Plan 4. Data Collection 5. Data Analysis 6. Report Writing 7. Conduct Follow-up
Model 3: Total Mkt Potential (TMP)
TMP = PB × AQPB × PPU Legend: • PB: Potential Buyers • AQPB: Avg Qty Per Buyer • PPU: Price Per Unit

4. Exam Triggers & Nepal Context

High-Probability Questions:

  • 5-Mark: Distinguish Potential, Available, Target & Penetrated mkts. OR DSS components. OR Importance of Mktg Research.
  • 15-Mark: Define MKIS, discuss components & current state in Nepalese context. OR Methods of estimating current/future demand.

"Must-Include" Keywords:

  • MKIS Components: Int Records, Intell, Research, DSS.
  • Total Market Potential: Fundamental formula!
  • Market Build-up: Specific for industrial markets.
  • Consumer Survey: Core tool for forecasting intentions.

Nepalese Market Reality

Post-Liberalization: Transitioning from a seller's market to a competitive buyer's market.

Reality Check: Practices remain ad-hoc & intuition-based. Heavy reliance on basic internal records. Research is nascent & largely focused purely on advertising issues.

5. Final Review Canvas

1. Topic Overview

MKIS manages timely info systematically. Demand measurement assesses potential, available, & target markets across product, space, & time to find real market opportunities.

2. Strategic Framework

System = 4 components (Records, Intell, DSS, Research).
Demand estimated via TMP (PB x AQPB x PPU), Build-up, and future forecasting (Executive Opinion, Market Tests).

3. Nepal Context

Historically a seller’s market, now transitioning to a buyer's market. Current practices remain ad-hoc/intuition-based with heavy reliance on internal records and a nascent research sector.