1. Section 28.1 Marketing Information Systems
Marketing Essentials
n Chapter 28 Marketing Research
Section Marketing Information Systems

2. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
What You'll Learn
The importance of marketing research
The function of a marketing information system

3. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Why It's Important
Successful companies must be able to understand the needs and wants of their customers. Marketing research can provide the necessary information to help a business while planning, solving problems, and making decisions regarding its products and services.

4. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Key Terms
marketing research
marketing information system
database

5. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Defining Marketing Research
Marketing research links the consumer, customer, and public to the marketer through information. Marketing information is used to identify marketing opportunities, solve marketing problems, implement marketing plans, and monitor marketing performance.

6. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Why is Marketing Research Important?
Given the high failure rate of new products on the market, marketing research can make or break a business. Marketing research helps businesses:
plan future operations to increase sales and profits
decide what products to produce
decide where to sell products
decide how to promote products
decide how to price products
solve marketing problems
anticipate future marketing potential
keep track of current markets and competitors

7. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Who Uses Marketing Research?
Marketing research is valuable for organizations of any size.
Marketing research is useful to:
businesses
state and federal governments
trade associations

8. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Market Research Revenues by Industry Groups
Over $3 billion is spent annually by industry groups for marketing research. Why does the government spend money on marketing research? What industry groups do you think would be interested in your opinions?

9. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Marketing Information Systems
A marketing information system is a set of procedures and methods that regularly generates, stores, analyzes, and distributes marketing information. Data includes:
Company records: sales results, expenses, supplier data
Competitors' records: prices, location, market share
Customer profiles: buying behavior, shopping patterns, lifestyles
Government data: price trends, economic projections

10. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Marketing Databases
Information technologies have made the collection and analysis of data for marketing decision-making much easier. Information about consumers and their buying habits are stored in a computer database, a collection (or file) of related information about a specific topic.

11. Marketing Information Systems
SECTION 28.1
Marketing Information Systems
Difficulties of Marketing Information Systems
Setting up a marketing information system requires a significant investment of time and money. Trained personnel are needed to maintain and analyze the data collected in the system. Vast amounts of data can be obtained, so businesses have to prioritize the information that is most important to them.

12. Reviewing Key Terms and Concepts
ASSESSMENT
28.1
Reviewing Key Terms and Concepts
1. What is marketing research?
2. How does marketing research help businesses?
3. Who uses marketing research?
4. What is a marketing information system?
5. What is a database?

13. ASSESSMENT Thinking Critically 28.1
Supermarkets often require the use of a "valued customer" card to obtain special discounts on the store's products. Do you think that supermarkets should give special bargains in exchange for personal shopping information?

14. Marketing Essentials
End of Section 28.1