Marketing Research and Information Systems Chapter 4 Marketing Research and Information Systems

The Importance of Information Companies need information about their: Marketing environment Competition Customer needs Managers don’t need more information, they need better information.

What is a Marketing Information System (MIS)? A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. The MIS helps managers to: Assess Information Needs, Develop Needed Information, Distribute Information.

The Marketing Information System (Fig. 4.1)

Functions of a MIS: Developing Information Information Needed by Managers Can be Obtained From: Internal Data Computerized Collection of Information from Data Sources (i.e. Accounting) Within the Company. Marketing Research Design, Collection, Analysis, and Reporting of Data about a Specific Marketing Situation Facing the Organization. Intelligence Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment (i.e. Technological).

Customer Information Comment cards Registration-membership Disguised/mystery shoppers Employees Company records Exit interviews Follow up phone calls

Functions of a MIS: Distributing Information Distributes Routine Information for Decision Making Information Must be Distributed to the Right Managers at the Right Time. Distributes Nonroutine Information for Special Situations

The Marketing Research Process (Fig. 4.2) Implementing the research plan -- collecting and analyzing the data Defining the problem and research objectives Developing the research plan for collecting information Interpreting and reporting the findings

Marketing Research Process Step 1 Marketing Research Process Step 1. Defining the Problem & Research Objectives Exploratory Research Gathers preliminary information that will help define the problem and suggest hypotheses. Descriptive Research Describes things as market potential for a product or the demographics and consumers’ attitudes. Causal Research Test hypotheses about cause- and-effect relationships. Tests hypotheses about cause-

Marketing Research Process Step 2. Develop the Research Plan Research plan development follows these steps: Determining Specific Information Needs Gathering Secondary information Planning Primary Data Collection

Examples Exploratory Research Descriptive Research Causal Research (Unaware of Problem) (Aware of Problem) (Problem Clearly Defined) “Our sales are declining and “What kind of people are buying “Will buyers purchase more of we don’t know why.” our product? Who buys our our products in a new package?” competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?” “What features do buyers prefer campaigns is more effective?” in our product?” possible situation

Develop the Research Plan Gathering Secondary Information Information That Already Exists Somewhere. + Obtained More Quickly, Lower Cost. - Might Not be Usable Data. Secondary Both Must Be: Relevant Accurate Current Impartial Information Collected for the Specific Purpose at Hand. Primary For ad, click object:

Develop the Research Plan Planning Primary Data Collection Observational Research Gathering data by observing people, actions and situations (Exploratory) Research Approaches Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive) Most Widely Used Form Experimental Research Using groups of people to determine cause-and-effect relationships (Causal)

Develop the Research Plan Planning Primary Data Collection Contact Methods (Table 4.3)

Develop the Research Plan Planning Primary Data Collection Probability or Non-probability sampling? Sampling Plans Who is to be surveyed? (What Sampling Unit?) Sample - representative segment of the population How should the sample be chosen? How many should be surveyed?

Develop the Research Plan Planning Primary Data Collection Research Instruments Questionnaire What questions to ask? Form of each question? Closed-end Open-end Wording? Ordering? Mechanical Devices People Meters Supermarket Scanners Galvanometer Tachistoscope Eye Cameras

Research Problem Areas 1. Making assumptions 2. Lack of Qualitative information 3. Failing to look at segments within a sample 4. Improper use of sophisticated statistical analysis 5. Sample is not representative of the population 6. Using biased questions in surveys

Development of questions 1 Development of questions 1. Every question should focus on a topic and measure what you want it to measure. Wrong: Which restaurant do you like the best? Right: Which of these restaurants you be most likely to choose for a casual dinner? Wrong: When do you usually go to work? Right: What time do you ordinarily leave home for work?

2. Questions should be brief Wrong: Can you tell me how many children you have, whether they are girls or boys, and how old they are? Right: What is the age and gender of your children?

3. Use vocabulary the respondent will understand Wrong: Are you an exurbanite? Right: What is your zip code?

4. Question must be applicable to the respondent Wrong: How long does it take you to find a parking place after you arrive at the restaurant? Right: If you drive to the restaurant, how long does it take you to find a parking place after you arrive at the restaurant? Might use a screening question first - Do you usually drive to the restaurant. Yes___ No____, If Yes …….

5. Avoid using examples that can introduce bias Wrong: Do you eat lamb chop ribs, even thought they contain a lot of fat? Right: How likely are you to order lamb chop when you dine out? Perhaps use this with a 7 point scale.

6. Make sure the respondent can answer the question Wrong: How many times did you dine out last year? Right: How many times did you dine out at a fast food restaurant during the last 2 weeks?

7. Avoid ambiguous words Wrong: About what time do you ordinarily eat dinner? Right: About what time do you dine in the evening? Avoid; sometimes, frequently, usually

8. Avoid double barreled questions Wrong: Do you dine out regularly because it is as cheap as eating at home? Right: Do you dine out regularly? Why or why not?

9. Scales- Mutually exclusive – Collectively exhaustive 0-10___, 10-15___ not mutually exclusive 5-10____, 11-15___, 15+____, not collectively exhaustive

Marketing Research Process Step 3. Implementing the Research Plan Collecting the Data Most Expensive & Subject to Error Research Plan Processing the Data Analyzing the Data

Marketing Research Process Step 4. Interpreting and Reporting Findings Step 1. Interpret the Findings Researcher Should Present Important Findings that are Useful in the Major Decisions Faced by Management. Step 2. Draw Conclusions Step 3. Report to Management

Review of Concept Connections Explain the importance of information to the company. Define the marketing information system and discuss its parts. Outline the steps in the marketing research process. Distinguish among exploratory, descriptive, and causal research. Compare the advantages and disadvantages of various methods of collecting information. Discuss the issues for developing survey and collecting data