CHAPTER 4 Marketing Information and Research: Analyzing the Business Environment Off-line and Online M A R K E T I N G

4-2 Knowledge is Power A Marketing Information System (MIS) determines what information managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to system users 3 components of MIS –data –computer hardware and software –MIS experts

4-3 Figure 4.2: The Marketing Information System

4-4 Marketing Decision Support System Includes analysis and interactive software that allows managers to conduct their own analyses

4-5 Search for Gold: Data Mining Customer Acquisition Customer Retention Customer Abandonment Market Basket Analysis

4-6 Figure 4.4: Steps in the Research Process Define the Problem Determine Research Design Choose Data Collection Method Design the Sample Collect the Data Analyze and Interpret Data Prepare the Research Report

4-7 Step 1: Define the Problem Specify the research objectives Identify the consumer population of interest Place the problem in an environmental context

4-8 Step 2: Determine the Design Can the information be acquired from existing data? –If so, secondary data sources will be utilized –If not, primary research will be necessary

4-9 Step 3: Choose the Data Collection Method Communication –Mail questionnaires –Telephone –Face to face –Online questionnaires Observation

4-10 Data Quality Validity Reliability Representativeness

4-11 Probability Samples Simple Random Stratified Systematic Random

4-12 Non-Probability Samples ConvenienceQuota

4-13 Garbologists Search for Clues

4-14 Step 5: Collect the Data Implementation phase Special issues in data collection –Gathering Data in Foreign Countries –Single-Source Data

4-15 Checkout Scanners Checkout scanners enable marketers to collect single- source data

4-16 Step 6: Analyze and Interpret Data Enter, clean, and code data Choose appropriate techniques for analysis Interpret analysis

4-17 Step 7: Prepare the Research Report Executive Summary Conclusions/ Recommendations Limitations Discussion Description of Research Methods

4-18 Online Research - Online Tracking The Internet offers the ability to track and monitor consumers while they surf Several behaviors can be monitored –What sites are visited? –How long did the visitor stay? –What types of information did they collect at the site? –Where did they go after they left?

4-19 Coremetrics Coremetrics specializes in tracking the online behavior of all visitors to their clients’ Web sites

4-20 Cookies Cookies are text files inserted on a user’s hard drive by an Internet site Cookies allow for details of a Web visit to be stored and tracked with future visits For marketers, cookies allow a way of observing behavior and customizing Web sites and offerings to specific users For consumers, cookies represent a trade- off between privacy and customization

4-21 MCI In focus groups and interviews about online shopping, consumers consistently rate security their number one concern

4-22 Online Activities/Experiments

4-23 Purposes of Internet Research Develop new products Estimate market response Assess attitudes Test markets

4-24 Limitations of Online Research Representativeness of the population Self-selection bias Influence from hackers Threats of competitive intelligence

4-25 Issues for Discussion What is the impact on legitimate researchers when marketers disguise themselves as market researchers in order to attempt to sell something? Should marketers be allowed to conduct research with young children? Are you willing to share personal information with marketing researchers? How much are you willing to tell?

4-26 Issues for Discussion What is your overall attitude toward marketing research? Is it beneficial from the consumer’s perspective? Some firms use data mining to identify and abandon customers who are not profitable. What do you think of such practices? Is it ethical?

4-27 Issues for Discussion Do consumers have the right to “own” data about themselves? Should governments limit the use of the Internet for data collection? Do you think marketers should have the right to go through consumers’ or competitors’ garbage? Is it ethical?