Managing Marketing Information 4

4-2 The Importance of Information Companies need information about their: Companies need information about their: –Customer needs –Marketing environment –Competition Marketing managers do not need more information, they need better information. Marketing managers do not need more information, they need better information.

4-3 The Marketing Information System

4-4 Marketing Information System An MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. An 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: The MIS helps managers to: 1. Assess Information Needs 2. Develop Needed Information 3. Distribute Information

4-5 Assessing Information Needs Information Managers Would Like to Have What They Really Need & What is Feasible to Offer

4-6 Developing Marketing Information Internal Databases: Electronic collections of information obtained from data sources within the company. Internal Databases: Electronic collections of information obtained from data sources within the company. Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

4-7 The Marketing Research Process 12 34

4-8 Defining the Problem & Objectives Gather preliminary information that will help define the problem and suggest hypotheses. Exploratory Research Descriptive Research Causal Research Describes things (e.g., market potential for a product, Demographics, and attitudes). Tests hypotheses about cause-and-effect relationships.

4-9 Developing the Research Plan Includes: Includes: –Determining the exact information needed –Developing a plan for gathering it efficiently –Presenting the written plan to management Outlines: Outlines: –Sources of existing data –Specific research approaches –Contact methods –Sampling plans –Instruments for data collection

4-10 Gathering Secondary Data Information that already exists somewhere Information that already exists somewhere –Internal databases –Commercial data services –Government sources Available more quickly and at a lower cost than primary data Available more quickly and at a lower cost than primary data

4-11 Online Databases Dialog puts an incredible wealth of information at the keyboards of marketing decision makers. Dialog puts “information to change the world, or your corner of it” at your fingertips.

4-12 Primary Data Collection Consists of information collected for the specific purpose at hand. Consists of information collected for the specific purpose at hand. Must be relevant, accurate, current, and unbiased. Must be relevant, accurate, current, and unbiased. Must determine: Must determine: –Research approach –Contact methods –Sampling plan –Research instruments

4-13 Observational Research Gathering data by observing people, actions and situations (Exploratory) Experimental Research Using groups of people to determine cause-and-effect relationships (Causal) Develop the Research Plan Primary Data Collection Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive) Research Approaches

4-14 Observational Research The gathering of primary data by observing relevant people, actions, and situations. The gathering of primary data by observing relevant people, actions, and situations. Ethnographic research: Ethnographic research: –Observation in “natural environment” Mechanical observation: Mechanical observation: –People meters –Checkout scanners

4-15 Survey Research Approach best suited for gathering descriptive information. Approach best suited for gathering descriptive information. Can gather information about people’s knowledge, attitudes, preferences, or buying behavior. Can gather information about people’s knowledge, attitudes, preferences, or buying behavior.

4-16 Experimental Research Tries to explain cause-and-effect relationships. Tries to explain cause-and-effect relationships. Involves: Involves: –selecting matched groups of subjects, –giving different treatments, –controlling unrelated factors, and –checking differences in group responses.

4-17 Strengths & Weaknesses of Contact Methods

4-18 Choosing the Sample Sample – segment of the population selected to represent the population as a whole. Sample – segment of the population selected to represent the population as a whole. Requires 3 Decisions: Requires 3 Decisions: –Who is to be surveyed? Sampling unit –How many people should be surveyed? Sample size –How should the people in the sample be chosen? Sampling procedure

4-19 Primary Data Collection Mechanical Devices People Meters Supermarket Scanners Galvanometer Eye Cameras Questionnaires What questions to ask Form of each question Closed-ended Open-ended Wording Ordering Research Instruments

4-20 Collecting the Data Processing the Data Analyzing the Data Research Plan Implementing the Research Plan

4-21 Interpreting & Reporting Findings Managers and researchers must work together when interpreting research results. Step 1. Interpret the Findings Step 2. Draw Conclusions Step 3. Report to Management

4-22 Customer Relationship Management Many companies utilize CRM Many companies utilize CRM –Capture customer information from all sources –Analyze it in depth –Apply the results to build stronger relationships. Companies look for customer touch points. Companies look for customer touch points. CRM analysts develop data warehouses and use data mining techniques to find information out about customers. CRM analysts develop data warehouses and use data mining techniques to find information out about customers.

4-23 Distributing and Using Marketing Information Information Must be Distributed to the Right People at the Right Time Routine Information for Decision Making Nonroutine Information for Special Situations IntranetsExtranets

4-24 Other Marketing Research Considerations Marketing Research in Small Businesses and Nonprofit Organizations Marketing Research in Small Businesses and Nonprofit Organizations International Marketing Research Public Policy and Ethics in Marketing Research