Marketing: An Introduction Armstrong, Kotler Chapter Four Managing Marketing information

Looking Ahead Explain the importance of information and the to understanding of the marketplace. Define the marketing information system and discuss its parts. Outline the steps in the marketing research process. Explain how companies analyze and distribute marketing information. Discuss the issues marketing researchers face, including public policy and ethics issues.

Managing Marketing information The importance of information; Companies need information about their: Customer needs. Marketing environment. Competition. Marketing managers do not need more information, they need better information.

Managing Marketing information Marketing Information System A company’s skills, processes and tools for gathering, analyzing and using environmental information. Information critical to react the marketing environment. Challenge is to get better, actionable information. Figure 1

The Marketing Information System Figure 6.1

The Marketing Information System Data Gathering Techniques : Internal data Marketing intelligence Marketing research

Developing Information Internal data: Information collected, stored within the organization as database. Accounting department prepare financial statements, costs, sales, and cash flows. Marketing intelligence: Systematic collection and analysis Publicly available information About competitors and market developments. To improve strategic decision making, assess and track competitors actions, and provide early warning.

The Marketing Research Process Systematic design, collection, analysis, and reporting Data relevant to a specific marketing situation Facing the organization Multi-step process Can be done by company personnel or contracted to outside companies

Market Research Process - Define the problem Market Research Process - Define the problem. - Set the research objectives. - Develop a research plan. - Implement the marketing research plan. - Analyze and interpret the data. - Report the findings.

Types of Marketing Research Exploratory research. - To gather preliminary information. - Primary or secondary data. Descriptive research. - To describe marketing situations or markets. - Surveys, observational studies. Causal research. To experiment with cause-and-effect relationships.

Developing the research plan: Secondary data: Internet database, government Primary data: data collection resources are;; 1- research approaches 2- contact methods 3- sampling plan 4- research instruments.

Research approaches 1 - Observational research: gathering primary data by observing relevant people, actions, and situations. 2- Survey (descriptive) research ; gathering data by asking people questions, about their knowledge, attitude, preferences, and buying behavior. Single-Source data systems; Starts with survey, then select group of customers who agree to participate in ongoing research. 3- Experimental research ; gathering primary data by selecting matched groups of subjects, giving them different treatments, then checking the groups responses.

Contact methods Data collected by mail, telephone, personal interview or online. One of the interview technique called; Focus group interviewing; that invite 6 to 10 customers, with trained interviewer and talk openly about products, services. Now marketing researcher are collecting primary data through the Internet. ….etc. Table 1

Contact Methods Table 1 Mail Telephone Personal Online Flexibility Poor Good Excellent Quantity of data collected Fair Control of interviewer effect Control of sample Speed of data collection Response rate Cost

Sampling Plan Segment of the population selected for marketing research represent the population (of interest) as a whole Types of Samples Probability sample: Simple random sample: equal chance of selection Stratified random sample; people divided into groups, age, gender… Cluster (area) sample; groups divided in groups, such as blocks, and draw samples for those blocks.

Sampling Plan Non-probability sample Convenience sample; The researcher selects the easiest population member to obtain samples. Judgment sample; the researcher uses hi/her judgment to select population members. Quota sample; The researcher finds and interviews a number of people in each category.

Research Instruments Questionnaire; collecting primary data through asking people by phone, interview, online questions, closed end questions, open-end questions. Mechanical; Supermarket scanners, Eye cameras.

Interpret and Report Findings Managers and researchers must work together when interpreting research results. Step One: Interpret the finding. Step Two: Draw conclusions. Step Three: Report to management.

Customer Relationship Management Customer relationship management (CRM): Software that gathers, stores and analyzes individual customer information. All departments view the customer through a single “window.” Purpose is to make better use of the information the company already has Goal is to provide higher levels of customer service

Research Issues Small businesses and non-profit organizations lack research resources. International marketing information can be difficult and costly to obtain. Competitive information often difficult to obtain ethically. Public policy issues. Intrusions on consumer privacy. Misuse of research findings.