1 Chapter 4 Marketing Research and Information Systems

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

3 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: 1. Assess Information Needs, 2. Develop Needed Information, 3. Distribute Information.

4 The Marketing Information System (Fig. 4.1)

5 Information Managers Would Like to Have What They Really Need & What is Feasible to Offer Functions of a MIS: Assessing Information Needs

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

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

8 Discussion Connections What is the overall goal of a Marketing Information System (MIS)? How are individual components linked and what does each contribute? (See Figure 4.1, Slide #5) Apply the MIS framework to Coca-Cola. What does this company appear to be doing well?

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

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

11 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

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

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 Planning Primary Data Collection Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive) Research Approaches

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

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

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

17 Develop the Research Plan Presenting the Research Plan Summarize the plan in a written proposal and cover: Management problems addressed, Research objectives, Information to be obtained, Sources of secondary information, Methods for collecting primary data, Way the results will help management decision making.

18 Collecting the Data Processing the Data Analyzing the Data Research Plan Marketing Research Process Step 3. Implementing the Research Plan

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

20 Other Marketing Research Considerations Marketing Research in Small Businesses and Nonprofit Organizations Marketing Research in Small Businesses and Nonprofit Organizations International Marketing Research International Marketing Research Public Policy and Ethics in Marketing Research Public Policy and Ethics in Marketing Research For ad, click object:

21 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. Compare the advantages and disadvantages of various methods of collecting information. Discuss the special issues some marketing researchers face, including public policy and ethics issues.