0. Managing Marketing Information
Chapter 5

1. Objectives Understand the importance of information to the company.
Know the definition of a marketing information system and be able to discuss its subparts.
Learn the steps in the marketing research process.

2. Objectives
Learn how companies analyze and distribute marketing information.
Realize the special issues some marketing researchers face, including public policy and ethical issues.

3. c
Coke
“New Coke” was a fiasco; consumer complaints resulted in the return of “Coke Classic” after only 3 months.
$4 million was spent researching “New Coke”.
Key issue: the research problem was too narrowly defined, and consumer feelings were ignored.
Poor judgment in interpretation of results was also a problem.

4. Marketing Info. System Marketing Information System (MIS)
Consists of people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

5. The Marketing Information System
Figure 5-1:
The Marketing Information System

6. Marketing Info. System Assessing Marketing Information Needs
The MIS serves company managers as well as external partners.

7. Marketing Info. System Assessing Marketing Information Needs
The MIS must balance needs against feasibility:
Not all information can be obtained.
Obtaining, processing, sorting, and delivering information is costly.

8. Developing Information
Marketing Info. System
Internal Data is gathered via customer databases, financial records, and operations reports.
Advantages of internal data include quick/easy access to information.
Disadvantages stem from incompleteness or inappropriateness of data to a particular situation.
Developing Information
Internal data
Marketing intelligence
Marketing research

9. Financial services provider USAA collects data from its customers, stores the data in a database, and uses the data to tailor ads and marketing offers to its customers.

10. Developing Information
Marketing Info. System
Marketing intelligence is the systematic collection and analysis of publicly available information about competitors and trends in the marketing environment.
Competitive intelligence gathering activities have grown.
Many sources of competitive info. exist.
Developing Information
Internal data
Marketing intelligence
Marketing research

11. Sources of Competitive Intelligence
Marketing Info. System
Sources of Competitive Intelligence
Company employees
Internet
Garbage
Published information
Competitor’s employees
Trade shows
Benchmarking
Channel members and key customers

12. Developing Information
Marketing Info. System
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Several steps are involved in the marketing research process.
Developing Information
Internal data
Marketing intelligence
Marketing research

13. The Marketing Research Process
Figure 5-2:
The Marketing Research Process

14. Marketing Info. System
Step 1: Defining the problem and research objectives
Don’t confuse the symptoms of the problem with its cause when defining the problem.
Exploratory, descriptive, and causal research each fulfill different objectives.

15. Marketing Info. System Step 2: Developing the Research Plan
Research objectives guide the determination of specific information needs.

16. Marketing Info. System Step 2: Developing the Research Plan
Research proposals outline the type of data needed and the research plan.
Secondary data: Information collected for another purpose which already exists.
Primary data: Information collected for the specific purpose at hand

17. Marketing Info. System Types of Data Secondary data Primary data
Secondary data sources:
Government information
Internal, commercial, and online databases
Publications
Advantages:
Obtained quickly
Less expensive than primary data
Disadvantages:
Information may not exist or may not be usable.
Types of Data
Secondary data
Primary data

18. Online database services such as Dialog provide subscribers with a wealth of information.

19. Evaluate the Following When Judging Data Quality
Marketing Info. System
Evaluate the Following When Judging Data Quality
Relevance
Accuracy
Currency
Impartiality

20. Marketing Info. System Types of Data Secondary data Primary data
Planning primary research:
Research approaches:
Observation
Survey
Experiment
Contact methods
Sampling plan
Research instruments
Types of Data
Secondary data
Primary data

21. Marketing Info. System Research approaches:
Observation research using people or machines
Mystery shoppers, traffic counters, web site “cookies” are some examples.
Discovers behavior but not motivations.
Ethnographic research expands observation research to include consumer interviews.

22. Discussion Question
What specific behaviors, actions, or situations might an observational researcher track if employed by a bank?

23. The Impact of the Internet Experimental Research
The Internet: provides an unprecedented opportunity for market testing and optimization.
Digitization: will make it progressively easier to experimentally alter aspects of a business and quickly see how customers respond.
Experimentation:
Allows things that don’t exist to be tested
Features random assignment of subjects to treatments
Controls for other extraneous variables
Design plan is key
Source: “Learn and earn through testing on the Internet,” Marketing Research; Chicago; Fall 2000; Gordon A Wyner; Volume: 12 Issue: 3,

24. The Impact of the Internet Experimental Research
How can web-based experimentation be used?
Customer buying experience on the web
Site content
Availability of links
Spatial layout
Usability
Pricing tests
Comparison shopping websites
Service businesses
For an overview of how the Internet can be used for experimental research see the following article:
Source: “Learn and earn through testing on the Internet,” Marketing Research; Chicago; Fall 2000; Gordon A Wyner; Volume: 12 Issue: 3,

25. Marketing Info. System Types of Data Secondary data Primary data
Planning primary research:
Research Approaches
Contact methods:
Mail
Telephone
Online
Personal
Sampling plan
Research instruments
Types of Data
Secondary data
Primary data

26. Marketing Info. System Key Contact Methods Include: Mail surveys
Telephone surveys
Personal interviewing:
Individual or focus group
Online (Internet) research

27. BusinessNow Telephia Video Clip
Telephia uses multiple methods of data collection to service subscriber clients
Click the picture above to play video

28. Strengths and Weaknesses of Contact Methods Relate To:
Marketing Info. System
Strengths and Weaknesses of Contact Methods Relate To:
Flexibility
Sample control
Data quantity
Cost
Interviewer effects
Speed of data collection
Response rate

29. Marketing Info. System
Active Group allows clients to view streamed video of online focus group sessions.
Discuss the weaknesses of text-based focus groups conducted in an online chat environment.
Clicking the WWW icon will open your web browser and link to the web site pictured in the screen shot.
Active Group

30. Many companies today are migrating their research efforts to the web
Many companies today are migrating their research efforts to the web. Visit the Greenfield Online site for details.

31. Marketing Info. System Types of Data Secondary data Primary data
Planning primary research:
Research approaches
Contact methods
Sampling plan
Sampling unit
Sample size
Sampling procedure
Research instruments
Types of Data
Secondary data
Primary data

32. Marketing Info. System N = ???
Sample: subgroup of population from whom information will be collected
Sampling Plan Decisions:
Sampling unit
Sample size
Sampling procedure:
Probability samples
Non-probability samples
N = ???

33. Marketing Info. System Types of Data Secondary data Primary data
Planning primary research:
Research approaches
Contact methods
Sampling plan
Research instruments
Questionnaire
Mechanical instruments
Types of Data
Secondary data
Primary data

34. Marketing Info. System Research Instruments: Questionnaires
Include different types of questions
Open-ended question: What are the most important benefits you seek when buying a car?
Closed-ended question: What is your gender? ____ Male ____ Female
Phrasing and question order are key

35. The manner in which questions are phrased can influence the validity of the data collected. Critique the following questions:
What is your age?
___ 18 – ___ 25 – ___ 46 – 65
What is your income? $ _________
How important is fast and friendly service to you when selecting a fast food establishment?
___ Very important
___ Important
___ Somewhat important
___ Not important at all

36. SmarterKids.com Video Clip
BusinessNow
SmarterKids.com Video Clip
Marketing research allows companies to customize their marketing mix to meet consumer needs.
Click the picture above to play video

37. Marketing Info. System Research Instruments: Mechanical instruments
Traffic counters
Retailer store checkout scanners
Video-taped store traffic
People meters
Website logs, cookies, software
Physiological measurement equipment

38. Mechanical measures of physiological processes include eye movement, pulse rate, eye dilation, and as shown below, changes in facial expressions.
Marketers can adjust offers accordingly.

39. Marketing Info. System
Step 3 of the Research Process: Implementing the Research Plan
Involves collecting, processing, and analyzing information.

40. Marketing Info. System
Step 4 of the Research Process: Interpreting and Reporting the Findings

41. Marketing Info. System Analyzing Marketing Information
Customer relationship management (CRM) helps manage information.
CRM offers many benefits and can help a firm gain a competitive advantage.
Technology alone can not build profitable customer relationships.

42. Siebel’s CRM software integrates individual customer data from every touch point to help build customer relationships. Siebel uses a testimonial approach in this ad to stress the benefits of CRM.

43. Marketing Info. System Distributing and Using Marketing Information
Routine reporting makes information available in a timely manner.
User friendly databases allow for special queries.
Intranets and extranets help distribute information to company employees and value-network members.

44. Other Considerations
Marketing research in small businesses and not-for-profit organizations
International marketing research
Public policy and ethics
Consumer privacy issues
Misuse of research findings