1. Chapter Four Managing Marketing Information

2. Copyright 2007, Prentice Hall, Inc.4-2 The Importance of Marketing Information  Companies need information about their: –Customers’ needs –Marketing environment –Competition  Marketing managers do not need more information, they need better information.

3. Copyright 2007, Prentice Hall, Inc.4-3 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.  The MIS helps managers to: 1. Assess information needs 2. Develop needed information 3. Distribute information

4. Copyright 2007, Prentice Hall, Inc.4-4 Assessing Information Needs  A good MIS balances the information users would like against what they really need and what is feasible to offer.  Sometimes the company cannot provide the needed information because it is not available or due to MIS limitations.  Have to decide whether the benefits of more information are worth the costs.

5. Copyright 2007, Prentice Hall, Inc.4-5 Developing Marketing Information  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 Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

6. Copyright 2007, Prentice Hall, Inc.4-6 The Marketing Research Process  Defining the problem and research objectives  Developing the research plan  Implementing the research plan  Interpreting and reporting the findings

7. Copyright 2007, Prentice Hall, Inc.4-7 Defining Problem & Objectives  Exploratory Research: –Gathers preliminary information that will help define the problem and suggest hypotheses.  Descriptive Research: –Describes things (e.g., market potential for a product, demographics and attitudes).  Causal Research: –Tests hypotheses about cause-and-effect relationships.

8. Copyright 2007, Prentice Hall, Inc.4-8 The Marketing Research Process  Defining the problem and research objectives  Developing the research plan  Implementing the research plan  Interpreting and reporting the findings

9. Copyright 2007, Prentice Hall, Inc.4-9 Developing the Research Plan  Includes: –Determining the exact information needed. –Developing a plan for gathering it efficiently. –Presenting the written plan to management.  Outlines: –Sources of existing data –Specific research approaches –Contact methods –Sampling plans –Instruments for data collection

10. Copyright 2007, Prentice Hall, Inc.4-10 Gathering Secondary Data  Information that already exists somewhere: –Internal databases –Commercial data services –Government sources  Available more quickly and at a lower cost than primary data.  Must be relevant, accurate, current, and impartial.

11. Copyright 2007, Prentice Hall, Inc.4-11 Primary Data Collection  Consists of information collected for the specific purpose at hand.  Must be relevant, accurate, current, and unbiased.  Must determine: –Research approach –Contact methods –Sampling plan –Research instruments

12. Copyright 2007, Prentice Hall, Inc.4-12 Observational Research  The gathering of primary data by observing relevant people, actions, and situations.  Ethnographic research: –Observation in “natural environment”  Mechanical observation: –People meters –Checkout scanners

13. Copyright 2007, Prentice Hall, Inc.4-13 Survey Research  Most widely used method for primary data collection.  Approach best suited for gathering descriptive information.  Can gather information about people’s knowledge, attitudes, preferences, or buying behavior.

14. Copyright 2007, Prentice Hall, Inc.4-14 Experimental Research  Tries to explain cause-and-effect relationships.  Involves: –selecting matched groups of subjects –giving different treatments –controlling unrelated factors –checking differences in group responses

15. Copyright 2007, Prentice Hall, Inc.4-15 Primary Data Collection  Consists of information collected for the specific purpose at hand.  Must be relevant, accurate, current, and unbiased.  Must determine: –Research approach –Contact methods –Sampling plan –Research instruments

16. Copyright 2007, Prentice Hall, Inc.4-16 Contact Methods  Mail surveys  Telephone surveys  Personal interviews –Individual interviewing –Focus group interviewing  Online marketing research –Surveys –Experiments –Focus groups

17. Copyright 2007, Prentice Hall, Inc.4-17 Primary Data Collection  Consists of information collected for the specific purpose at hand.  Must be relevant, accurate, current, and unbiased.  Must determine: –Research approach –Contact methods –Sampling plan –Research instruments

18. Copyright 2007, Prentice Hall, Inc.4-18 Sampling Plan  Sample: segment of the population selected to represent the population as a whole.  Sampling requires three 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  Probability vs. nonproability samples

19. Copyright 2007, Prentice Hall, Inc.4-19 Primary Data Collection  Consists of information collected for the specific purpose at hand.  Must be relevant, accurate, current, and unbiased.  Must determine: –Research approach –Contact methods –Sampling plan –Research instruments

20. Copyright 2007, Prentice Hall, Inc.4-20 Primary Data Collection  Questionnaires: –What questions to ask? – Form of each question? Closed-ended Open-ended – Wording? – Ordering?

21. Copyright 2007, Prentice Hall, Inc.4-21 Primary Data Collection  Mechanical Devices: – People meters – Supermarket scanners – Galvanometer – Eye cameras

22. Copyright 2007, Prentice Hall, Inc.4-22 The Marketing Research Process  Defining the problem and research objectives  Developing the research plan  Implementing the research plan  Interpreting and reporting the findings

23. Copyright 2007, Prentice Hall, Inc.4-23 Implementing the Research Plan  Collecting the data –Most expensive phase –Subject to error  Processing the data –Check for accuracy –Code for analysis  Analyzing the data –Tabulate results

24. Copyright 2007, Prentice Hall, Inc.4-24 The Marketing Research Process  Defining the problem and research objectives  Developing the research plan  Implementing the research plan  Interpreting and reporting the findings

25. Copyright 2007, Prentice Hall, Inc.4-25 Interpreting and Reporting Findings  Interpret the findings  Draw conclusions  Report to management –Present findings and conclusions that will be most helpful to decision making.