Market information management (MIM) The process of gathering, sorting, analyzing and disseminating marketing information for businesses to make daily business decisions
Describe the need of marketing information. Marketing research is important to businesses because it contributes to business success because the marketing environment is constantly changing.. By surveying customers, a business could determine the location of the company’s market. The benefits of using the information should be greater than the expense of gathering the data used to generate this information
Classify types of marketing information as primary or secondary. – Primary is information the company collects directly from its own surveys – first time collected; expensive – Secondary is information the company collects from other sources. (libraries, online, Federal publications, etc.) – desk research – already exists. An advantage of secondary data is it is less expensive to collect than primary data.
Primary Research First hand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and methodology to ensure accuracy Types of question – closed – limited information gained; open – useful information but difficult to analyse
Internal Sources Internal Reports – sales reports – Inventory records Retail data – daily sales – loyalty cards
External Sources Government Statistics – census data Trade publications Commercial Data Magazine surveys Other firms’ research
Who uses marketing research? Marketing research may be formal or informal Marketing research may be internal or external Depending on the size of the business it may be done in house (internal department) or outsourced (hire an expert) Government, opinion polls, associations and businesses use marketing research
4.06 Acquire foundational knowledge of marketing-information management to understand its nature and scope
Technology Identify ways that the use of technology impacts the marketing-information management function. – Makes it easier to collect and store certain information – Information can be analyzed using specialized software – Many more details can be tracked
MIMS and CRMS Marketing-information management system an organized way of continuously gathering, sorting, analyzing, evaluating, and distributing marketing information.
MIMS and CRMS Customer Relationship Management (CRM) using computerized databases to sort and organize information about customers’ purchases & brand preferences. tracks the amount spent in order to determine the number of times the users buys a product. CRM also helps a business build strong, loyal customer relationships by rewarding repeat business.
Database Database: Different database softwares are available so that businesses can retrieve current customer and internal mktg information from a central location. Data analysis software: Specialized software allows data to be analyzed properly – Can be set up to give the information in a specified format – Software that decision makers can use with minimum training
Types of marketing research objectives. Quantitative – based on numbers (surveys – tracking, experiments) – 56% of 18 year olds drink alcohol at least four times a week – doesn’t tell you why, when, how Qualitative – more detail. Is intended to obtain detailed data about customers’ opinions and experiences. (personal interviews, focus groups, observational research) – tells you why, when and how!
Options for selecting sample groups to participate in a survey: Random Sampling: occurs when a random group of participants is selected. Ex: selecting a sample group of any high schooler to participate in the survey. Simple sampling: is used when you limit the sample to getting feedback from a select group of people only. Ex: Only senior business students may participate in the survey.
▫Stratified Random Sampling - dividing the population into subgroups based on variables known about those subgroups, and then taking a simple random sample of each subgroup ▫Cluster Sampling -useful for those who know little about the population they’re studying. First, the researcher would divide the population into clusters (usually geographic boundaries). Then, the researcher randomly samples the clusters
Sampling errors include: ▫Non-response: not enough surveys are returned ▫Interviewer bias: the interviewer interjects his/her opinions into the survey ▫Chance: when every result is the same
4.12 & 4.13 - Understand data- collection methods to evaluate their appropriateness for the research problem/issue.
Types of surveys A balanced survey: survey in which respondents are provided the same number of favorable and unfavorable rating options. Survey with a semantic differential scale: When using a scale such as a seven-point rating system with opposite adjectives on each end of the scale. EX: On the scale of 1-7 rate factor X, with 1 being poor and 7 being excellent.
Types of surveys….continued Mail surveys : use questionnaires as a common method of collecting research data. Potentially sensitive questions should be asked toward the end of an interview. Adv: Cheap, cover lots of customers, can be thorough Disadv:1. Poor return rate, customer can’t ask for clarification 2. Ill-designed questionnaires can decrease the response rate. Point-of-purchase displays :The scanners used in the checkout of a store. When the bar code labels are scanned data is automatically collected. This method of data collection is volume- tracking scanner.
Discussion groups – Adv: Multiple opinions can be collected at once, simultaneously test individual thoughts and group opinions – Disad: The group can influence the opinions and answers of individuals
Personal interviews – Allow to get customer opinion with high flexibility – Can clarify questions, read body language – Interviewers must be open, friendly, and non- judgmental. – Interviews must ask sensitive questions towards the end of the interview
Observation is the most appropriate data- collection method to use when a business wants to record variety of behavior. Ex: to determine how its employees interact with customers. Advantages (A): Limits introduction of bias, customer isn’t being interfered with by the observer, unstructured allows for recording of variety of behaviors. Disadvantages (D): The observer doesn’t know why the customer has made the choice, no option for clarification. Telephone data-collection surveys : Adv: Cheap, can ask for clarification to an answer Disad: People often won’t participate, can’t read body language
Distinguish between continuous and itemized rating scales. – Continuous: Respondent makes a mark at the appropriate position on a line, no comparison standard it given – Itemized: scale has a number or brief description associated with each category. Categories are ordered and respondent is required to select the category that best describes the object being ranked
Discuss types of itemized rating scales Likert – A rating scale that allows marketing researchers to determine respondent's feelings. numerical values associated with each possible answer Semantic Differential Scale – Uses a scale such as a seven-point rating system with opposite adjectives on each end of the scale. – The respondent marks a category along the rating continuum (usually 1 to 7)
CONT. Stapel Scale – differs from semantic by using just one term and then sets a scale for rating the appropriateness of that term (usually -5 to +5 with no zero) Multi-Dimensional – used when difficult to measure attitude based on only one attribute. Used when it is impossible to capture the complete picture with one overall question.