Transcript Understanding the Micro and Macro Environment
Slide 1 of 22
The MIS (Marketing Information System)
See Past Exam Papers for Sample Questions Learning Outcome; be able to conduct marketing analysis, marketing planning and decision-making.
Chapter 4 of Book: Marketing Research & Information Systems
Learning Outcomes The Marketing Information System.
Market Research
The Internal Reports System
The Marketing Intelligence System
Market Research
Marketers need information about ALL aspects of the business environment.
Some of the most important info you can have relates to your customers.
Use this info to segment the market and put in place proper marketing mixes.
Example of Research in Book pg 98
What is Market Research
Marketing Research is the function which links the consumer, customer, and public to the marketer through information used to: identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing process.
Note that very aspect of Marketing, e.g. the Marketing Mix, requires the collection or analysis of information.
NB. Firms who can adjust their marketing strategies to reflect changes in markets will gain a competitive advantage. Examples??
Starting Marketing Research
Problem definition (how & what info will help?) What existing data can we use?
What new data do we need?
What data collection method?
What measurement techniques?
What sized sample?
Time-tables & costs Analysis of data Reporting and presenting findings.
Customer Research & the Research Process
The market research process:
Problem definition Research design Data collection
More details of this process on pg. 102 of book, Fig 4.1
Data analysis and interpretation Presentation of results Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Marketing Research - Formal
Market Research is undertaken in a formal study and uses: Secondary Data; ie – data that already exists (Search engine use is critical here). This is Quantitative Primary Data: ie – information observed or collected directly from subjects….customers, suppliers, distributors etc. (Qualitative Research; eg. Talk to the customer or run focus groups, you can use sampling as well…see next slides) NB: Must know those two definitions in exam!!
AC Nielson – a market research company
Research Design – 3 Types
Descriptive Research
Exploratory Research
Causal Research
Descriptive Research
Aim is to describe something important: e.g. the characteristics of a particular customer segment!
It is a Structured Process.
Findings are conclusive, have prior formulations and hypothesis.
Specify the Who, What, Why, When, Where, How.
Methods Used are:
Surveys Panels Observations Simulations
Exploratory Research
To uncover insights, to understand.
Definitions are loose, processes are flexible.
Samples are small and non-representative.
Uses qualitative data.
Your findings are provisional, and usually leave the door open for additional research.
Methods used are:
Discussions with experts.
Pilot surveys. Case studies. Analysis of secondary data. Qualitative research.
Causal Research
Analysing the Cause and Effect of a problem.
What is causing something and what is the effect? E.g. Did an increase in price cause a decrease in sales?
Independent variable = cause Dependent variable = effect
The effect may be a decrease in sales, but the cause may be an increase in price, increased in competitors’ advertising, decrease in competitors’ price, promotional activity in the market, economic factors etc ….
Method used is:
Experimentation – You see if one variable effects another variable.
Comparative Performance of Data Collection Methods
Cost/response Speed Quantity of data Sample dispersion Response rate Probing
Interview
High Fast Large Low High High
Focus group
Fairly high Fast Large Low Very high High
Telephone
Low Very fast Moderate High Fairly high Fairly high
Very low Slow Moderate High Low None
Brassington and Pettitt (2006) Principles of Marketing
Sampling
Taking a sample of the population you are interested in.
This can be done in isolation, Or with qualitative research.
It is of particular importance in mass consumer markets since time and cost constraints make it impossible to survey every single target consumer.
Sampling Methods
Probability Sampling: 1.
2.
3.
Totally Random, Stratified = into groups that are mutually exclusive and then random sampling from each group, Area / regional sampling Non-Probability Sampling: Non-random 1.
Judgmental: common in B-2-B markets, researchers decide on samples, 2.
Quota: e.g. 400 non working women + 250 full-time, + 200 part time employed women
Internal Reports System
You need to organise and record all the research results Decision Support Systems are sometimes used – They are essentially databases (pg 116 book) Also consist of data on competitors
Internal Reports System (2)
Know how to layout a competitor Analysis Template (Table 4.6 chapter 4) IRS may also consist of information about “Channel Research” Traditional channel – shoe shop?
Emerging Channel – Amazon.com
Analysis and Interpretation for MIS
Quantitative
Preparation of the Data Counting Grouping Relating Predicting Statistical Testing
Qualitative
Coding (process for categorizing qualitative research) Grouping Linking Themes Model Interpretative Grounded Theory (to develop theory about the data) Critical Theory etc
What is an MIS
It is made up of intelligence gathered about the market environment….ie. The PEST forces, from interenal and external sources An MIS is different to basic internal records in that an MIS seeks to priorities the information that is critical to decision making. When do internal records actually become intelligence?
Other Data for an MIS
External data from the marketplace should also be added to an MIS. Data from sales reps, intermediaries such as wholesalers and retailers, tradeshows and secondary data sources (published information) which is available through government publications offices, libraries and the Internet Be aware that raw data in a table is just that – raw data – and is virtually useless to a marketer. Turn it into a graph relative to other data and it becomes intelligence…..the backbone of an MIS
Sources of Marketing Information
Government and State Bodies Directories – Kompass Ireland Trade Associations & Professional Bodies Economic Organisations – ESRI, OECD Academic Journals – HBR, Irish Marketing Review Business Periodicals – BusinessPlus, Irish Marketing Journal Quality Press – Irish Times, SBP Financial Times (Use their websites)
Final Sources for Market Research
Various Publications Civil Service – www.cso.ie
www.irlgov.ie
, State Organisations www.enterprise-ireland.com
, www.idaireland.com
Trade & Professional Organisations – www.mii.ie
, Irish Management Institute, IBEC
Summary
Three main components of a Marketing Intelligence System -Market Intelligence -Internal Records -Market Research Marketing Intelligence is data gathered about the market environment (PEST)