Transcript Document
Managing Marketing Information
Chapter 5
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.
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Objectives
Learn how companies analyze and distribute marketing information.
Realize the special issues some marketing researchers face, including public policy and ethical issues.
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“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.
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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.
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Figure 5-1:
The Marketing Information System
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Marketing Info. System
Assessing Marketing Information Needs
The MIS serves company managers as well as external partners.
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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.
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Marketing Info. System
Developing Information
Internal data Marketing intelligence Marketing research
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.
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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.
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Marketing Info. System
Developing Information
Internal data Marketing intelligence Marketing research 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.
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Marketing Info. System
Sources of Competitive Intelligence Company employees Internet Garbage Published information Competitor’s employees Trade shows Benchmarking Channel members and key customers 5- 11
Marketing Info. System
Developing Information
Internal data Marketing intelligence Marketing research
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.
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Figure 5-2:
The Marketing Research Process
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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.
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Marketing Info. System
Step 2:
Developing the Research Plan
Research objectives guide the determination of specific information needs.
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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 5- 16
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.
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Online database services such as Dialog provide subscribers with a wealth of information.
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Marketing Info. System
Evaluate the Following When Judging Data Quality Relevance Accuracy Currency Impartiality 5- 19
Marketing Info. System
Types of Data
Secondary data Primary data
Planning primary research:
Research approaches:
Observation
Survey
Experiment
Contact methods Sampling plan Research instruments 5- 20
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.
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Discussion Question
What specific behaviors, actions, or situations might an observational researcher track if employed by a bank?
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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 5- 23
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 5- 24
Marketing Info. System
Types of Data
Secondary data Primary data
Planning primary research:
Research Approaches
Contact methods:
Telephone
Online
Personal Sampling plan Research instruments 5- 25
Marketing Info. System
Key Contact Methods Include:
Mail surveys Telephone surveys
Personal interviewing:
Individual or focus group
Online (Internet) research 5- 26
BusinessNow
Telephia Video Clip Telephia uses multiple methods of data collection to service subscriber clients
Click the picture above to play video
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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 5- 28
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.
Active Group
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Many companies today are migrating their research efforts to the web. Visit the Greenfield Online site for details.
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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 5- 31
Marketing Info. System
Sample: subgroup of population from whom information will be collected Sampling Plan Decisions:
Sampling unit
Sample size Sampling procedure:
Probability samples
Non-probability samples 5- 32
Marketing Info. System
Types of Data
Secondary data Primary data
Planning primary research:
Research approaches
Contact methods Sampling plan Research instruments
Questionnaire
Mechanical instruments 5- 33
Marketing Info. System
Research Instruments:
Questionnaires
Include different types of questions
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Open-ended question:
What are the most important benefits you seek when buying a car?
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Closed-ended question:
What is your gender? ____ Male ____ Female
Phrasing and question order are key 5- 34
The manner in which questions are phrased can influence the validity of the data collected. Critique the following questions:
1. What is your age?
___ 18 – 25 ___ 25 – 45 ___ 46 – 65 2. What is your income? $ _________ 3. How important is fast and friendly service to you when selecting a fast food establishment?
___ Very important ___ Important ___ Somewhat important ___ Not important at all 5- 35
BusinessNow
SmarterKids.com Video Clip
Click the picture above to play video
Marketing research allows companies to customize their marketing mix to meet consumer needs.
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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 5- 37
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.
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Marketing Info. System
Step 3 of the Research Process: Implementing the Research Plan
Involves collecting, processing, and analyzing information.
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Marketing Info. System
Step 4 of the Research Process: Interpreting and Reporting the Findings 5- 40
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.
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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.
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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.
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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 5- 44