Transcript Ch. 5                

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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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.
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The Importance of Information
Marketing
Environment
Customer
Needs
Why
Information
Is
Needed
Competition
Strategic
Planning
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What is a Marketing
Information System (MIS)?
A MIS consists of people, equipment,
and procedures to gather, process, and
distribute timely and accurate
information to marketing decision
makers.
The MIS helps managers to:
1. Assess Information Needs,
2. Develop Needed Information,
3. Distribute Information.
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Figure 5-1:
The Marketing
Information System
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Kinds of Information
Data
 just the facts
Information
 facts suitable for decision making
 Secondary Information
 Primary Information
Knowledge: The sum of what has been
perceived, discovered, or learned.
www.kmci.org
Functions of a MIS (1):
Assessing Information Needs
Conduct Interviews and Determine
What Information is
Desired, Needed, and Feasible to Obtain.
Monitors Environment for
Information Managers
Should Have
Examine Cost/ Benefit of
Desired
Information
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Functions of a MIS (2):
Developing Information
Obtains Needed Information for Marketing Managers
From the Following Sources
Internal Data
From: Accounting, Sales Force, Marketing, Manufacturing, Sales
Marketing Intelligence
From: Employees, Suppliers, Customers,
Competitors, Marketing Research Companies
Marketing Research
Design, Collection, Analysis, and Reporting of Data about a Situation
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Functions of a MIS (3):
Distributing Information
Information Must be Distributed
to the Right Managers at the Right Time.
Distributes Routine
Information for
Decision Making
Distributes Nonroutine
Information for Special
Situations
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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.
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Marketing Info. System
Sources of
Competitive Intelligence
Company
employees
Competitor’s
employees
Internet
Trade shows
Garbage
Benchmarking
Published
information
Channel members
and key customers
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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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Marketing Research
The function that links the consumer,
competitor, and public to the marketer
through information
Systematic design, collection, analysis,
and reporting of information
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The Marketing Research Process*
Defining the Problem and the Research Objectives
Developing the Research Plan
Implementing the Research Plan
Interpreting and Reporting the Findings
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Marketing Research Process
Step 1. Defining the Problem &
Research Objectives
This video clip features Jerome Conlon, of
Consumer Insights and Brand Planning,
speaking about the marketing research done
for Starbucks.
Click to play.
Click to return
Exploratory
Research
•Gathers preliminary information
that will help define the problem
and suggest hypotheses.
Descriptive
Research
•Describes things as market
potential for a product or the
demographics and consumers’
attitudes.
Causal
Research
•Test hypotheses about causeand-effect relationships.
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Marketing Research Process
Step 2. Develop the Research Plan
Determine the Specific Information Needed
Primary
Secondary
Information collected
for the specific purpose
at hand.
Information that has
been previously
collected.
Both Must Be:
Relevant
Accurate
Current
Impartial
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Step 2. Develop the Research Plan
Presenting the Research Plan
Summarize the plan in a written
proposal and cover:
 Management problems addressed,
 Research objectives,
 Information to be obtained,
 Sources of secondary information,
 Methods for collecting primary data,
 Way the results will help management
decision making.
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Marketing Research Process
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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Develop the Research Plan
Gathering Secondary Information
Both Must
Be:
Information That
Already Exists
Somewhere.
+ Obtained More
Quickly, Lower Cost.
- Might Not be
Usable Data.
Relevant
Accurate
Current
Information
Collected for the
Specific Purpose
at Hand.
Impartial
Online Databases
Offer a wealth of information
to marketing decision makers.
Examples:
•Lexis-Nexis
•CompuServe
•Dialog
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Marketing Research Process
Step 3. Implementing the
Research Plan
Collecting the
Data
Processing the
Data
Research Plan
Analyzing the
Data
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Major Issues for Gathering
Primary Information*
Type of Research
Contact Method
Sampling Method
Research Instruments
Primary Data Collection:
Type of Research Issue
Observational Research
Gathering data by observing people,
actions and situations
(Exploratory)
Survey Research
Asking individuals about
attitudes, preferences or
buying behaviors
(Descriptive)
Experimental Research
Using groups of people to
determine cause-and-effect
relationships
(Causal)
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Step3: Implementing
the research plan
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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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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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
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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
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Step 3: Implementing the research plan
Types of Data
Secondary
data
Primary data
Planning
primary research:
 Research
Approaches
 Contact methods:
 Mail
 Telephone
 Online
 Personal
 Sampling plan
 Research
instruments
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Marketing Info. System
Key Contact Methods Include:
 Mail surveys
 Telephone surveys
 Personal interviewing:

Individual or focus
group
 Online (Internet)
research
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Primary Data Collection:
Contact Method Issue
Contact Methods
M a il
T e le p h o n e
P e rs o n a l
O n lin e
F le x ib ility
Poor
G ood
E x c e lle n t
G ood
Q u a n tity o f
D a ta C o lle c te d
C o n tr o l o f
In te r v ie w e r
C o n tr o l o f
S a m p le
S p e e d o f D a ta
C o lle c tio n
R e s p o n s e R a te
G ood
F a ir
E x c e lle n t
G ood
E x c e lle n t
F a ir
Poor
F a ir
F a ir
E x c e lle n t
F a ir
Poor
Poor
E x c e lle n t
G ood
E x c e lle n t
F a ir
G ood
G ood
G ood
Cost
G ood
F a ir
Poor
E x c e lle n t
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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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When doing research... (Sampling)
Who are the subjects for your study?
(population)
How can your subjects be located?
 (sampling frame)
Are all of the subjects of interest to you on the
list you can obtain
 (frame/population correspondence)
Who is selected to participate?
 (sample; random- are they representative?)
Of those selected, how many actually
participate? (response rate)
Step 3: Implementing the
Research Plan
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
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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
2. What is your income?
___ 46 – 65
$ _________
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
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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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Step 3: Implementing the
Research Plan
Research Instruments:
 Mechanical instruments
Traffic counters
 Retailer store checkout scanners
 Video-taped store traffic
 People meters
 Website logs, cookies, software
 Physiological measurement equipment

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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 Research Process
Step 4. Interpreting and Reporting
Findings
Interpret the Findings
Draw Conclusions
Report to Management
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Step 4: Interpreting and Reporting
Findings
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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Step 4: Interpreting and Reporting
Findings
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
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