Chapter 7 Marketing Information Systems & Marketing Research

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Chapter 7:

Marketing Information Systems & Marketing Research

There are two kinds of knowledge: knowledge in your mind & knowledge of where you can find the information you need.

Outline

The marketing information system (MIS)

Assessing information needs

Developing information

Marketing research processing

Information analysis

Distributing information



The Marketing Information System

Assessing Information Needs

• Pizza Hut wants to launch a new pizza but needs feedback from the customers.

• Treasure Island wants to evaluate its market position.

• Burger King develops two TV commercials and wonder which one would be more effective.

• You are going to start your own business in a particular city and you have to make concept and

location decisions.

• Developing Information

• Main Sources and Types

• 1. Internal records information

• 2. Marketing intelligence

• 3. Marketing research

• Information analysis



Developing Information

Internal Records

Information gathered from sources within the company to evaluate marketing performance and to

identify marketing problems and opportunities

• Internal database (Financial and nonfinancial data from PMS)

• Data warehouses (Customer data in the corporate office – Ex. Wyndham Hotels)

• Guest history information (information gathered from guest records)

• Guest information trends (booking patterns, cancellations, occupancy patterns)

• Guest information management (e.g., guest comment cards, listening to and speaking with

guests, mystery shoppers, P.O.S. information

• Example: Las Vegas Hilton)

• Corporate customer and marketing intermediary information (e.g., customer and prospective

customer databases)

Marketing Intelligence

Everyday information from internal and external sources about developments in the marketing

environment that helps managers to prepare and adjust marketing plans and short-run tactics.

• Internal sources of marketing intelligence

- Gathered by company executives, and other employees

• External sources of marketing intelligence

- Macromarket information, competitive, new innovation and trends

• Sources of competitive information

- Annual reports, trade magazines, press releases, and advertisements

• Commercial sources of marketing information

- On-line databases of information services, electronic yellow pages

Marketing Research

A process used to identify and define marketing opportunities and problems, to monitor and evaluate

marketing actions and performance, and to communicate research findings to management.



Example: When McDonalds decided to add salads to its menu, its planners needed to research

customers’ preferences for types of vegetables and dressings.

Most common activities: market share analysis, market potentials

sales analysis, business trends, short-range forecasting, competitive

Product studies, long-range forecasting, testing of existing products.

1. Own researchers

2. Outside researchers

Marketing Research Process

Steps in the Marketing Research Process:

Defining the Problem and Research Objectives




Develop Research Plan

° Secondary vs Primary Data

° Research Approaches

° Observation Method

° Survey Method

° Experimental Method

° Contact Methods

(Mail, telephone, personal, internet)

° Sampling Plan

° Research Instruments

° Presenting the Research Plan

Develop the Research Plan

Secondary vs. Primary Data




Develop the Research Plan Research Approaches






Research Instruments

Structured or Unstructured

° Interview (structured or unstructured)

° Mechanical Devices (Tape record, video)

° Structured (Questionnaire)

Presenting the Research Plan

Summarize the plan in a written proposal

Marketing Research ProcessImplement the Research Plan

Putting plan into action

° Collecting the data

° Process the data

° Analyzing the Data

Interpret and Report the Findings

Turn data into information

° Interpret the findings

° Draw conclusions

° Report findings and conclusions

Information Analysis

This involves further and more detailed analysis of

marketing intelligence and marketing research

data (sometimes this is called “secondary

analysis” of primary data) through:



1. Advanced statistical analysis

2. Mathematical models

Distributing Information

° Information has no value until managers use it to make better decisions.

° It must reach the appropriate managers at the right time.

° Often information arrives too late to be useful.

Marketing Research

Meaning & Scope of MR

• Definition

• Marketing research is a research on the manifold problems on marketing

• Its purpose is to aid decision-making in marketing

• Systematic gathering & analysis of information is what it does in achieving its mission

• The increase complexity of business activities, MR too has been growing in complexity

• It has emerged as a highly specialized function of marketing management

• Today MR needs specialized skills & sophisticated techniques

Marketing Research

Benefits on Marketing Research

Three Benefits on Marketing Research

• Research on Consumers

• Research on Products

• Research on Distribution



Marketing Research

Classification of M R Jobs

• Routine problem analysis & research on non-routine problems

• Research on short-term problems

• Classification based on the actual subject of the research

• Subject of the Research

– Research on Consumers - Research on Distribution

– Research on Market / Demand - Research on Price

– Research on Product / Brand - Research on Advertising

& Promotions

– Research on Competition - Research on Sales

Methods

Marketing Research

• Helps Pick & Choose Customers, & Make Focused Offers

• Helps Know Which Products Move in the Market & Why

• Helps New Entrants Plan Their Channels by Studying Existing Ones

Marketing Research

Procedure or Steps Involved in MR



Marketing Research

Procedure or Steps Involved in MR

• (1) DEFINING THE MARKETING PROBLEM & IDENTIFYING THE MR PROBLEM INVOLVED

• Wrong Problem-Definition Misdirects Research• Specifying the Information Requirement

• (2) DEVELOP THE RESEARCH DESIGNE & RESEARCH PROCEDURE

• (a) DATA COLLECTION

• Primary Data

• Interview is the most common method,

• Mail interview

• Telephone interview

• Personal interview

• Questionnaire is the most common instrument

• Questionnaire development

• Open-end question

• Closed-end question

• Secondary Data

• Sources of internal secondary data

• Customer Data Base

• Sources of external secondary data

• News paper

• Magazines

• Technical journals

• Trade publications

• Directories

• Government publication

• Committee reports • Reference books

• Customer Data Base can also be a External secondary data too

• SAMPLING

• Developing Sampling Design

• Choosing the sample unit (who are to be Surveyed)

• Choosing the sample size (how many to be surveyed)

• Choosing the sample procedure (how to ensure those who are to be interrogated are included

in the sample)

• Choosing the sample media (how to reach the respondents in the sample – through mail

interview, personal interview or telephone interview)• STEPS INVOLVED IN A MARKET SURVEY

• Planning the survey

• Problem definition

• Selection of the survey method

• Sampling

• Questionnaire development



• Pilot survey

• Field work

• Selection & training of investigation

• Interviewing / collection of data

• Supervision / overseeing the field work

• Processing

• Processing of data

• Tabulating

• Analyzing & Interpretation

• Editing

• Interpreting data

• Statistical analysis & Interpretation

• Report Making

• Summarizing findings & recommendations]

• Report writing

Marketing Research

MR Limitations• LIMITATIONS OF MR

• MR does not provide final solution, it only provides the indicators

• Errors can creep in the findings of MR (Ex: sampling, choice of research methodology, research

design itself, computation, analysis also)

• It could be expensive

• MR has a time limitation

• Research findings are made with reference to a given marketing efforts, known performance of competitors, known policies of government etc., if one or more of these elements change, as

they often do, research results may not remain valid.

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Chapter 7 Marketing Information Systems & Marketing Research