Customer Information System

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chapter

15

Customer Information Systems

McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.


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Todays Objectives

Objectives will be to:

Define and understand marketing research

Explore a framework for marketing research

Examine marketing research data-collection methods

Compare how online methods differ from offline methods

Discuss what research is best suited by the Internet

Understand the implications of international Internet market research


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Understanding Marketing Research

Benefits and Uses of Marketing Research

Framework for Marketing Research

Data Collection in Marketing Research

Comparisons for Offline and Online Marketing Research Methods

Guidelines for Conducting Data Analysis and Utilization

Conclusion

Chapter 15: Customer Information

Systems


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Chapter 15: Customer InformationSystems







Conclusion


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Exhibit 15.1: Customer-Centric

Marketing Process

Marketing Research

Marketing Strategy

and Tactics

Customer Relationship

Management

Sales Force Management

and Customer Experience

Database Marketing

Acquire/Up-Sell

Cross-Sell


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Exhibit 15.2: Leveraging Customer

Information

Define

Problem

Collect

Data

Organize

Data

Analyze

Data

Utilize

Data


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Exhibit 15.3: Customer Information

System


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MarketingResearch

Exhibit 15.4: Framework of Marketing

Research

Opportunity/Problem Definition

Research Design

Data Collection and Entry

Data Analysis

Final Report/Data Utilization


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Marketer Public

Consumer

CustomerMarketing Research

Market Problems

Target Market

Market Opportu nit ies

Identification

Definition

Action

Exhibit 15.5: What Is Marketing

Research?


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Marketing Research Objectives

Marketing Research Attempts to Perform Three Basic Tasks:

Marketing

Research

Description

Diagnosis

Prediction


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Conclusion


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Benefits of Marketing Research

Improve the quality of decision-making

Guide communications with current and potential customers

Identify potential opportunities in the marketplace

Minimize business risk by uncovering prospective problems

Create benchmarks and track progress

Evaluate overall success

Many more


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Benefits of Internet Marketing

Research

Quicklygain crucial market intelligence

Act upon first-mover advantages

Stay afloat in a fast-paced environment

Reduce market research costs

Many more


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Exhibit 15.6: Popular Uses of Marketing

Research

Who are my

customers?Conjoint

Analysis

How to

segmentthe market?

What is

the price

elasticity?

What are

the growth

trends?

Who are my

competitors?What do

they like?

When

do they

purchase?

Marketing

Research

Opinion

Research

Competitive

Analysis

Buying-Habit

Studies

Environmental

Studies

Customer

Identification

Discrete Choice

Modeling


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Conclusion


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Exhibit 15.7: Opportunity/Problem

Definition

Project Title

Statement of MarketingProblem/Opportunity

Project Objective(s)

Questions That the Study

Attempts to Answer

Market

Research on

Internet Habits

of Teenagers

Teenagers

Make Up aLarge Portion

of the Market

Identify the

Characteristics

of Webpages

Teenagers Visit

Ex.: What Sites

Do Teenagers

Visit Most?


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Why?

How?

When?

How

Often?

How

Many?

Who,

What,

When,

Where?

What

Causes

What?

Exploratory Research Conclusive Research

Study Type

Causal

Research

Descriptive

Research

Exhibit 15.8: Deciding on a Research

Design Type


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Exhibit 15.9: Types of Marketing

Research Data

Information

Previously Collected

and PublishedSecondary Research

Primary Research

Qualitative Research

Quantitative Research

Information Gleaned

by a Researcher for a

Specific Purpose

Information About the

Motivations,

Perceptions and

Thoughts of a Group

Information About

How Many People in a

Population Share a

Set of Characteristics

Ex.: Library Search

Ex.: Interview

Ex.: Focus Groups

Ex.: Interview


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Representative

Sample

How Many

Subjects?

RandomSelection

Equal Impact on

Study Result?

Population Sampling

Desired

Accuracy?


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Exhibit 15.10: Guidelines for Using

the Internet for Marketing Research

Internet Marketing

Research

Can a sufficiently representative

sample be drawn?

Traditional Marketing Research

Can confidentiality be assured?

Can answers be obtained

via simple surveys?

Yes No

Yes No

Yes No


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Conclusion


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Offline Methods Online Methods

Secondary Primary Secondary Primary

Colleges,

universities,

libraries

Books,

publications

Magazines,

newspapers

Marketing

departments

Others

Focus groups

Surveys

Observations

Search engines

Newsgroups

Directories

Questionnaires

Discussion

groups Click data

Data-Collection Methods

Exhibit 15.11: Marketing Research

Data-Collection Methods


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Questionnaires

Flat File Instruments InteractiveInstruments

E-Mail IntegratedQuestionnaires

Simple,

Non-Interactive

Survey

E-Mail Survey

or Delivery Tool

Simple,

Interactive

Survey

Exhibit 15.12: Questionnaire Types


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Survey Questions

Single-Response

Questions

Dichotomous-

Response

Questions

Multichotomous-

Response

Questions

Scaled

Questions

Paired-

Comparison

Tradeoff

On a Scale of

1 to 10, How

Happy Are You?

What Would You

Prefer a Porsche

or a Ferrari?

How Old

Are You?

In Which

of the Following

Income RangesDo You Fall?

Are You Male

or Female?

Open-Ended

Questions

In 100 Words or

Less, Describe Your

Experience With

This Product

Internet Compatibi l i ty

LowHigh

Exhibit 15.13: Survey Questions


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Conclusion

E hibi 15 14 C i f Offli &


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Exhibit 15.14: Comparison of Offline &

Online Marketing Research Methods

HighLowEthical Issues (privacy)

LowHigh to MediumAnonymity guarantee

UnlimitedLimitedGeographical Coverage

LowHighInterviewer Bias

UnlimitedLimitedDelivery/Illustration

High to Uncontrollable**ControllableSample-selection Bias

InaccurateAccurateSampling

LowHighResearcher Control

HighMediumData Quality*

Labor-NonintensiveLabor-IntensiveEffort

QuickSlowTurnaround Time

LowHighCost

Online MethodOffline MethodDecision Factor

* Quality of data is defined here as ease and timeliness of data collection and entry.

** As the Internet becomes ubiquitous, this issue is becoming less important.


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Conclusion


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Data Analysis Procedures

Basic

Statistics

Descriptive

Statistics

Inferential

Statistics

Econometric

Analysis

Frequency

tables Cross-tabulation

Graphic

representation

Others

Mean

Standarddeviation

Median

Inter-quartile

range

Mode

Range

T-test

Correlation

Linear

regression Nonlinear

regression

Logit modeling

Clustering

analysis

Turf analysis

Logistic

regression

Complexi ty

Exhibit 15.15: Data Analysis


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Validation:Are my resul ts

real ist ic?

Internal Validation:

What happens to

my results i f I change

one study parameter?

External Validation:

How does my study

com pare to actual data

or other studies?

Validation


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Exhibit 15.16: Database Marketing

Program Plan

I. Marketing objectivesII. Market analysis

A. Customer analysis and segmentation

B. Competition

C. Environment

III. Offer and market fit

IV. Assessment of performance with similar programsV. Communication strategy

A. Targeting and positioning

B. Unique selling proposition

C. Media and list decisions

D. Message strategy

VI. Database requirementsA. Development

B. Utilization

C. Enhancement

VII. Program budget

VIII. Timeline

IX. Accountability


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Exhibit 15.18: Provider-Consumer

Interaction Matrix

C C f


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Conclusion

C I f i S


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Conclusion

A general marketing research framework involves the following sevensteps: 1) opportunity or problem definition, 2) research design, 3) datacollection and entry, 4) data analysis, and 5) final report and datautilization

Offline marketingresearch methods are generally reliable butexpensive and labor-intensive. Online methods significantly reducethe turnaround time and cost, but it may be difficult to draw a randomand representative sample.

Internet-based marketing research works best when: A representative sample can be drawn from the population

There is no issue with confidentiality of the data

The topic is sufficiently straightforward that it can be communicated via ashort, relatively simple survey

Documents

Customer Information System