Managing Marketing Information Chapter 3. 5- 1 Objectives Understand the importance of information to the company. Know the definition of a marketing

Managing Marketing Managing Marketing InformationInformation

Chapter 3Chapter 3

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Objectives

Understand the importance of Understand the importance of information to the company.information to the company.Know the definition of a marketing Know the definition of a marketing information system and be able to information system and be able to discuss its subparts.discuss its subparts.Learn the steps in the marketing Learn the steps in the marketing research process.research process.

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Marketing Info. System

Marketing Information System (MIS)Marketing Information System (MIS) Consists of people, equipment, and Consists of people, equipment, and

procedures that gather, sort, procedures that gather, sort, analyze, evaluate, and distribute analyze, evaluate, and distribute needed, timely, and needed, timely, and accurate information accurate information to marketing to marketing decision makers.decision makers.

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Figure 5-1: The Marketing

Information System

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Assessing Marketing Assessing Marketing Information NeedsInformation Needs The MIS serves The MIS serves

company managers company managers as well as external as well as external partners.partners.

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Assessing Marketing Information Assessing Marketing Information NeedsNeeds The MIS must balance The MIS must balance

needs against feasibility:needs against feasibility: Not all information Not all information

can be obtained. can be obtained. Obtaining, processing, Obtaining, processing,

sorting, and delivering sorting, and delivering information is costly. information is costly.

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Marketing Info. SystemInternal Data is Internal Data is gathered via customer gathered via customer databases, financial databases, financial records, and records, and operations reports.operations reports.Advantages of internal Advantages of internal data include quick/easy data include quick/easy access to information.access to information.Disadvantages stem Disadvantages stem from incompleteness from incompleteness or inappropriateness or inappropriateness of data to a particular of data to a particular situation.situation.

Internal dataInternal dataMarketing Marketing intelligenceintelligenceMarketing Marketing researchresearch

Developing Developing InformationInformation

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Marketing Info. SystemMarketing intelligenceMarketing intelligence is the systematic is the systematic collection and analysis collection and analysis of publicly available of publicly available information about information about competitors and trends competitors and trends in the marketing in the marketing environment.environment.Competitive Competitive intelligence gathering intelligence gathering activities have grown.activities have grown.Many sources of Many sources of competitive info. exist.competitive info. exist.



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Marketing Info. SystemMarketing researchMarketing research is is the systematic design, the systematic design, collection, analysis, collection, analysis, and reporting of data and reporting of data relevant to a specific relevant to a specific marketing situation marketing situation facing an organization.facing an organization.Several steps are Several steps are involved in the involved in the marketing research marketing research process.process.



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Figure 5-2: The Marketing

Research Process

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Step 1:Step 1: Defining the problem and Defining the problem and research objectivesresearch objectives Don’t confuse the symptoms Don’t confuse the symptoms

of the problem with its cause of the problem with its cause when defining the problem.when defining the problem.

Exploratory, descriptive, and Exploratory, descriptive, and causal research each fulfill causal research each fulfill different objectives.different objectives.

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Step 2:Step 2: Developing the Research Plan Developing the Research Plan Research objectives guide the determination Research objectives guide the determination

of specific information needs.of specific information needs. Research proposals outline the Research proposals outline the

type of data needed and the type of data needed and the research plan.research plan.

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Secondary data:Secondary data: Information Information collected for another purpose collected for another purpose which already exists. which already exists. Primary data:Primary data: Information collected Information collected

for the specific purpose at hand for the specific purpose at hand

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Evaluate the Following When Evaluate the Following When Judging Data QualityJudging Data Quality

RelevanceRelevance AccuracyAccuracy

CurrencyCurrency ImpartialityImpartiality

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Marketing Info. SystemPlanning primary Planning primary research:research: Research Research

approaches:approaches:ObservationObservationSurveySurveyExperimentExperiment

Contact methodsContact methods Sampling planSampling plan Research Research

instrumentsinstruments

Secondary Secondary datadataPrimary dataPrimary data

Types of DataTypes of Data

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Marketing Info. SystemPlanning Planning primary research:primary research: Research Research

ApproachesApproaches Contact methods:Contact methods:

MailMailTelephoneTelephoneOnlineOnlinePersonalPersonal

Sampling planSampling plan Research Research

instrumentsinstruments

Secondary Secondary datadataPrimary dataPrimary data

Types of DataTypes of Data

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Key Contact Methods Include:Key Contact Methods Include: Mail surveysMail surveys Telephone surveysTelephone surveys Personal interviewing:Personal interviewing:

Individual or focus Individual or focus group group

Online (Internet) Online (Internet) researchresearch

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Sample: subgroup of population from Sample: subgroup of population from whom information will be collectedwhom information will be collectedSampling Plan Decisions:Sampling Plan Decisions: Sampling unitSampling unit Sample sizeSample size Sampling procedure: Sampling procedure:

Probability samplesProbability samples Non-probability samplesNon-probability samples

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Research Instruments:Research Instruments: Questionnaires Questionnaires

Include different types of questionsInclude different types of questions• Open-ended question:Open-ended question:

What are the most important benefits What are the most important benefits you seek when buying a car?you seek when buying a car?

• Closed-ended question:Closed-ended question: What is your gender? What is your gender? ____ Male ____ Female____ Male ____ Female

Phrasing and question order are keyPhrasing 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 ___ 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

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Research Instruments:Research Instruments: Mechanical instrumentsMechanical instruments

Traffic countersTraffic counters Retailer store checkout scannersRetailer store checkout scanners Video-taped store trafficVideo-taped store traffic People metersPeople meters Website logs, cookies, softwareWebsite logs, cookies, software Physiological measurement equipmentPhysiological 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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Step 3Step 3 of the Research Process: of the Research Process: Implementing the Research Plan Implementing the Research Plan Involves collecting, processing, and Involves collecting, processing, and

analyzing information.analyzing information.

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Step 4Step 4 of the Research Process: of the Research Process: Interpreting and Reporting the Interpreting and Reporting the FindingsFindings

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Analyzing Marketing InformationAnalyzing Marketing Information Customer relationship management Customer relationship management

(CRM) helps manage information.(CRM) helps manage information. CRM offers many benefits and can help CRM offers many benefits and can help

a firm gain a competitive advantage.a firm gain a competitive advantage. Technology alone can not build Technology alone can not build

profitable customer relationships.profitable customer relationships.

Documents

Managing Marketing Information Chapter 3. 5- 1 Objectives Understand the importance of information to the company. Know the definition of a marketing