principle of marketing chapter 4

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Chapter Four

Managing Marketing Information toGain Customer Insights

Copyright ©2014 by Pearson Education, Inc. All rights reserved


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Marketing Information andCustomer Insights

• Fresh and deep insights into customersneeds and wants

• Difficult to obtain – Not obvious – Customer’s unsure of their behavior

• Marketer needs better information andmore effective use of existing information

Customer Insights are:



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• Companies are formingcustomer insights teams – Include all company functional

areas: Coca- Cola’s marketingresearch group is headed byvc of marketing strategy and

insights. – Collect information from a

wide variety of sources

– Use insights to create more

value for their customers

Customer Insights



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Marketing information system (MIS)

consists of people and proceduresfor: – Assessing the information needs – Developing needed information – Helping decision makers use the information

for customer

Marketing Information Systems (MIS)



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Marketing Information System



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Assessing Marketing InformationNeeds

MIS provides information to the company’smarketing and other managers and

external partners such as suppliers,resellers, and marketing service agencies

Eg.Wal-Mart's Retail Link system gives key suppliers accessto information on everything from customers’ buyingpatterns and store inventory levels to how many itemsthey’ve sold in which stores in the past 24 hours.



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Assessing MarketingInformation Needs

• Balancing what the information userswould like to have against what they need

and what is feasible to offer

Characteristics of a Good MIS

User’sNeeds

MISOfferings



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Developing Marketing Information

Internal dataMarketing intelligence

Marketing research

Marketers obtain information from



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Internal databases are electronic collections ofconsumer and market information obtained

from data sources within the company network• Key information on customers:

• sales

• websites visited

• demographics

• psychographics

• service and satisfaction measures

• Source of customer insights about buying patterns.

Internal Data



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The systematic collection and analysis of publiclyavailable information about consumers, competitors

and developments in the marketplace : activelyscanning the general marketing environmentMarketing intelligence techniques: observing consumers firsthand

to quizzing the company’s own employees, benchmarking

competitors’ products, researching the Internet, andmonitoring Internet buzz.

Competitive Marketing Intelligence


Apple is obsessed with secrecy, and itpasses that obsession along to itsemployees. “At Apple everything is asecret,”


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• Marketing research

is the systematic design, collection, analysis,and reporting of data relevant to a specificmarketing situation facing an organizationGives marketers insights into customer motivations, purchasebehavior, and satisfaction. Help assess market potential andmarket share or measure the effectiveness of pricing, product,distribution, and promotion activities.

Marketing Research



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Developing Marketing InformationSteps in the Marketing Research Process



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Developing Marketing InformationMarketing Research

Defining the Problem and Research Objectives

Exploratory research:

Descriptive research

Causal research



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– Exploratory research —objective is to gatherpreliminary information that will help define

the problem and suggest hypotheses. (focusgroups, interviews)

– Descriptive research —describes things (who,when, how, why);.

– Causal research —tests hypothesis about causeand effect relationships (price/demand,environment/purchase rate).

Marketing Research


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• Outlines sources of existing

data• Spells out the specific

research approaches,contact methods, samplingplans, and instruments togather data

Marketing ResearchDeveloping the Research Plan



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Management problem

Research objectives

Information needed

How the results will helpmanagement decisions

Budget

Marketing Research

Written Research Plan Includes:



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Secondary data consists of information thatalready exists somewhere, having beencollected for another purpose

Primary data consists of informationgathered for the special research plan

Marketing ResearchDeveloping the Research Plan



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Developing Marketing InformationSecondary Data

Advantages

Cost

Speed

Could not getdata otherwise

Disadvantages

Current

Relevant

Accuracy

Impartial



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Plann ing Pr imary DataCol lect ion

Researchapproaches

Contact methods

Sampling plan

Researchinstruments

Marketing Research



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Experimental research is best for gatheringcausal information —cause-and-effectrelationships

Market ResearchResearch Approaches



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Developing Marketing InformationMarketing Research Strengths and

Weakness of Contact Methods

Mail Telephone Personal Online

Flexibility Poor Good Excellent Good

Quantity of datacollected

Good Fair Excellent Good

Control ofinterviewer effects

Excellent Fair Poor Fair

Control of sample Fair Excellent Good Excellent

Speed of datacollection

Poor Excellent Good Excellent

Response rate Poor Poor Good Good

Cost Good Fair Poor Excellent



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Internetsurveys

Onlinepanels

Onlineexperiments

Onlinefocus

groups

Marketing ResearchOnline Contact Methods



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Advantages

• Low cost• Speed

• Higher response rates• Good for hard to reach

groups

Marketing Research

Online Contact Methods



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Sample is a segment of the populationselected for marketing research torepresent the population as a whole – Who is to be studied?

– How many people should be studied?

– How should the people be chosen?

Marketing ResearchSampling Plan



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Probability Sample

Simple random sample Every member of the population has a known and equalchance of selection

Stratified randomsample

The population is divided into mutually exclusive groupsand random samples are drawn from each group

Cluster (area) sample The population is divided into mutually exclusive groupsand the researcher draws a sample

Nonprobability Sample

Convenience sample The research selects the easiest population members

Judgment sample The researcher uses their judgment to select populationmembers

Quota sample The researcher finds and interviews a prescribed numberof people in each of several categories

Marketing ResearchSampling Plan – Types of Samples



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Developing Marketing InformationMarketing Research

Research Instruments

Questionnaires• Most common• Administered in person, by phone,

or online• Flexible• Research must be careful with

wording and ordering of questions



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• Closed-end questions include all possible

answers, and subjects make choices amongthem – Provide answers that are easier to interpret and

tabulate

• Open-end questions allow respondents toanswer in their own words – Useful in exploratory research

Marketing ResearchResearch Instruments —Questionnaires



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Mechanical devices

Peoplemeters

Checkoutscanners

Neuro-marketing

Marketing ResearchResearch Instruments



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Collecting the informationProcessing the information

Analyzing the information

Interpret findingsDraw conclusions

Report to management

Marketing ResearchImplementing the Research Plan



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Analyzing and Using MarketingInformation

Managing detailed information aboutindividual customers and carefullymanaging customer touch points to

maximize customer loyalty.

Customer Relationship Management (CRM)



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Analyzing and Using MarketingInformation

Customerpurchases

Sales forcecontacts

Service andsupport

calls

websitevisits

Satisfactionsurveys

Credit andpaymentinteractions

Researchstudies

Customer Relationship ManagementTouchpoints



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Distributing and Using MarketingInformation

Information distribution involves enteringinformation into databases and making itavailable in a time-useable manner

• Intranet provides information toemployees and other stakeholders

• Extranet provides information to keycustomers and suppliers



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Other Marketing InformationConsiderations

Marketing Research in Small Businessesand Nonprofit Organizations

International Market Research



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Other Marketing InformationConsiderations

Public Policy and Ethics

• Customer privacy• Misuse of research findings

Documents

principle of marketing chapter 4