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Managing MarketingInformation
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Principles of Marketing
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Assessing Marketing
Information Needs
Marketing information system(MIS)consists of people, equipment, andprocedures to gather, sort, analyze,evaluate, and distribute needed, timely, andaccurate information to marketing decisionmakers
Assess the information needs Develop needed information Analyze information Distribute information
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Developing Marketing Information
Marketers can obtain information from:
Internal data
Marketing intelligence
Marketing research
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Developing Marketing InformationInternal Data
Internal databases are electronic collectionsof consumer and market informationobtained from data sources within thecompany network, including accounting,marketing, customer service, and salesdepartments
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Developing Marketing Information
Advantages:
Can be accessed morequickly
Less expensive
Disadvantages: Incomplete information Wrong form for
decision making Timeliness of
information Amount of information Need for sophisticated
equipment andtechniques
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Advantages and Disadvantage of Internal Databases
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Developing Marketing InformationMarketing Intelligence
Marketing intelligence is the systematic collectionand analysis of publicly available information aboutcompetitors and developments in the marketplace
The goal of marketing intelligence is to improve
strategic decision making, assess and trackcompetitors actions, and provide early warning ofopportunities and threats
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Marketing Research
Marketing research is the systematic design,
collection, analysis, and reporting of datarelevant to a specific marketing situationfacing an organization
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Marketing Research
Steps in the marketing research process
1. Defining the problem and researchobjectives
2. Developing the research plan
3. Implementing the plan4. Interpreting and reporting the findings
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Marketing ResearchDefining the Problem and Research Objectives
Types of objectives
Exploratory research
Descriptive research
Causal research
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Marketing ResearchDefining the Problem and Research Objectives
Exploratory research is the gathering of preliminaryinformation that will help to define the problem andsuggest hypotheses
Descriptive research is to describe things such asmarket potential for a product or the demographics
and attitudes of consumers who buy the productCausal research is to test hypotheses about cause-
and-effect relationships
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Marketing ResearchDeveloping the Research Plan
Research plan outlines sources of existingdata and spells out the specific researchapproaches, contact methods, samplingplans, and instruments that researchers will
use to gather data
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Marketing ResearchDeveloping the Research Plan
Research plan is a written proposal that includes: Management problem
Research objectives
Information needed
How the results will help management decisions
Budget
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Marketing ResearchDeveloping the Research Plan
Secondary data consists of information thatalready exists somewhere, having beencollected for another purpose
Primary data consists of information gatheredfor the special research plan
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Marketing Research
Advantages:
Speed
Cost
Provides datathat a companycannot collect onits own
Disadvantages:
Availability
Relevance
Accuracy Impartial
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Marketing Research
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Marketing ResearchPrimary Data Collection
Research approaches
Contact methods
Sampling plan
Research instruments
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Marketing Research
Research Approaches
Observational research involves gatheringprimary data by observing relevant people,actions, and situations
Ethnographic research involves sendingtrained observers to watch and interact withconsumers in their natural environment
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Marketing Research
Research Approaches
Survey research is the most widely usedmethod and is best for descriptiveinformationknowledge, attitudes,preferences, and buying behavior
Flexible People can be unable or unwilling to answer Gives misleading or pleasing answers Privacy concerns
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Marketing Research
Research Approaches
Experimental research is best for gatheringcausal informationcause-and-effectrelationships
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Marketing Research
Contact Methods
Mail questionnaires Collect large amounts of information Low cost Less bias with no interviewer present Lack of flexibility Low response rate Lack of control of sample
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Marketing Research
Contact Methods
Telephone interviewing Collects information quickly
More flexible than mail questionnaires
Interviewers can explain difficult questions
Higher response rates than mail questionnaires
Interviewers communicate directly with respondents
Higher cost than mail questionnaires
Potential interviewer bias
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Marketing Research
Contact Methods
Personal interviewing Individual interviewing
Involves talking with people at home or the office, on thestreet, or in shopping malls
Flexible
More expensive than telephone interviews
Group interviewing or focus group interviewing
Involves inviting six to 10 people to talk with a trainedmoderator
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Marketing Research
Contact Methods
Online marketing research Low cost Speed to administer Fast results Good for hard-to-reach groups
Hard to control whos in the sample Lack of interaction Privacy concerns
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Marketing Research
Sampling Plan
Sample is a segment of the populationselected for marketing research torepresent the population as a whole
Who is to be surveyed?
How many people should be surveyed? How should the people be chosen?
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Marketing Research
Sampling Plan
Probability samples: Each populationmember has a known chance of beingincluded in the sample
Non-probability samples: Used whenprobability sampling costs too much ortakes too much time
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Marketing Research
Research Instruments
Questionnaires Most common
Administered in person, by phone, or online
Flexible
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Marketing Research
Research Instruments
Closed-end questions include all possible answers,
and subjects make choices among them Provide answers that are easier to interpret and
tabulate
Open-end questions allow respondents to answer in
their own words Useful in exploratory research
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Marketing Research
Implementing the Research Plan
Collecting the information Processing the information
Analyzing the information
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Analyzing Marketing Information
CRM consists of sophisticated software andanalytical tools that integrate customerinformation from all sources, analyze it indepth, and apply the results to build
stronger customer relationships
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Customer Relationship Management
(CRM)
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Analyzing Marketing Information
Customer Relationship Management
(CRM)
Data warehouses are comprehensive companywideelectronic databases of finely tuned detailedcustomer information
Uses
To understand customers better To provide higher levels of customer service To develop deeper customer relationships To identify high-value customers
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Analyzing Marketing Information
Customer Relationship Management
Touch points: Every contact between the customer
and company Customer purchases Sales force contacts Service and support calls Web site visits Satisfaction surveys Credit and payment interactions Research studies
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Other Marketing InformationConsiderations
Marketing Research in Small Businesses andNonprofit Organizations
Need information about their industry,competitors, potential customers, andreactions to new offers
Must track changes in customer needs andwants, reactions to new products, andchanges in the competitive environment
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Other Marketing InformationConsiderations
Marketing Research in Small Businesses andNonprofit Organizations
Sources of marketing information: Secondary data Trade associations
Chambers of Commerce Government agencies Media
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Other Marketing InformationConsiderations
International Marketing Research
Additional and different challenges Level of economic development Culture Customs
Buying patterns Difficulty in collecting secondary data Hard-to-reach respondents
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