C HAPTER 4 Managing Marketing Information. Copyright 2007, Prentice-Hall Inc.4-2 Explain the importance of information to the company and its understanding

CCHAPTER HAPTER 44

Managing Marketing Managing Marketing InformationInformation

Copyright 2007, Prentice-Hall Inc. 4-2

Explain the importance of information to the company and its understanding of the marketplace.

Define the marketing information system and discuss its parts.

Outline the steps in the marketing research process.

Explain how companies analyze and distribute marketing information.

Discuss the special issues some marketing researchers face, including public policy and ethics issues.

Roadmap: Previewing the Concepts


The Situation Firm began by offering

classically styled, high-quality leather handbags.

Women needed only two purses in brown or black.

Mid-1990s: sales slowed. Consumer preferences

changed as more women entered the workforce.

Designer bags made Coach’s look plain.

Research’s Role Method: Interviews 14,000

women annually. Watches trends for “market voids.”

Key research findings: 1) desire for “fashion pizzazz” in handbags. 2) “Usage voids.”

New products are created to fill voids (wristlets, fabric bags, Signature line, etc.).

Sales & earnings grow.

COACHCOACH – Research Revamps Strategy – Research Revamps Strategy


Companies need information about their:– Customer’s needs– Marketing environment– Competition

Marketing managers do not need more information, they need better information.

The Importance of Marketing Information


Information Overload

“In this oh so overwhelming information age, it’s all too easy to be buried, burdened, and burned out by data overload.”


Marketing Information System

An MIS consists of people, An MIS consists of people, equipment, and procedures to equipment, and procedures to

gather, sort, analyze, and gather, sort, analyze, and distribute needed, timely, and distribute needed, timely, and

accurate information to accurate information to marketing decision makers.marketing decision makers.


Figure 4-1The Marketing Information System


A good MIS balances the information users would like against what they need and what is feasible to offer.

Sometimes the company cannot provide the needed information because it is not available or due to MIS limitations.

Have to decide whether the benefits of more information are worth the costs.

Marketing Information Systems


Internal Databases: Electronic collections of information obtained from data sources within the company.

Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.

Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Sources of Marketing Information


At right is an example of the fields tracked by an internal sales database.

Pick any firm.

What custom fields should be added in order to enhance the database for research purposes?

Let’s Talk!


Marketing Intelligence

ProductScan Online leverages the power of the Internet to provide subscribers with access to a huge database featuring intelligence related to NEW consumer packaged goods.

Marketing in Action

productscan.com


Marketing Research

Greenfield Online provides a variety of marketing research services.

Visit the Web site to take a survey, join a consumer research panel, or to learn more.

Marketing in Action

http://www.greenfield.com/programmingservices.htm


Figure 4-2The Marketing Research Process


Exploratory Research:– Gathers preliminary information that will help

define the problem and suggest hypotheses.

Descriptive Research:– Describes things (e.g., market potential for a

product, demographics and attitudes).

Causal Research:– Tests hypotheses about cause-and-effect

relationships.

Defining Problem and Objectives


Includes:– Determining the exact information needed.– Developing a plan for gathering it efficiently.– Presenting the written plan to management.

Outlines:– Sources of existing data– Specific research approaches– Contact methods– Sampling plans– Instruments for data collection

Developing the Research Plan


Secondary Data

Information that already exists somewhere:– Internal databases– Commercial or

syndicated data services

– Government sources– Published sources

(newspapers, magazines, etc.)

Key sources of secondary data found on the Web:– Media data:

ACNielsen, Arbitron, Nielson, Interactive Advertising Bureau

– Government data:Census, FTC, SBA

– Consumer data:SMRB, ComScore


Marketing in Action

One portion of the census site allows marketers to build profiles of geographic regions on a state, county, and/or city level.

Census Data Provides Demographic Profiles

Census.gov


Advantages:– Available more quickly and at a lower cost than

primary data.– May provide data the company cannot secure

on its own.

Potential Problems:– Desired information may not exist.– Not all information found is usable.

Carefully evaluate information to be certain it is relevant, accurate, current, and impartial.

Pros and Cons of Secondary Data


Consists of information collected for the specific purpose at hand.

Must be relevant, accurate, current, and unbiased.

Must determine:– Research approach– Contact methods– Sampling plan– Research instruments

Primary Data


The gathering of primary data by observing relevant people, actions, and situations.

Ethnographic research:– Observation in a

“natural environment”

Mechanical observation:– People meters– Checkout scanners

Observational Research

Wild Planet uses ethnographic research to learn more about the children that they target.

Video Snippet


Marketing in Action

Many restaurants, retail stores, and other service-oriented businesses use mystery shoppers – a type of observational research – to evaluate the quality of customer service and aspects of the facilities.

Learn more:

myshoppingjobs.com

Observational Research


Most widely used method for primary data collection.

Approach best suited for gathering descriptive information.

Can gather information about people’s knowledge, attitudes, preferences, or buying behavior.

Survey Research


Marketing in Action

Surveys can help marketers to understand attitudes.

Survey Research


Tries to explain cause-and-effect relationships.

Involves:– selecting matched groups of subjects – giving different treatments – controlling unrelated factors– checking differences in group responses

Experimental Research


Mail Survey Pros:– Can collect large amounts of information at a

relatively low cost per respondent.– Generates more truthful responses than phone

interviews.– Improved validity (no interviewer bias).

Mail Survey Cons:– Not flexible; study takes longer to finish.– Low response rate.– Little control over sample.

Primary Data Collection Methods



Phone Surveying Pros:– Gathers information fast.– Greater flexibility than

mail surveys.– Good response rates.– Strong sample control.

Phone Surveying Cons:– Higher costs than mail.– Interviewer effects exist.– Limited quantity of data

can be collected.


Individual & Group Interviewing Pros:– Highly flexible method that can gather a

great deal of data from a respondent.– Good control of sample, speed of data

collection, and response rate.

Individual & Group Interviewing Cons:– High cost per respondent.– Highly subject to interviewer bias and

related interviewer effects.



Online Marketing Research:– Includes surveys, experiments, and focus

groups conducted over the Internet.– The least expensive and quickest way to

gather information.– Offers excellent control over sample.– Good flexibility & response rates; able to

collect a fair amount of information.– Some forms prone to interviewer effects.



Sample: segment of the population selected to represent the population as a whole.

Sampling requires three decisions:– Who is to be surveyed?

Sampling unit – How many people should be surveyed?

Sample size– How should the people in the sample be chosen?

Sampling procedure

Probability vs. nonprobability samples

Sampling Plan


Primary Data Collection

Mechanical research instruments:

– People meters (see image shown at left)– Supermarket scanners– Galvanometer– Eye Cameras


Collecting the data– Most expensive phase– Subject to error

Processing the data– Check for accuracy– Code for analysis

Analyzing the data– Tabulate results

Implementing the Research Plan


Interpret the findings

Draw conclusions Report to

management– Present findings

and conclusions that will help decision making.

Interpreting and Reporting Findings


Analyzing Marketing Information

Customer Relationship Customer Relationship ManagementManagement

Managing detailed information Managing detailed information about customers and carefully about customers and carefully

managing “customer touch points” managing “customer touch points” in order to maximize customer in order to maximize customer

loyalty.loyalty.


Routine information for decision making

Nonroutine information for special situations

Intranets Extranets

Distributing and Using Marketing Information

demo.silverscan.com


Marketing research in small businesses and nonprofit organizations

International marketing research Public policy and ethics in marketing

research– Consumer privacy – Misuse of research findings

Other Marketing Research Considerations


Let’s Talk!

Video mining – analyzing video tape of consumers secretly obtained without their knowledge using computer software – is growing in prevalence.

How do you feel about this technique? Would its use prevent you from shopping at a store? How could the information be used unethically?


Code of Ethics

Ethical firms should follow the CASRO’s standards.

Marketing in Action

www.casro.org


Explain the importance of information to the company and its understanding of the marketplace.

Define the marketing information system and discuss its parts.

Outline the steps in the marketing research process.

Explain how companies analyze and distribute marketing information.

Discuss the special issues some marketing researchers face, including public policy and ethics issues.

Rest Area: Reviewing the Concepts

Documents

C HAPTER 4 Managing Marketing Information. Copyright 2007, Prentice-Hall Inc.4-2 Explain the importance of information to the company and its understanding