Managing Marketing Information Chapter 5. 5- 1 Objectives Understand the importance of information to the company. Understand the importance of information

Managing MarketingInformation

Chapter 5Chapter 5

5- 2

Objectives

• Understand the importance of Understand the importance of information to the company.information to the company.

• Know the definition of a Know the definition of a marketing information system marketing information system and be able to discuss its and be able to discuss its subparts.subparts.

• Learn the steps in the Learn the steps in the marketing research process.marketing research process.

5- 3

Objectives

• Learn how companies analyze Learn how companies analyze and distribute marketing and distribute marketing information.information.

• Realize the special issues Realize the special issues some marketing researchers some marketing researchers face, including public policy face, including public policy and ethical issues.and ethical issues.

5- 4

Case Study

• ““New Coke” was a New Coke” was a fiasco; consumer fiasco; consumer complaints resulted complaints resulted in the return of in the return of “Coke Classic” after “Coke Classic” after only 3 months.only 3 months.

• $4 million was $4 million was spent researching spent researching “New Coke”.“New Coke”.

• Key issue: the Key issue: the research problem research problem was too narrowly was too narrowly defined, and defined, and consumer feelings consumer feelings were ignored.were ignored.

• Poor judgment in Poor judgment in result result interpretation was interpretation was also a problem.also a problem.

CokeCoke

5- 5

Marketing Info. System

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

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

5- 6


• Assessing Marketing Information Assessing Marketing Information NeedsNeeds The MIS serves company managers The MIS serves company managers

as well as external partners.as well as external partners. The MIS must balance needs The MIS must balance needs

against feasibility:against feasibility: Not all information can be obtained.Not all information can be obtained. Obtaining, processing, sorting, and Obtaining, processing, sorting, and

delivering information is costly.delivering information is costly.

5- 7


• Internal data is gathered Internal data is gathered via customer databases, via customer databases, financial records, and financial 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 the incompleteness from the incompleteness or inappropriateness of or inappropriateness of data to a particular data to a particular situation.situation.

• Internal dataInternal data

• Marketing Marketing intelligenceintelligence

• Marketing Marketing researchresearch

Developing Developing InformationInformation

5- 8


• Marketing 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 dramatically.dramatically.

• Many sources of Many sources of competitive information competitive information exist.exist.





5- 9

Sources of Sources of Competitive IntelligenceCompetitive Intelligence


• Company Company employeesemployees

• InternetInternet• GarbageGarbage• Published Published

informationinformation

• Competitor’s Competitor’s employeesemployees

• Trade showsTrade shows• BenchmarkingBenchmarking• Channel members Channel members

and key and key customerscustomers

5- 10

Marketing Info. System• Marketing researchMarketing research is is

the systematic the systematic design, collection, design, collection, analysis, and analysis, and reporting of data reporting of data relevant to a specific relevant to a specific marketing situation marketing situation facing an facing an organization.organization.

• Steps in the Steps in the marketing research marketing research process.process.





5- 11


• Steps in the Marketing Research Steps in the Marketing Research Process:Process: Defining the problem and research Defining the problem and research

objectives.objectives. Developing the research plan for Developing the research plan for

collecting information.collecting information. Implementing the research plan – Implementing the research plan –

collecting and analyzing the data.collecting and analyzing the data. Interpreting and reporting the findings.Interpreting and reporting the findings.

5- 12


• Step 1: Defining the problem Step 1: Defining the problem and research objectivesand research objectives Don’t confuse the symptoms of Don’t confuse the symptoms of

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

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

5- 13


• Step 2: Developing the Research PlanStep 2: Developing the Research Plan Research objectives guide the Research objectives guide the

determination of specific information determination of specific information needs.needs.

Research proposals outline the type of Research proposals outline the type of data needed and the research plan.data needed and the research plan. Secondary data:Secondary data: Information collected for Information collected for

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

specific purpose at handspecific purpose at hand

5- 14


• Secondary data Secondary data sources:sources: Government informationGovernment information Internal, commercial, and Internal, commercial, and

online databasesonline databases PublicationsPublications

• Advantages:Advantages: Obtained quicklyObtained quickly Less expensive than Less expensive than

primary dataprimary data

• Disadvantages:Disadvantages: Information may not exist Information may not exist

or may not be usable.or may not be usable.

• Secondary Secondary datadata

• Primary dataPrimary data

Types of DataTypes of Data

5- 15

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


• RelevanceRelevance

• AccuracyAccuracy

• CurrencyCurrency

• ImpartialityImpartiality

5- 16


• Planning primary Planning primary research:research: Research approaches:Research approaches:

Observation, survey, Observation, survey, experimentexperiment

Contact methods:Contact methods: Mail, telephone, online, Mail, telephone, online,

personalpersonal Sampling plan:Sampling plan:

Sampling unit, sample Sampling unit, sample size, sampling size, sampling procedureprocedure

Research instruments:Research instruments: Questionnaire, Questionnaire,

mechanical instrumentsmechanical instruments

• Secondary Secondary datadata

• Primary dataPrimary data

Types of DataTypes of Data

5- 17


• Research approaches:Research approaches: Observation research using people Observation research using people

or machinesor machines Mystery shoppers, traffic counters, web Mystery shoppers, traffic counters, web

site “cookies” are some examples.site “cookies” are some examples. Discovers behavior but not motivations.Discovers behavior but not motivations. Ethnographic research expands Ethnographic research expands

observation research to include observation research to include consumer interviews.consumer interviews.

5- 18


• Research approaches:Research approaches: Survey research is widely used to Survey research is widely used to

gather descriptive information.gather descriptive information. Single source data systems gather Single source data systems gather

information from consumer panelsinformation from consumer panels Survey research faces many problemsSurvey research faces many problems

Experimental research investigates Experimental research investigates cause and effect relationships.cause and effect relationships.

5- 19


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

Individual or focus groupIndividual or focus group

Online (Internet) researchOnline (Internet) research

• Each contact method has strengths Each contact method has strengths and weaknessesand weaknesses

5- 20

Strengths and Weaknesses of Strengths and Weaknesses of Contact Methods Relate to:Contact Methods Relate to:


• FlexibilityFlexibility

• Sample controlSample control

• Data quantityData quantity

• CostCost

• Interviewer Interviewer effectseffects

• Speed of data Speed of data collectioncollection

• Response rateResponse rate

5- 21


• Sample: subgroup of population from Sample: subgroup of population from whom information will be collectedwhom information will be collected

• Sampling Plan Decisions:Sampling Plan Decisions: Sampling unitSampling unit Sample sizeSample size Sampling procedure: Sampling procedure:

Probability samplesProbability samples Non-probability samplesNon-probability samples

5- 22


• Research Instruments:Research Instruments: Questionnaires Questionnaires

Include open-ended and closed-Include open-ended and closed-ended ended questions questions

Phrasing and question order are Phrasing and question order are keykey

Mechanical instrumentsMechanical instruments

5- 23


• Step 3 of the Research Process: Step 3 of the Research Process: Implementing the Research Plan Implementing the Research Plan Involves collecting, processing, Involves collecting, processing,

and analyzing information.and analyzing information.

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

5- 24


• 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 CRM offers many benefits and can

help a firm gain a competitive help a firm gain a competitive advantage.advantage.

Technology alone cannot build Technology alone cannot build profitable customer relationships.profitable customer relationships.

5- 25


• Distributing and Using Marketing Distributing and Using Marketing InformationInformation Routine reporting makes information Routine reporting makes information

available in a timely manner.available in a timely manner. User friendly databases allow for User friendly databases allow for

special queries.special queries. Intranets and extranets help distribute Intranets and extranets help distribute

information to company employees information to company employees and value-network members.and value-network members.

5- 26

Other Considerations

• Marketing research in small Marketing research in small businesses and not-for-profit businesses and not-for-profit organizations organizations

• International marketing researchInternational marketing research• Public policy and ethicsPublic policy and ethics

Consumer privacy issuesConsumer privacy issues

• Misuse of research findingsMisuse of research findings

Documents

Managing Marketing Information Chapter 5. 5- 1 Objectives Understand the importance of information to the company. Understand the importance of information