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MISis a planned system of collecting, processing,
storing and disseminating data in the form of
information needed to carry out the functions of
management.
According to Phillip KotlerA marketing
information system consists of people, equipment and
procedures to gather, sort, analyse, evaluate and
distribute information to marketer
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FirmEnviron-
ment
Marketing intelligence
Marketing communications
Internal
marketing
information
Kotlers Information Flows
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Internal
records
Marketing
decision
support
analysis
Distributing
information
MarketingEnvironment
Target markets
Marketingchannels
Competitors
Publics
Macroenviron-ment forces
Assessinginformation
needs
MarketingManagers
Analysis
Planning
Implemen-tation
Control
Developing Information
Marketing decisions and
communication
Marketing Information System
Marketing
intelligence
Marketing
research
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Begins and Ends with Information Users:
Interacts with information users to assess information
Develops needed information from internal and external
sources
Helps users analyze information for marketing decisions
Distributes the marketing information and helps
managers use it for decision making
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COMPONENTS
INTERNAL REPORT
SYSTEM
MARKETING
INTELLIGENCE SYSTEM
MARKETING DECISION
SUPPORT SYSTEM
MARKETING RESEARCH
SYSTEM
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Internal report system- Internal database is gathered by
customer databases, financial records and operations reports.
Marketing intelligence system- is the systematic collection and
analysis of publicly available information about competitors and
trends in the marketing environment.
Marketing decision support system- coordinated collection of
data, systems, tools and techniques with supporting software
and hardware.
Marketing research system- is a systematic design, collection,
analysis and reporting of data relevant to a specific marketing
situation facing an organization.
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Anticipation of consumer demand- marketing managers have to keep
updated info. about his or her consumersneed and wants and for this mkis is
helpful
Complexity of marketing- marketing activity is becoming more complex and
broader in scope. To cope up with it we require current information and the
future information.
To determine the economic indicators i.e demand & supply- marketing
managers should have adequate info about the latest trends in market supply
and price change. Moreover in order to forecast about future a marketing
manager is always dependent on economic indicators.
To determine the current development in technology- managers require
adequate info. for determining current development in technology and this is
possible through mkis.
Understanding the consumer- fill he gap between marketer and customer.
Marketing planning- effective marketing planning is required in terms of
product planning, pricing, promotion and distribution. such planning will be
possible only if the company is possessing adequate and relevant information.
this is also possible through MIS.
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Functional information systemsMarketing
information
system
Manufacturing
information
system
Finance
information
system
Human resource
information
system
Marketing
function
Manufacturing
function
Finance
function
Human
resources
function
Physical system of the firm
Functional Information Systems Represent
Functional Physical Systems
Information
resource
information
system
Information
Services
function
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An MIS Model
u Output product
place
promotion price
integrated mix
u Database
u Input
AIS
marketing research
marketing intelligence
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Input
subsystemsOutput subsystems
D
A
T
A
B
A
SE
Accounting
information
system
Marketing
research
subsystem
Marketing
intelligence
subsystem
Internal sources
Environmental sources
Productsubsystem
Place
subsystem
Promotion
subsystem
Pricesubsystem
Integrated-
mix
subsystem
Users
Data InformationMarketing Information System Model
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Accounting Information System
u Sales order data is input.
u AIS provides data for
Periodic reports
Special reports
Mathematical models and knowledge-based
models
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MARKET RESEARCH
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RESEARCH
E Effective decision making
S Systematic and objective
E Exude or disseminate information
A Analysis of information
R Recommendation for action
C Collection of information
H Helpful to managers
R Recognition of information needs
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Marketing Research
The American Marketing Association
(AMA) defined Marketing Research as:
The function that links the consumer, the
customer, and public to the marketer through
INFORMATION
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Definition of Marketing Research
"Marketing Research is the systematic
gathering, recording and analyzingof data about problems relating to the
marketing of goods and services."
----
AMA
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Identification ofInformation
Needed
Collection ofData
Analysis ofData
Dissemination ofInformation
Identifying andSolving Marketing
Problems
Defining Marketing Research
Use ofInformation
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Marketing Research
Marketing research is the systematic and objective
identification, collection, analysis, dissemination,
and use of information for the purpose of assisting
management in decision making related to the
identification and solutions of problems and
opportunities in marketing.
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Factors affecting marketing research
Time
Language
Method Used
Resources
Managerial influence.
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Features of marketing research
1. Wide and Comprehensive Scope
2. Systematic and Scientific
3. Collects and Analyses Data
4. Tool for Decision-Making
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Application of MR
Marketing research activities can be divided into
four main strategic categories:
Market Analysis
Identifying and evaluating opportunities
Competitive Analysis
Market Segmentation
Analyzing market segments and selecting target
markets
Marketing Strategy Design
Planning and implementing a marketing mix
Analyzing Marketing Performance
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1-23 2007 Prentice Hall
Purposes of Marketing Research Identify changes in the existing market
Build up a knowledge bank Improve market awareness & opportunities
Reduce risk and uncertainty
Support marketing mix decisions Support marketing planning and controls
Improve understanding of marketing
Solve ad hoc problems
Identify market opportunities
Understand the competition
Benchmark effectiveness
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Marketing and Market Research
Marketing research - is the gathering of
information on all activities of marketing
Market research - is the gathering of
information on a particular market for a
product or service.Marketing research has a wider scope than
market research
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Need For Marketing Research
Why do businesses need accurate and up-to-date
information?
To undertake marketing effectively
Changes in technology
Changes in consumer tastes
Market demand
Changes in the product ranges of competitors
Changes in economic conditions
Distribution channels
A Cl ifi ti f M k ti R h
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A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Problem-SolvingResearch
Market Potential ResearchMarket Share Research
Market Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research
Segmentation Research
Product ResearchPricing Research
Promotion Research
Distribution Research
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Problem-Solving Research
Determine the basis of segmentation
Establish market potential andresponsiveness for various
segments
Select target markets
Create lifestyle profiles:demography, media, and
product image characteristics
SEGMENTATION RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control store tests
PRODUCT RESEARCH
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Problem-Solving Research
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions Creative advertising testing
Evaluation of advertising effectiveness
0.00% APR
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Problem-Solving Research
DISTRIBUTION RESEARCH
Determine
Types of distribution
Attitudes of channel members
Intensity of wholesale & retail coverage
Channel margins
Location of retail and wholesale outlets
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Marketing Research Process1. Define the Problem
2. Establish the Research Objectives
3. Determine Research Design
4. Identify Information Types and Sources.
5. Determine Methods of Accessing Data
6. Design Data Collection Forms
7. Determine Sample Plan and Size
8. Collect the Data
9. Analyze the Data
10. Prepare and Present the Final Research
Report
D fi th P bl
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Define the Problem Defining the problem is the single most important step in
the marketing research process. Often studies are commissioned without a clear
understanding of the problem that needs to be
addressed.
Exploratory research is needed to define the problem so
research may be conducted.
Problem definition involves:
1. Specifying the symptoms
2. Itemizing the possible causes of the symptoms
3. Listing the reasonable alternative courses of action that the
marketing manager can undertake to solve the problem.
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Establish the Research Objectives
Research objectives identify what specific pieces
of information are necessary to solve the problem
at hand.
Research objectives step is the specification of the
specific types of information useful to the
managers as they grapple for a solution to themarketing problem at hand.
i h i
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Determine Research DesignThere are three types of research design:
1. Exploratory Research Design- is defined as collecting information in
an unstructured and informal manner. Examples: Reading periodicals,visiting competitors premises, examine company sales and profits vs.industry sales and profit, clipping service.
2. Descriptive Research Design- refers to a set of methods andprocedure that describe marketing variables. Portray these variables
by answering who, what, why and how questions. example: consumerattitude survey to your companies services.
3. Casual Research Designdesigns allow us to isolate causes and theireffects.
Casual research is conducted by controlling various factors to
determine which factor is causing the problem. By changing one factor, say price, we can monitor its effect on a keyconsequence, such as sales. In other words, casual design allows usto determine causality, or which variable is causing another variableto change.
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Identify Information Types and Sources
Basically two types of data information
available to a marketing researcher:I. Secondary data:
Readily available / accessible
Free of charge or Relatively Inexpensive
II. Primary data:
Problem focused
Unbiased
Up-to-date
Proprietary
D i M h d f A i D
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Determine Methods of Accessing DataOnce the researcher has determined which type or types of
information are needed, he or she must determine methods of
accessing data.Methods of accessing external secondary data have
improved over the last five years:
Information processing technology.
Easy and Quick retrieval.
Internal data- company reports, salespersons, executives,MIS and other information sources.
There are several different methods of collecting primarydata including:
Telephone surveys
Mail surveys
Door-to-door interviews
Mall-intercept studies
New data collection methods are emerging.
Design Data Collection Forms
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Design Data Collection Forms
Questionnaires and observation forms must be designed
with great care.
Questionnaires which record the information
communicated by respondents or the respondents
behavior as observed by the researcher
Structured Questionnaires - list questions that have
pre-specified answer choices. Unstructured questionnaires have open ended
questions and/or questions that are asked based on a
response.
D t i S l Pl d Si
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Determine Sample Plan and Size
A sample plan identifies who is to be sampled and
how to select them for study.
A sample element refers to a unit of the entity being
studied.
A sample Frame is a list from which the sample
elements are drawn for the sample.
Methods are available to help the researcher
determine the sample size required for the research
study.
Collect the Data
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Collect the Data Data collection is usually done by trained interviewers who are
employed by field data collection companies to collect primary
data.
Being aware of errors that may occur is important.
Non-sampling Errors are attributable to factors other than
sampling errors.
Wrong sample elements to interview
Securing participants who refuse to participate
Not a home Interviewing subjects who give the wrong information.
Hiring interviewers who cheat and fill out fictitious
survey questionnaires.
A l D t
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Analyze Data Data analysis involves entering data into computer files,
inspecting it for errors and running tabulations and various
statistical tests.
Data cleaning process by which the raw data are checked to
verify that the data has been correctly inputted from the data
collection form to the computer software program. Use SPSS
Coding is the process of assigning all response categories a
numerical value males=1, females=2.
Tabulation which refers to the actual counting of the
number of observations that fall into each possible response
category.
Prepare and Present the Final
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Prepare and Present the Final
Research Report
Preparing the marketing research report involves
describing the process used, building meaningful
tables, and using presentation graphics for clarity.
Preparing the SPSS software allows you to prepare
graphics to enhance your written or oral
presentation.
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Role of MR
SituationAnalysis
StrategyDevelopment
MktProgram
Development
Implementation
Environment & MktSWOT
Business scope
Competitive advantageSet performance objectives
4Ps
Performance monitoringRefining strategies & program
The Role of Marketing Research
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The Role of Marketing Research
ControllableMarketing
Product
PricingPromotion
Distribution
Variables
MarketingResearch
MarketingDecision
Making
ProvidingInformation
AssessingInformation
Needs
Marketing Managers
Market Segmentation
Performance & Control
Target Market Selection
Marketing Programs
Uncontrollable
Environmental
Factors
Economy
Technology
Laws &Regulations
Social & CulturalFactors
Political Factors
Consumers Employees
Shareholders Suppliers
Customer Groups
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Product Research
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Definition
Component of market research
whereby the characteristic of a good or
service, that will satisfy a recognized
need or want, are identified.
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Qualitative Explorations
The target audience is identified (even if not totally precise),
and some notion of the product category (or human need) is
established, then qualitative research is the first step
The purpose is to develop in-depth understanding of the
target consumertheir motivations, perceptions, fears, and
preferences.
Perceptions of competitive products can be explored.
Unmet needs can be identified.
New product ideas can be sought.
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Qualitative Explorations contd
The qualitative exploration serves to identify new
product possibilities as well as refine the target-
market definition for those possibilities.
Qualitative research is also useful in determining
the starting points for ideation.
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Concept Testing
Concept testing identifies potentially successful
new products early on, so that you can focus limited
research and development resources (and limited
marketing resources) on the new product concepts
with the greatest probability of consumer
acceptance.
Decision Analyst provides a suite of concept testing
systems and services.
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Product Testing
New products must be optimal to have a reasonable
chance for success.
Product testing is an essential step (or series ofsteps) in the development of a new product.
Decision Analyst offers a range of product-testing
services to help ensure that the new product will be
successful.
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Steps involved in Product Research
Opportunity Identification
Concept Screening
Concept Testing
Marketing Strategy Development
Product Development
Market Testing
Product Introduction
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Advertising/Promotion
Research
54
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54
PPT 7-3
Advertising and Promotion
Research
Used to assist in determining market segments
Plays a key role in helping creatives understand
the audience
Used to make go/no go ad decisions and when to
pull ads
Used to evaluate agency performance
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Definition
Advertising research is a specialized form of
marketing research conducted to improve the
efficiency of advertising.
Advertising research is the systematic gathering and
analysis of information to help develop or evaluate
advertising strategies, ads and commercials, and
media campaigns.
A subset of marketing research.
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Types of Advertising Research
Customized
Customized research is conducted for a specific
client to address that clients needs. Only that
client has access to the results of the research.
Syndicated
Syndicated research is a single research studyconducted by a research company with its results
available, for sale, to multiple companies.
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Methods of Advertising Research
Pre-market research
can be conducted to optimize ads for any medium
optimize advertisement for any medium: radio,
television, print (magazine, newspaper or direct mail),
outdoor billboard (highway, bus, or train), or Internet.
Post-market research
conducted after the advertising, either a single ad or an
entire multimedia campaign has been run in-market. Thefocus is on what the advertising has done for the brand,
for example increasing brand awareness, trial, frequency
of purchasing.
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Pre-Market Research
Consumer Jury.
Rating Scales.
Portfolio Tests.Psychological Tests.
Physiological Tests.
Sales Tests.
Day-after recall Tests.
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Rating Scales:
Requires the establishment of standards for effectivecopy and numerical weights for each standard.
Ads are then rated in accordance with the scale
values and a numerical score is obtained.
Advantage:
Provides a list against which to check an ad &
helps to single out the elements that are good or bad.
Disadvantages:
Different judges will rate the ad differently.
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Portfolio Tests
Sometimes the ad is placed in dummy copies
of newspapers or magazines.
A group of ads, usually a mixture of test ads and
control ads, is placed in a portfolio.
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Physiological Tests Tests are obtained using special laboratory equipments
which record an individuals physiological responses toads.
A list of reactions like self pity, security, fear or
nostalgia is set up.
Alternative ads are then rated on how readers respond
w.r.t. those reactions.
A no. of techniques including word association,
sentence completion, depth interview & story tellingare adopted.
Difficult to implement, since skilled interviewers are
required
S l
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Sales tests
Sales tests are a useful measure of advertising effectiveness when advertising is the dominant
element, or the only variable, in the company's
marketing plan. Sales response may not be immediate and sales
tests, particularly field studies, are often costly
and time-consuming.
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Day-after recall Tests
Research method that tests
consumers memories the day after they
have seen an ad, to assess the ad's
effectiveness.
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Post-Market Research Provide either periodic or continuous in-market research
monitoring a brandsperformance.
Including brand awareness, brand preference, product
usage and attitudes. Some post-testing approaches
simply track changes over time, while others use various
methods to quantify the specific changes produced byadvertising - either the campaign as a whole or by the
different media utilized.
Overall, advertisers use post-testing to plan future
advertising campaigns, so the approaches that providethe most detailed information on the accomplishments of
the campaign are most valued.
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Problems in media selection
Itsnot sufficient to select the major media, you
also need to make specific selections within
these general types of media.
Character of media has to be considered before
selecting it as it has great influence on
effectiveness of the advertisement.
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Problem of audience measurement
Variation in composition and sizes of audience of
given media vehicle.
Variation due to geography.
Variation due to rate at which different vehicles
accumulate audiences.
Difficulty of estimating value of different sizes ofmessage units within and between media.
Estimating actual geographical area covered.
Key Issues in Advertising and
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PPT 7-4
Key Issues in Advertising and
Promotion Research
Reliability: The research method produces
consistent findings over time.
Validity: The information generated is relevant tothe research questions being investigated.
Trustworthiness: Usually applied to qualitative
data; does the data seem to make sense?
Meaningfulness: An assessment of limitations of
the data.
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