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CHAPTERCHAPTER

MANAGING MARKETING INFORMATION

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Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reservedMcGraw-Hill/Irwin

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LEARNING OBJECTIVES

Describe the difference between market information systems and market research systems

Identify how critical internal (inside the firm) information is collected and used in making marketing decisions

Explain essential external (outside the firm) information collection methods

Recognize the value of market research and its role in marketing

Define the market research process

Illustrate current research technologies and how they are used in market research 5-2

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MAKING GOOD MARKETING DECISIONS – THE NEED TO KNOW

Information is power!

The right information at the right time and in the right format is essential for decision makers.

A significant problem for most managers today is not having too little information, but having too much.

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MAKING GOOD MARKETING DECISIONS – THE NEED TO KNOW

Marketing managers need a system to design and execute research that generates precise information.

Two fundamental types of market information needed today are:

1. Related to broad areas of interest.

2. Addresses a specific question.

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THE NATURE OF A MARKET INFORMATION SYSTEMA Market Information System (MIS) is

not a software package but a continuing process of identifying, collecting, analyzing, accumulating and dispensing critical information to marketing decision makers.

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THE NATURE OF A MARKET INFORMATION SYSTEMWhat information should be collected

by the system?

What are the information needs of each decision maker?

How does the system maintain the privacy and confidentiality of sensitive information?

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INTERNAL SOURCES

Collecting Information Inside the Company

◦ Information is used to identify the problem.

◦ Information is used to proactively address issues before they become a problem.

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INTERNAL INFORMATION SOURCESEXHIBIT

5.2

Marketing Documents

and databases Customer inquiries

Salesperson generated

data Salesperso

n information systems

Management DocumentsMarketing

Plans

Financial documents

and databasesCustomer payments

CRM - Operations Documents Customer

orders

Internal Informati

on Sources

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FROM THE CUSTOMER’S ORDER TO ORDER FULFILLMENTIdentify the frequency and size of

customer orders

Determine the actual cost of a customer order

Rank customers based on established criteria like profitability

Calculate the efficiency of the company’s production, and distribution system

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HEARD ON THE STREET – SALES INFORMATION SYSTEMFormal systems for collecting data

(getting the data)

Interpretation of data (analysis)

Distribution of data (getting the analysis to decision makers and back into the field)

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EXTERNAL SOURCES

Collecting Information Outside the Company

◦ Most companies engage in collecting, analyzing, and storing data from the macro environment on a continuous basis known as marketing intelligence.

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EXTERNAL FORCES AFFECT MARKETING DECISIONSEXHIBIT

5.3

External Forces

Political/Legal

Environment

Economic Conditions

Technology Transformations

Natural World

Demographic

Population of Interest

Ethnic GroupsGeographic

Changes

Competition

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EXTERNAL SOURCES

Demographics

Populations of Interest

Ethnic Groups

Geographic Changes

Economic Conditions

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Technology Transformati

ons

Natural World

Political/Legal

Environment

Competition

EXTERNAL SOURCES

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MARKETING RESEARCH SYSTEMSThe Importance of Market Research to

Managers

◦ Good Marketing Research… Follows a well defined set of activities and does

not happen by accident.

Enhances the validity of the information.

Is impartial and objective.

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THE MARKETING RESEARCH PROCESSEXHIBIT

5.7

Define the Research Problem

Establish Research Design

Search Secondary Sources

CollecttheData

Analyzethe Data

Reportthe Findings

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THE MARKETING RESEARCH PROCESSManagement Research Deliverable

Define the Research Problem

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RESEARCH DESIGN ACTIVITIESEXHIBIT

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Activity Question to be answered

Type of research What kind of research needs to be done?

Nature of data What kind of data do we need?

Nature of data collection How should we collect the data?

Information content What do we need to know?

Sampling plan Who should be included in the research?

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ESTABLISH THE RESEARCH DESIGN

Type of

Research

• Exploratory Research

• Descriptive Research

• Causal Research

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ESTABLISH THE RESEARCH DESIGNExploratory research

◦ Clarify the research problem.

◦ Develop hypotheses for testing in descriptive or causal research.

◦ Gain additional insight to help in survey development or to identify other research variables for study.

◦ Answers the research question.

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ESTABLISH THE RESEARCH DESIGNDescriptive research

◦ Identify the characteristics of our target market.

◦ Assess competitor actions in the marketplace.

◦ Determine how customers use our products.

◦ Discover differences across demographic characteristics (age, education, income) with respect to the use of our products or our competitors.

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ESTABLISH THE RESEARCH DESIGNBenefit vs. Cost

Time Until Decision

Nature of the Decision

Availability of Data

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NATURE OF DATA – WHAT KIND OF DATA DO WE NEED?Primary Data

◦ Qualitative research

◦ Quantitative research

Secondary Data

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NATURE OF DATA COLLECTION – HOW SHOULD THE DATA BE COLLECTED?

Exploratory Research Techniques

◦ Focus group

◦ In-depth interview

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NATURE OF DATA COLLECTION – HOW SHOULD THE DATA BE COLLECTED?

Descriptive Research Techniques

◦ Surveys

◦ Behavioral data

◦ Observational data Mechanical observation

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INFORMATION CONTENT – WHAT DO WE NEED TO KNOW?A critical part of research design

involves determining exactly what information is needed and how to frame the questions to get that information.

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SEARCH SECONDARY SOURCES

Government Sources

Market Research Organizations

The Internet

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MARKETING RESEARCH PROCESSCollect the Data

Analyze the Data

Report the Findings

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MARKETING RESEARCH PROCESSMarket Research Technology

◦ Online Research Tools Online Databases

Online Focus Groups

Online Sampling

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MARKET RESEARCH CHALLENGES IN GLOBAL MARKETS

Secondary Data

Data Accessibili

ty

Data Dependab

ility

Data Comparab

ility

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MARKET RESEARCH CHALLENGES IN GLOBAL MARKETS

Primary Data

Unwillingness to

respond

Unreliable sampling

procedures

Inaccurate language

translation and insufficient

comprehension

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