Managing Marketing Information Chapter 4 Managing Marketing Information

Concept Connections Explain the importance of information to the company. Define the marketing information system and discuss its parts. Outline the steps in the marketing research process. Compare the advantages and disadvantages of various methods of collecting information.

The Importance of Information Helps a Firm Better: Understand Marketing Opportunities Ascertain the Potential for Success for New Products Determine the Feasibility of a Particular Marketing Strategy

What is a Marketing Information System (MIS) A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers. The MIS helps managers to: Assess Information Needs, Develop Needed Information, Distribute Information.

The Marketing Information System

Functions of a MIS: Assessing Information Needs Information Managers Would Like to Have What They Really Need & What is Feasible to Offer Benefit Cost

Functions of a MIS: Developing Information Information Needed Can be Obtained From: Internal Data Computerized Collection of Information from Data Sources Within the Company. Marketing Research Design, Collection, Analysis, and Reporting of Data about a Specific Marketing Situation Facing the Organization. Intelligence Collection and Analysis of Publicly Available Information about Competitors and the Marketing Environment.

Functions of a MIS: Distributing Information Distributes Routine Information for Decision Making Information Must be Distributed to the Right Managers at the Right Time Distributes Nonroutine Information for Special Situations

The Marketing Research Process

Step 1. Defining the Problem & Research Objectives Gathers preliminary information that will help define the problem and suggest hypotheses. Exploratory Research Describes things as market potential for a product or the demographics and consumers’ attitudes. Descriptive Research Test hypotheses about cause-and-effect relationships. Causal Research

Step 2. Develop the Research Plan Research plan development follows these steps: Determining Specific Information Needs Gathering Secondary information Planning Primary Data Collection

Develop the Research Plan -Gathering Secondary Information Information That Already Exists Somewhere. Sources: -Internal databases -Commercial services -Government sources -Published sources … Secondary Both Must Be: Relevant Accurate Current Impartial Information Collected for the Specific Purpose at Hand. Primary

Develop the Research Plan - Primary Data Collection Research Approaches Observational Research Gathering data by observing people, actions and situations (Exploratory) Survey Research Asking individuals about attitudes, preferences or buying behaviors (Descriptive) Most Widely Used Form Experimental Research Using groups of people to determine cause-and-effect relationships (Causal)

Develop the Research Plan - Primary Data Collection Contact Methods

Develop the Research Plan - Primary Data Collection Sampling Plans How should the sample be chosen? (Sampling Procedure) Who is to be surveyed? (Sampling Unit?) A segment of the population Selected to represent the whole How many should be surveyed? (Sample Size)

Develop the Research Plan - Primary Data Collection Research Instruments Questionnaire What questions to ask? Form of each question? Closed-end Open-end Wording? Ordering? Pre-testing Mechanical Devices People Meters Supermarket Scanners Eye Cameras …

Mechanical Devices Neuromarketing tracks brain wave activity.

A. Closed-end Questions Questionnaire 1_____ 2 _____ 3_____ 4_____ 5_____ Small airlines generally give better service than large ones. Strongly Disagree Neither agree Agree Strongly disagree nor disagree agree A statement with which the respondent shows the amount of agreement/ disagreement. Likert scale An organized tour group Spouse and children Business associates/friends/relatives Spouse Children only No one With whom are you traveling on this flight? A question with three or more answers. Multiple Choice In arranging this trip, did you personally phone American? Yes No A question with two possible answers. Dichotomous Example Description Name A. Closed-end Questions

Develop the Research Plan - Presenting the Research Plan Summarize the plan in a written proposal and cover: Management problems addressed, Research objectives, Information to be obtained, Sources of secondary information, Methods for collecting primary data, Way the results will help management decision making.

Step 3. Implementing the Research Plan Collecting the Data Most Expensive & Subject to Error Research Plan Processing the Data Analyzing the Data

Step 4. Interpreting and Reporting Findings Step 1. Interpret the Findings Step 4. Interpreting and Reporting Findings Step 2. Draw Conclusions Researcher Should Present Important Findings Step 3. Report to Management

Reporting Research Findings Objective Look Report Deficiencies and Reasons Formal, Written Document Short, Clear, and Simple Technical Report Contains More Detail

Customer Relationship Management (CRM) To maximize customer loyalty Use data warehouses and datamining techniques Purpose is to make better use of the information the company already has The goal is to provide higher levels of customer service

Other Marketing Research Considerations Research in small businesses and non-profit organizations International marketing research Public policy and ethics in marketing research: Privacy of information Selling under the guise of conducting research activities Misuse of research findings for promotional purposes

Review of Concept Connections Explain the importance of information to the company. Define the marketing information system and discuss its parts. Outline the steps in the marketing research process. Compare the advantages and disadvantages of various methods of collecting information.