MANAGING CUSTOMER INFORMATION TO GAIN CUSTOMER INSIGHTS Chapter 5 Kotler, Bowen, Makens and Baloglu Marketing for Hospitality and Tourism

Learning Objectives 1. Explain the importance of information in gaining insights about the marketplace and customers. 2. Explain the concept of the marketing information system. 3. Outline the marketing research process, including defining the problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings. 4. Explain how companies analyze and use marketing information.

Marketing Information System Assessing Information Needs Developing Marketing Information Gathering Marketing Intelligence

Sources of Marketing Information Internal Data Guest History Information Guest Information Trends Guest Comment Cards Listening to and Speaking with Guests Automated Systems Mystery Shoppers Company Records Point-of-Sale (POS) Information

Marketing Intelligence Internal Sources External Sources Marketing Intelligence

Marketing Research Identifies and Defines Monitors and Evaluates Communicates

Marketing Research Process The marketing research process consists of four steps Defining the Problem and Research Objectives Managers must work closely with marketing researchers to define the problem and the research objectives The manager best understands the problem or decision for which information is needed, and the researcher best understands marketing research and how to obtain information (See Slide 8) Developing the Research Plan The second marketing research step calls for determining the needed information and developing a data collection plan (See Slides 9-13) Implementing the Research Plan The researcher puts the marketing research plan into action by collecting, processing, and analyzing the information The data-collection phase of the marketing research process is generally the most expensive and the most subject to error The collected data must be processed and analyzed to pull out important information and findings Interpreting and Reporting the Findings The researcher must now interpret the findings, draw conclusions, and report the conclusions to management Interpretation is an important phase of the marketing process Managers and researchers must work closely together when interpreting research results Both share responsibility for the research process and resulting decisions

Marketing Research Objectives Exploratory DescriptiveCausal

Developing the Research Plan Presenting the Research Plan Designing the Sample Gathering Secondary Information Determining Specific Information Needs

Research Approaches Observational Research Survey Research Experimental Research

Contact Methods Mail Questionnaire Telephone Interviewing Personal Interviewing Online Interview

Sampling Plan When will the survey be given? How should the sample be chosen? How many people should be surveyed? Who will be surveyed?

Research Instruments Questionnaires Mechanical Devices Research Instruments

Research Problem Areas Lack of Qualitative Information Failing to Look at Segments within a Sample Improper Use of Sophisticated Statistical Analysis Failure to Have the Sample Representative of the Population

Key Terms Causal research marketing research to test hypotheses about cause-and- effect relationships. Data warehouses collect data from a variety of sources and store it in a one accessible location. Descriptive research marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers. Ethnographic research trained observers interact with and/or observe consumers in their natural habitat Experimental research the gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. Exploratory research marketing research to gather preliminary information that will help to better define problems and suggest hypotheses. Internal data internal data consist of electronic databases and non-electronic information and records of consumer and market information obtained from within the company.

Key Terms (cont.) Marketing dashboards are like the instrument panel in a car or plane, visually displaying real-time indicators to ensure proper functioning. Marketing information system (MIS) a structure of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. The MIS begins and ends with marketing managers, but managers throughout the organization should be involved in the MIS. First, the MIS interacts with managers to assess their information needs. Next, it develops needed information from internal company records, marketing intelligence activities, and the marketing research process. MIS (cont.) Information analysts process information to make it more useful. Finally, the MIS distributes information to managers in the right form and at the right time to help in marketing planning, implementation, and control. Marketing intelligence everyday information about developments in the marketing environment that help managers to prepare and adjust marketing plans. Marketing research the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company.

Key Terms (cont.) Mystery shoppers hospitality companies often hire disguised or mystery shoppers to pose as customers and report back on their experience. Observational research the gathering of primary data by observing relevant people, actions, and situations. Primary data information collected for the specific purpose at hand. Sample (1) A segment of a population selected for marketing research to represent the population as a whole; (2) Offer of a trial amount of a product to consumers. Secondary data information that already exists somewhere, having been collected for another purpose. Survey research the gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.