Marketing Research and Information Systems Chapter 4 Marketing Research and Information Systems

The Importance of Information Companies need information about their: Marketing environment Competition Customer needs Managers don’t need more information, they need better information.

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 (Fig. 4.1)

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 by Managers Can be Obtained From: Internal Data Computerized Collection of Information from Data Sources (i.e. Accounting) 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 (i.e. Technological).

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 (Fig. 4.2) Implementing the research plan -- collecting and analyzing the data Defining the problem and research objectives Developing the research plan for collecting information Interpreting and reporting the findings

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

Marketing Research Process 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. + Obtained More Quickly, Lower Cost. - Might Not be Usable Data. Secondary Both Must Be: Relevant Accurate Current Impartial Information Collected for the Specific Purpose at Hand. Primary For ad, click object:

Develop the Research Plan Planning Primary Data Collection Observational Research Gathering data by observing people, actions and situations (Exploratory) Research Approaches 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 Planning Primary Data Collection Contact Methods (Table 4.3)

Develop the Research Plan Planning Primary Data Collection Probability or Non-probability sampling? Sampling Plans Who is to be surveyed? (What Sampling Unit?) Sample - representative segment of the population How should the sample be chosen? How many should be surveyed?

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

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.

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

Marketing Research Process Step 4. Interpreting and Reporting Findings Step 1. Interpret the Findings Researcher Should Present Important Findings that are Useful in the Major Decisions Faced by Management. Step 2. Draw Conclusions Step 3. Report to Management

Other Marketing Research Considerations Research in Small Businesses and Nonprofit Organizations International Marketing Research Public Policy and Ethics in Marketing Research For ad, click object:

Discussion Many companies build extensive internal databases that marketing managers can use to identify marketing opportunities and problems, plan strategies and programs, and evaluate performance. If you were the marketing manager for a large computer software producer, what types of information would you like to have available in your company’s internal database? Explain. 2.        Focus group interviewing is both a widely used and widely criticized as a marketing research technique. List the advantages and disadvantages of focus groups. Suggest some kinds of questions that are suitable for exploration by using focus groups.