Marketing Research and Information Systems Week 3 - 09.27.04 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

Functions of a MIS: Developing Information Information Needed by Managers 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 (i.e. Technological).

Marketing Information System: Developing Information Company Internal Databases Accounting Manufacturing sales and marketing customer service For further details about this topic see page116 5 5

Marketing Information System: Developing Information Marketing Intelligence company personnel customers suppliers & resellers business publications trade shows competitive analysis information search firms For further details about this topic see page117 6 6

The Marketing Research Process 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.

Ownership of Cats and Dogs by Age Group Source: Maritz Poll Source: American Demographics, December 2000, p. 27. Adapted with permission.

Top Ten Zip Codes for Spending on Fireworks Source: American Demographics, July 2000, p. 24. Adapted with permission.

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, collected for any purpose other than the one at hand. + 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

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

A research method that relies on three types of observation: Observation Research A research method that relies on three types of observation: people watching people people watching an activity machines watching people On Line Brand Marketing International Learn more about mystery shopping by requesting a mystery shopper kit from BMI and reading the shopper application. Notes: Observation research depends on watching what people do. It may be conducted by human observers or machines.

Observation Research Types of Observation Research Mystery Shoppers One-Way Mirrors Types of Observation Research Audits Machines Watching People People Watching People People Watching an Activity Traffic Counters Passive People Meter

On Line http://www.bmiltd.com Mystery Shoppers Researchers posing as customers who gather observational data about a store and collect data about customer/employee interactions.

You have been hired by (a) to determine when, where, how and Observation Problem You have been hired by (a) to determine when, where, how and why students consume or use (b) . You have to use observation techniques. Explain how you proceed. Be creative but ethical.

Forms of Survey Research Focus Groups Executive Interviews Mail Surveys Telephone Interviews (Home and Central Location) Mall Intercept Interviews In-Home Interviews

Characteristics of Traditional Forms of Survey Research

Questionnaire Design Open-Ended Question Closed-Ended Scaled- Response An interview question that encourages an answer phrased in respondent’s own words. An interview question that asks the respondent to make a selection from a limited list of responses. A closed-ended question designed to measure the intensity of a respondent’s answer. Notes: Questionnaires contain three basic types of questions: Open-ended questions Closed-ended questions Scaled-response questions. Examples of these types of questions are shown on the next slide and in Exhibit 8.5.

Types of Questions in Questionnaire Design Notes: Exhibit 8.5

Qualities of Good Questionnaires Reasonable Terminology Questionnaire Design On Line http://www.createsurvey.com Qualities of Good Questionnaires Clear and Concise No Ambiguous Language Unbiased Reasonable Terminology On Line CreateSurvey.com Design a marketing questionnaire to post on your class Web site using the tools offered by Create Survey. Visit the demo polls on the site for ideas and tips.

Non-Probability Samples Sampling Procedure Universe Sample Probability Samples Non-Probability Samples

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