Principles of Marketing, 5th Canadian Edition MGT330F – September 24/03 Current Events Lecture: Chapter 4 – Marketing Information Systems and Marketing Research Class Exercise Class Discussion Foxy Originals Housekeeping For further details about this topic see page 148 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

principles of MARKETING Principles of Marketing, 5th Canadian Edition principles of MARKETING Chapter 4 Marketing Research and Information Systems © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Principles of Marketing, 5th Canadian Edition Lecture Topics Understand the importance of information Understand the idea of marketing information systems What is the marketing research process Look at data collection techniques Consider special issues in market research For further details about this topic see page 148 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Information Systems: System Functions Principles of Marketing, 5th Canadian Edition Marketing Information Systems: System Functions Assess information needs Develops needed information Information analysis Distributes information For further details about this topic see page 152 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Figure 4-2: The Marketing Information System Principles of Marketing, 5th Canadian Edition Figure 4-2: The Marketing Information System Information Analysis Internal Databases Marketing Research Intelligence Distributing Assessing Needs Marketing Managers Marketing Environment Marketing Information System Developing needed information For further details about this topic see page 152 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

I) Marketing Info Systems: Assessing Information Needs Principles of Marketing, 5th Canadian Edition I) Marketing Info Systems: Assessing Information Needs Balances: What would be liked? What is needed? What is feasible? Irrelevant information Information limitations Costs of gathering, processing, storing, and delivering? For further details about this topic see pages 152-153 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

II) Marketing Info Systems: Developing Information (1) Principles of Marketing, 5th Canadian Edition II) Marketing Info Systems: Developing Information (1) Internal Data Accounting Manufacturing Sales and marketing Customer service Research studies Quick access, less expensive Data warehouses and data mining For further details about this topic see pages 153-154 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

II) Marketing Info Systems: Developing Information (2) Principles of Marketing, 5th Canadian Edition II) Marketing Info Systems: Developing Information (2) Marketing Intelligence Company personnel Key customers Suppliers and resellers Government agencies Competitive analysis Trade associations Internet search engines Information companies For further details about this topic see pages 154-158 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

II) Marketing Info Systems: Developing Information (3) Principles of Marketing, 5th Canadian Edition II) Marketing Info Systems: Developing Information (3) Market Research Systematic design, collection and analysis Reporting data and findings Relevant to a specific marketing situation Can be done internally or externally Depends on the company’s resources (e.g., size, expertise, resources, etc.) For further details about this topic see page 158 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

II) Marketing Info Systems: Developing Information (4) Principles of Marketing, 5th Canadian Edition II) Marketing Info Systems: Developing Information (4) Information Analysis Information must be analyzed before use in decision making Advanced statistical analysis Analytical models For further details about this topic see pages 158-159 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Marketing Information System: Distributing Information Principles of Marketing, 5th Canadian Edition Marketing Information System: Distributing Information Right people at right time Regular management decisions Special situations Fast availability For further details about this topic see page 159 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process Principles of Marketing, 5th Canadian Edition Market Research Process Figure 4.2: The Marketing Research Process Define problem and research objectives Develop plan to collect data Implement, collect and analyze data Interpret and report findings For further details about this topic see pages 159-160 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 1) Defining Problem and Objectives Principles of Marketing, 5th Canadian Edition Market Research Process: 1) Defining Problem and Objectives Exploratory research Preliminary information Problem definition and hypothesis suggestion Descriptive research Better describe marketing problems, situations, or markets Causal research Test hypothesis of cause and effect relationships For further details about this topic see page 160 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Develop the Research Plan (1) Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Develop the Research Plan (1) Determine Specific Information Needs Target customer characteristics Patterns of product usage Demand factors Response of marketing channels Customer reactions Projected sales For further details about this topic see pages 160-161 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Develop the Research Plan (2) Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Develop the Research Plan (2) Gather Secondary Information Internal database sources Company, public, and university libraries Government and business publications Commercial data services On-line databases Internet data sources International data For further details about this topic see pages 161-163 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Develop the Research Plan (3) Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Develop the Research Plan (3) Advantages of Secondary Data Less time to obtain Lower cost than primary research Alternate means of access to information Benefit from resources of others Potential Problems With Secondary Data Information may not exist May not be: Relevant Accurate Current Impartial For further details about this topic see pages 163-165 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Plan Primary Data Collection (1) Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Plan Primary Data Collection (1) Research Approaches Observation Survey Experiment Table 4-3: Planning Primary Data Collection (p165) Research Approach Contact Methods Sampling Plan Instruments Observation Mail Unit Questionnaire Survey Telephone Sample Size Mechanical Experiment Personal Procedure For further details about this topic see page 165 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Plan Primary Data Collection (2) Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Plan Primary Data Collection (2) Observational Research Observing relevant people, actions, situations Mechanical observation, people meters, checkout scanners Some things not readily observed Difficult to monitor long-term or infrequent behaviour For further details about this topic see pages 165-166 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Plan Primary Data Collection (3) Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Plan Primary Data Collection (3) Survey Research Questions about knowledge, attitudes preferences or buying behaviour Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than other two methods Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledge; pleasing answers For further details about this topic see page 166 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Plan Primary Data Collection (4) Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Plan Primary Data Collection (4) Experimental Research Best suited for gathering causal information Selecting matched groups of subjects Given different experimental treatments Variables controlled Responses measured and recorded For further details about this topic see pages 166-168 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Contact Methods: Strengths and Weaknesses Principles of Marketing, 5th Canadian Edition Contact Methods: Strengths and Weaknesses Mail Phone Personal Flexibility Poor Good Excellent Quantity of data collected Good Fair Excellent Control interviewer effects Excellent Fair Poor Control of sample Fair Excellent Fair Speed of data collection Poor Excellent Good Response rate Poor Good Good Cost Good Fair Poor For further details about this topic see page 168 Source: Adapted with permission of Macmillan Publishing Company from Donald S. Tull and Del I. Hawkins, Marketing Research: Measurement and Method, 6th ed., Macmillan Publishing Company, 1993. © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Personal Interviewing Principles of Marketing, 5th Canadian Edition Personal Interviewing Individual Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE Computer interviewing or computer-assisted Group Focus group Online Electronic For further details about this topic see pages 169-172 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: Research Instruments Principles of Marketing, 5th Canadian Edition Market Research Process: Research Instruments Questionnaire Question contribution Question form Closed-end Open-end Wording Ordering Mechanical People meters Checkout scanners Galvanometer Eye cameras For further details about this topic see pages 172-174 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 2) Present the Research Plan Principles of Marketing, 5th Canadian Edition Market Research Process: 2) Present the Research Plan Written Research Proposal Management problems addressed by research Research objectives Information sought Sources of secondary information Methods of obtaining primary data Benefits and costs For further details about this topic see page 175 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 3) Implement the Research Principles of Marketing, 5th Canadian Edition Market Research Process: 3) Implement the Research Collect Data Company research staff Outside services Most costly and error prone process Analyze Data Isolate important information and findings Check accuracy and completeness Tabulate results For further details about this topic see page 175 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: 4) Interpret and Report Findings Principles of Marketing, 5th Canadian Edition Market Research Process: 4) Interpret and Report Findings Focus on useful decision support Clear and open Discuss interpretation Team approach Ultimate decision with management For further details about this topic see pages 175-176 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: Other Considerations Principles of Marketing, 5th Canadian Edition Market Research Process: Other Considerations Small Business and Non-Profit Organizations Obtain good information through observation Informal surveys with convenience samples Informal focus groups Conduct simple experiments Secondary data is widely available For further details about this topic see pages 176-177 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: Other Considerations Principles of Marketing, 5th Canadian Edition Market Research Process: Other Considerations International Marketing Research Growing due to multinationals Difficulty in developing good samples Difficulty in reaching respondents Language translation Consumer behaviour differences For further details about this topic see pages 177-180 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

Market Research Process: Other Considerations Principles of Marketing, 5th Canadian Edition Market Research Process: Other Considerations Public Policy and Ethics Increasing consumer resentment Industry codes of ethics Intrusions on consumer privacy Misuse of research findings Objectives or Solutions Respect for informants and subjects Make it a positive experience For further details about this topic see pages 180-182 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.