 See Past Exam Papers for Sample Questions  Learning Outcome; be able to conduct marketing analysis, marketing planning and decision-making. Chapter 4 of Book: Marketing Research & Information Systems The MIS (Marketing Information System) Slide 1 of 22

Learning Outcomes The Marketing Information System.  Market Research  The Internal Reports System  The Marketing Intelligence System

Market Research  Marketers need information about ALL aspects of the business environment.  Some of the most important info you can have relates to your customers.  Use this info to segment the market and put in place proper marketing mixes. Example of Research in Book

What is Market Research Marketing Research is the function which links the consumer, customer, and public to the marketer through information used to:  identify and define marketing opportunities and problems;  generate, refine, and evaluate marketing actions;  monitor marketing performance; and  improve understanding of marketing process. Note that very aspect of Marketing, e.g. the Marketing Mix, requires the collection or analysis of information. NB. Firms who can adjust their marketing strategies to reflect changes in markets will gain a competitive advantage. Examples??

Starting Marketing Research  Problem definition  Problem definition (how & what info will help?) existing data  What existing data can we use? new data  What new data do we need? collection method  What data collection method? measurement techniques  What measurement techniques? sample  What sized sample?  Time-tables costs  Time-tables & costs  Analysis  Analysis of data  Reportingpresenting  Reporting and presenting findings.

Customer Research & the Research Process Presentation of results Data analysis and interpretation Data collection Research design Problem definition The market research process: Feedback Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. More details of this process on pg. 102 of book, Fig 4.1

Marketing Research - Formal  Market Research is undertaken in a formal study and uses:  Secondary Data; ie – data that already exists (Search engine use is critical here). This is Quantative  Primary Data: ie – information observed or collected directly from subjects….customers, suppliers, distributors etc. (Qualitative Research; eg. Talk to the customer or run focus groups, you can use sampling as well…see next slides)  NB: Must know those two definitions in exam!! AC Nielson – a market research company

Research Design – 3 Types  Descriptive Research  Exploratory Research  Causal Research

Descriptive Research  Aim is to describe something important: e.g. the characteristics of a particular customer segment!  It is a Structured Process.  Findings are conclusive, have prior formulations and hypothesis.  Specify the Who, What, Why, When, Where, How.  Methods Used are:  Surveys  Panels  Observations  Simulations

Exploratory Research  To uncover insights, to understand.  Definitions are loose, processes are flexible.  Samples are small and non-representative.  Uses qualitative data.  Your findings are provisional, and usually leave the door open for additional research. Methods used are:  Discussions with experts.  Pilot surveys.  Case studies.  Analysis of secondary data.  Qualitative research.

 Analysing the Cause and Effect of a problem.  What is causing something and what is the effect? E.g. Did an increase in price cause a decrease in sales? Independent variable = cause Dependent variable = effect The effect may be a decrease in sales, but the cause may be an increase in price, increased in competitors’ advertising, decrease in competitors’ price, promotional activity in the market, economic factors etc …. Method used is: Experimentation – You see if one variable effects another variable. Causal Research

Brassington and Pettitt (2006) Principles of Marketing Comparative Performance of Data Collection Methods InterviewFocus group Telephon Cost/responseHighFairly highLowVery low SpeedFast Very fastSlow Quantity of dataLarge Moderate Sample dispersionLow High Response rateHighVery highFairly highLow ProbingHigh Fairly highNone

Sampling  Taking a sample of the population you are interested in.  This can be done in isolation,  Or with qualitative research.  It is of particular importance in mass consumer markets since time and cost constraints make it impossible to survey every single target consumer.

Sampling Methods Probability Sampling: 1. Totally Random, 2. Stratified = into groups that are mutually exclusive and then random sampling from each group, 3. Area / regional sampling Non-Probability Sampling: Non-random 1. Judgmental: common in B-2-B markets, researchers decide on samples, 2. Quota: e.g. 400 non- working women full-time, part- time employed women

Internal Reports System  You need to organise and record all the research results  Decision Support Systems are sometimes used – They are essentially databases (pg 116 book)  Also consist of data on competitors

Internal Reports System (2)  Know how to layout a competitor Analysis Template (Table 4.6 chapter 4)  IRS may also consist of information about “Channel Research”  Traditional channel – shoe shop?  Emerging Channel – Amazon.com

Analysis and Interpretation for MIS Quantitative  Preparation of the Data  Counting  Grouping  Relating  Predicting  Statistical Testing Qualitative  Coding  Grouping  Linking  Themes  Model Interpretative Grounded Theory Critical Theory etc

What is an MIS  It is made up of intelligence gathered about the market environment….ie. The PEST forces, from interenal and external sources  An MIS is different to basic internal records in that an MIS seeks to priorities the information that is critical to decision making.  When do internal records actually become intelligence?

Other Data for an MIS  External data from the marketplace should also be added to an MIS. Data from sales reps, intermediaries such as wholesalers and retailers, tradeshows and secondary data sources (published information) which is available through government publications offices, libraries and the Internet  Be aware that raw data in a table is just that – raw data – and is virtually useless to a marketer. Turn it into a graph relative to other data and it becomes intelligence…..the backbone of an MIS

Sources of Marketing Information  Government and State Bodies  Directories – Kompass Ireland  Trade Associations & Professional Bodies  Economic Organisations – ESRI, OECD  Academic Journals – HBR, Irish Marketing Review  Business Periodicals – BusinessPlus, Irish Marketing Journal  Quality Press – Irish Times, SBP Financial Times (Use their websites)

Final Sources for Market Research  Various Publications  Civil Service –  State Organisations  Trade & Professional Organisations – Irish Management Institute, IBECwww.mii.ie

Summary  Three main components of a Marketing Intelligence System  -Market Intelligence -Internal Records -Market Research  Marketing Intelligence is data gathered about the market environment (PEST)