Marketing Information System A Marketing Information System is the structure of people, equipment, and procedures used to gather, analyze, and distribute information needed by an organization. Chapter 6.1

Criteria for a Well-Designed Marketing Information System n Structured organization with people and procedures n Generate a continuous flow of information n Information should be gathered from inside and outside the organization n Information should be compiled and used as a basis for marketing decisions Chapter 6.2

Chapter 6.3

Chapter 6.4

Information Sources n Primary Data –Advantages Specificity Practicality –Disadvantages Cost Time lag Duplication n Secondary Data –Advantages Cost Timeliness –Disadvantages Limited applicability May be outdated Reliability Chapter 6.5

Chapter 6.6

Research Design n Exploratory research – to gain an understanding of the nature of the problem n Descriptive research – answer basic who, what, where, why, when, and how questions n Causal research – focuses on cause-and- effect relationships Chapter 6.7

Methods for Collecting Data n Experiments n Observation n Surveys –Direct mail –Telephone –Personal Interview Chapter 6.8

Table 6.1 Comparison of Survey Data Collection Methods Characteristics Direct Mail Surveys Telephone Surveys Personal Interviews Cost per respondent LowMediumHigh Speed of response LowHighMedium Response rate LowMediumHigh Interviewer bias LowMediumHigh Allows feedback LowMediumHigh Ability to handle sensitive topics HighMediumLow Ability to handle complex questions Medium LowHigh Chapter 6.9

Organizing Questionnaires I. Easy, screening questions II. More detailed questions regarding product usage and behavior III. Complicated questions involving ratings and rankings IV. Background information (demographics) Chapter 6.10

Question Design n Open-ended Questions – no options, categories or scales n Closed-ended Questions – provide options to choose from for a response –Dichotomous question – two choices (e.g., yes/no) –Multiple category question – categories (e.g., age, income) –Scaled-response question – rating scale (e.g., Likert) Chapter 6.11

Types of Samples n Probability –Simple random sample –Systematic sample –Stratified sample n Nonprobablity –Convenience sample –Judgment sample –Quota sample Chapter 6.12

Determining Sample Size n Acceptable level of sampling error n Amount of variability in the population n Desired level of confidence Chapter 6.13

Table 6.2 Sampling Error by Sample Size Sample Size Allowance for Sampling Error (95% confidence level) % % % % 1,0002-4% 1,5002-3% Chapter 6.14

Data Analysis n Descriptive Analysis –Profile of respondents or sampling units –Average or typical respondent n Inferential Analysis –Test hypotheses and estimate parameters using sample statistics –Make inferences from sample to population Chapter 6.15

Research Ethics n Rights and obligations of the respondent –Be truthful with responses –Right to privacy; confidentiality –Right to know true nature of the research n Rights and obligations of the researcher –To provide privacy and confidentiality to respondents and clients –To remain impartial and objective –To be honest and accurate with results n Rights and obligations of the client –To be honest about nature of the research –To be honest in dealings with suppliers (proposals) –To be committed to research Chapter 6.16