1. Managing Marketing Information
Chapter 4
Managing
Marketing Information

2. Concept Connections
Explain the importance of information to the company.
Define the marketing information system and discuss its parts.
Outline the steps in the marketing research process.
Compare the advantages and disadvantages of various methods of collecting information.

3. The Importance of Information
Helps a Firm Better:
Understand Marketing Opportunities
Ascertain the Potential for Success for New Products
Determine the Feasibility of a Particular Marketing Strategy

4. 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.

5. The Marketing Information System

6. Functions of a MIS: Assessing Information Needs
Information Managers Would Like to Have
What They Really Need & What is Feasible to Offer
Benefit
Cost

7. Functions of a MIS: Developing Information
Information Needed 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.

8. 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

9. The Marketing Research Process

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

11. Step 2. Develop the Research Plan
Research plan development follows these steps:
Determining Specific Information Needs
Gathering Secondary information
Planning Primary Data Collection

12. Develop the Research Plan -Gathering Secondary Information
Information That Already Exists Somewhere.
Sources:
-Internal databases
-Commercial services
-Government sources -Published sources …
Secondary
Both Must Be:
Relevant
Accurate
Current
Impartial
Information Collected for the Specific Purpose at Hand.
Primary

13. Develop the Research Plan - Primary Data Collection
Research Approaches
Observational Research
Gathering data by observing people,
actions and situations
(Exploratory)
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)

14. Develop the Research Plan - Primary Data Collection
Contact Methods

15. Develop the Research Plan - Primary Data Collection
Sampling Plans
How should the
sample be
chosen?
(Sampling
Procedure)
Who is to be
surveyed?
(Sampling
Unit?)
A segment of the
population
Selected to represent
the whole
How many
should be
surveyed?
(Sample Size)

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

17. Mechanical Devices
Neuromarketing tracks brain wave activity.

18. A. Closed-end Questions
Questionnaire
1_____ _____ _____ _____ _____
Small airlines generally give better service than large ones.
Strongly Disagree Neither agree Agree Strongly
disagree nor disagree agree
A statement with which the respondent shows the amount of agreement/ disagreement.
Likert scale
An organized tour group
Spouse and children
Business associates/friends/relatives
Spouse
Children only
No one
With whom are you traveling on this flight?
A question with three or more answers.
Multiple Choice
In arranging this trip, did you personally phone American?
Yes No
A question with two possible answers.
Dichotomous
Example
Description
Name
A. Closed-end Questions

19. 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.

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

21. Step 4. Interpreting and Reporting Findings
Step 1. Interpret the Findings
Step 4. Interpreting and Reporting Findings
Step 2. Draw Conclusions
Researcher Should Present Important Findings
Step 3. Report to Management

22. Reporting Research Findings
Objective Look
Report Deficiencies
and Reasons
Formal, Written Document
Short, Clear, and Simple
Technical Report Contains
More Detail

23. Customer Relationship Management (CRM)
To maximize customer loyalty
Use data warehouses and datamining techniques
Purpose is to make better use of the information the company already has
The goal is to provide higher levels of customer service

24. Other Marketing Research Considerations
Research in small businesses and non-profit organizations
International marketing research
Public policy and ethics in marketing research:
Privacy of information
Selling under the guise of conducting research activities
Misuse of research findings for promotional purposes

25. Review of Concept Connections
Explain the importance of information to the company.
Define the marketing information system and discuss its parts.
Outline the steps in the marketing research process.
Compare the advantages and disadvantages of various methods of collecting information.