1. Information for marketing management
Chapter 5
Information for marketing
management
Learning objectives:
Explain the information needs of marketing management
Discuss the nature of marketing information systems
Elaborate on the types and sources of marketing information
Discuss the use of marketing research as a major instrument in addressing the information needs of managers
Introduce the internet as a new development in marketing research
Investigate the techniques used for measuring and forecasting market demand

2. Marketing information requirements
Major types of marketing information requirements
External information
Macro-environment
Economy
Technology
Socio-institutional
Legal-institutional
International
Market environment
Consumers
Intermediaries
Competitors
Suppliers
Internal information
Micro-environment
Top management
Financial
Production and technical
Human Resources
Purchasing
Public relations
Marketing, markets, products, marketing communication and prices
Marketing decision-making

3. Marketing information systems
Definition: an organised way of continually gathering and analysing data to provide marketing managers with information they need in order to make decisions
Components of a marketing information system
INPUTS
PROCESSING
OUTPUTS
Marketing research
Internal data
External data
Marketing models
Database
Information processing specialists
Decision support system (DSS)
Information for marketing decisions
Marketing outcomes
Feedback

4. Components of a marketing information system
Marketing models
Marketing mix models
Forecasting models
New product forecasting models
Advertising models
Decision Support System (DSS)
A computerised system which helps marketing management to obtain and use information that is relevant to specific decision-making situations
DSS is made up of these parts: data system, dialog system and model system
DSS available: Brandaid, Admod, Callplan, Detailer, Geoline, Posse, Stratport and Brandframe

5. Dimensions of marketing information
Quality or value dimension (benefits)
Accurate
Timely
Adequate
Availability
Relevance
Cost dimension
Economic
Psychological
Value of marketing information for decision-making
Benefits from the
information
Cost of marketing information for decision-making

6. Nature of marketing research
Links consumer, customer and public to the marketer through information
Information is used to identify opportunities and problems
Generates, refines and evaluates actions
Monitors marketing performance
Improves understanding of marketing as a process
Marketing research
Specifies the information required
Designs the method for collecting information required
Manages and implements the data collection process
Analyses the results
Communicates the findings and implications

7. Steps in the marketing research process
Description of the research problem and objectives
Deciding on a suitable research design
Preparing the research design
Fieldwork
Processing, tabulation and analysis
Reporting the research results

8. Step 1 Step 1: Describing the research problem and objectives
Situation analysis
Secondary data analysis
Macro-environment
The product markets
Customer markets and buyer behaviour
Marketing strategies
Resources and constraints
Technological skills
Factors in determining the research objectives
Research purpose
Hypothesis
Research design
Research objectives
Research questions
Scope of research

9. Step 2 Step 2: Selecting the research design Design types Exploratory
Descriptive
Qualitative
Quantitative
Ad hoc
Ex post facto
Longitudinal
Causal
Predictive

10. Step 3 Step 3: Preparing the research design
Determine the sources of data
Primary and secondary sources
Determine the data collection approaches
Observation; survey; experimentation
Determine the data collection instruments
Questionnaire; mechanical/ electronic equipment
Determine the data collection methods
Personal interviews; telephone interviews; self-administered surveys
Design the sampling plan
Step 1: Define the population of interest
Step 2: Choose a data collection method
Step 3: Choose a sampling frame
Step 4: Select a sampling method
Probability sampling – systematic; stratified; cluster; simple random
Non-probability sampling – convenience; snowball; judgement; quota
Step 5: Determine the sample size
Step 6: Develop and specify operational plan for selecting sample elements
Step 7: Execute operational sampling plan

11. Step 4 and 5 Step 4: Fieldwork
Preventing bias from: situational factors, the fieldworkers and the data collection instrument
Important to consider:
Use of interviewers/ fieldworkers
Administrative procedures
Quality and cost control
Evaluation of interviewers
Step 5: Processing, tabulation and analysis
Data preparation
Data editing to detect errors, omissions and correction if needed
Data entry
Conversion of the information gathered to a medium that is suitable for viewing and manipulation
Tabulation & analysis
To summarise findings in a table or some type of graphical presentation

12. Step 6 Step 6: Reporting the research results
Presenting of the research report
Criteria for evaluating the report:
Understandability
Relevancy
Clarity
Conciseness
Organisation
Timeousness
Accuracy
Comprehensiveness

13. Marketing research on the Internet
Advantages of Internet research
Speed and ease of data collection
Cost reduction
Ability to reach large number of people
Visual enhancement like fonts, graphics, audio, video ad, professionally formatted page layout
Disadvantages of web surveys
Lack of representativeness of the Internet users
Problem of security

14. Measurement and demand forecasting
Market measurement and demand forecasting
Markets are investigated and expresses in quantitatively measurable entities
Market measurement focuses on the current size and characteristics of the market
Market forecasting looks only at the future market situation
Levels of market measurement: consumer, product, geographical & time
Relevant markets for measurement: sales potential and market share
Market measurement methods: basic, chain ratio, market build-up & the market index
Market forecasting methods: time series analysis, statistical demand analysis, survey of buying intentions, opinions of sales personnel & jury of expert opinion

15. Questions
Briefly explain market research and describe the market research process with practical examples.
(15)
Discuss the advantages and disadvantages of Internet research and web surveys with practical examples.
(10)