1. Managing Marketing Information
Dony Eko Prasetyo, S.IP.

2. Coca Cola
In 1985, marketers thought they were listening to their target market. They noticed that they were losing market share to Pepsi and they conducted taste tests to develop their new formula.
On April 23, 1985, Coca-Cola stopped producing old Coke and created a new Coke with a sweeter taste.
$4 million was spent researching “New Coke”.
Over 1,500 phone calls a day from angry customers. Angry customers panicked, filling their basements with old Coke and threatening lawsuits.
3 months later, Coca-Cola brought back the old formula calling it Coca-Cola Classic.

3. Luckily, Coca-Cola had quick reaction time.
What went wrong???
Coca-Cola fouled up their research. They focused only on Taste. The company ignored consumers’ feeling about the old Coke.
Luckily, Coca-Cola had quick reaction time.

4. The Importance of Marketing Information
Companies need information about their:
Customer needs
Marketing environment
Competition
Marketing managers do not need more information, they need better information.

5. Marketing Information System
Consists of people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

6. Marketing Information System
consists of people and procedures for:
Assessing the information needs
Developing needed information
Helping decision makers use the information for customer
MIS provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies

7. Developing Marketing Information
Marketers obtain information from
Internal data
Marketing intelligence
Marketing research

8. Internal Data
Internal databases are electronic collections of consumer and market information obtained from data sources within the company network
Internal data is gathered via customer databases, financial records, and operations reports.
Advantages of internal data include quick/easy access to information.
Disadvantages stem from the incompleteness or inappropriateness of data to a particular situation.

9. Marketing Intelligence
Marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace
Competitive intelligence gathering activities have grown dramatically.
Many sources of competitive information exist.

10. Sources of Competitive Intelligence
Company employees
Internet
Garbage
Published information
Competitor’s employees
Trade shows
Benchmarking
Channel members and key customers

11. Marketing Research
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Define the problem and research object
Develop the research plan
Collect the information
Analyze the information
Present the findings
Make the decision
Marketing research steps

12. Marketing Research Written Research Plan Includes:
Management problem
Research objectives
Information needed
How the results will help management decisions
Budget

13. Types of Data
Secondary data consist of information that already exists somewhere, having been collected for another purpose
Secondary data sources:
Government information
Internal, commercial, and online databases
Publications
Advantages:
Obtained quickly
Less expensive than primary data
Disadvantages:
Information may not exist or may not be usable.

14. Cont’d
Primary data consist of information gathered for the special research plan
Planning primary research:
Research approaches:
Observation, survey, experiment, ethnographical
Contact methods:
Mail, telephone, online, personal
Sampling plan:
Sampling unit, sample size, sampling procedure
Research instruments:
Questionnaire, mechanical instruments

15. Research Approach
Observational research involves gathering primary data by observing relevant people, actions, and situations
Ethnographic research involves sending trained observers to watch and interact with consumers in their natural environment
Experimental research is best for gathering causal information—cause-and-effect relationships
Survey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior
Flexible
People can be unable or unwilling to answer
Gives misleading or pleasing answers
Privacy concerns

16. Strengths and Weaknesses of Contact Methods Relate to:
Flexibility
Sample control
Data quantity
Cost
Interviewer effects
Speed of data collection
Response rate

17. Survey Contact Methods
Personal can mean individual interviewing or focus groups (6-10 people who talk about product)
Mail
Telephone
Personal
Online
Flexibility
Poor
Good
Excellent
Qty of data that can be collected
Fair
Control of interviewer effects
Control of sample
Speed of data collection
Response Rate
Cost

18. Online Contact Methods
Advantages
Low cost
Speed
Higher response rates
Good for hard to reach groups
Disadvantages
Restricted internet access
Not sure who is answering

19. Sample
Sample is a segment of the population selected for marketing research to represent the population as a whole
Who is to be surveyed?
How many people should be surveyed?
How should the people be chosen?

20. Types of Samples Probability Sample Simple Random Sample
Every member of the population has a known and equal chance of selection.
Stratified Random Sample
Population is divided into groups (ex age groups) and random samples are drawn from each group.
Cluster (area) Sample
Population is divided into groups based on location and samples are drawn from the groups.
Nonprobability Sample
Convenience Sample
Researcher selects the easiest population members from which to obtain information.
Judgment Sample
Researcher uses his or her judgment to select population members who are good prospects.
Quota Sample
Researcher finds a prescribed number of people in each of several categories.

21. Questionnaires
Most common
Administered in person, by phone, or online
Flexible
Watch working and ordering of questions
Closed-end questions include all possible answers, and subjects make choices among them
Provide answers that are easier to interpret and tabulate
Open-end questions allow respondents to answer in their own words
Useful in exploratory research

22. Analyzing the Data
Simple Tabulation – count the occurrences of each variable independently of other variables
Cross Tabulation – divide the sample into sub-groups to show how the variable varies from one subgroup to another

23. Simple Tabulation
1 = Strongly Disagree, 2 = Moderately Disagree, 3 = Mildly Disagree, 4 = Mildly Agree, 5 = Moderately Agree, 6 = Strongly Agree

24. Cross Tabulation 1 = Strongly Disagree, 2 = Moderately Disagree,
3 = Mildly Disagree, 4 = Mildly Agree, 5 = Moderately Agree, 6 = Strongly Agree

25. Analyzing the Data Hypothesis Testing
Uses Regression Analysis to Interpret the results
Example: Taco Bell might take the data from the experiments designed to test the effect of sales on two different prices.
The company would run a regression on the data to determine if the new price had a significant effect on sales.

27. -38.23 + (1.17 * Sales at the Old Price)
Regression Output
Interpretation: we are 98% confident (1-p value) that there is a relationship between old sales (x) and new sales (y) data.
To estimate new sales, we would formulate the following equation:
(1.17 * Sales at the Old Price)
If sales at the old price averaged 200, we would estimate new sales by:
(1.17 * 200) =

28. Making the Decision
Given Estimated Sales at the New Price, is the price hike worth it?
Judging by our research estimates, we would reduce sales by 5 if we implement the new price.
We sold 200 at $4.98 = $996.00
The new price adds $0.50 per sale, so we would sell: 195 at $5.48 = $1,069.90

29. Making the Decision
Assuming there are no other costs (or that the other costs don’t outweight the profits)…
We would increase revenue by: $73.90 if we increase the price.
So – YES we should make Taco Supreme Meals $5.48.

30. Analyzing Marketing Information
Customer Relationship Management (CRM) consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships
Customer purchases
Sales force contacts
Service and support calls
Web site visits
Satisfaction surveys
Credit and payment interactions
Research studies

31. Distributing and Using Marketing Information
Information distribution involves entering information into databases and making it available in a time-useable manner
Intranet provides information to employees and other stakeholders
Extranet provides information to key customers and suppliers