1. Principles of Marketing, 5th Canadian Edition
MGT330F – September 24/03
Current Events
Lecture: Chapter 4 – Marketing Information Systems and Marketing Research
Class Exercise
Class Discussion
Foxy Originals
Housekeeping
For further details about this topic see page 148
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

2. principles of MARKETING
Principles of Marketing, 5th Canadian Edition
principles of MARKETING
Chapter 4
Marketing Research and Information Systems
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

3. Principles of Marketing, 5th Canadian Edition
Lecture Topics
Understand the importance of information
Understand the idea of marketing information systems
What is the marketing research process
Look at data collection techniques
Consider special issues in market research
For further details about this topic see page 148
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

4. Marketing Information Systems: System Functions
Principles of Marketing, 5th Canadian Edition
Marketing Information Systems: System Functions
Assess information needs
Develops needed information
Information analysis
Distributes information
For further details about this topic see page 152
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

5. Figure 4-2: The Marketing Information System
Principles of Marketing, 5th Canadian Edition
Figure 4-2: The Marketing Information System
Information
Analysis
Internal
Databases
Marketing
Research
Intelligence
Distributing
Assessing
Needs
Marketing Managers
Marketing Environment
Marketing Information System
Developing needed information
For further details about this topic see page 152
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

6. I) Marketing Info Systems: Assessing Information Needs
Principles of Marketing, 5th Canadian Edition
I) Marketing Info Systems: Assessing Information Needs
Balances:
What would be liked?
What is needed?
What is feasible?
Irrelevant information
Information limitations
Costs of gathering, processing, storing, and delivering?
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

7. II) Marketing Info Systems: Developing Information (1)
Principles of Marketing, 5th Canadian Edition
II) Marketing Info Systems: Developing Information (1)
Internal Data
Accounting
Manufacturing
Sales and marketing
Customer service
Research studies
Quick access, less expensive
Data warehouses and data mining
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

8. II) Marketing Info Systems: Developing Information (2)
Principles of Marketing, 5th Canadian Edition
II) Marketing Info Systems: Developing Information (2)
Marketing Intelligence
Company personnel
Key customers
Suppliers and resellers
Government agencies
Competitive analysis
Trade associations
Internet search engines
Information companies
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

9. II) Marketing Info Systems: Developing Information (3)
Principles of Marketing, 5th Canadian Edition
II) Marketing Info Systems: Developing Information (3)
Market Research
Systematic design, collection and analysis
Reporting data and findings
Relevant to a specific marketing situation
Can be done internally or externally
Depends on the company’s resources (e.g., size, expertise, resources, etc.)
For further details about this topic see page 158
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

10. II) Marketing Info Systems: Developing Information (4)
Principles of Marketing, 5th Canadian Edition
II) Marketing Info Systems: Developing Information (4)
Information Analysis
Information must be analyzed before use in decision making
Advanced statistical analysis
Analytical models
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

11. Marketing Information System: Distributing Information
Principles of Marketing, 5th Canadian Edition
Marketing Information System: Distributing Information
Right people at right time
Regular management decisions
Special situations
Fast availability
For further details about this topic see page 159
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

12. Market Research Process
Principles of Marketing, 5th Canadian Edition
Market Research Process
Figure 4.2: The Marketing Research Process
Define
problem
and
research
objectives
Develop
plan to
collect
data
Implement,
collect
and analyze
data
Interpret
and
report
findings
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

13. Market Research Process: 1) Defining Problem and Objectives
Principles of Marketing, 5th Canadian Edition
Market Research Process: 1) Defining Problem and Objectives
Exploratory research
Preliminary information
Problem definition and hypothesis suggestion
Descriptive research
Better describe marketing problems, situations, or markets
Causal research
Test hypothesis of cause and effect relationships
For further details about this topic see page 160
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

14. Market Research Process: 2) Develop the Research Plan (1)
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Develop the Research Plan (1)
Determine Specific Information Needs
Target customer characteristics
Patterns of product usage
Demand factors
Response of marketing channels
Customer reactions
Projected sales
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

15. Market Research Process: 2) Develop the Research Plan (2)
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Develop the Research Plan (2)
Gather Secondary Information
Internal database sources
Company, public, and university libraries
Government and business publications
Commercial data services
On-line databases
Internet data sources
International data
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

16. Market Research Process: 2) Develop the Research Plan (3)
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Develop the Research Plan (3)
Advantages of Secondary Data
Less time to obtain
Lower cost than primary research
Alternate means of access to information
Benefit from resources of others
Potential Problems With Secondary Data
Information may not exist
May not be:
Relevant
Accurate
Current
Impartial
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

17. Market Research Process: 2) Plan Primary Data Collection (1)
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Plan Primary Data Collection (1)
Research Approaches
Observation
Survey
Experiment
Table 4-3: Planning Primary Data Collection (p165)
Research
Approach
Contact
Methods
Sampling
Plan
Instruments
Observation
Mail
Unit
Questionnaire
Survey
Telephone
Sample Size
Mechanical
Experiment
Personal
Procedure
For further details about this topic see page 165
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

18. Market Research Process: 2) Plan Primary Data Collection (2)
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Plan Primary Data Collection (2)
Observational Research
Observing relevant people, actions, situations
Mechanical observation, people meters, checkout scanners
Some things not readily observed
Difficult to monitor long-term or infrequent behaviour
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

19. Market Research Process: 2) Plan Primary Data Collection (3)
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Plan Primary Data Collection (3)
Survey Research
Questions about knowledge, attitudes preferences or buying behaviour
Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than other two methods
Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledge; pleasing answers
For further details about this topic see page 166
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

20. Market Research Process: 2) Plan Primary Data Collection (4)
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Plan Primary Data Collection (4)
Experimental Research
Best suited for gathering causal information
Selecting matched groups of subjects
Given different experimental treatments
Variables controlled
Responses measured and recorded
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

21. Contact Methods: Strengths and Weaknesses
Principles of Marketing, 5th Canadian Edition
Contact Methods: Strengths and Weaknesses
Mail Phone Personal
Flexibility Poor Good Excellent
Quantity of data collected Good Fair Excellent
Control interviewer effects Excellent Fair Poor
Control of sample Fair Excellent Fair
Speed of data collection Poor Excellent Good
Response rate Poor Good Good
Cost Good Fair Poor
For further details about this topic see page 168
Source: Adapted with permission of Macmillan Publishing Company from Donald S. Tull and
Del I. Hawkins, Marketing Research: Measurement and Method, 6th ed., Macmillan
Publishing Company, 1993.
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

22. Personal Interviewing
Principles of Marketing, 5th Canadian Edition
Personal Interviewing
Individual
Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE
Computer interviewing or computer-assisted
Group
Focus group
Online
Electronic
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

23. Market Research Process: Research Instruments
Principles of Marketing, 5th Canadian Edition
Market Research Process: Research Instruments
Questionnaire
Question contribution
Question form
Closed-end
Open-end
Wording
Ordering
Mechanical
People meters
Checkout scanners
Galvanometer
Eye cameras
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

24. Market Research Process: 2) Present the Research Plan
Principles of Marketing, 5th Canadian Edition
Market Research Process: 2) Present the Research Plan
Written Research Proposal
Management problems addressed by research
Research objectives
Information sought
Sources of secondary information
Methods of obtaining primary data
Benefits and costs
For further details about this topic see page 175
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

25. Market Research Process: 3) Implement the Research
Principles of Marketing, 5th Canadian Edition
Market Research Process: 3) Implement the Research
Collect Data
Company research staff
Outside services
Most costly and error prone process
Analyze Data
Isolate important information and findings
Check accuracy and completeness
Tabulate results
For further details about this topic see page 175
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

26. Market Research Process: 4) Interpret and Report Findings
Principles of Marketing, 5th Canadian Edition
Market Research Process: 4) Interpret and Report Findings
Focus on useful decision support
Clear and open
Discuss interpretation
Team approach
Ultimate decision with management
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

27. Market Research Process: Other Considerations
Principles of Marketing, 5th Canadian Edition
Market Research Process: Other Considerations
Small Business and Non-Profit Organizations
Obtain good information through observation
Informal surveys with convenience samples
Informal focus groups
Conduct simple experiments
Secondary data is widely available
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

28. Market Research Process: Other Considerations
Principles of Marketing, 5th Canadian Edition
Market Research Process: Other Considerations
International Marketing Research
Growing due to multinationals
Difficulty in developing good samples
Difficulty in reaching respondents
Language translation
Consumer behaviour differences
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.

29. Market Research Process: Other Considerations
Principles of Marketing, 5th Canadian Edition
Market Research Process: Other Considerations
Public Policy and Ethics
Increasing consumer resentment
Industry codes of ethics
Intrusions on consumer privacy
Misuse of research findings
Objectives or Solutions
Respect for informants and subjects
Make it a positive experience
For further details about this topic see pages
© 2002 Pearson Education Canada Inc.
© 2002 Pearson Education Canada Inc.