1. © 2009 South-Western, Cengage LearningMARKETING 1 Chapter 5 MARKETING INFORMATION AND RESEARCH 5-1Understanding the Need for Market Information 5-2Finding and Managing Marketing Information 5-3Using Marketing Research 5-4Collecting Primary Data CHAPTER 5

2. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 2 UNDERSTANDING THE NEED FOR MARKETING INFORMATION OBJECTIVES Explain the importance of information in making marketing decisions. Describe the categories of information needed by marketers. 5-1

3. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 3 Starting with Information Consumers wants & needs (similarities/differences of consumers) Expanding choices Consumer needs change over time Discretionary Income – used to purchase things not essential Competition Lower price, better product, new features, location of The global marketplace Know your consumer groups in other countries

4. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 4 Deciding on Information Needs Approaches to planning Categories of information

5. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 5 Types of Information Needed for Effective Marketing Decisions Consumers primary needs purchase frequency brand preferences information needs media preferences shopping behavior age gender income education family size occupation attitudes

6. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 6 Types of Information Needed for Effective Marketing Decisions Marketing Mix discounts location and method of sale type of distribution used display procedures promotion and sales methods promotional message promotional media basic products product features services product packaging guarantees after-sale customer service product price credit choices

7. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 7 Types of Information Needed for Effective Marketing Decisions Business Environment consumer protection ethical issues tax policies proposed laws international markets type of competition competitors’ strengths competitors’ strategies economic conditions government regulations new technology

8. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 8 FINDING AND MANAGING MARKETING INFORMATION OBJECTIVES Describe common sources of internal and external market information. Explain the five critical elements of an effective marketing information system. 5-2

9. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 9 Sources of Market Information Steps of the Process Identify the types of information needed. Determine the available sources of each type of information. Evaluate each source to determine if it meets the organization’s needs in term of accuracy, time, detail, and cost. Select the sources that best meet the identified needs. Enter the information into a marketing information system.

10. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 10 Internal Information Sources Customer records and sales information Production and operations reports Performance information

11. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 11 External Information Sources Government reports Trade and professional associations Business publications Commercial data and information services

12. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 12 Marketing Information Systems Input Storage Analysis Output Decision making

13. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 13 Designing an MkIS Question MkIS Element What information is needed to develop and implement the marketing strategy? Input How should the information be maintained so it is in a usable form, secure, and easy to access when needed? Storage What methods should be used to organize and study the information decisions? Analysis How and when should the information be made available for most effective use? Output What ways should the information be used to improve marketing? Decision Making

14. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 14 USING MARKETING RESEARCH OBJECTIVES Describe how to define and develop an understanding of a problem as the first steps toward solving it. Identify the steps needed to gather and study data relevant to a problem. Explain how to prepare reports and present proposed solutions. 5-3

15. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 15 Seeing the Problem Clearly Define the problem Analyze the situation Develop a data-collection procedure Secondary data Primary data

16. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 16 Implementing a Marketing Research Study 1.Define the problem 2.Analyze the situation 3.Develop a data-collection procedure 4.Gather and study information 5.Propose a solution

17. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 17 Gather Information Select the participants Population Random sampling Collect the data Analyze the data Numerical data Non-numerical data Prepare results

18. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 18 Propose a Solution Research reports Presenting research results When to use marketing research

19. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 19 Sections of a Research Report Statement of the problem Review of secondary data Research procedures Results of the research Summary and recommendations

20. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 20 COLLECTING PRIMARY DATA OBJECTIVES Describe the purpose of marketing research surveys. Explain the reasons for and limitations of using observation. Define various types of marketing research experiments. 5-4

21. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 21 Conducting Surveys Closed-ended questions Open-ended questions

22. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 22 Focusing on the Issues Focus group Questioning with clarity

23. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 23 Making Observations Observation collects information by recording actions without interacting or communication with the participant. Recording devices include Video cameras Audio recorders Bar code scanners Eye-tracking photography

24. © 2009 South-Western, Cengage LearningMARKETING Chapter 5 24 Performing Experiments Test markets Simulations