1. CHAPTER 5: Marketing Information & Research Mrs. Piotrowski Principles of Marketing 1

2. UNDERSTANDING THE NEED FOR MARKET INFORMATION SECTION 1: 2

3. 3 Identify 3 products you buy often. Why do you buy each of these products? What needs do they satisfy? What factors are important in your purchasing decision? Why do you buy each of these products? What needs do they satisfy? What factors are important in your purchasing decision? How does your consumer behavior compare to a classmate’s? How could this information be useful to marketers? How does your consumer behavior compare to a classmate’s? How could this information be useful to marketers? SOLVE.

4. Starting with Information Consumer Differences – Businesses must determine the similarities and differences among market segments and decide how to meet their unique needs. Expanding Choices – Customers are more informed and have more choices, so businesses need to have an understanding of this. Most businesses today recognize that a consumer will not buy a product simply because they produce it. 4

5. Starting with Information Competition – Gathering information about competitors’ products and marketing activities will help businesses be more competitive. The Global Marketplace – Businesses must gather information about all countries it serves and competes with. 5

6. Types of Information Needed Many marketing decisions are made with too little information or the wrong types of information. Consumers Age Gender Income Education Family size Occupation Attitudes Primary needs Purchase frequency Brand preferences Information needs Media preferences Shopping behavior Consumers Age Gender Income Education Family size Occupation Attitudes Primary needs Purchase frequency Brand preferences Information needs Media preferences Shopping behavior Marketing Mix Basic products Product features Services Product planning Guarantees Customer service Product price Credit choices Discounts Location & method of sale Distribution choice Promotion & sales methods Promotional message Promotional media Marketing Mix Basic products Product features Services Product planning Guarantees Customer service Product price Credit choices Discounts Location & method of sale Distribution choice Promotion & sales methods Promotional message Promotional media Business Environment Type of competition Competitor’s strengths Competitor’s strategies Economic conditions Government regulations New technology Consumer protection Ethical issues Tax policies Proposed laws International markets Business Environment Type of competition Competitor’s strengths Competitor’s strategies Economic conditions Government regulations New technology Consumer protection Ethical issues Tax policies Proposed laws International markets 6

7. FINDING AND MANAGING MARKETING INFORMATION SECTION 2: 7

8. 8 Imagine you were running a concession stand at a school event. What market information would you need to start this business? Identify 3 sources you could use to located needed information. SOLVE.

9. Sources of Market Information Business people follow a process when determining information needs: 1.Identify the types of information needed. 2.Determine the available sources of each type of information. 3.Evaluate each source to determine if it meets the organization’s needs. 4.Select the sources that best meet the identified needs. 5.Enter the information into a marketing information system. For most decisions, there is usually more than one information source. 9

10. Sources of Market Information Internal information is information developed from activities that occur within the organization: –Customer records and sales information –Production and operations reports –Performance information 10

11. Sources of Market Information External information provides an understanding of factors outside the organization: –Government reports –Trade and professional organizations –Business publications –Commercial data and information services 11

12. Marketing Information Systems A marketing information system (MkIS) is an organized method of collecting, storing, analyzing, and retrieving information to improve effectiveness and efficiency of marketing decisions. With all of the information needed, businesses could spend most of their time gathering and studying information. 12

13. Designing a MkIS INPUT: The information that goes into the system that is needed for decision making. STORAGE: The resources used to maintain information so that it can be used when needed. ANALYSIS: The process of summarizing, combining, or comparing information to make decisions. OUTPUT: The result of analysis given to decision makers. OUTPUT: The result of analysis given to decision makers. DECISION MAKING 13

14. USING MARKETING RESEARCH SECTION 3: 14

15. 15 Imagine the current facilities in our school are no longer adequate to serve the number of students we have. Think of alternatives for handling more students in the building…how can the school accommodate this? How could you use marketing research to help gather information? SOLVE.

16. Seeing the Problem Clearly Marketing research is a procedure designed to identify solutions to a specific marketing problem through the use of scientific problem solving. 16

17. Types of Data Primary Data: Information collected for the first time to solve the problem being studied. Secondary Data: Information already collected for another purpose that can be used to solve the current problem. 17

18. Gather Information 1.Select the participants: –All of the people in the group the company wants to study are known as the population. –A smaller group selected from the population is a sample. 2.Collect the data. 3.Analyze the data: –Numerical Data vs. Non-Numerical Data 4.Prepare results. No matter what method is used to gather the information, procedures must be carefully developed and followed to ensure scientific results. 18

19. Propose a Solution Research Reports: –The people preparing the report must know who will be receiving and studying the report. –The report must clearly describe the purpose of the study and procedures used. Presenting Research Results: –Can be written or oral, but usually includes visuals and recommendations for solutions. When to Use Marketing Research: –How much risk is the business facing from the problem being studied? –How much time and money will be required to gather the information? The purpose of marketing research is to identify strategies for a company to follow in implementing and improving marketing activities. 19

20. COLLECTING PRIMARY DATA SECTION 4: 20

21. 21 Write down an example of a time when you participated in the collection of data. How did you feel as a participant? Do you wish they’d done something differently? How did you feel as a participant? Do you wish they’d done something differently? What does this tell you about appropriate data collection procedures and accuracy? SOLVE.

22. Conducting Surveys A survey is a planned set of questions to which individuals or groups of people respond. Most surveys use closed-ended questions: –Yes or no –Agree or disagree –Select a, b, c, or d –Rate on a scale of 1-10 Some use open-ended questions: –What are the most important features of this product? –How does the durability of Brand A compare to Brand B? 22

23. Making Observations Observation collects information by recording actions without interacting or communicating with the participant. –Bar code scanners at checkout counters track quantities purchased, timing of purchases, coupons used, type of payment used, and what items were purchased together. –Eye-tracking photography examines the eye movement of customers as they look at store displays to see where they look first, how long they look at a particular section, and how they search the display. 23

24. Performing Experiments Experiments are carefully designed and controlled situations in which all important factors are the same except the one being studied. –These are not used as often as surveys or observations in marketing research. –EX: changing one piece of the marketing mix to see if it changes sales such as price or color. 24

25. Performing Experiments Test markets are specific cities or geographic areas in which marketing experiments are conducted. Big transient cities such as Atlanta is a test market for many businesses. Simulations are experiments where researchers create the situation to be studied. Ex. Fisher Price brings kids into their “play room” and studies their actions. 25