Chapter 5: Managing Marketing Information

 

Objectives
  • •Understand the importance of information to the company.
  • •Know the definition of a marketing information system and be able to discuss its subparts.
  • •Learn the steps in the marketing research process.
  • •Learn how companies analyze and distribute marketing information.
  • •Realize the special issues some marketing researchers face, including public policy and ethical issues.
 

 

Please Open The Following Figures In Different Windows and Leave Them Open:

Animated Figure 5-1 ,  Animated Table 5-03 , Animated Table 5-05 .

 

Case Study
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  • •“New Coke” was a fiasco; consumer complaints resulted in the return of “Coke Classic” after only 3 months.
  • •$4 million was spent researching “New Coke”.
 
  • •Key issue: the research problem was too narrowly defined, and consumer feelings were ignored.
  • •Poor judgment in result interpretation was also a problem.

 

 

Ninety Types of Demand Measurement

( 6 x 5 x 3 )

 

 

Marketing Info. System
  • •Marketing Information System (MIS)
  • §Consists of people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
 

 

Marketing Info. System
  • •Assessing Marketing Information Needs
  • §The MIS serves company managers as well as external partners.
  • §The MIS must balance needs against feasibility:
  •  Not all information can be obtained.
  • v Obtaining, processing, sorting, and delivering information is costly.

 

Marketing Info. System
Developing Information
  • •Internal data
  • •Marketing intelligence
  • •Marketing research
 

 

 
  • •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.

 

Marketing Info. System
Developing Information
  • •Internal data
  • •Marketing intelligence
  • •Marketing research
 

 

 
  • •Marketing intelligence is the systematic collection and analysis of publicly available information about competitors and trends in the marketing environment.
  • •Competitive intelligence gathering activities have grown dramatically.
  • •Many sources of competitive information exist.

 

Marketing Info. System

Sources of
Competitive Intelligence
  • •Company employees
  • •Internet
  • •Garbage
  • •Published information

 
  • •Competitor’s employees
  • •Trade shows
  • •Benchmarking
  • •Channel members and key customers

 

 

 

Marketing Info. System
Developing Information
  • •Internal data
  • •Marketing intelligence
  • •Marketing research
 

 

 
  • •Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
  • •Steps in the marketing research process.

 

Marketing Info. System
  • •Steps in the Marketing Research Process:
  1. §Defining the problem and research objectives.
  2. §Developing the research plan for collecting information.
  3. §Implementing the research plan – collecting and analyzing the data.
  4. §Interpreting and reporting the findings.

 

 

Marketing Info. System
•Step 1: Defining the problem and research objectives
  • §Don’t confuse the symptoms of the problem with its cause when defining the problem.
  • §Exploratory, descriptive, and causal research each fulfill different objectives.

 

 

 

Marketing Info. System
•Step 2: Developing the Research Plan
  • §Research objectives guide the determination of specific information needs.
  • §Research proposals outline the type of data needed and the research plan.
  •  Secondary data: Information collected for another purpose which already exists.
  •  Primary data:  Information collected for the specific purpose at hand

 

Marketing Info. System
Types of Data
  • •Secondary data
  • •Primary data
 

 
  • •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.

 

Marketing Info. System
Evaluate the Following When Judging Data Quality
  • •Relevance
  • •Accuracy

 
  • •Currency
  • •Impartiality

 

 

Marketing Info. System
Types of Data
  • •Secondary data
  • •Primary data
 

 
  • •Planning primary research:
  • §Research approaches:
  • Observation, survey, experiment
  • §Contact methods:
  • Mail, telephone, online, personal
  • §Sampling plan:
  • Sampling unit, sample size, sampling procedure
  • §Research instruments:
  • Questionnaire, mechanical instruments

 

 

Marketing Info. System
  • •Research approaches:
  • §Observation research using people or machines
  •  Mystery shoppers, traffic counters, web site “cookies” are some examples.
  • v Discovers behavior but not motivations.
  •  Ethnographic research expands observation research to include consumer interviews.

 

 

Marketing Info. System
  • •Research approaches:
  • §Survey research is widely used to gather descriptive information.
  •  Single source data systems gather information from consumer panels
  • v Survey research faces many problems
  • §Experimental research investigates cause and effect relationships.

 

Marketing Info. System
  • •Key Contact Methods Include:
  • §Mail surveys
  • §Telephone surveys
  • §Personal interviewing:
  • v Individual or focus group
  • §Online (Internet) research
  • •Each contact method has strengths and weaknesses

 

Marketing Info. System

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

 

Marketing Info. System
  • •Sample: subgroup of population from whom information will be collected
  • •Sampling Plan Decisions:
  • §Sampling unit
  • §Sample size
  • §Sampling procedure: 
  •  Probability samples
  • v Non-probability samples

 

Marketing Info. System
  • •Research Instruments:
  • §Questionnaires
  •  Include open-ended and closed-ended
     questions
  • v Phrasing and question order are key
  • §Mechanical instruments
 

 

Marketing Info. System
  • •Step 3 of the Research Process:
    Implementing the Research Plan
  • §Involves collecting, processing, and analyzing information.
  • •Step 4 of the Research Process:
    Interpreting and Reporting the Findings

 

Marketing Info. System
  • •Analyzing Marketing Information
  • §Customer relationship management (CRM) helps manage information.
  • §CRM offers many benefits and can help a firm gain a competitive advantage.
  • §Technology alone cannot build profitable customer relationships.

 

Marketing Info. System
  • •Distributing and Using Marketing Information
  • §Routine reporting makes information available in a timely manner.
  • §User friendly databases allow for special queries.
  • §Intranets and extranets help distribute information to company employees and value-network members.

 

Other Considerations
  • •Marketing research in small businesses and not-for-profit organizations
  • •International marketing research
  • •Public policy and ethics
  • §Consumer privacy issues
  • •Misuse of research findings

 

 Chapter 5: Managing Marketing Information

 

Study Guide
  • Concepts Check

 

Study Guide
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  • Video Case

 

 
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 Chapter 5: Managing Marketing Information

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