Transcript here - Pearson Canada

Chapter 5
Managing
Marketing
Information
Copyright © 2008 Pearson Education Canada
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Explain the importance of information to the
company and its understanding of the
marketplace
2. Define the marketing information system
3. Outline the steps in the market research
process
4. Explain how companies analyze and distribute
marketing information
5. Discuss the special issues some marketing
researchers face, including public policy and
ethical issues
Copyright © 2008 Pearson Education Canada
5-2
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Explain the importance of information to the
company and its understanding of the
marketplace
2. Define the marketing information system
3. Outline the steps in the market research
process
4. Explain how companies analyze and distribute
marketing information
5. Discuss the special issues some marketing
researchers face, including public policy and
ethical issues
Copyright © 2008 Pearson Education Canada
5-3
Principles of Marketing, Seventh Canadian Edition
Case Study - Dove
• Born in 1957 as a beauty soap. It is sold in more
than 80 countries with more than $5 billion in
sales revenues.
• Dove is a powerful brand name. Consumers
trust it and see it as honest but also as boring.
• Unilever needed to reposition the brand to make
Dove a beauty brand.
• Need solid research and insight before the
repositioning task could be undertaken.
Copyright © 2008 Pearson Education Canada
5-4
Principles of Marketing, Seventh Canadian Edition
Case Study - Dove
• Key question: “how women’s self-esteem is affected by
body image”
• Global survey and ethnographic research to understand
the meaning of beauty and what women consider
beautiful.
– 1% consider themselves beautiful
– 63% strongly agree women are expected to be more attractive
than previous generation
– 9 year-old girls are dissatisfied with their body image
– All women want to be beautiful in their own unique way
– 36% describe themselves as natural, few as “sexy”, “stunning”,
or “gorgeous”.
– Women explain beauty in a much broader sense
Copyright © 2008 Pearson Education Canada
5-5
Principles of Marketing, Seventh Canadian Edition
Case Study - Dove
• Time to change the definition of beauty
• Unilever launched the “Campaign for Real
Beauty”
– Women look at themselves and open a dialogue on
what they consider as beauty
– Campaign featuring everyday women (“Fab? Or
Fat?.”, “Bald? Or Beautiful?”).
– Beyond Compare Photo Tour
• The resulting Marketing campaign won Unilever
Canada multiple awards.
Copyright © 2008 Pearson Education Canada
5-6
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Explain the importance of information to the
company and its understanding of the
marketplace
2. Define the marketing information system
3. Outline the steps in the market research
process
4. Explain how companies analyze and distribute
marketing information
5. Discuss the special issues some marketing
researchers face, including public policy and
ethical issues
Copyright © 2008 Pearson Education Canada
5-7
Principles of Marketing, Seventh Canadian Edition
Marketing Information System
• Marketing Information System (MIS)
– Consists of people, equipment, and
procedures to gather, sort, analyze, evaluate,
and distribute needed, timely, and accurate
information to marketing decision makers.
Copyright © 2008 Pearson Education Canada
5-8
Principles of Marketing, Seventh Canadian Edition
Marketing Information System
• Interacts with information users to assess
information
• Develops needed information from internal and
external sources
• Helps users analyze information for marketing
decisions
• Distributes the marketing information and helps
managers use it for decision making
Copyright © 2008 Pearson Education Canada
5-9
Principles of Marketing, Seventh Canadian Edition
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
– Obtaining, processing, sorting, and delivering
information is costly
Copyright © 2008 Pearson Education Canada
5-10
Principles of Marketing, Seventh Canadian Edition
Developing Marketing Information
• Information collected from different sources within the
company, and stored within the organization’s
information system
–
–
–
–
Accounting system
Operations/production
Sales reporting system
Past research studies
• Internal data is cheap, quick, and easy
• May not be in a usable form for the decision to be made
• May be incomplete or inappropriate to a particular
situation
Copyright © 2008 Pearson Education Canada
5-11
Principles of Marketing, Seventh Canadian Edition
Developing Marketing Information
• Marketing intelligence is the systematic collection and
analysis of publicly available information about
competitors and trends in the marketing environment.
• Proactive approach to keeping track of what is going on
within the organization’s marketing environment
• Many sources of competitive information exist:
– Employees, customers, trade shows, websites, marketing
communications, suppliers, resellers, professional information
services, and “dumpster diving”
Copyright © 2008 Pearson Education Canada
5-12
Principles of Marketing, Seventh Canadian Edition
Developing Marketing Information
• Marketing research is the systematic design,
collection, analysis, and reporting of data
relevant to a specific marketing situation facing
an organization.
– A multi-step, purpose-driven process
– Measure effectiveness of marketing actions, sales
potential, try to understand consumer behaviour
– Can be done by company personnel or contracted out
to outside companies
Copyright © 2008 Pearson Education Canada
5-13
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Explain the importance of information to the
company and its understanding of the
marketplace
2. Define the marketing information system
3. Outline the steps in the market research
process
4. Explain how companies analyze and distribute
marketing information
5. Discuss the special issues some marketing
researchers face, including public policy and
ethical issues
Copyright © 2008 Pearson Education Canada
5-14
Principles of Marketing, Seventh Canadian Edition
Step 1: Defining the problem and
research objectives
• Helps to know what you are looking
for!
• The manager and the researcher must
work together.
• These objectives guide the entire
process.
• Exploratory, descriptive, and causal
research each fulfill different
objectives.
Copyright © 2008 Pearson Education Canada
5-15
Principles of Marketing, Seventh Canadian Edition
Step 2: Developing the Research
Plan
• Translating the research objectives into
specific information needs
• Research plan is a written document
which outlines the type of problem,
objectives, data needed, and the
usefulness of the results. Includes:
– Secondary data: Information collected for
another purpose which already exists
– Primary data: Information collected for the
specific purpose at hand
Copyright © 2008 Pearson Education Canada
5-16
Principles of Marketing, Seventh Canadian Edition
Gathering Secondary Data
• Secondary data sources:
–
–
–
–
Government information
Internal data, commercial, and academic sources
Publications
Online databases
• Advantages:
– Obtained quickly
– Less expensive than primary data
• Disadvantages:
– Information may not exist or may not be usable
Copyright © 2008 Pearson Education Canada
5-17
Principles of Marketing, Seventh Canadian Edition
Primary Data
• Primary research decisions:
–
–
–
–
Research approaches
Contact methods
Sampling plan
Research instruments
Copyright © 2008 Pearson Education Canada
5-18
Principles of Marketing, Seventh Canadian Edition
Primary Data
•
•
•
•
Research Approaches
Contact Methods
Sampling Plan
Research Instrument
• Observation research
using people or machines
– Discovers behavior but not
motivations
• Survey research
– Effective for descriptive
information
• Experimental research
– investigates cause and
effect relationships
Copyright © 2008 Pearson Education Canada
5-19
Principles of Marketing, Seventh Canadian Edition
Primary Data
•
•
•
•
Research Approaches
Contact Methods
Sampling Plan
Research Instrument
Copyright © 2008 Pearson Education Canada
• Key Contact Methods
include:
–
–
–
–
Mail surveys
Telephone surveys
Personal interviewing:
Individual or focus
group
– Online research
5-20
Principles of Marketing, Seventh Canadian Edition
Primary Data
•
•
•
•
Research Approaches
Contact Methods
Sampling Plan
Research Instrument
• Sample: subgroup of
population from whom
information will be
collected
• Sampling Plan Decisions:
–
–
–
–
–
Copyright © 2008 Pearson Education Canada
5-21
Sampling unit
Sample size
Sampling procedure:
Probability samples
Non-probability samples
Principles of Marketing, Seventh Canadian Edition
Primary Data
•
•
•
•
Research Approaches
Contact Methods
Sampling Plan
Research Instrument
• Questionnaires
– Include open-ended and
closed-ended questions
– Phrasing and question
order are key
• Mechanical instruments
– Nielsen’s people meters
– Checkout scanners
– Eye cameras
Copyright © 2008 Pearson Education Canada
5-22
Principles of Marketing, Seventh Canadian Edition
Discussion Question
A digital camera manufacturer
wants to determine what is
most important to older (50+)
camera buyers
Suggest a research approach,
contact methods, sampling
plan, research instruments
Copyright © 2008 Pearson Education Canada
5-23
?
Principles of Marketing, Seventh Canadian Edition
Step 3: Implementing the Research
Plan
• Data is collected by the company or an
outside firm
• The data is then processed and checked
for accuracy and completeness and coded
for analysis
• Finally the data is analyzed by a variety of
statistical methods
Copyright © 2008 Pearson Education Canada
5-24
Principles of Marketing, Seventh Canadian Edition
Step 4: Interpreting and Reporting
the Findings
• The research interprets the finding, draws
conclusions and reports to management
• Managers and researchers must work
together to interpret results for useful
decision making
Copyright © 2008 Pearson Education Canada
5-25
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Explain the importance of information to the
company and its understanding of the
marketplace
2. Define the marketing information system
3. Outline the steps in the market research
process
4. Explain how companies analyze and distribute
marketing information
5. Discuss the special issues some marketing
researchers face, including public policy and
ethical issues
Copyright © 2008 Pearson Education Canada
5-26
Principles of Marketing, Seventh Canadian Edition
Analyzing Marketing Information
• Statistical analysis and analytical models are often used
to help marketers make better decisions.
• Companies are turning to Customer relationship
management (CRM) to manage detailed information
about individual customers and “touchpoints” to
maximize customer loyalty
• CRM consists of sophisticated software and analytical
tools to provide a 360-degree view of the customer
relationship.
Copyright © 2008 Pearson Education Canada
5-27
Principles of Marketing, Seventh Canadian Edition
Analyzing Marketing Information
• CRM analysts develop data warehouses
and use sophisticated data mining
techniques to understand customer data
• CRM data systems offer many benefits
and can help a firm gain a competitive
advantage when used as part of a total
CRM strategy
Copyright © 2008 Pearson Education Canada
5-28
Principles of Marketing, Seventh Canadian Edition
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.
Copyright © 2008 Pearson Education Canada
5-29
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Explain the importance of information to the
company and its understanding of the
marketplace
2. Define the marketing information system
3. Outline the steps in the market research
process
4. Explain how companies analyze and distribute
marketing information
5. Discuss the special issues some marketing
researchers face, including public policy and
ethical issues
Copyright © 2008 Pearson Education Canada
5-30
Principles of Marketing, Seventh Canadian Edition
Other Considerations
• Marketing research in small businesses and notfor-profit organizations
• International marketing research
• Public policy and ethics
– Consumer privacy issues
– Misuse of research findings
Copyright © 2008 Pearson Education Canada
5-31
Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Explain the importance of information to the
company and its understanding of the
marketplace
2. Define the marketing information system
3. Outline the steps in the market research
process
4. Explain how companies analyze and distribute
marketing information
5. Discuss the special issues some marketing
researchers face, including public policy and
ethical issues
Copyright © 2008 Pearson Education Canada
5-32
Principles of Marketing, Seventh Canadian Edition