Transcript Chapter 4

Managing Marketing
Information
To Gain Customer Insights
Chapter 4
Rest Stop: Previewing the Concepts
1.
2.
3.
4.
5.
Explain the importance of information in
gaining insights about the marketplace and
customers.
Define the marketing information system and
discuss its parts.
Outline the steps in the marketing research
process.
Explain how companies analyze and use
marketing information.
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues.
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First Stop
Understanding Tide’s Consumers
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•
•
Market Research
Goal: Use market research to
understand and cultivate the
deep connections that Tide
has with its core consumers.
Research Technique: Twoweek customer immersion
experience, working,
shopping, talking with women
about lives, needs, and
feelings.
Insights: Women are
emotional about clothing and
care for them well because
they are filled with stories,
feelings, and memories.
Implementation
•
•
•
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Advertising: Award-winning
“Tide Knows Fabrics Best” ad
campaign sent message that
Tide let women focus on life’s
important things and did not
focus on traditional side-by-side
cleaning comparisons.
Results: 7% market share
growth resulted after campaign
implementation; Tide holds 43%
of detergent market.
Key to Success: Using
research to understand the true
nature of customer relationship
and shape it provides real value.
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The Importance of Marketing Information
and Customer Insights
• Companies need information about their:
 Customers’
needs
 Marketing environment
 Competition
• Marketing managers do not need more
information, they need better information
that provides true customer insights,
which are useful for decision making.
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Customer Insights
• Customer insights:
 Fresh
understanding of customers and the
marketplace derived from marketing
information that become the basis for creating
customer value and relationships.
• Firms use customer insights to develop
•
•
competitive advantage.
Customer insight teams are replacing
traditional market research departments.
Insights stem from many sources.
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Marketing Information System
• Marketing information system (MIS):
 Consists
of people and procedures for
assessing information needs, developing the
needed information, and helping decision
makers to use the information to generate and
validate actionable customer and market
insights.
• The MIS helps managers to:
1.
2.
3.
Assess information needs
Develop needed information
Analyze and use information
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Assessing Information Needs
• A good MIS balances the information
users would like against what they really
need and what is feasible to offer.
 Sometimes
the company cannot provide the
needed information because it is not available
or due to MIS limitations.
 MIS efforts are costly. Firms must decide
whether the value of the insights gained from
more information is worth the cost.
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Developing Marketing Information
• Internal databases:

Electronic collections of consumer and market
information obtained from data sources within the
company network. EX: Web site usage by customers.
• Competitive marketing intelligence:

Systematic collection and analysis of publicly
available information about consumers, competitors,
and developments in the marketing environment.
EX: Annual reports; Brand discussions on blogs, etc.
• Marketing research:

Systematic design, collection, analysis, and reporting
of data relevant to a specific marketing situation
facing an organization. EX: Focus group studies.
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Marketing Research Process
• The marketing research process involves:
 Defining
the problem and research objectives.
 Developing the research plan for collecting
information.
 Implementing the research plan—collecting
and analyzing the data.
 Interpreting and reporting the findings.
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Defining Problem and Objectives
• Defining the problem is often the most difficult
step of the research project.
• Research objectives may include:
 Exploratory
research:
• Gathering preliminary information that will help
define the problem and suggest hypotheses.
 Descriptive
research:
• Generating information to better describe marketing
problems, situations, or markets.
 Causal
research:
• Testing hypotheses about cause-and-effect
relationships.
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Developing the Research Plan
• Requires:
 Determining
the exact information needed.
 Developing a plan for gathering it efficiently.
 Presenting the written plan to management.
• The research plan outlines:
 Sources
of existing data.
 Specific research approaches.
 Contact methods.
 Sampling plans.
 Instruments for data collection.
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Developing the Research Plan
• Research objectives must be translated
into specific information needs.
 Information
needs might include detailed
customer characteristics, usage patterns,
retailer reactions, sales forecasts, or other
information.
• Research plan should be presented in a
•
written proposal.
Research plans may outline need for
secondary data and primary data.
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Gathering Secondary Data
• Secondary data:
 Information
that already exists
somewhere which has been collected
for another purpose.
 Common sources of secondary data:
• Internal databases
• Commercial data services
• Government sources
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Secondary Data
• Advantages:
• Disadvantages:
 Available
more
quickly and at a
lower cost than
primary data.
 Can lead to
information that
an individual firm
could not gather
itself.
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 Desired
information
may not exist as
secondary data.
 Secondary data
must be carefully
evaluated for
relevancy,
accuracy, currency,
and impartiality.
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Primary Data Collection
• Secondary data rarely provides all of the
necessary information, forcing firms to
collect primary data.
• Primary data:
 Consists
of information collected for the
specific purpose at hand.
 Primary data must be relevant, accurate,
current, and unbiased.
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Primary Data Collection
• Designing a primary data collection plan
involves making decisions related to the:
 Research
approach:
• Observation, survey, or experiment
 Contact
methods:
• Mail, telephone, personal, or online
 Sampling
plan:
• Sampling unit, sample size, and sampling
procedure
 Research
instruments:
• Questionnaire or mechanical instruments
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Observational Research
• The gathering of primary data by
observing relevant people, actions, and
situations.
 Can
obtain information that people are
unwilling or unable to provide.
 Cannot be used to observe feelings, attitudes,
and motives, and long-term or infrequent
behaviors.
• Ethnographic research:
 Trained
observers watch and interact with
consumers in their “natural habitat.”
 Yields richer understanding of consumers.
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Survey Research
• Survey research:
 Gathers
primary data by asking people
questions about their knowledge,
attitudes, preferences, and buying
behavior.
• Most widely used method for primary data
collection.
• Best suited for gathering descriptive
information.
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Experimental Research
• Experimental research:
 Gathering
primary data by selecting
matched groups of subjects, giving them
different treatments, controlling related
factors, and checking for differences in
group responses.
 Best suited for explaining cause-andeffect (causal) relationships.
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Contact Methods
• Mail surveys
• Telephone surveys
• Personal interviews:
 Individual
interviewing
 Focus group interviewing
• Online marketing research:
 Internet
surveys and online panels
 Experiments
 Online focus groups
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Sampling Plan
• Sample:
 Segment
•
of the population selected to represent
the population as a whole.
Sampling requires three decisions:
 Who is to be surveyed?
• Selecting the sampling unit.
 How
many people should be surveyed?
• Referred to as sample size.
 How
should the people in the sample be
chosen?
• Describes the sampling procedure.
• Probability vs. nonprobability samples.
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Research Instruments
• Questionnaire decisions:
 What

questions to ask?
Form of each question?
• Closed-ended
• Open-ended


Wording?
Ordering?
• Mechanical devices:
 People
meters, checkout scanners, eye
tracking devices, neuromarketing.
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Implementing the Research Plan
• Collecting the data:
 Most
expensive phase
 Subject to error
• Processing the data:
 Check
for accuracy
 Code for analysis
• Analyzing the data:
 Tabulate
results
 Compute statistical measures
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Interpreting and Reporting Findings
• Interpret the findings
• Draw conclusions
• Report to management:
 Present
findings and conclusions that
will be most helpful to decision making.
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Analyzing and Using Marketing
Information
• Customer relationship management
(CRM):
 Managing
detailed information about
individual customers and carefully
managing customer “touch points” in
order to maximize customer loyalty.
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Analyzing and Using Marketing
Information
• Many companies utilize CRM.
 Captures
customer information from all
sources
 Analyzes it in-depth
 Applies the results to build stronger
relationships
• Companies look for customer touch points.
• CRM analysts develop data warehouses
and use data mining techniques to find out
information about customers. Findings
may lead to new marketing opportunities.
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Customer Relationship Management
(CRM)
• Benefits of CRM:
 Ability
to offer better customer service
and develop deeper customer
relationships.
 Pinpoint and target high-value
customers more effectively.
 Enhances the firm’s ability to cross-sell
products and develop offers tailored to
customers.
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Distributing and Using Marketing
Information
• Marketing information systems (MIS)
must make information readily
available for decision making:
 Routine
information for decision making.
 Non-routine information for special
situations.
• Intranets and extranets facilitate the
information sharing process.
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Other Marketing Information
Considerations
• Small businesses and nonprofit
•
•
organizations can also benefit from
marketing research insights.
International marketing research is
growing but presents unique challenges.
Misuse of marketing research can harm
consumers. Public policy and ethics in
marketing research is concerned with:
 Intrusions
on consumer privacy
 Misuse of research findings
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Rest Stop: Reviewing the Concepts
1.
2.
3.
4.
5.
Explain the importance of information in gaining
insights about the marketplace and customers.
Define the marketing information system and
discuss its parts.
Outline the steps in the marketing research
process.
Explain how companies analyze and use
marketing information.
Discuss the special issues some marketing
researchers face, including public policy and
ethics issues.
Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall
4 - 30