Transcript Ch. 4

4
Managing Marketing
Information
ROAD MAP: Previewing the Concepts
• Explain the importance of information to the
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company and its understanding of the marketplace.
Define the marketing information system and
discuss its parts.
Outline the steps in the marketing research process.
Explain how companies analyze and distribute
marketing information.
Discuss the special issues some marketing
researchers face, including public policy and ethics
issues.
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The Importance of Information
• Companies need
information about
their:
– Customer needs
– Marketing environment
– Competition
• Marketing managers
do not need more
information, they
need better
information.
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Information Overload
“In this oh so
overwhelming
information age, it’s
all too easy to be
buried, burdened,
and burned out by
data overload.”
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The Marketing Information System
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Marketing Information System
• An MIS consists of people, equipment, and
procedures to gather, sort, analyze,
evaluate, and distribute needed, timely,
and accurate information to marketing
decision makers.
• The MIS helps managers to:
1. Assess Information Needs
2. Develop Needed Information
3. Distribute 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.
• Have to decide whether the benefits of
more information are worth the costs.
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Developing Marketing Information
• Internal Databases: Electronic collections of
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information obtained from data sources within
the company.
Marketing Intelligence: Systematic collection
and analysis of publicly available information
about competitors and developments in the
marketing environment.
Marketing Research: Systematic design,
collection, analysis, and reporting of data
relevant to a specific marketing situation facing
an organization.
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Marketing Intelligence
Procter & Gamble admitted
to “dumpster diving” at rival
Unilever’s Helene Curtis
headquarters. When
P&G’s top management
learned of the questionable
practice, it stopped the
project, voluntarily
informed Unilever, and set
up talks to right whatever
competitive wrongs had
been done.
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The Marketing Research Process
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Defining the Problem & Objectives
Exploratory
Research
Gather preliminary information
that will help define the problem
and suggest hypotheses.
Descriptive
Research
Describes things (e.g., market
potential for a product,
Demographics, and attitudes).
Causal
Research
Tests hypotheses about
cause-and-effect
relationships.
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Defining the Problem
Burke helps clients
define the problem
and offers a
solution.
Click the picture above to play video
4-12
Developing the Research Plan
• Includes:
– Determining the exact information needed
– Developing a plan for gathering it efficiently
– Presenting the written plan to management
• Outlines:
– Sources of existing data
– Specific research approaches
– Contact methods
– Sampling plans
– Instruments for data collection
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Gathering Secondary Data
• Information that already exists
somewhere
– Internal databases
– Commercial data services
– Government sources
• Available more quickly and at a lower cost
than primary data
• Must be relevant, accurate, current, and
impartial
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Online Databases
Dialog puts an incredible
wealth of information at
the keyboards of
marketing decision
makers. Dialog puts
“information to change
the world, or your corner
of it” at your fingertips.
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Primary Data Collection
• Consists of information collected for the
specific purpose at hand.
• Must be relevant, accurate, current, and
unbiased.
• Must determine:
– Research approach
– Contact methods
– Sampling plan
– Research instruments
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Observational Research
• The gathering of primary data by
observing relevant people, actions, and
situations.
• Ethnographic research:
– Observation in “natural environment”
• Mechanical observation:
– People meters
– Checkout scanners
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Observational Research
Fisher-Price set up an observation lab in which it could observe the reactions of
little tots to new toys.
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Survey Research
• Most widely used method for primary data
collection.
• Approach best suited for gathering
descriptive information.
• Can gather information about people’s
knowledge, attitudes, preferences, or
buying behavior.
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Experimental Research
• Tries to explain cause-and-effect
relationships.
• Involves:
– selecting matched groups of subjects,
– giving different treatments,
– controlling unrelated factors, and
– checking differences in group responses.
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Strengths & Weaknesses of
Contact Methods
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Choosing the Sample
• Requires 3 Decisions:
• Sample – segment of
the population selected to
represent the population
as a whole.
– Who is to be
surveyed?
• Sampling unit
– How many people
should be surveyed?
• Sample size
– How should the people
in the sample be
chosen?
• Sampling procedure
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Primary Data Collection
Research Instruments
Questionnaires
• What questions to ask
• Form of each question
•Closed-ended
•Open-ended
• Wording
• Ordering
Mechanical Devices
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People Meters
Supermarket Scanners
Galvanometer
Eye Cameras
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Implementing the Research Plan
Collecting the
Data
Processing the
Data
Research Plan
Analyzing the
Data
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Interpreting & Reporting Findings
Managers and researchers must work together
when interpreting research results.
Step 1. Interpret the Findings
Step 2. Draw Conclusions
Step 3. Report to Management
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Customer Relationship
Management
• Many companies utilize CRM
– Capture customer information from all sources
– Analyze it in depth
– Apply the results to build stronger relationships.
• Companies look for customer touch points.
• CRM analysts develop data warehouses and
use data mining techniques to find
information out about customers.
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Distributing and Using Marketing
Information
Routine Information for
Decision Making
Nonroutine Information for
Special Situations
Information Must be Distributed
to the Right People at the Right Time
Intranets
Extranets
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Other Marketing Research
Considerations
Marketing Research in Small Businesses and Nonprofit
Organizations
International Marketing Research
Public Policy and Ethics in Marketing Research
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Research Services
Roper ASW, Inc.
provides companies
with information
resources “from Brazil
to Eastern Europe; from
Cape Town to Beijing—
if you are there, Roper
ASW, Inc. is there.”
Click Here to Visit RoperASW
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Rest Stop: Reviewing the Concepts
• Explain the importance of information to the
•
•
•
•
company.
Define the marketing information system and
discuss its parts.
Outline the steps in the marketing research
process.
Explain how companies analyze and distribute
marketing information.
Discuss the special issues some marketing
researchers face, including public policy and ethics
issues.
4-30
Q: Within the context of the
marketing information system,
marketing managers can access
information from all of the following
sources except:
1. competitor’s records.
2. internal records.
3. marketing intelligence.
4. marketing research studies.
AK, 7e – Chapter 4
4-31
Q: Two major public policy and
ethics issues in marketing
research are intrusions on
consumer privacy and:
1. cost of primary data.
2. lack of information
availability.
3. misuse of research findings.
4. government interference.
AK, 7e – Chapter 4
4-32
Q: Many people resent telemarketers,
and there are two ways to tackle this
issue:
to legislate stricter controls for the
industry and to allow self-regulation,
which is preferred by the Direct
Marketing Association.
Which approach do you prefer?
1. Stricter regulation
2. Self-regulation
AK, 7e – Chapter 4
4-33