Transcript Marketing Research

MARKETING
INFORMATION
SYSTEMS (MIS)
GATHERING INFORMATION

The Marketing environment is changing at
an accelerating rate , so the need for real
time market information is greater than
anytime in the past.

The shifts are dramatic : from local to
national to global marketing from buyer
needs to buyer wants , from price to nonprice competition.
GATHERING INFORMATION

As companies expand their geographical
market coverage , their managers need
more information more quickly.

As incomes improve , buyers become
more selective in their choices of goods,
to predict buyers responses to different
features , styles and other attributes ,
sellers must turn to MARKETING
RESEARCH.
GATHERING INFORMATION
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Fortunately , the exploding information
requirements have given rise to
impressive new information technologies
: computers , cable television, copy
machines , fax machines , scanners ,
audio and video recorders , video disc
players , CD-ROMs , Camcorders , cellular
phones and most impressive of all , the
internet.
THE COMPONENTS OF A
MODERN MARKETING
INFORMATION SYSTEM (MIS)
MARKETING IS BECOMING A
BATTLE BASED MORE ON
INFORMATION THAN ON
SALES POWER
MARKETING INFORMATION
SYSTEM ( MIS )

MIS consists of people ,equipment and
procedures to gather , sort , analyze ,
evaluate, and distribute needed , timely
and accurate information to marketing
decision makers.
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Every firm must organize and distribute a
continuous flow of information to its
marketing managers.
MARKETING INFORMATION
SYSTEM ( MIS )

Some firm have developed marketing
information systems that provide management
with rapid and incredible detail about buyers
wants preferences and behavior. Ex : COCA
COLA ( co. know customer prefer cans) &
KIMBERLY- CLARK co. KLEENEX brand
managers understand that consumers blows
his/her nose 256 times a year. & some of
apparel brand managers also know the
consumer preferences.
MARKETING INFORMATION
SYSTEM ( MIS )
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Marketers also have extensive information
about consumption patterns in other
countries .
Ex: SWISS – CHOCOLATE
GREEK-CHEESE
IRISH-TEA
AUSTRALIA-SMOKE CIGARETTES
INDIA-………..
MARKETING INFORMATION
SYSTEM ( MIS )

In today’s information – based society ,
companies with superior information
enjoy a competitive advantage .

The company’s marketing information
system should represent a cross b/w what
managers think they need , what
managers really need and what is
economically feasible.
MARKETING INFORMATION
SYSTEM ( MIS )

An internal MIS committee can interview
a cross – section of marketing managers
to discover their information needs.
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Some useful questions are
What decisions do you regularly make ?
What information do you need to make
decisions?
1.
2.
MARKETING INFORMATION
SYSTEM ( MIS )
3.
4.
5.
6.
7.
What information do you regularly get ?
What special studies do you periodically
request ?
What information would you want that you
are getting now ?
What information would you want daily ?
Weekly ? Monthly ? Yearly ?
What magazines and trade reports would
you like to see on a regular basis ?
MARKETING INFORMATION
SYSTEM ( MIS )
8.
9.
10.
What topics would you like to be kept
informed of ?
What data analysis programs would you
want ?
What are the four most helpful
improvements that could be made in the
present marketing information system ?
MARKETING INFORMATION
SYSTEM ( MIS )

A Marketing information system is
developed from
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Internal company records
Marketing intelligence activities
Marketing research and
Marketing decision support analysis.
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INTERNAL COMPANY
RECORDS
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Marketing managers rely on internal reports on order , sales , prices ,
costs/budgets , inventory levels , receivables , payables , and so on .
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By analyzing this information , they can spot important opportunities and
problems .
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The order-to-payment cycle ex: wal-mart .(track the stock levels of its
product daily and its computers send automatic replenishment orders to
its vendors.
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Sales information systems - timely and accurate to managers (shares
its sales data with its larger suppliers).
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Databases , data ware houses and data mining.- will score data of
different customers according to their purchases, frequency and monetary
value. And also co., can” mine” the data and garner fresh insights into
neglected customer segments , recent trends and other useful
information.
The Marketing intelligence
system
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A Marketing Intelligence System is a set of
procedures and sources used by managers to
obtain everyday information about
developments in the Marketing environment.
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Marketing Managers collect marketing
intelligence by reading books , newspapers and
trade publications , talking to customers ,
suppliers and distributors , and meeting with
other company managers .
MARKETING RESEARCH
SYSTEM
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Marketing mangers often commission
formal marketing studies of specific
problems and opportunities.
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They may request a market survey , a
product – preference test , a sales
forecast by region or an advertising
evaluation.
Marketing Research
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“Is the systematic and objective search
for and analysis of information relevant to
the identification and solution of any
problem in the field of marketing”.
Definitions
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Still and Cundiff has defined Marketing
Research as “Marketing Research is the
systematic, recording and analysing of
data about marketing problems towards
the end of providing information useful in
marketing decision marketing”.
Philip Kotler
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“Marketing Research is the systematic
problem analysis model building and fact
finding for the purpose of improved
decision making and control in the
marketing of goods and services.”
J.B. Giles
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“The objective and systematic collection,
recording, analysis, interpretation and
reporting of information about existing or
potential markets, market strategies and
tactics and the interaction between
markets, marketing methods and current
or potential products or services”.
Clark and Clark
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“Marketing Research is the careful and
objective study of product design,
markets and such transfer activities as
physical distribution and warehousing,
advertising and sales management.”
American Marketing
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“ The systematic gathering, recording and
analysis of data of problems relating to
the marketing of goods and services.”
A.B.Blankenship & J.B. Doyle
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“Marketing is the collection and
interpretation of facts and help marketing
management to get products more
efficiently into hands of the consumer.”
Websters 20th Century Dictionary
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As a careful, patient, systematic,
diligent (careful) inquiry or examination
in some field of knowledge under taken
to establish facts or principles.
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It’s a method for the discovery of true
values in a scientific way.
From the above definition of the different writers it
becomes abundantly clear that marketing
research is the collection and interpretation of
facts that help marketing management to get
products more efficiently it to the hands of the
consumers.
Development of Marketing Research
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Sample survey was the main Instrument of marketing research in
early days this was the position in 18th century when children were
sent to markets for sampling of the goods and products.
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Also sampling surveys to calculate the births and deaths.
Estimates the size of labor force.
Mr. H.N. Mekinney asked all state publishers of periodicals, need
statistics tables & figures for his for his analysis in 1879 (He was
the pioneer in statistics analysis)
Harrow Gale Mailed Questionnaires during 1885 to get opinions on
Advertising.
During 1920 Marketing research was recognized as a business tool
there on it moved forward and matured and see it today as full
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fledged field
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AIMS $ OBJECTIVES
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The Aims of the marketing research and analysis may be stated as follows.
1.
To define the problem market for a specialized product and to report on general
market conditions and tendencies, buying habits etc.
To assess competitive strength and policies.
To estimate potential buying power in various areas.
To indicate the distribution methods best suited to product and the market.
To know the companies expected share of the market.
To assess the probable volume of future sales.
To know about customer acceptance of the product.
To study the requirements regarding the product.
To understand why customers buy the product.
To Identify marketing opportunity or problems.
marketing research is very important in developing marketing strategies.
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IMPORTANCE OF MARKETING RESEARCH
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Marketing Research serves two major functions; it
provides information for decision making and it
develops new knowledge.
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The Information gathered by the marking research
reduces the risk involved in decision marking. It is
very important in developing marketing strategies.
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It is greatly used by firms which produce branded
products, to know the competition of that brand with
other brands and the popularity of their product
among consumers.
Elements of marketing Research
1.
Market research: It covers the aspects regarding size and nature
of the market including Export markets, dividing the consumer in
terms of their age, sex, income (Market segmentation).
1.
Sales Research: It relates to the problem of regional variations in
sales, measurement effectiveness of sales man, Evaluation of
sales methods and incentives etc.
1.
Product research: It relates to the analysis of the strengths and
or weakness of existing product ,product testing, problems
relating to diversification, product line decisions.
2.
Packaging Research: In essence it is part of product research.
But recent development in packaging and its contribution to
advertising has led to it to occupy an independent position of
packaging and its impact.
Elements of marketing
Research
1.
2.
3.
Advertising Research: It undertakes a study
relating to the preparation of the advertisement
copy (copy research) the media to be used (media
research) and the measurement of advertising
effectiveness.
Export marketing Research: This research is
intended to study the export potentials of the
product.
Business Economics Research: Forecasting
price and profit analysis preparation of break ever
charts.
The following are the branches of Marketing
Research
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Overseas Marketing Research
Retail store Investigations
Industrial Equipment and consumer durables Research
Product Research
New Product Research
Price Research
Distribution Research
Service Research – Insurance, Medical care, Beauty care, credit facility,
repairs, after sales services etc.
Consumer Research
Sales Research
Brand Image Research
Shop Audits
Dealer surveys
Advertising Research
SUPPLIERS OF MARKETING
RESEARCH
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A company can obtain marketing research
in number of ways .
Most large companies have their own
marketing research departments.
Small companies can hire the services of
marketing research firms or conduct
research in creative and affordable ways
such as engage students or professors,
using the internet , checking out rivals
etc..
Marketing Research Process
Effective marketing research involves the six steps as show in figure.
Define the problem and Research objectives
Develop the research plan
Collect the information
Marketing Research Process
Analyze the information
Present the findings
Make the decision
1.DEFINE THE PROBLEM &
RESEARCH OBJECTIVES
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Marketing management must be carefully
define the problem whether the new product
is successful , what services customers like ,
and what are new services customers like
and how would other copy it ?
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Some research is exploratory – real nature
of the problem , some is descriptive – how
many would buy that ? And some research is
causal – cause and effect relationship.
2.DEVELOP RESEARCH PLAN
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The second stage of marketing research
calls for developing the most efficient
plan for gathering the needed information.
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The marketing manager needs to know
the cost the research plan before
approving it. (the outcome/profits should
not be the same of those ).
2.DEVELOP RESEARCH PLAN
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Designing a research plan calls for
decisions on the
Data sources
Research approaches
Research instruments
Sampling plan &
Contact methods.
2.DEVELOP RESEARCH PLAN
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Data sources – secondary data , primary or
both.
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Researchers usually start their investigation by
examining secondary data to see whether the
problem can be partly or wholly solved without
collecting costly primary data.
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When the needed data do not exist or updated ,
inaccurate , incomplete or unreliable , the
researcher will have to collect primary data.
2.DEVELOP RESEARCH PLAN
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Research approaches – data can be
collected in five ways through
observation , focus group , surveys ,
behavioral data , experimental- trying new
products and other marketing activities .
2.DEVELOP RESEARCH PLAN
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Research Instruments – marketing
researchers have a choice of three main
research instruments in collecting data –
questionnaires , psychological tools &
mechanical devices.
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Questionnaires – a questionnaire consists of
a set of questions presented to respondents .
questionnaires need to be carefully developed ,
tested and debugged before they administered
on a large scale.
2.DEVELOP RESEARCH PLAN
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Psychological tools – marketing
researchers can probe a buyer’s deeper belief
and feelings using psychological tools such as
depth interview and other techniques.
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Mechanical devices – are occasionally used
in marketing research . Galvanometer (detecting
electric currents) measure the interest or
emotions aroused by exposure to a specific ad
or picture.
2.DEVELOP RESEARCH PLAN
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Sampling plan- after deciding on the
research approach and instruments , the
marketing researcher must design a sampling
plan
Sampling unit – who is to be surveyed ?
Sample size – how many people should be
surveyed ?
Sampling procedure –how should the
respondents be chosen
2.DEVELOP RESEARCH PLAN
 Contact
methods – once the sampling
plan has been determined , the marketing
researcher must decide how the subject
should be contacted : mail , telephone ,
personal , or online interview.
3. Collect the information
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The data collection phase of marketing research is generally
the most expensive and most prone to error .
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In case of surveys – four major problems arise i.e., some
respondents will not be at home and must be re contacted
or replaced .other respondents will refuse to cooperate .still
others will give biased or dishonest answers.
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Yet data collection methods are rapidly improving , thanks
to computers and telecommunications.
4.Analyze the information
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The marketing research process is to
extract findings from collected data .
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The researcher will use statistical
techniques and decision models to
discover findings.
5. Present the findings
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The researcher should present findings
that are relevant to the major marketing
decisions facing management.
6. Make the decision
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The managers who commissioned the
research need to weigh the evidence.
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Top management take the decisions after
some insights into the problem.
MARKETING DECISION
SUPPORT SYSTEM (MDSS)
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Marketing decision support system
(MDSS) as a coordinated collection of
data , systems , tools and techniques with
supporting software and hardware by
which an organization gathers and
interprets relevant information from
business and environment and turns it
into a basis for marketing action.
CONCLUSION
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One major reason for undertake
marketing research is to discover market
opportunities . Once research is complete
, the company must carefully evaluate its
opportunities and decide which markets
to enter . Once , in the market , it must
prepare sales forecasts based on
estimates of demand.