Chapter Four

1. Chapter Four Managing Marketing Information

2. Managing Marketing Information • To produce superior value and satisfaction, companies need information at every turn. • Running out of information is not an issue, but seeing through the “data smog” is. • Marketing managers can be; • Buried • Burdened; and • Burned out by information overload.

3. Managing Marketing Information • Despite this abundance of information, managers complain about “lack of information”. • The reason is a company’s inability to get the right information, at the right time, in the right formto help marketers make better decisions. • Thus, companies design effective marketing information systems (MIS).

4. Managing Marketing Information Information Users (Marketers) Analysts Planning Control Implementation MIS Developing Needed Info Assessing info needs Distributing & using Info Info Analysis Internal Database Marketing intelligence Marketing Research Marketing Environment Target Markets Publics Macro Mkt Channels Competitors

5. Managing Marketing Information • MIS • In designing MIS, the company must consider the needs of all the users. • A good information system balances the information users would like to have and the information they need to have. • Sometimes, companies can not provide information either because it is not available or because of MIS limitations. • Finally, the cost of obtaining information and benefit of using shall be weighed against each other.

6. Managing Marketing Information • Developing Needed Information • Internal Data • Electronic collections of consumer and market information obtained form data sources within the company network. • Accounting department (financial records of costs, sales, cash-flows) • Operations dept. (production schedules, shipments & inventories) • Marketing dept. (customer transactions, demographics, buying behavior). • Customer Service dept. (customer satisfaction and service problems) • Sales force reports. (reseller reactions, competitors activities) • Channel partners (point-of-sale transactions and reactions)

7. Managing Marketing Information • Developing Needed Information • Marketing Intelligence • The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. • Quizzing the competitors employees • Executives, engineers & scientists • Purchasing agents • Sales force • Benchmarking competitors products • Observing competitors and monitoring their published information • Analyzing their products, patents and monitor sales

8. Managing Marketing Information • Developing Needed Information • Marketing Intelligence (continued) • Researching the internet about them • Annual reports, business publications, trade show exhibits, press release • A simple job posting can be very revealing • Microsoft finding out Google’s job posting for OS engineers. • Bill Gates responded well. • Online Data bases • More than 3,000 online data bases about businesses • This game is TWO ways • Unilever not only trains their employees in getting information but also in protecting company information from competitors.

9. Managing Marketing Information • Developing Needed Information • Marketing Research • Sometimes companies buy information collected by outside consultant and use it. • But sometimes, it is either not available or not dependable, then it undertakes a Marketing Research Program. • Defining the problem and research objective • Marketing managers and researchers must work closely together to define the problem and agree on objectives. • Marketers best understand the decision for which information is needed; researcher best understands marketing research & how to obtain the information.

10. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Objective of the research • Exploratory Research – preliminary information that will help define problem and suggest hypothesis. • Descriptive Research – to describe problems, situation or markets such as demographics, attitudes of people etc. • Causal Research – marketing research to test hypotheses about cause-&-effect relationships.

11. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Research objectives must be translated into specific information needs; • A Spaghetti Soup company wants to introduce New Microwave Bowl which will allow consumers to heat the soup and eat without dishes. • The research might call for the following information: • The demographic, economic & life-style characteristics • Consumer-usage patterns for spaghetti & related products • Retailer reactions to the new packaging • Forecasts of sales of both new and current packages

12. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Secondary Data • Commercial data services and data sources • Companies can buy secondary data reports from outside suppliers. • Primary Data

13. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Contact Methods

14. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Survey Research – by directly asking people about their knowledge, attitudes, preferences or buying behavior. • Telephone interviewing • Personal interviewing • Group interviewing (focus group) • Online marketing research • Internet surveys • Online panels • Experiments • Online focus groups

15. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Sampling Plan • Drawing conclusions about large group of consumers by studying a small sample of the whole. • Three considerations while sampling; • Who is to be surveyed? • for a vehicle; husband, wife, children, family members, dealers, who would have the information? • How many people should be surveyed? • if well chosen, sample of 1% can give accurate estimates? • How should the sample be chosen? • procedure of sampling; table on the following slide illustrates the point.

16. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Sampling Plan/Procedure

17. Managing Marketing Information • Developing Needed Information • Marketing Research (continued) • Research Instruments • Questionnaires • Mechanical devices • Analyzing Marketing Information • CRM • an electronic Data Warehouse that keeps data from every customer “touch point” i.e.; • Customer purchases • Sales force contacts • Service and support calls • Web site visits • Credit and payment interactions • Market research studies.

18. Managing Marketing Information Assignment Real Marketing Harrah’s Hits the CRM Jackpot (Principles of Marketing, 12th Edition, page 108-109)

19. Managing Marketing Information • Distributing and using marketing information • All kinds of marketing information has no value until used in a decision by a manager. • Information distribution involves entering information into databases and making it available in a timely and user-friendly way. • Company intranet could be used to share information i.e. research information, stored reports, shared work documents & contact information for employees and stakeholders.