Fundamentals of Marketing

1. Chris Banman Fall 2010 471.21 Providence College Fundamentals of Marketing

2. Chapter 8 Decisions Go Better with Information

3. Topics • MIS • defining & solving marketing problems • “scientific approach” to marketing • observing • questioning • experimenting • data • secondary • primary

4. A Complete MIS new information market research marketing models questions answers outcomes (sales, profit, customer relations, etc.) databases (data warehouses) Decision Support Systems internal data Marketing Manager information technology specialists external data

5. MIS • a barely-visible revolution • a competitive advantage • a core part of the marketer’s job • when they work • available • accessible • fast • easy • clear

6. MIS • “out”-sourcing

7. Ethical Issues in Research • unauthorized disclosure of personalized info • PIPEDA • disguised sales pitches • withholding information • lying with statistics • deliberate • “delusional”

8. Research Requires Cooperation That overpaid Marketing Manager is clueless – she doesn’t even know how a chi-square is computed! That marketing research geek doesn’t understand my business – he doesn’t even know my competitors!

9. The “Scientific” Method early identification of solution 3: get problem- specific data 1: define the problem 2: analyze the situation 4: interpret the data 5: solve the problem

10. Define the Problem • setting research objectives • problem-based • find the right problem level • problems vs. symptoms • opportunity-based

11. Situation Analysis informal What could we know already? read files letters reports magazines available research pick brains current past Analyze the Situation “a lot for a little” don’t jump to conclusions look for contradictions

12. secondary internal company files intranet MIS sales-people Management Accounting external internet governments trade associations universities private research firms primary questioning individual interviews surveys group focus groups panels observing mechanical personal Get Data

13. primary questioning quantitative formal qualitative open-ended questions formal or informal observing costs coming down monitoring behaviours surveys mail online telephone in-person in-store in-mall door-to-door Get Data

14. primary questioning quantitative formal qualitative open-ended questions formal or informal observing common checkout scanners rarer field observation Get Data

15. “Experimental” Method average product interest 1 2 3 4 5 ½ see ad #1 representative group of customers ½ see ad #2 representative? similar? significant? situation? random? consistent? double-blind? durable? acted on?

16. Interpret Data Have you moved in the last year? no yes Do you have caller ID? no 86% 90% 77% yes 14% 10% 23%

17. Interpret Data • “near-scientific” data • population • sample • variability • reliability • validity • confidence interval

18. Solve Problem • results • quality? • effective? • actionable • known by decisionmakers • implemented money time forethought

19. International Marketing Research • locally • gather information • internationally • coordinate & standardize data

20. Info Cost-Benefit Analysis • reducing risk • Cost VERSUS value

21. MIS Marketing Information System Intranet Data warehouse DSS Decision Support System search engine marketing model marketing research scientific method marketing research process situation analysis secondary data primary data research proposal qualitative research focus group interview quantitative research response rate consumer panel experimental method complimentary product statistical packages Hypotheses population sample random sampling confidence interval validity Key Terms